Coming from a background in mathematics, Marco Streng became involved with Bitcoin by studying emerging and self-organizing networks. Marco has taken part in the blockchain community since its earliest days and has invested in several Bitcoin and Blockchain related startups. He is co-founder and CEO of Genesis Mining, one of the largest Bitcoin Mining companies as well as the largest Mining Company for Ethereum. In 2016, Marco founded the Logos Fund which was the first regulated Fund for Bitcoin and Cryptocurrency Mining in the World.
Bitcoin is probably the most popular example of blockchain technology. Bitcoin gained as much as 1,935% when it hit a record high of $19,666 in December 2017, before dropping below $3500 in February 2019. Since its lows at the beginning of the year, Bitcoin has staged a major comeback and is currently trading around $9200.
One of several ways to profit from increasing interest in Bitcoin and a rise in the value of the cryptocurrency itself is through “mining”. We recently had the chance to speak to Marco Streng and learn a little more about Genesis Mining and the future of Bitcoin and Blockchain.
What is the state of the crypto mining industry?
Mining has become a heavy industry and it has shifted from the beginning where people were mining at home to really large-scale players, increasing their operations, and of course, the crypto winter now has created a challenge for the whole mining space. Right now, only the most efficient miners can survive, and they are getting more market share, while the others that are not so efficient have to stop and drop out.
What are some of the things you have learned since Genesis Mining started in 2014 to today?
I think we have learned a lot during the past five years at Genesis Mining and we have constantly improved our operations in many ways. These optimizations come from three components. First, of course, you have the chip level, the efficiency on the mining chip. Second, you have the infrastructure level, meaning the data centers, that can be highly optimized for mining. And third, most importantly, you have the expenses and the costs. Specifically, the electricity costs. There is a constant hunt for places in the world where electricity is cheapest and where the mining can be done most efficiently.
How can you grow a business in such a challenging environment?
I think the most important thing is really to be aware of all the factors involved and really to optimize in any way possible. Right now, the crypto winter shows no mercy. So, everyone who is able to really reduce the cost to a minimum and survive these days will be rewarded, because the not so profitable, and not so efficient miners will have to drop out. We have learned over various iterations how to succeed and now we are in this lucky position that we are in the crypto winter and we’re able to perform and even expand our operations.