Can Bitcoin cloud mining increase its decentralization?

Over the past decade, cryptocurrencies such as Bitcoin have received greater recognition and have also seen greater adoption by institutional investors. Before Bitcoin, decentralized forms of currency and finance were considered impractical.

While the decentralized nature of these currencies has proven to face scalability challenges, Bitcoin and the mining community that supports it have reinvented the financial sector significantly.

Favor Bitcoin decentralization

In the latest episode of the Crypto Conversation podcast, Marco Streng, CEO of Genesis Mining, underlined the role of the mining community within the Bitcoin ecosystem and how innovations such as cloud-based mining operations are helping BTC and its decentralized vision.

In recent times, there has been growing speculation as to how Bitcoin's centralized mining landscape really gave rise to the Chinese province of Sichuan as a mining hub.

Streng stressed that cloud mining can bring increase the number of miners and increase the levels of decentralization, saying "We give everyone the opportunity to enter the mining sector efficiently and better than someone who buys a machine and performs mining at home – and which is basically doomed to fail.

I think it's very important because space is highly centralized but there are more and more large-scale operators that are getting bigger and bigger. ”According to Coin Dance data, Bitcoin's mining landscape is seeing increasing dominance from some mining pools on large scale.

The future green of Bitcoin

Streng also stressed that Bitcoin miners will have to be ready to make changes in the coming months that will make them energy efficient and therefore competitive and sustainable.

He said: "With Bitcoin mining, we can uncork this huge and more than abundant renewable energy resource where, for example, we can build Bitcoin mining farms under water dams or near solar fields or next to wind farms."

He continued adding "I think that in the future of Bitcoin mining, the most efficient miners will manage these mining structures from green or renewable sources and will not contribute much to global warming and even support the renewable energy sector."

The miners' revenues have been steadily decreasing for a number of reasons in the Bitcoin ecosystem, future miners will have to implement smarter solutions to continue operating at a sustainable level.

At the moment, the two biggest concerns for the mining community are energy expenditure and hardware investments. In this regard, Streng believes that cloud-based mining operations and a shift to green energy can benefit not only miners but also the Bitcoin community with a greater degree of "trust" and decentralization.