The blockchain space is an extremely exciting industry, moving away from cryptocurrencies, instead being adopted by all kinds of businesses to streamline and secure data. MineBest is at the forefront of this revolution, recently becoming the main sponsor of the annual Hong Kong Blockchain Week.
“There are a few potential risks in the crypto space,” said Peter Tylczyński, MineBest’s Senior VP of Business Development, in a keynote speech at the recent Blockchain Week event. The risks, he explained, were the long-term sustainability of mining operations, a maturing mining industry, and the possible mainstream adoption of crypto.
“We could call this an ASIC race that is developing across the globe,” Tylczyński said, referring to the increasingly powerful machines (ASIC miners) being developed to mine cryptocurrencies. This fast-developing space, combined with the fact that there is “less and less Bitcoin to be mined” is what is causing a strain on the industry, he added.
However, companies that are forward-thinking and proactive can still do very well in this competitive industry. “When MineBest first started back in late 2017, we started off with just one data center and a very small operational capacity of 3MW,” he said. Since then, the company has grown its operations to five data centers in Kazakhstan and China with a total 162MW of mining power and is planning an expansion to over 250MW.
“The mining industry has matured in recent years,” Tylczyński said, adding that it’s not the “cowboy state it used to be.” There are now many players in the sector, many buoyed by a recent boom in crypto prices. So, in order to do well, companies must adapt and grow.
Over the years, MineBest, has diversified from being solely an advanced infrastructure company specializing in cryptographic computing activities to an innovative producer of consumer products. In his presentation, Tylczyński mentioned a mobile phone and an electric city runabout – two products that the company has been working on to diversify its portfolio.
2020: a great year for crypto
Tylczyński summed up a very interesting year in crypto, particularly Bitcoin mining, in which MineBest is heavily invested. There was a halving event, and the price crash in March forced many players to fold. However, there were others who doubled down, confident that the future of crypto was bright.
There have been a few very good developments in the crypto industry, he said, including the fact that Germany now allows banks to receive, store and sell digital assets, G20 countries having established guidelines for future CBDCs, as well as the decision by Paypal to adopt Bitcoin as a payment option.
Meanwhile, the underlying technology behind cryptocurrencies is also seeing a heyday. Blockchain-as-a-Service (BaaS) coming up rather strongly as more and more companies resort to outsourcing their complicated tech tasks to BaaS providers rather than hiring a team of engineers to develop their projects from scratch.
The financial sector at large is also adopting blockchain. Many banks like Goldman Sachs, JP Morgan, Barclays Bank, Bank of America, and HSBC are exploring ways in which they can incorporate blockchain into their system, in an effort to find simpler ways to move funds across borders. Blockchain makes these kinds of transfers cheap, instant, and direct.
Governments too are testing blockchain solutions for various applications like protecting sensitive data, identity management, detecting and preventing corruption, voting, welfare distribution, taxation, and much more. This is why countries like the United Arab Emirates have already executed plans to put 50 percent of government transactions on the blockchain by 2021 to go paper-free.
It is no wonder that blockchain technology is being adopted in all these ways. It seems like the perfect way to kill all these birds with one stone. It is transparent, traceable and every authorized member can follow the path of the product through an updated database.
Blockchain Under One Roof
Hong Kong has long been a place that many foreign investors have targeted in order to penetrate the Asian Market. The country is known for its dynamic business community and fast-paced lifestyle. As an early adopter of blockchain technology, Hong Kong has been able to set examples of how governments and fintech companies can solve problems through the use of blockchain. So, it was no wonder to see the blockchain community huddle under one umbrella at the weeklong “Hong Kong Blockchain Week”.
Due to travel restrictions, the event – organized by NexChange – virtually connected blockchain enthusiasts, community worldwide, governments, industry leaders, academics and innovators, and aid collaborators on both regional and international levels. The event delivered specialist content and expert discussions from all industry leaders working on building a future of blockchain technology and digital assets.
Professionals from all parts of the ecosystem, including investors, government, start-ups, and enterprises gathered for high-impact networking, and technical discussions.
Over 3,000 participants from over 50 countries worldwide watched live webinars, participated in hackathons and exhibitions. The Blockchain Week event, which was first launched in 2019 has cemented Hong Kong’s position as a global business and technology leader for blockchain players. The conference and exhibition provided a virtual event platform for both attendees and participants, with high-profile digitally based interaction.
Peter’s presentation is available to watch on MineBest’s YouTube channel: