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What are your thoughts guys, is it real, mining with these supercomputers or some scam, and how we can make sure before investing in such ventures?


Exascale Power Co., a Portland, Ore.-based company, plans to build a supercomputer in New Mexico that will boost the power of the block chain processing infrastructure. The “One ExaFlop” system will bring parity with the computational power of machine systems and the human brain, allowing for the dawn of a new era of true artificial intelligence, the company claims.


Phase two will be a “One Zettaflop” supercomputer, which is one thousand times larger than the Exaflop system.

“Our mission is to build large data centers with wholesale power contracts for economies of scale, allowing us to provide competitively-priced commodity cloud computing services to improve the human condition,” John Fitzpatrick, CEO of Exascale Power Co, told CCN.

Competitive pricing for cloud computing

The primary purpose of each system is to offer competitively-priced commodity cloud computing services to industry. Economies of scale will allow Exascale to price lower than Amazon, Google, Microsoft and all others per CPU hour, Fitzpatrick said.

The secondary purpose of each system is to accelerate computational research in medicine to cure diseases, and energy research to develop clean, cheap fusion power to improve the human condition.

The tertiary purpose of each system is to scale Bitcoin block chain processing for wider adoption in the global financial system, Fitzpatrick said.

"We will have ready access to nearly the entire electrical grid in the United States, and we will get the very best price at any moment in time as a volume buyer of power," said Fitzpatrick noting that New Mexico is at the intersection of the three major power grids in the U.S.

The Exascale power system architecture includes Mellanox Infiniband fiber, Nvidia chipsets, IBM open source power PC chips and custom ASICS chips for block chain processing.

ASICS processors support Bitcoin at present

With ASICS processors, the bitcoin community has already reached an aggregate global capacity of One Exaflop in block chain processing power, he said.

"The barrier to reaching One Exaflop on Linpack with the technology of today is a 1,000-MW power supply," Fitzpatrick said, “and with the New Mexico location, we will have the ability to scale to Zettaflop capacity in phase two."

Scaling of infrastructure is critical to realizing the promise of block chain processing for the global financial system, he noted.

"The enabling part of building out this bitcoin infrastructure is the mining fees,” Fitzpatrick said, "Any bitcoin miner has the seignorage power of a sovereign nation to create money.”

Also read: Australian alternative currency/banking firm DeMorgan Ltd. to offer free webinar on supercomputers beginning June 17

Company files debt offering

Not only does an exascale system require enormous electrical power, but also enormous financial resources for the projected cost of $50 billion, Fitzpatrick said. The company has filed a debt offering with the Securities and Exchange Commission. “Our rights offering is for debt, convertible to equity at buyer discretion,” Fitzpatrick said. “Our lenders own us.”

The company has a core group of 50 engineers, with staffing of 2,500 required at full system build-out,” Fitzpatrick said, noting the company is currently hiring.

The project marks Exascale’s first foray into bitcoin and block chain processing.

The company brings a 15-year history in financial services and supercomputing.

According to the MIT Technology Review, Fitzpatrick in 2002 was president of JJX Capital, a startup hedge fund company. According to the article, JJX Capital was developing a computer to predict the future price movements of every stock, bond, and commodity traded in the U.S.

According to the Institute of Electrical and Electronics Engineers (IEEE), the U.S. probably won’t build its first practical exascale supercomputer until 2023. To hit that target, engineers will need to do three things. First they’ll need new computer architectures capable of combining tens of thousands of CPUs and graphics-processor-based accelerators. Engineers will also need to deal with the growing energy costs required to move data from a supercomputer’s memory to the processors. Finally, software developers will have to learn how to build programs that can make use of the new architecture.


https://www.cryptocoinsnews.com/wp-content/uploads/2014/11/supercomputer-750x500.jpg

https://www.cryptocoinsnews.com/company-plans-build-50-billion-supercomputer-new-mexico-boosting-block-chain-processing/

Im sure that we'll see more and more countries investing tons of money to become competitive into the Bitcoin mining world as leaders realize Bitcoin will never go away at this point, but I doubt a bit about this. It may be yet another IPO scam. Investors beware.

Will this actually be worth it?

Meaning how many coins are still to be mined and at what price taking into account the halving etc...

This ^^

I don't believe this story will bear fruition for a number of reasons. Mainly that bitcoin could still massively fail, 50 billion USD is a hell of a lot of money to invest on something that isn't a sure thing.

No, IMO.
It would be better for them to invest that money to pucrhase as many Bitcoins as possible and to startups.
They will have a better chance of ROI with less trouble.
And no need to employ 2500+ employees.

It is too much money, and not so easy to take it back. Bitcoin is solid, but who nows what can happen when mining is at end. Would the price rise or lower? Also, mass adoption is a wish many have, but perhaps it would not realize.

ACG MN Announces Luncheon Featuring John Fitzpatrick, CEO of Woodcraft Industries – November 13, 2007 (http://www.businesswire.com/news/home/20071112005009/en/ACG-MN-Announces-Luncheon-Featuring-John-Fitzpatrick#.VdSyFPlViko)

Hey, maybe John Fitzpatrick is carving out a niche.  ::) ::) ::)

https://i.imgur.com/CyjjAMw.jpg

50 billion? come on guys...i believe it when i see it....

"According to the Institute of Electrical and Electronics Engineers (IEEE), the U.S. probably won’t build its first practical exascale supercomputer until 2023"


February 27, 2014

http://nextbigfuture.com/2014/02/john-fitzpatrick-is-forming-company-to.html


some more:

http://www.sec.gov/Archives/edgar/data/50863/000160425514000002/0001604255-14-000002.txt

They are starting a little too late I would say

in germany there is a company that plans to build a mining farm with 1 Exahash of Power. well, we will see how this will end.

Lots of people plan to do lots of things...doesn't mean it will come to fruition.

More hype BS from some guy who thinks he knows what he is talking about..

PFFT $50 billion...

Yes let's invest $50 billion into a miner/supercomputer for bitcoin mining when the total market cap of bitcoin is $4billion.

LOL!

< with apologies for the famatting> http://www.barchart.com/plmodules/?module=secFilings&filingid=9935675&type=CONVPDF&popup=1&override=1&symbol=INTC

Fuck them and the horse they rode in on: https://bitcointalk.org/index.php?topic=1157231

Big players like Intel will eventually come #1 miners, no way the developed nations will let Chinese mining and mining away as the mining gods of BTC. But I doubt some random mexican business is going to spend that much on it.

Looks/Seems very scammy!

And $0.7 billion has disapeared in a couple of days... :D

For bitcoin mining, all you need is :

- RJ45 clamp
- 5km of Ethernet cable
- 20km of electrical power cord
- 100 ethernet switchs gigabit
- hall
- power supply

so 2 engineer and ... 20 electricals workers.  :P

There was a useful thread to help people know if a mining company is a scam or not

https://bitcointalk.org/index.php?topic=878387.msg9697654#msg9697654

I feel like this article is mixing technical terms. Is this an ASIC farm, or an exascale general purpose processor based supercomputer?

Neither, it's a mix of scam and delusion, weighted towards delusion given the quoted communication a few posts up where John Fitzpatrick proposes taking ownership of Intel in exchange for shares in his one-person "company".

another case of never letting the facts get in the way of a good story

bet this thread is continued on by noobs anyways  :-X

Maybe they're building massive cpu farms, why else mention flops?  Maybe they haven't heard of ASIC...  ???

Planning massive data centers like this is pointless.  No one knows what the bitcoin network will look like next week, let alone by the time these centers are powered up and running.  I doubt they will ever see the light of day, let alone be profitable.

You could spend $50 billion on almost anything else, like lottery tickets, and most likely see more return on investment.