Bitcoin creator Nakamoto Satoshi designed Bitcoin’s daily production rate for a four-year reduction in the entire network. This is the equivalent of a gold miner in the real world (world is the planet Earth and all life upon it, including human civilization) being able to dig less as time goes by and more rarely. With (or WITH may refer to: Carl Johannes With (1877–1923), Danish doctor and arachnologist With (character), a character in D. N. Angel With (novel), a novel by Donald Harrington With (album),) the increase of difficulty in digging digital currency, mining has become a heavy investment, and professional miners, mines and mining pools have emerged while hash power has also become an essential resource for all parties to expand. Bitcoin hash power is the work productivity of the bitcoin miner (similar to the legal currency printing machine (machine uses power to apply forces and control movement to perform an intended action)). The bitcoin workload proof mechanism is based on random hashing. The hash solution requires computation to ensure that the block information cannot be changed.
Digging bitcoins that used to generate huge profits have triggered the participation of many investors. Bitcoin mining has become increasingly large-scale, specialized, capitalized, and globally engaged. Traditional bitcoin miners (miner is a person who extracts ore, coal, or other mineral from the earth through mining) now need to compete with financial institutions, fund investment banks (bank is a financial institution that accepts deposits from the public and creates credit) and listed companies in order to compete for the smaller output of bitcoin. With the large influx of computing resources, the higher the threshold will become for individuals to participate in bitcoin mining. In order to somewhat break the high threshold and level the playing field, bitcoin miners actively seek change. Chinese miners, that occupy 70 percent of the world’s computing power, have (or having may refer to: the concept of ownership any concept of possession; see Possession (disambiguation) an English “verb” used: to denote linguistic possession in a broad sense as an auxiliary) begun a new exploration in trying to financialize bitcoin hash power. Hash power as represented by the BHP Bank, the capitalization of hash power and the sharing of computing power have begun to come into play.
The purpose of bitcoin is to remove the intermediate links in a transaction, which in this case are the traditional financial institutions. In the traditional transaction process, financial institutions used credibility and letters as endorsements, which served as proof that a transaction would be actualized. However, in the digital currency mining service, with the lack of intermediaries and roles with credit guarantees, the traditional miners cannot use traditional financial means to expand the scale and operation of the mine, and instead must rely more on their own funds (may refer to: Funding is the act of providing resources, usually in form of money, or other values such as effort or time, for a project, a person, a business, or any other private or public) or selling income to pay for equipment costs and high electricity bills. For miners of cryptocurrency, bitcoin is increasingly difficult to dig, the benefits are reducing and most of its revenue is used to pay for electricity and mine (mines, miners or mining may refer to: Mining, extraction of mineral resources from the ground from a mine) maintenance.
The goal of the BHP is to financialize the computing power being used and, on the one hand, attract more social and financial resources (resource is a source or supply from which a benefit is produced) to invest in hash power while, on the other (or The Other may refer to) hand, it will provide miners with financial services that are guaranteed through hash (hashes, hash mark, or hashing may refer to) power assets. This brings up a few questions: How will the financialization of hash power change the fate of traditional miners? Will (may refer to) it bring an end or an opportunity to bitcoin miners?
Essentially speaking, BHP is an infrastructure that operates on a blockchain. It establishes a set of digital currency financial systems by embodying this abstract resource of computing power, similar to a legal currency-based financial system. BHP is a set of financial systems (system is a regularly interacting or interdependent group of items forming an integrated whole) based on BHPC, while (“” is a word in the English language that functions both as a noun and as a subordinating conjunction) BHPC is issued with the endorsement of major digital currencies such as BTC and ETH. In the BHP project, each BHPC is a real-world computing (is any goal-oriented activity requiring, benefiting from, or creating computers) target. BHPC is also the cash in the digital world. It can carry out “exchange” operations of various digital currencies (currency (from Middle English: curraunt, “in circulation”, from Latin: currens, -entis), in the most specific use of the word, refers to money in any form when in actual use or circulation as a) in BHP. The purchase includes BTC, ETH, and various mainstream digital currencies within. In addition, BHPC is a common payment (payment is the trade of value from one party (such as a person or company) to another for goods, or services, or to fulfill a legal obligation) method. Because of its solid value support, BHPC is naturally applicable to all kinds of payment scenarios. The processing fees generated in these payment scenarios will be deducted in the form of BHPC and fed back to BHPC’s support.
BHP is not just (may refer to: Just (surname) “Just” (song), a song by Radiohead Just! (series), a series of short-story collections for children by Andy Griffiths Jordan University of Science and Technology, a) a kind of pass, it is not just a blockchain infrastructure, it is more than just a payment method or a multi-currency wallet; BHP is an attempt to force financialization (is a term sometimes used to describe the development of financial capitalism during the period from 1980 until 2010, in which debt-to-equity ratios increased and financial services accounted for an), or a method (literally means a pursuit of knowledge, investigation, mode of prosecuting such inquiry, or system) of crediting credit for hash power calculations (calculation is a deliberate process that transforms one or more inputs into one or more results, with variable change), even more so, a search for capitalization of hash power assets. The financial risks of hash power are mainly attributed to the mining machine, electricity (is the set of physical phenomena associated with the presence and motion of electric charge) bills and bitcoin prices.
First of all, the mining (is the extraction of valuable minerals or other geological materials from the earth, usually from an orebody, lode, vein, seam, reef or placer deposit) capacity has been greatly improved, the calculation power (typically refers to either: Power (physics), meaning “energy for work” or Power (social and political), meaning “collected or hoarded ‘powers of society’ (empowerments).” Otherwise it may refer to) of the entire network has skyrocketed, and day-to-day mining costs have decreased. Secondly, the price of electricity and bitcoin, if bitcoin were to collapse, would directly result in electricity expenses accounting for output. The proportion would (modal verbs of English are a small class of auxiliary verbs used mostly to express modality (properties such as possibility, obligation, etc.)) soar. As a result, the profitability of the operator would decrease.
The calculation of financial power, the capitalization of assets, and the sharing of computational power, represented by BHP, have solved the problem of liquidity as though the production rights of bitcoin were evenly divided. Investors participate in power mining without having to deal with mining machines or other cost elements. Just like they would when buying stock in a company.
They can also trade tokens. Like stocks born more than 400 years ago, not only can bitcoin mining raise funds to help investors spread risks, but they can also attract more attention and resources to promote the progress and popularity of blockchain (blockchain, originally block chain, is a continuously growing list of records, called blocks, which are linked and secured using cryptography) technology. It can attract more small and medium-sized miners to add computing resources to BHP to re-invest assets (financial accounting, an asset is an economic resource).
In the blockchain digital assets market such as bitcoin, the original market specifications have yet to be improved, not to mention the new hash power of financial assets. At present, the world’s financial sector adopts a license system, which is convenient on the one hand, and on the other hand (hand is a prehensile, multi-fingered appendage located at the end of the forearm or forelimb of primates such as humans, chimpanzees, monkeys, and lemurs) is conducive to the protection of investors. However, it is currently not included in the scope of supervision.
Rouger Wu, founder of the BHP project, said that ‘Banks currently do not seem to trust the assets of hash power trades as many countries do not have the relevant legal (is a system of rules that are created and enforced through social or governmental institutions to regulate behavior) framework in place yet and companies (company, abbreviated as co., is a legal entity made up of an association of people, be they natural, legal, or a mixture of both, for carrying on a commercial or industrial enterprise) can only do their own way without common standards. Therefore, the financialization of hash power is either a great opportunity or, the end of existing miners’ groups.’
Traditional miners may need to actively embrace this huge disruption to make sure they stay ahead.
For more information and to ask any questions you might have, take a look at the BHP site and sign up your account. Join Telegram now to chat with other investors (investor is a person that allocates capital with the expectation of a future financial return).
BHP is a decentralized blockchain financial platform that provides treasury services as a commitment to issuing digital (usually refers to something using digits, particularly binary digits) currency (BHPC) and provides global customers with financial investment (general, to invest is to allocate money (or sometimes another resource, such as time) in the expectation of some benefit in the future – for example, investment in durable goods, in real estate by) services in the digital currency industry. BHP’s token BHPC is a common value circulation intermediary for all services (may refer to) and financial products of BHP.
With headquarter in Cayman Islands, offices in Singapore, China and United States, it employs more than 50 people all working towards a better, fairer and more efficient financial system for all.