Antminer T19 May Not Affect Bitcoin Hash Rate but Keeps Bitmain Ahead
The Antminer T19 by Bitmain may not have a big impact on the Bitcoin network, and it comes out amid the firm’s internal and post-halving uncertainty. Earlier this week, Chinese mining-hardware juggernaut Bitmain unveiled its new product, an application-specific integrated circuit called Antminer T19. The Bitcoin (BTC) mining unit is the latest to join the new generation of ASICs — state-of-the-art devices designed to mitigate increased mining difficulty by maximizing the terahashes-per-second output. The Antminer T19 announcement comes amid the post-halving uncertainty and follows the company’s recent problems with its S17 units. So, can this new machine help Bitmain to reinforce its somewhat hobbled position in the mining sector? T19: The cheaper S19 According to the official announcement, the Antminer T19 features a mining speed of 84 TH/s and a power efficiency of 37.5 joules per TH. The chips used in the new device are the same as those equipped in the Antminer S19 and S19 Pro, though it uses the new APW12 version of the power supply system that allows the device to start up faster. Bitmain usually markets its Antminer T devices as the most cost-effective ones, while the S-series models are presented as the top of the line in terms of productivity for their respective generation, Johnson Xu — the head of research and analytics at Tokensight — explained to Cointelegraph. According to data from F2Pool, one of the largest Bitcoin mining pools, Antminer T19s can generate $3.97 of profit each day, while Antminer S19s and Antminer S19 Pros can earn $4.86 and $6.24, respectively, based on an average electricity cost of $0.05 per kilowatt-hour. Antminer T19s, which consume 3,150 watts, are being sold for $1,749 per unit. Antminer S19 machines, on the other hand, cost $1,785 and consume 3,250 watts. Antminer S19 Pro devices, the most efficient of three, are considerably more expensive and go for $2,407. The reason Bitmain is producing another model for the 19 series is due to what is known as "binning" chips, Marc Fresa — the founder of mining firmware company Asic.to — explained to Cointelegraph: “When chips are designed they are meant to achieve specific performance levels. Chips that fail to hit their target numbers, such as not achieving the power standards or their thermal output, are often ‘Binned.’ Instead of throwing these chips in the garbage bin, these chips are resold into another unit with a lower performance level. In the case of Bitmain S19 chips that don’t make the cutoff are then sold in the T19 for cheaper since they do not perform as well as the counterpart.” The rollout of a new model “has nothing to do with the fact that machines are not selling well,” Fresa went on to argue, citing the post-halving uncertainty: “The biggest reason machines probably are not selling as well as manufacturers would like is because we are on a bit of a tipping point; The halving just happened, the price can go anyway and the difficulty is continuing to drop.” Product diversification is a common strategy for mining hardware producers, given that customers tend to aim for different specifications, Kristy-Leigh Minehan, a consultant and the former chief technology officer of Genesis Mining, told Cointelegraph: “ASICs don’t really allow for one model as consumers expect a certain performance level from a machine, and unfortunately silicon is not a perfect process — many times you’ll get a batch that performs better or worse than projected due to the nature of the materials. Thus, you end up with 5–10 different model numbers.” It is not yet clear how efficient the 19-series devices are because they have not shipped at scale, as Leo Zhang, the founder of Anicca Research, summed up in a conversation with Cointelegraph. The first batch of S19 units reportedly shipped out around May 12, while the T19 shipments will start between June 21 and June 30. It is also worth noting that, at this time, Bitmain only sells up to two T19 miners per user “to prevent hoarding.” Hardware problems and competitors The latest generation of Bitmain ASICs follows the release of the S17 units, which have received mostly mixed-to-negative reviews in the community. In early May, Arseniy Grusha, the co-founder of crypto consulting and mining firm Wattum, created a Telegram group for consumers unsatisfied with the S17 units they purchased from Bitmain. As Grusha explained to Cointelegraph at the time, out of the 420 Antminer S17+ devices his company bought, roughly 30%, or around 130 machines, turned out to be bad units. Similarly, Samson Mow, the chief strategy officer of blockchain infrastructure firm Blockstream, tweeted earlier in April that Bitmain customers have a 20%–30% failure rate with Antminer S17 and T17 units. “The Antminer 17 series is generally considered not great,” added Zhang. He additionally noted that Chinese hardware company and competitor Micro BT has been stepping on Bitmain’s toes lately with the release of its highly productive M30 series, which prompted Bitmain to step up its efforts: “Whatsminer gained significant market share in the past two years. According to their COO, in 2019 MicroBT sold ~35% of the network hashrate. Needless to say Bitmain is under a lot of pressure both from competitors and internal politics. They have been working on the 19 series for a while. The specs and price look very attractive.” Minehan confirmed that MicroBT has been gaining traction on the market, but refrained from saying that Bitmain is losing market share as a result: “I think MicroBT is offering option and bringing in new participants, and giving farms a choice. Most farms will have both Bitmain and MicroBT side by side, rather than exclusively host one manufacturer.” “I would say that MicroBT has taken up the existing market share that Canaan has left,” she added, referring to another China-based mining player that recently reported a net loss of $5.6 million in the first quarter of 2020 and cut the price of its mining hardware by up to 50%. Indeed, some large-scale operations seem to be diversifying their equipment with MicroBT units. Earlier this week, United States mining firm Marathon Patent Group announced that it had installed 700 Whatsminer M30S+ ASICs produced by MicroBT. However, it is also reportedly waiting for a delivery of 1,160 Antminer S19 Pro units produced by Bitmain, meaning that it also remains loyal to the current market leader. Will the hash rate be affected? Bitcoin’s hash rate plummeted 30% soon after the halving occurred as much of the older generation equipment became unprofitable due to the increased mining difficulty. That spurred miners to reshuffle, upgrading their current rigs and selling older machines to places where electricity is cheaper — meaning that some of them had to temporarily unplug. The situation has stabilized since, with the hash rate fluctuating around 100 TH/s for the past few days. Some experts attribute that to the start of the wet season in Sichuan, a southwest Chinese province where miners take advantage of low hydroelectricity prices between May and October. The arrival of the new generation of ASICs is expected to drive the hash rate even higher, at least once upgraded units become widely available. So, will the newly revealed T19 model make any impact on the state of the network? Experts agree that it won’t affect the hash rate to a major degree, as it’s a lower output model compared with the S19 series and MicroBT’s M30 series. Minehan said she doesn’t expect the T19 model “to have a huge impact that’s an immediate cause of concern,” as “most likely this is a run of <3500 units of a particular bin quality.” Similarly, Mark D’Aria, the CEO of crypto consulting firm Bitpro, told Cointelegraph: “There isn’t a strong reason to expect the new model to significantly affect the hashrate. It might be a slightly more compelling option to a miner with extraordinarily inexpensive electricity, but otherwise they likely would have just purchased an S19 instead.” Bitmain continues to hold leadership despite internal struggle At the end of the day, manufacturers are always in an arms race, and mining machines are simply commodity products, Zhang argued in a conversation with Cointelegraph: “Besides price, performance, and failure rate, there are not many factors that can help a manufacturer differentiate from the others. The relentless competition led to where we are today.” According to Zhang, as the iteration rate naturally slows down in the future, there will be more facilities using “creative thermal design such as immersion cooling,” hoping to maximize the mining efficiency beyond just using most powerful machines. As for now, Bitmain remains the leader of the mining race, despite having to deal with the largely defunct 17 series and an intensifying power struggle between its two co-founders, Jihan Wu and Micree Zhan, which recently resulted in reports of a street brawl. “Due to its recent internal issues, Bitmain is facing challenges to keep its strong position in the future thus they started to look at other things to expand its industry influences,” Xu told Cointelegraph. He added that Bitmain “will still dominate the industry position in the near future due to its network effect,” although its current problems might allow competitors such as MicroBT to catch up. Earlier this week, the power struggle inside Bitmain intensified even further as Micree Zhan, an ousted executive of the mining titan, reportedly led a group of private guards to overtake the company’s office in Beijing. Meanwhile, Bitmain continues to expand its operations. Last week, the mining company revealed it was extending its “Ant Training Academy” certification program to North America, with the first courses set to launch in the fall. As such, Bitmain seems to be doubling down on the U.S.-based mining sector, which has been growing recently. The Beijing-based company already operates what it classifies as “the world’s largest” mining facility in Rockdale, Texas, which has a planned capacity of 50 megawatts that can later be expanded to 300 megawatts.
SQUIRE ENTERS INTO NON-BINDING LETTER OF INTENT AND EXCLUSIVE NEGOTIATIONS REGARDING ACQUISITION OF COINGEEK.COM AND 1.0 MILLION TH/S OF MINING ASSETS, FORMING THE LARGEST PUBLIC CRYPTO MINING COMPANY, AND NAME CHANGE TO “COINGEEK TECHNOLOGIES LTD.”
VANCOUVER, British Columbia, Nov. 30, 2018 (GLOBE NEWSWIRE) — Squire Mining Ltd. (CSE:SQR | FWB:9SQ | OTCQB:SQRMF) (“Squire”) is pleased to announce today it has entered into a non-binding letter of intent (the “Agreement”) and exclusivity with Bigfoot Holdings Group Ltd. (c.o.b. as CoinGeek Mining & Hardware) (together with its affiliates, “CoinGeek”) to purchase crypto mining assets owned by CoinGeek and certain of its affiliates representing approximately 1 million terahash/s of computing power (or approximately 960 petahash/s) and other blockchain related assets (the “Assets”), for total consideration of approximately CAD$60.3 million consisting of (i) 114,793,565 common shares of Squire, having a value of CAD$34.4 million based on the closing price of Squire’s common shares on the Canadian Stock Exchange (“CSE”) on November 29, 2018 of CAD$0.30 per share, and (ii) a vendor-take-back note in the amount of CAD$25.8 million, subject to adjustment at closing (the “Transaction”). The Assets The Assets consist of 62,440 ASIC mining rigs, representing approximately 960,000 terahash/s, or approximately 90.0 MW of power consumption, which, upon closing, would make Squire the largest publicly traded crypto mining company globally, as measured by terahash/s. The Assets are all operated by leading hosting providers and are allocated across the United States (35,940 rigs), Canada (6,000 rigs) and Kazakhstan (20,500 rigs). The all-in weighted average operational cost across the Assets being acquired in the Transaction is US$0.073 per kWh. As part of the Transaction, Squire would also be taking on employees and consultants of CoinGeek involved with the management and operation of the assets and acquiring the marketing and advertising assets related to the CoinGeek name including the “CoinGeek.com” website and domain, existing prepayments made to and deposits with the respective hosting partners, as well as CoinGeek’s outstanding global distribution agreement for Squire’s ASIC chips and rigs. Furthermore, as part of the Transaction, Squire would have a twelve-month right of first refusal to acquire CoinGeek’s remaining crypto mining assets. “This Transaction would provide Squire with a leading, recognized brand via the acquisition of the CoinGeek.com and CoinGeek name, but it would also make us the largest, publicly traded Bitcoin miner globally. It is expected to deliver significant shareholder value by enabling Squire to become vertically integrated with our growing chip design and manufacturing business, which we would seek to have commercial within 2019,” said Taras Kulyk, Chief Executive Officer of Squire. “I believe the next phase of growth for this industry is upon us and that means massive scaling of the Bitcoin blockchain to accommodate the throughput needed for enterprises to make use of this technology. By vending my mining and CoinGeek branded assets into Squire, I would be doubling-down on my commitment to Bitcoin’s success. These assets would enable Squire Mining Ltd to compete at a global level to pave a path for enterprise usage of blockchain technology to flourish,” said, Calvin Ayre, owner of the CoinGeek brand. The Consideration As noted above, CoinGeek would receive approximately 114.8 million common shares of Squire as partial consideration for the Assets. CoinGeek has agreed to enter into a voluntary one-year lock up on the common shares received. In addition, CoinGeek will receive an unsecured vendor-take-back (“VTB”) with a face value of CAD$25.8 million, a one-year term and a coupon of 15.0%. The principal amount of the VTB will be adjusted at closing of the Transaction (the “Closing”) to reflect any prepayments or prepaid deposits made in respect of the Assets between the signing of the Agreement and the Closing and by the amount (multiplied by CAD$0.45 per common share) by which the common shares to be issued would have exceeded the common share issued pursuant to the Transaction. In connection with a change of control, CoinGeek would be able to convert the VTB into common shares of Squire, with the number of common shares being equal to the principal amount and any accrued interest payments of the VTB divided by the then market price of the Squire common shares (based on a 30 day volume-weighted average), subject to a discount equal to the lesser of (i) 25%, and (ii) the maximum discount permitted under the policies of the CSE (or such other exchange as the Squire common shares may then be listed). With the launch of Bitcoin SV (BSV), the Squire team is confident that this Transaction would be just the beginning as the company scales to match the anticipated enterprise-level and large volume usage of BSV’s cryptocurrency and blockchain. The BSV roadmap aims to enable massive on-chain scaling, and outlines for the crypto mining sector why that is important for the entire interrelated Bitcoin ecosystem. Much bigger blocks are needed to support higher commercial transaction volume, allowing miners to earn more transaction fees, which is critical for miners to stay profitable as Bitcoin’s block reward halves in 2020 and every several years after that. This is why BSV’s plan will in-turn drive growth in the mining hardware sector, reinforcing the Squire team’s optimism on future growth prospects. Transaction In addition to the negotiation and execution of definitive agreements between Squire and CoinGeek, the Transaction would be subject to a number of conditions, including, among others, (i) Squire being satisfied, in its sole and absolute discretion, with the results of its due diligence review in respect of the Assets, (ii) receipt of the conditional approval of the CSE, (iii) the Transaction not being subject to shareholder approval , (iv) receipt of required consents; and (v) execution of third party software licensing agreements in respect of the Assets. The letter of intent is non-binding and there is no assurance that the Transaction contemplated by it will be completed as proposed or at all. The parties will seek close the Transaction on or about January 31, 2019. In conjunction with the Transaction, Squire intends to change its name to CoinGeek Technologies Ltd. and its fiscal year end from October 31 to December 31. The parties have agreed to an exclusivity period in the letter of intent ending on December 31, 2018, or such other date as the parties may mutually agree. Canaccord Genuity Corp. is acting as exclusive financial advisor to Squire in respect of the Transaction. Upon closing of the Transaction, Calvin Ayre, through the Antiguan Corporation Bigfoot Holdings Group Ltd. (“BHG”), would beneficially own or control 126,418,565 common shares of Squire representing approximately 53.3% of the issued and outstanding Squire common shares. The Squire common shares would be acquired by BHG for investment purposes only. Depending on market and other conditions, or as future circumstances may dictate, BHG may, from time to time, and subject to any contractual lock-up agreements (including the lock-up to be entered into in connection with the Transaction), increase or decrease its holdings of Squire common shares or other securities of Squire in accordance with applicable securities laws. About Squire Mining Ltd. Squire is a Canadian based company engaged, through its subsidiaries, in the business of developing data mining infrastructure and system technology to support global blockchain applications in the mining space including application specific integrated circuit (ASIC) chips and next generation mining rigs to mine Bitcoin SV, Bitcoin Core and other associated cryptocurrencies. About CoinGeek Mining & Hardware CoinGeek Mining & Hardware operates a global fleet of ASIC miners that provide the majority of the hash power to secure and scale the Bitcoin SV enterprise-grade blockchain. CoinGeek’s professional team has developed industry leading practices to ensure its mining fleet operates at maximum performance whilst optimizing its cost profile to maximize profitability. For further information contact: Taras Kulyk, JD, MBA Chief Executive Officer, Director Telephone: +1 (604) 260-6142 The Canadian Securities Exchange accepts no responsibility for the adequacy or accuracy of this release. CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION: This news release includes “forward-looking information” as defined under applicable Canadian securities legislation. Forward-looking information and statements include, but are not limited to, disclosure regarding possible events, the proposed completion of the Transaction including the acquisition of the CoinGeek Assets, together with CoinGeek’s marketing and advertising assets and exclusive distribution agreement, and the consideration and timing thereof, conditions or financial performance that are based on assumptions about future economic conditions and courses of action, the future hash rate, energy consumption performance and all-in weighted average operational cost of the ASIC mining rigs included in the Assets and the Company’s ability to successfully integrate the Assets into its current ASIC chip and mining rig development business. Forward-looking information is necessarily based upon a number of estimates and assumptions that, while considered reasonable, are subject to known and unknown risks, uncertainties, and other factors which may cause the actual results and future events to differ materially from those expressed or implied by such forward-looking information. Such factors include, but are not limited to: general business, economic, competitive, political and social uncertainties, uncertain and volatile equity and capital markets, lack of available capital, future demand for Bitcoin SV, Bitcoin Core and other cryptocurrencies and risks related to the mining thereof, integration issues, personnel and staffing requirements and technological change and obsolescence. See also the Company’s Form 2A Listing Statement dated July 31, 2018 (the “Listing Statement”) filed with the CSE and SEDAR for a discussion of risk factors facing the Company and its development and manufacture of ASIC chips and mining rigs. There are no assurances that the Company will successfully negotiate, enter into and complete a definitive purchase agreement for the Assets on the terms presently contemplated or at all. Actual results and future events could differ materially from those anticipated in such forward looking information. Accordingly, readers should not place undue reliance on forward-looking information. All forward looking information in this news release is made as of the date hereof and qualified by these cautionary statements and those in our continuous disclosure filings available on SEDAR at www.sedar.com. The Company disclaims any intention or obligation to update or revise such forward-looking information, whether as a result of new information, future events or otherwise, except as required by law.
Cryptocurrencies Poised to Finish the Day Positive, Bernstein Report Suggests Bitmain Market Position Deteriorating
Bitmain, the world’s large Bitcoin mining manufacturer, is introducing a new 18 terahash water-cooled mining device. The new rig, called the Antminer S9 Hydro, will have a hashrate of 18TH/s and will consumer ~1,728W.
A research report from Sanford Bernstein suggest that Bitmain’s monopolistic position in the bitcoin mining manufacturing industry is deteriorating. According to the analysis, competitors such as Canann and Ebang International are catching up to Bitmain and cause pricing pressure on Bitmain’s products. The decline in cryptocurrency market valuations have further put downward pressure on Bitmain profitability and returns on capital.
US cryptocurrency exchange Bittrex is partnering with Rialto Trading, a regulated alternative trading system, to launch blockchain-based securities. If the regulators approve of the idea, the Bittrrex-Rialto partnership is looking to launch products like issuance advisory service, placement, trading and custody.
According to Chinese news sources, the Chinese government has blocked domestic traders from accessing 120 overseas cryptocurrency exchanges.
After being hacked this past June, South Korean cryptocurrency exchange Bithumb recorded net profit of USD$35mm for C1H2018. Total revenues were USD$270mm while operating profit was USD$194 in spite of a significant drop in trading volume following the USD$31mm breach in June 2018.
The German Government call for an independent payment system that is free of the United States is being viewed as a net positive for Bitcoin.
LG, the South Korean electronics conglomerate, is strategic focus that emphasizes blockchain. The blockchain platform will emphasize a new decentralized identification protocol which will help LG transition to a completely digital ecosystem that manages customer businesses.
Stockholm IT Ventures AB, a Swedish Block startup, has signed an agreement with Valens Bank to use the BTT Crypto Trading Toolbox for Crypto Fund trading. The agreement will allow professional traders to actively manage digital assets for customers using AI trading tools.
The UK Ministry of Justice is exploring blockchain as a tool to secure digital forms of evidence according to CoinDesk. The idea, as explained by Deputy Director Balaji Anbil is that blockchain technology can be used to assist in handling digital evidence.
London-based Wirex, a Bitcoin wallet and payment card provider, announces it is the 3rd crypto-enabled company to receive a e-money license from the UK financial regulators. Wirex can now issue electronic money and provide payment services throughout the EU and European Free Trade Association.
The World Bank and Commonwealth Bank of Australia have issued a A$100mm (USD$73.16mm) public bond exclusively on a blockchain network.
[GUIDE] How you can help decentralize the network using p2pool and rented hashing power.
Hey guys, After seeing this ghash.io 51% drama play out for the second time I've decided to start contributing to the network using P2pool. I don't own any SHA256 mining hardware aside from a 330mh block erupter, so I started looking around for hashpower for rent that wouldn't cost me too much. I settled on using Betarigs and Nicehash, services that I already use to lease X13 hashpower on my GPU rigs. I found cheap hashing power on these services that would put me close to breaking even. So far the costs have been very small and I have put an average of 2TH on a local p2pool node. It's not much but every GH counts! I've made instructions for renting on both websites. Be warned that P2Pool has a high variance due to their low hashrate, so ideally you would want to mine for a sustained period with a lower hashrate to balance it out. The NiceHash method: You will need:
Create an account at NiceHash.com and add 0.01BTC on the deposit page.
go to http://www.bitcoinx.com/profit/ and work out the amount of coins you will earn per terahash (0.0428 at the time of writing) This is the target price for your order. (please note that orders at a higher price take priority so matching the highest order guarantees that you will get your hashrate but is more expensive)
Click the orders tab at the top of the page and create an order. Select SHA256 from the algorithm dropdown menu. The price per terahash should be slightly higher than the estimate you found on BitcoinX. Check which orders are going through on the front page and try to match that price. Limit the amount of mining power to 1 terahash per second to ensure your miner is going for as long as possible (this means there is less potential for variance).
Find a p2pool node that is close to you. You can use http://p2pool-nodes.info/ for this. Find a node that is close to you and click on the url. Check the efficiency is around 100%. If it isn't, go back and find another node. If the node does fit the criteria you can proceed to the next step.
Put the node URL (minus the http:// and port) into the pool address box on Nicehash. The port (usually 9332) should be put in the port box to the right.
Put your BTC address in the user field and x in the password field. Double check to verify everything is correct and place the order.
You should soon see the hashrate of the p2pool node you are connected to go up and your address show up in the stats field. If this doesn't happen within 20 minutes, either edit your order to have a higher price per TH or wait for the higher priced orders to finish. The Betarigs method This method is cheaper than using Nicehash as you are renting hardware rather than raw hashrate, which you pay a 'convenience fee' for. This is not as straightforward but will cost you less and give you more choice of the rig you want to rent. You will need:
A Betarigs.com account (Sign up on their site for free)
Sign up for a Betarigs account using the register link in the top right of the page and follow the steps to sign up.
At the top left of the page, go to rent a rig and select SHA-256.
Turn on results for all of the available rig sizes and hit search. You will see a list of rigs and their price per day, hashrate and price per TH on the right. The rigs displayed first are the cheapest per TH, placing them closer to breaking even with mining profit (while helping the network. Sweet!)
Find a rig with a low price per TH that is within your price range. You can pick up an Antminer S1 for around 0.008 per 24h, often cheaper. When you've found a rig you would like to rent, click the green 'Rent Rig!' button to the right of the result.
Double check that the information is correct and confirm that you would like to rent the rig. You will be taken to a page with fields for your pool, user and password.
Find a p2pool node that is close to you. You can use http://p2pool-nodes.info/ for this. Find a node that is close to you and click on the url. Check the node's efficiency is close to or above 100%. If it isn't, go back and find another node. If the node does fit the criteria you can proceed to the next step.
Put the node URL (minus the http://) into the pool address box on Nicehash. The port should go on the end of the url in this format - url:port
Put your BTC address in the user field and x in the password field. Double check to verify everything is correct and click 'update the target mining pool'.
Send the exact amount of BTC specified by Betarigs to the address displayed at the top of the control panel. After one confirmation, the rig will start to mine and you will be able to check your status on the p2pool node page soon!
I have around 1.5 TH (!1.2TH from NiceHash, ~300GH from Betarigs) pointed at a local p2pool node, 2-400gh of which should last for 3 days to 1 week. I decided to do this to decentralize the network rather than for profit although I do seem to be breaking even so far. P2Pool varies wildly so a lot of it is down to luck. I may add a picture tutorial if this picks up enough interest, as I aim to make this guide as noob friendly as possible. Please reply with any additions and I will add them to the OP. Thanks for reading and keep hashing! :)
Why Bitcoin will eventually need a constant, positive Inflation Rate - only practical solution for a long term secure network
I'm going to present numbers that show inflation is the ONLY way to secure the bitcoin network in the long term. this problem wont show up for quite a while, until the block reward is negligible...say in the late 2030's early 2040s, but i still think its important to think about early on. Some back ground numbers i will use in my calculations -Visa network handles about 2000 transactions per second = 63B tx/year -All monetary transactions (cash, cc, etc) = 20000 tx/second = 620B tx/year -$400 for a 1 terahash bitcoin mining rig, using about 500W of power -World M2 Money supply is about $60T (US m2 is about $15T) Lets assume bitcoin is the sole world currency. all bitcoins in the world are worth $60T, or about $3M/bitcoin. What is an acceptable cost to gain control of 51% of the network? $10B? no...apple has $80-$100B in just cash on its balance sheet. $100B? no, again see apple's cash. $500B? Defense dept spending is about that per year. Getting there, but i still think it should cost more. somethin in the range of $1T seems right. So we want the ANNUAL miners revenue to be say $1T on a monetary base of $60T (about 1.7%) Can this $1T come from transaction fees alone? no. Here's the numbers on a cost per tx basis. $1T/620B tx per year = $2.90 per transaction. Not feasible at all. Thats more expensive than credit cards, and its a fantasy if people believe the anonymity gains etc will be enough for people to agree to those insanely high fees. Does off blockchain transactions help? no. Again, the miners need to get that $1T somehow. off blockchain just means few tx numbers but higher per tx fees. The total product is still the same. which ultimately means cost per tx is the same whether its on or off blockchain. So transaction fees and/or off blockchain transactions wont help. What is the other solution? i submit that its a constant inflation rate in the form of an increasing block reward. the block reward should not trend to 0 btc per block by 2140, but instead be set at say 1-4%/year of the current number of bitcoins in existence. with 21M coins in 2040, 630K coins per year or 11 coins per block (instead of the less than 1 coin per block that is currently schedule in the bitcoin protocol). At 3% per year, there would be 30M coins by 2053, 50M coins by 2070, 100M by 2093. inflation is still a set 3% per year. what this does is allow us to get to that $1T/yr in mining revenue while still keeping cost per transaction at say less than 10 cents per tx. 3% of 60T = $1.8T...which would be a very secure network. someone realistically going to spend that much to gain 51% of the network? furthermore logistically it would be tough to get that much. math is tech wrong, but about right. using $400/terahash, that would mean 1.8T/400= 4.5B 1 terahash mining units, consuming 2.3 terawatts of energy. 15TW is average world wide use, so that would mean 2.3/15 = 15% of total energy usage goes to securing bitcoin. Again, these are extreme numbers. maybe i'm being overly paranoid, but i don't see anyone else crunching these numbers, and i'm not comfortable with "we'll deal with the problem when we get to it in 20 years)
Letting my mind wander and with Satoshi's identity secret, I started thinking of purposes to create bitcoin other than the whole united currency thing. I'm no consiracy theorist (mainly because I don't care) but from my understanding bitcoin mining rigs mine by brute-forcing the hash of a block. If that is the case then can it be feasible for maybe not one person but if a pool got modified blocks with something that needed to be decrypted could it happen? Thought it was an interesting concept that may actually be a bit scary once these multi-terahash units come out. TL;DR: What if bitcoin was created by the NSA to give hardware engineers the incentive to make hardware that breaks SHA-256 O_o
First person view of a brand new Cointerra bitcoin miner. It claims a speed of 1.6 terahash. In this review, you'll see a quick look at the miner and even a live demo to show you how loud it can ... Parts Used In This Video: The GPUs: https://geni.us/a1ij2Vx Corsair 450w ATX PSU: https://geni.us/TodEZD The Best Mining Motherboard: https://geni.us/tAHmm I... Iran has issued a bitcoin mining license to Iminer, a Turkish-based company. Iminer will operate up to 6,000 rigs, with a computing power of 96,000 terahash per second (TH/s) in total. Hashflare Bitcoin Mining I Hashflare TeraHash Update // In this video wanted to update you awesome folks on bitcoin mining and how profitable bitcoin mining can be. I love hashflare and use it in ... Free Bitcoin Mining Power 0.10 Tera Hash Cloud Minig Power free 1 tera hash power for bitcoin mine free 1000 ghs cloud mining power free mine 0.1 btc free in week. Category Entertainment; Show ...