Bitcoin Forum

The planned data center would be capable of consuming up to 135 megawatts of power, which will add it to the list of the highest powered data centers in the world. Wind and solar energy would be the primary source of power for the data center. It is specially designed for high-performance computing and, considering the interest of most investors in the data center, mining of cryptocurrencies such as Bitcoin will be its major application.

Here is the article from Bitmain blog : https://blog.bitmain.com/en/bitmain-to-set-high-standards-with-state-of-the-art-xinjiang-data-center/

Very interesting, is this the datacenter that was discussed around here previously that was a co-ownership and that at full capacity would have a huge share of the networks hashrate? If so I guess this is further proof why they won't have 50%+ hashrate, it's not going to be exclusively for mining Bitcoin...

I guess Bitmain just wants to venture in other things beyond Bitcoin and they do very well. Using renewable energies is also very good. I wonder if they can run miners cheaper than, say, HaoBTC.

Also, this thread should probably be on mining since it talks about something that is designed to (also) be a mining facility :)

Very big, ah? What's the total investment?

What a challange for all miners... But what about the 51% attack question?

I was going to ask the exact same question after posting this , I checked the comments on the blog post I gave the link to above and here is what It says :

https://i.imgur.com/Hz9fRaE.png

I'm not sure If I got this right but If they did they would have between 51% & 75% haspower , wouldn't that screw us all ?

Well, I guess it's an interesting investment and kind of a neat project, but I'm curious as to how something like that is going to make a lot of its money back. Even though a lot of it will be using renewable energy, that's still a stretch. I would assume a lot of money is going to be poured into this thing.

So I guess this is the same facility that came in the news around here a while ago. I remember seeing in the thread that they would have around 60% hashrate using their peak power. I'll link that if I find it again.

Yes, that would "screw us all", it would definitely be bad for Bitcoin. But they can't fill the facility with miners in a "timely manner" for them to be a danger to the network stability. High number of miners have to be deployed strategically and a few at a time. I'm not even sure if there's software that can handle all those miners in one single facility in an easy to maintain way. It's not feasible for them to have in something like a months time enough hashrate on that facility for them to be a danger to the network. Secondly, the facility won't exclusively serve Bitcoin or cryptocurrency mining. So I don't think this poses any danger to network stability.

an S9 uses 1.3kw for 13thash.. nice easy numbers to do maths on.

especially with the data centres estimates of 135mwatt..

essentially 100,000 rigs= ~1.3 exahash

well
https://blockchain.info/charts/hash-rate
is approaching 2.2exahash at one point.

so by the time its build i estimate 2.6 would be the network before bitmain+1.3 for bitmain=3.9 exahash with bitmain having 33%
but that power is the max capacity. so dont expect it to keep at 33% forever

even if they magically had it running right now
based on todays number
1.9exa +1.3exa=3.2 network, bitmain 40.625%
based on months peak
2.2exa +1.3exa=3.5 network, bitmain 37.143%

so chill out on the 51% cries

Or that they will have 33% at all in any point... So, if those are the maths, I guess they will have less power than speculated (or the maths I've seen previously were incorrect :D)

Anyways, I think this reinforces my opinion...

The maths used usually and by exagaratting statements are like this: Current hashrate 2 Exahash (arbitrary); new facility can host 1 Exahash (arbitrary) -> Owner of new facility has 50% hashrate. This is obvious very flawed.

---

Without going in depth, this is the more correct version of what may happen. You could/should probably estimate the time required to create that many devices and deploy as well (I highly doubt they have all of that available hands on).

How much % of the network does bitmain own right now?
I know they have theor own mining farm just not sure how big.

good point,
i forgot to factor in their old hash power..
ok
antpool has been at around ~0.32exa for months.. their percentage has been declining due to competition where the network hashrate has been growing by 5%-10% a month(nearer 5%).
having ~0.32exa for months.. then next year max of adding 1.3exa = maximum total 1.62exa bitmain(antpool) will have.

so here is some estimations that also include 5% growth of the competition naturally.

https://i.imgur.com/9leNZYd.png
< 47% if they can get to capacity in 2 months as their best percentage
or
< 40% if they can get to capacity in 6 months as their best percentage

and then i added a few more months to show their percentage dwindle down as competition rises by the natural 5%

Sounds very reasonable for me.

Also i would like to add another point.
Bitmain sells bitcoin mining equipment. It definitely wouldnt be in their interest to attack bitcoin fundamentals (e.g. mining decentralisation).

I can't understand why they are building up mining center for bitcoin day by day it's difficulty level will increase. Some user says that bitcoin mining is quit unprofitable when reward came down from 25 to 12.5 they would made better idea if they used the system for mining other altcoin.

Maybe they will build up their very own cloud mining site and they will prove people that they have their own legit data center so that they can attracy many people.

And to prove their investors that they have their own source of bitcoin.

But I don't know if this is going to be a good news or not, but yeah bitcoin mining is unprofitable for those who doesn't have mining rig.

^

Maybe stop talking with yourself please?
Its super obvious what you are doing  ::)

you kinda need to think again about that sentences and recorrecting with the bitmain's statement.  ::)
https://twitter.com/BITMAINtech/status/794072384483442688

This so makes me laughed. ;D

I think how big data center they build but profit will be always less because after july 2016 halving its reward had came down from 25 to 12.5 and in future also it will keep reducing so I think their data center will be off very limited profit only

That is 135 times as large as mine.

I think this will rely on non bitcoin processing to make its money. An investment of that size is not going to be able to be profitable just hashing bitcoin forever.

Bitcoin hasn't been profitable for years.  Only a FOOL would spend one dollar setting up miners now.  The big mines now are funded by investors looking for the quick buck and don't fully understand the history of bitcoin.  I am sticking with my plan, where in my computer business, I check each and every computer I work on for a bitcoin wallet, and if it is not encrypted, those bitcoins become MY bitcoins. 

Sadly, this is extremely unlikely to happen, as anyone smart enough to be involved with bitcoin is also capable of fixing their own computer.

My only real hope is that some young 20-something punk is racing around in his riced-out Honda Civic and dies in a car crash, and he just happens to be a huge bitcoin miner, and his parents see my advertisements and call me to handle his computer equipment and sell it for them.  I can only hope he didn't password protect the wallet.

I don't know which is more likely to happen.  This or winning the lottery.  Well, I guess this could be a lottery win too, kind of.

Call me unethical, but screw it.  Getting money trumps all else.

With the amount of hashrate it is obvious that they will be controlling the mining department for a very long time and they could determine certain things when it comes to bitcoin transactions in the future by setting a certian price for the transaction and so on,they wont invest this much without seeing the profit in the long term.

I can't get a definite answer for that. Totally not all of it has made for only does the mining activities.  It may affect the mine pool. Even the mine pool has had over 51% hashrate which means they will get a lot from the pool fees.
But try to keep our eyes in there.

 (1) They make the gear, that keeps their cost low and makes it a TON easier to achieve ROI.
 (2) They should have fairly low cost on electric.

  Those that say "bitcoin is unprofitable" are incorrect - it can be QUITE profitable and will stay that way if your cost of electric is low enough, even as a small end-user.

 Those that look for "quick buck" 2-3 month ROI are not looking at the current circumstances - those that are more reasonable and figure on ROI in 10-12 months are fairly likely to manage that, especially when they are the manufacturer of the current "most efficient gear made".



 Do keep in mind that we are *YEARS* away from the next halfing.

 Also, the market for ASIC for "altcoins" is a much smaller market - even if ALL altcoins used the SAME algorythm and could be mined on the SAME ASIC hardware, it would be something on the order of 10% OR LESS of the market for Bitcoin ASIC gear.

Yeah mining is still profitable to some degree for sure. It seems like every single thread is full of noob accounts using all caps to spread FUD about mining. I will say that the golden age is long gone however and this era of profitability is quickly fading. Within a year or two mining might be at a loss for everyone involved sadly. For now the big companies are raking in the dough and almost all the smaller miners are still making a bit.

I just dined with three miners who ran a farm in my region and they told me that they rented a section of the said DC which is still under development. I asked them to bring me along next time they visit and they agreed. The trip will be end of the month, if happens at all. Stay tuned.

staying tuned :)
hopefully you will be allowed to take pictures inside
so there is a detailed report with pictures of one of the largest bitcoin mining facility in the world
colour me intrigued