If it works, Cosmos’ founder Manning, chairman Martin, and their investors – including former Challenger chairman Mike Tilley and KTM Investments’ Martin Rogers – could make a fortune. But plenty of people have lost big money on bitcoin in the past. In the 2017-2018 rally, bitcoin surged from $US1000 to more than $US19,000 only to topple by 80 per cent over the next year. So why should this time be any different?
People are starting to really understand bitcoin, its digital properties, and how valuable it will be in the Web 3.0 world.
— James Manning, Cosmos Capital
Manning is optimistic after a wave of buying support from the traditional financial establishment. He says bitcoin has similar investment properties to gold – scarcity, store of value, transactional.
“People are starting to really understand bitcoin, its digital properties, and how valuable it will be in the Web 3.0 world,” he says. “As Australians, we can be world leaders in digital mining, like we are world leaders in traditional mining. Our revenue just comes from bitcoin, rather than metals.”
Unlike US dollars, both gold and bitcoin can’t be created with abandon. The complexities of mining gold mean demand often outstrips supply, and a rigid set of software rules ensure there can only ever be 21 million bitcoin in circulation.
To validate and secure transactions on the network, “miners” run purpose-built computers. These machines compete to solve complex maths puzzles, and are rewarded with bitcoin at completion.
As it stands, around 18.6