Bitfury missed a $6 billion profit due to lack of faith in Bitcoin [BTC] and other cryptocurrencies

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Forbes Crypto’s latest news highlighted a start-up involved in Bitcoin mining process which lost profits because investors did not believe in it 4-5 years ago.

“Investors missed out on $6 billion worth of Bitcoin by passing on this start-up.”

Bitcoin sure disappointed the market all long this year, but the early birds to invest in BTC are sitting on the throne with some huge gains to date.

One start-up, Bitfury with their main mining operations in Republic of Georgia, Iceland, Canada, Norway had two representatives from the company appeared on an episode of Laura Shin’s Unchained podcast. The duo, Valery Vavilov – CEO and Vice Chairman of the board George Kikvadze discussed the initial stages of the company’s development and the working of their mining operations.

The profit that would be in their hands today sums up to 860,000 BTC if they had found some big investors who believed and pitched in their technology way back then.

Two factors that determine the success of the dozen or so Bitcoin mining companies from the past according to Kikvadze are:

  1. Execution of chip manufacturing
  2. Access to Capital

He also stated:

“I think it was very tough for us to go and convince investors in Silicon Valley and other institutional investors to invest because they would see other companies coming in claiming they had better technology.

Their inability to attract institutional investors resulted in Bitfury to be majorly funded by investors such as Bill Tai.

George Kikvadze added on:

“To all the VCs that didn’t believe or didn’t take that bet — I understand it was early in the game — but at the end of the day, that is an outcome.”

Additionally, Vavilov and Kikvadze have discussed a new development that should help them gain access to more capital for the acceleration of their mining business over the next few years.

He concluded stating:

“We will learn from our past mistakes and intend to limit the share of the network hash rate controlled by a single mining facility to around 10% to 15% in an effort to preserve mining decentralization.”

This is an effort to gain more capital to expand the mining operations. Bitfury took a stake of 49% in Hut 8, a Canadian company with the power to control 35 BTC mining centers in North America and publicly traded on TSX Venture Exchange.

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