Why bitcoin mining is a waste of money for the UK

The UK’s biggest bitcoin mining company, 3D mining software maker Drake, has said its business model could collapse in 2018 if the government fails to provide it with the funds to fund its expansion.

The firm, which operates at least 12 mines in the UK, says it needs to generate $1.3bn (£1.1bn) of revenue this year to keep going.

Drake’s chief executive, Michael Tuck, said it needed the government to provide more than $3bn.

The UK has been the main international centre for bitcoin mining, and has been credited with creating the virtual currency, which is used to pay for goods and services.

Mr Tuck said the company was not expecting to make a profit this year, but that he believed it would lose its status as a global leader in bitcoin mining.

The government said it was working with the UK’s Financial Conduct Authority to determine if the firm was complying with the law.

But the FSA has warned that it could withhold some of its funding until the firm is in line for another round of funding.

Read more from our Business section here: