SEC Refuses License For Kodak’s Bitcoin Mining Hosting
Based on what appears to be short-sighted analysis, the SEC dealt a blow against Kodak, turning down a license would would have facilitated small scale mining contracts for consumers. Kodak has responded by continuing mining operations in Iceland, but without offering the option for the general public to purchase mining contracts.
The SEC’s actions can be seen as a direct attack on customers, and a push towards centralization of bitcoin bitcoin mining.
Earlier in the year, Kodak announced plans to offer two year bitcoin mining contracts, priced at $3,400 for a two year contract. While criticized as “expensive” (when compared to DIY mining option) Kodaks vision of providing bitcoin mining to customers with ease, was certainly a step in the right direction. Even more extreme critics called the offer a “scam” despite the fact not everyone wants to do it themselves, and the contracts could have potentially been very lucrative for customers.
Based on current bitcoin prices, and mining difficulty, customers of this hosting deal would face the potential of a loss if BTC prices remained low. However, many experts project bitcoin to reach over $100,000 in the next 12 months. That could mean the Kodak mining contracts would have been highly profitable for customers after all.
If you believe in the principles of liberty and freedom, you’d may agree that investing into bitcoin mining hosting contracts should be a choice of the customer/investor- and not government. Many people also believe that businesses should be able to offer services/products at whatever prices they’d like, assuming they don’t have a monopoly. Customers/investors can choose to accept, pass, or even compete. Perhaps, the SEC doesn’t see things that way. Maybe they think they need babysit American consumers, and that people aren’t responsible enough to make their own financial choices and take risks. Or, perhaps, they are just extremely pessimistic, and actually believe they were doing a service by limiting the market.
One thing is for sure: Kodak is proceeding with mining operations, privately. If the bitcoin reversal is as strong as some believe it will be, the mining difficulty factor may end up not being such a big deal in the next market cycle, and bitcoin miners may see yet another gold rush. Time will tell.
Even if Kodak’s deal wasn’t the most fair mining contract, the decision against them is may be warning sign. It could mean U.S. government may be taking measures against consumers to prevent decentralization of bitcoin mining. While you might not feel sorry for a large corporation like Kodak, this decision may have implications that mould ultimately hurt small mining hosting start ups. For example, it may deter other mainstream companies from offering offering hosting services to the public.
Fortunately, this news has appeared to not negatively affect bitcoin prices, and bitcoin remains strong.