Bitminer.cc LTD, a wholly-owned subsidiary of First Bitcoin Capital Corp., was incorporated in 2014 to manage Bitcoin and other crypto-currency mining operations for the company.
Comprised of seasoned hardware and software technology experts with diverse computer and programming backgrounds and education, the company will establish a state of the art mining infrastructure, which will encompass a network of high-powered Bitcoin mining rigs using the latest technology available in the marketplace.
It will also serve as a premiere commodity exchange facilitating the trading and selling of excess capacity or hashing power.
The company is in negotiations with research and development teams to develop a 20 nm application-specific integrated circuit, or ASIC, in order to manufacture and sell bitcoin mining rigs that are high-powered and energy efficient. The company also plans to raise funds to develop a 14 nm chip.
Bitminer.cc LTD has acquired and is currently evaluating equipment to mine Litecoins.
The company will also develop its own unique technology based on Bitcoin protocol with a special emphasis on expanding colored coins, a concept designed to be used with the Bitcoin protocol, where the user can attach specific attributes to the coin and use it to represent any digital or physical property.
Mining Bitcoin or other digital currency is a competitive process that requires a specialized hardware and tremendous computing power in order to solve complex algorithms. Once a computer solves the algorithm, it is awarded a block of Bitcoins. All Bitcoin transactions are tracked and verified by a public transaction ledger, which maintains the public history of all transactions and is continuously updated.
The mining process gets increasingly difficult as more Bitcoins are mined, driving the demand for computing power even higher.
According to a report by Bloomberg, industry experts say that while prospecting may not be an ideal investment for the average individual, it can lead to massive potential earnings for large mining companies that are able to scale operations and save costs on cooling and power, while making their computers more efficient and cost effective. As such, the company plans to join one of the top three Bitcoin pools in the United Stated in order to capitalize on a cloud-computing resource sharing ecosystem.
Recently, the IRS issued its first regulatory ruling on Bitcoin, categorizing the digital currency as “property” that is subject to capital gains. The guideline, according to financial analysts, will provide certainty for Bitcoin investors, along with income-tax liability. In other words, the ruling means Bitcoin investors will be treated like regular stock investors.
“The Internal Revenue Service’s guidance provides clarity for taxpayers who want to ensure that they’re doing the right thing and playing by the rules when utilizing Bitcoin and other digital currencies,” Senator Thomas Carper, a Delaware Democrat, said in a statement to Bloomberg.