This must be good news for lovers of cryptocurrency. At a time when doubts and uncertainties hang over the future of Bitcoin, Japan's GMO is planning to invest 90 million dollars in cryptocurrency mining.
Of recent, the crypto currency world faced what could best be described as a bleak future, with the Chinese government's crackdown on exchanges and the plan to go ahead with a bill to regulate the system. The situation was further compounded when JP Morgan boss Jamie Dimon, criticized and called the cryptocurrency a 'fraud' that will ultimately blow up.
The developments had led to panic selling and then a loss of value in a space of a few weeks, to the point of losing up to $1,000 altogether. Coin owners are still not sure if there's going to be any hope of the currency rising again or if the plummet would continue.
Well, thanks to Japanese digital service firm GMO, which has announced its additional plan to invest $90 million in its forthcoming cryptocurrency mine. This news is coming in no better time than when people were beginning to see Bitcoin and possibly other cryptocurrencies as fraud.
Techwave revealed that the Japanese company on Wednesday held a presentation plan that followed its announcement the previous week. Though GMO has been in existence since the 1990s and already has a cryptocurrency exchange, it has not been mining in the past. Now, the company intends to start mining in 2018.
In the presentation, GMO representatives said that it would commence testing a new 7nm semiconductor chip by the spring. In line with the demo, GMO has so far spent $3 million out of about $90 million (equivalent to about 10 billion yen). The report showed that the initial funding was used for kick starting the development of chip and for working on the facility itself.
Moreover, the GMO representatives announced that a datacenter would be built in Northern Europe. The plan of the company is not only to get involved in mining but to also sell the mining board with the cloud mining center to enable anyone take part in mining.
Another interest from DMM
The other piece of good news is that Japanese e-commerce giant DMM is also interested in investing in cryptocurrency business. The company has announced on its website that it would start moving towards the trial of the scheme by next month. They could even start full production by the end of 2017.
Hope for the Cryptocurrency market
What exactly does this latest development portend for the cryptocurrency market? Now that China and Janie Dimon are casting aspersions on the reputation of Bitcoin and the crypto market, new voices are rising in support of the market. A company that's willing to invest $90 million on a project sure knows what's in it for her.
With this willingness to invest such a huge sum of money in the crypto market, a lot of investors are likely to follow suit. Holders of the coin can now see sum glimmer of hope for their investments. These put together would surely make Bitcoin rise again in price.
But who would the world believe? Is it the Chinese government, Jamie Dimon, GMO or DMM? Soon everything will unravel as we watch on. You can choose who to believe from the pack. Remember, the money belongs to you and you have the right to decide who to trust before investing.