Bitfury a threat?

[rolling]

http://www.coindesk.com/bitfury-details-100-million-georgia-data-center/

Bitfury is one company that already controls 15% of the mining on the network and now they are going to build something capable of supporting 1000 PH of new mining gear? The entire network right now is only 400 PH.

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[Amph]

no problem on this, they can't simply add hashpower without thinking, if the price of bitcoin will stay the same, no matter the efficiency, around $60 per btc is no longer profitable for anybody out there

free electricyt guys are excluded but there is no real free electricity, it's mostly stealing, you can't run a big farm on it

so if the diff skyrocket to x3-x4 what it is now, all miners will do negative profit, which is losing money...

[coinbeast]

In all honesty, they do have me feeling a bit nervous. I think they are pretty serious and are "putting their money where their mouth is". They have the chip they said they would, and they have the money to build data centers.

I can't see them getting 1000 PH/S any time soon though.

[YuginKadoya]

Well BitFury did not immediately respond to requests for further information

let's just wait for more details. PS nobody knows if they can truly do these,
but if they does! well let's just wait! 

[QuintLeo]

1) It will take time for Bitfury to deploy that much new equipment. ESPECIALLY with the current yield issues on 14/16nm process from ALL manufacturers on that node.
2) Bitfury has quite a bit of competition already deploying more and more gear
3) Other folks have already announced tape-out or are working on 14/16nm chips


 Note that KnC announced tapeout on their 16nm "Solar" chips almost a YEAR ago and announced deployment of those chips a while back, yet their hashrate has NOT exploded since then.

 Will BitFury hit 1000 PH? Quite possible.
 Will BitFury hit 1000 PH before halfing? Almost IMpossible.
 Will BitFury hit 1000 PH by the end of NEXT year? Unlikely.
 Will the total hashrate of the entire network hit 2000 PH before Bitfury gets 1000 PH of that deployed? Very very likely.

 Keep in mind that there are still SEVERAL folks making chips/gear, BitMain is just the only one CURRENTLY selling to the public (Innosilicon and Lktec have already made announcements, there is that one thread about a rumoured Avalon next-gen machine, Spondoolies has already announced next-gen, plus the other folks that don't sell to the public....)

[VirosaGITS]

1) It will take time for Bitfury to deploy that much new equipment. ESPECIALLY with the current yield issues on 14/16nm process from ALL manufacturers on that node.
2) Bitfury has quite a bit of competition already deploying more and more gear
3) Other folks have already announced tape-out or are working on 14/16nm chips


 Note that KnC announced tapeout on their 16nm "Solar" chips almost a YEAR ago and announced deployment of those chips a while back, yet their hashrate has NOT exploded since then.

 Will BitFury hit 1000 PH? Quite possible.
 Will BitFury hit 1000 PH before halfing? Almost IMpossible.
 Will BitFury hit 1000 PH by the end of NEXT year? Unlikely.
 Will the total hashrate of the entire network hit 2000 PH before Bitfury gets 1000 PH of that deployed? Very very likely.

 Keep in mind that there are still SEVERAL folks making chips/gear, BitMain is just the only one CURRENTLY selling to the public (Innosilicon and Lktec have already made announcements, there is that one thread about a rumoured Avalon next-gen machine, Spondoolies has already announced next-gen, plus the other folks that don't sell to the public....)

I think they are just trying to intimidate competitors. There is tons of rumors and promises of projects with no date set. I do not know when the data center will be completed, but its not like they will be able to load up 1000PH of hardware anytime soon.

It is possible however that they achieve it within a year or two, and with their 0.06 chips eventually rolling out, their data center could last quite a while and will then only need to be slowly upgraded, while they phase our their 28nm stuff.

With a project this big, they will probably rent Cloud hash or such. Probably take a page from Bitmain's tricks.

[ezeminer]

1) It will take time for Bitfury to deploy that much new equipment. ESPECIALLY with the current yield issues on 14/16nm process from ALL manufacturers on that node.
2) Bitfury has quite a bit of competition already deploying more and more gear
3) Other folks have already announced tape-out or are working on 14/16nm chips


 Note that KnC announced tapeout on their 16nm "Solar" chips almost a YEAR ago and announced deployment of those chips a while back, yet their hashrate has NOT exploded since then.

 Will BitFury hit 1000 PH? Quite possible.
 Will BitFury hit 1000 PH before halfing? Almost IMpossible.
 Will BitFury hit 1000 PH by the end of NEXT year? Unlikely.
 Will the total hashrate of the entire network hit 2000 PH before Bitfury gets 1000 PH of that deployed? Very very likely.

 Keep in mind that there are still SEVERAL folks making chips/gear, BitMain is just the only one CURRENTLY selling to the public (Innosilicon and Lktec have already made announcements, there is that one thread about a rumoured Avalon next-gen machine, Spondoolies has already announced next-gen, plus the other folks that don't sell to the public....)

I think they are just trying to intimidate competitors. There is tons of rumors and promises of projects with no date set. I do not know when the data center will be completed, but its not like they will be able to load up 1000PH of hardware anytime soon.

It is possible however that they achieve it within a year or two, and with their 0.06 chips eventually rolling out, their data center could last quite a while and will then only need to be slowly upgraded, while they phase our their 28nm stuff.

With a project this big, they will probably rent Cloud hash or such. Probably take a page from Bitmain's tricks.

By the time they get their center online, that halving will do interesting things to the market.

But Bitfury will continue doing what they do best, make money

[koinsuka]

with this case, will increase popularity of bitcoin and value rates again, like this 2013

[Dalkore]

Not a threat at this point.  You have chips from Spon-doolies, KNC, Antminer and Avalon.   This is pretty decent competition at this stage.  The bigger issue may be centralization of mining capacity over time into these large mining interests along with a few independent players.

[Dalkore]

Not a threat at this point.  You have chips from Spon-doolies, KNC, Antminer and Avalon.   This is pretty decent competition at this stage.  The bigger issue may be centralization of mining capacity over time into these large mining interests along with a few independent players.

Definitely, this is what we need to worry about but I guess we will always get their scraps of last generation from all the big players and that might be enough to make the home market a slice of the mining pie.

Trouble is the power density or the number of mining boxes keeps increasing.  It has already basically over-run most residential power grids and almost all commercial spaces will still need upgrades.  Yes scraps will be had but at that point, it might not be the best idea.  I don't know what if anything will turn the tide.  At least Antminer has publicly stated it will continue to support the small miner market.  I don't see this continuing to 14nm or smaller. 

[notlist3d]

Not a threat at this point.  You have chips from Spon-doolies, KNC, Antminer and Avalon.   This is pretty decent competition at this stage.  The bigger issue may be centralization of mining capacity over time into these large mining interests along with a few independent players.

Definitely, this is what we need to worry about but I guess we will always get their scraps of last generation from all the big players and that might be enough to make the home market a slice of the mining pie.

It would be interesting to see where the old "scraps" go in some cases.  I don't see some of these really wanting to sell old gear to public, as they did not want to initially.

It would not surprise me if some like bitfury are more upgrade and can use some old parts with new hashing boards.   Or they might have so low electricity these old machines they can run them till having without worries.   

[QuintLeo]

You didn't see that largish Polish mine offering to sell off old "scraps" of it's mines?