In 2020 all sectors in cryptocurrency collapsed. Starting from developers to cryptocurrency lenders. Many names of founders / developers are unable to handle this problem and even get caught in cases.
One of the $CORZ Cryptocurrency mining companies (Core Scientific) is filing a report on bankruptcy protection. due to the stagnant and declining Bitcoin price, the company’s health is getting worse. In September, the cryptocurrency mining company reduced its holdings of Bitcoin by 1576 BTC at $20,460 amid increasing selling pressure.
B.Riley Financial (a financial services firm), Core Scientific $CORZ largest creditor, wrote an open letter to the company’s shareholders and lenders last week. The financial services company noted that bankruptcy was unnecessary and could have been resolved by submitting a $72 million financial plan.
Core Core Scientific $CORZ’s share price has fallen from a high of $14 to a value of $0.208. The decline in the share price experienced by Core Scientific $ CORZ since its highest price was more than 98%, a fantastic number. No wonder this company filed for bankruptcy protection.
Quoted from CNBC
Core Scientific company $CORZ is still generating positive cash flow. However, the cash was not enough to pay off the financing debt owed on the equipment he leased. The company will continue to operate normally until it reaches an agreement with the company’s debt holders.
Proof Of Work Is A Problem
This incident illustrates that Proof of Work provides a big risk, apart from the large energy consumption and damage to the environment. Then the expensive rental and maintenance costs must be borne by the miner.
Perhaps the best solution is what etherium did yesterday, when they implemented Proof Of Stake by delegating a certain amount of etherium to validate as a miner. Proof Of Stake seems to provide convenience besides not requiring space to place miner tools and maintenance costs.
