As we’ve been following for you here on CCN, Cloud Mining has been taking a beating with the precipitous drop in Bitcoin price over the lasts several months. Some reports have as many as 30, 000 miners leaving the industry since BTC has entered the $300-and-below range. Many Bitcoin critics are eager to take this as a sign of Bitcoins inherent weakness of value.
Another reaction by the Bitcoin community could be that home miners re-enter the market. This war of attrition doesn’t necessarily mean there aren’t enough miners. The mix of corporate investors and small-time home miners can change back to the mix it was before the bubble in late 2013. Maybe the problem with Bitcoin has been too many chefs in the kitchen? Bitcoin price in US Dollar values didn’t have any problem rising thousands of percent in value annually when cloud mining was just a novel idea not ready for prime time. It seems the mom-and-pop miners, who were working from home, were doing a fine job by BTC. The difficulty in the algorithm is adjusting as we speak so the CPU rate remains consistent.