Web 3.0:More Major Companies Involved In The Modern Day Gold Rush
The other day we discussed Major Companies Getting Involved With Cryptocurrency.
This covered how we saw the announcement that Deutsche Telecom was getting into the mining of bitcoin. This was just another example of how many companies are starting to penetrate different areas of the industry.
Telecommunications companies (Telcos) are ideally suited for this.
Now we get news that a Chinese firm is going deeper into its mining. This is just another move by this company that is related to Web 3.0.
Coolpad Group Betting On Bitcoin Mining
Coolpad Group is a maker of mobile phones and accessories is setting forth a Web 3.o strategy. Part of it is to get heavily involved in the mining of cryptocurreny.
Chinese telecom provider Coolpad Group is making a major bet on Bitcoin mining, with an investment of about $13.5 million to purchase mining rigs for deployment in North America.
According to a Hong Kong stock exchange filing, Coolpad plans to acquire 2,700 Bitcoin mining servers from Hong Kong-based JingYun Intelligent technology, boosting its current mining computing power from 873,000 TH/s to approximately 1,504,800 TH/s.
This is part of an ongoing process for the company. Since the latter half of 2023, the company focused a fair amount of resources to cryptocurrency activity.
In May, Coolpad announced a $28 million investment plan to purchase shares in Nasdaq-listed crypto asset companies like CleanSpark, ARK 21Shares Bitcoin ETF, Bitwise Bitcoin ETF, Grayscale Bitcoin Trust, and Hashdex Bitcoin futures ETF.
With these two announcements, this puts the total at over $40 million from a single Chinese firm. While the western companies tend to get a lot of attention, the Asian markets are not going to be left behind. This is one example of a company that is diving heavily into crypto.
We can presume this is not the only Chinese entity making such a move. It would not surprise me to see this happening throughout the world. As stated, companies already involved in technology such as telecommunications are well positioned for this. They understand infrastructure while having the technical resources.
Trillions Of Dollars
The numbers grow very quickly when the major players start to get involved. While $40 million is not a lot of money, on a relative scale, it does show the trend that is forming. Capital formation within an industry is crucial for its expansion.
Bitcoin and Ethereum will continue to get a lot of attention. The upcoming release of Ethereum Spot ETFs is likely to set off another way of money flowing into these funds. It might not see the same level of Bitcoin yet it will enter the billions.
It is easy to focus upon market capitalization as the sole metric. Over time, we are going to see this increase substantially. However, there are other areas where big money is going to roll in.
Cryptocurrency is interesting because, while we call it an industry, it really isn't. What we are dealing with is something similar to technology. It could be isolated yet, for the most part, it penetrates other industries. Thus, we are also dealing with entertainment, social media, finance, gaming, AI, and robotics. These are just a few of the industries that will be affected by this.
When we look at each of them, there are some major players. Many will be attacked by smaller players, especially if their industry is seeing fragmentation. However, many, like Coolpad, are going to see opportunity and dump significant resources into it.
Modern Day Gold Rush
We are looking at a lot of money.
At stake is wealth an order of magnitude higher than what we saw so far with the Internet. Ultimately, we could be looking at quadrillions generated through Web 3.0.
Major players are going to have an enormous impact upon that. We even have politicians like Trump discussing crypto. There is no doubt that it is going to be a campaign topic in the upcoming US elections.
For those old enough, we are seeing something that resembles the path of the 1990s. Studying what took place during that period could be of major benefit.
By the late 1990s, in the developed countries, most people had heard of the Internet. Most did not really know what it was nor were they aware of the opportunity. The Dotcom Bubble threw a monkey wrench into the works, with many concluding it was nothing more than vaporware after the market crash.
Obviously this was not the case.
We are at a similar point with Web 3.0. That might not be something on the tips of the tongues of most, cryptocurrency has reached the masses. They are aware of it.
Few, however, are taking advantage of it. While there is talk, what percentage of the planet is truly involved? Even more importantly, how many are actually building something within this realm?
The latter is where the true opportunities reside.
Many will make money betting on their favorite crypto heading up over time. Coolpad is taking this approach in the sense it invested in some ETFs. It is betting on higher bitcoin pricing.
That said, it is also enhancing its opportunities by becoming a miner. This could generate profits that it was not tapping into.
Here we see one of hundreds of ways to get involved. Obviously, mining a major coin like bitcoin is out for the average person. Nevertheless, there are many other ways to form businesses to take advantage of the shift that is occurring.
There is a lot of money at stake. The question is who is going to show up to claim it?
We are already starting to see major companies doing just that. Who else is going to be involved?
Posted Using InLeo Alpha
It seems like a lot of the industry development is outside the US. The issue is we ned more of this development to be on shored since the USA is the most powerful economic country.
The US is dropping the ball on that. Why is the FOREX market located outside the US? Because it botched it up.
We have an anti-crypto administration that is doing all it can to stifle growth. This is pushing development offshore.
Looking forward to those companies here in your post.😊 Thank you for sharing.😊
Wow brother these companies are really betting big on crypto's future growth. It's great how industries beyond finance are getting involved. It's a positive image for crypto and it'll help the adoption very well. I smell exciting times ahead for crypto especially if Trump wins and keeps to his word on crypto
Seeing Chinese companies going for crypto mining is an interesting development. I remember a few years ago, their government banned/was against this and a lot of mining GPUs were discarded or sold for cheap. Seeing them set it up in North America makes more sense. I do agree that this is now the modern age version of a gold rush.
An ironic twist to say the least.
this are the kind of tech moves we are expecting. Big firms are beginning to see the honeycomb entangled in web3. We just need to be prepared.
This article sounds like a motivation to those trying to build and reprimanding to those considering it a waste of time. Seeing companies bet a $40 million, I don't think they see that as a bet instead as an opportunity as you stated, try to ride the bull by the horns while it's still little before it gets big to be more comfortable and seek other opportunities with the ability of riding the bull.
It's so good to see an evolution I can be part of, I might not have huge capital at my reach but I definitely have a web 3.0 social platform [Hive] to build my own, thanks for sharing.
$40 million isnt a lot of money. But, it is one company that could add more. However, it does show the moves that are being made. When we look at the thousands of companies that could dump $40 million, we see how big things can become.