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Digital Currency Group to Invest $100 Million in Bitcoin Mining

The CEO of Digital Currency Group (DCG), Barry Silbert is quite familiar with the age-old saying that money makes money. DCG is already one of the most influential companies in the current cryptocurrency ecosystem, but now they have announced that they will take on a new venture. With this venture, the company will be able to expand into the constantly growing crypto mining industry. A press release was recently made by DCG regarding this new matter. It was highlighted in the press release that the company had established a new subsidiary and its sole focus would be on cryptocurrency mining.

Establishing Crypto Farms in the United States

Given the name of Foundry, this company was founded last year rather quietly and has accumulated a whopping $100 million in funding in order to begin its operations. The primary focus of this company would be to install crypto mining farms in the United States. This comes off as a strange move to a lot of people. As compared to places such as Iran, the United States is not exactly known for its low electricity bills. Nevertheless, DCG remains confident that the Foundry will not have a problem in getting a head start in this particular matter.

The Legal Certainty can be Beneficial

The first benefit that was highlighted was the strong legal system that exists in the United States, which works in favor of any business operating in the country. In a number of other countries, there is a lot of legal uncertainty when it comes to cryptocurrency mining, as legal and political opinions often class in regard to this issue. A key example of such a clash is none other than China. Even though cryptocurrency is technically legal in the country, there is a clear bias against the industry as a whole by the Chinese government, particularly when it comes to the underground operations.

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The same is applicable in a number of other countries as well, such as Iran and Venezuela, where the country cracks down on it periodically without coming up with any express legislation that bans cryptocurrency. However, Iran seems to have had some luck as it is attempting to tax and regulate the crypto mining industry in the country. Another political argument that can be made is the superiority in Bitcoin hash power that China seems to be enjoying for a while now. This has become a subject for concern for investors, developers and traders, alike.

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One of the most prominent angles that Foundry is going after is to not just focus solely on Proof-of-work (PoW) mining. This has been the traditional practice, but now changes have been made thanks to the huge boom seen in DeFi dApps, along with the Proof-of-Stake (PoS) system that has been adopted by cryptocurrencies like Ethereum and Cardano. Foundry is planning to take advantage of this aspect of the market as well. They be primarily do this with the help of staking pools. How it will turn out, in the long run, remains to be seen.

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📰 Also read:  Southeast Asia Bolsters Groundwork Towards Blockchain and Crypto Hub

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Bentley Kapoor (India)

Bentley is a cryptocurrency enthusiast and trader, his articles are news and platform review based. His writings are brought to you through his 10 years of experience in the cryptocurrency markets.

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