How will we stop the evil free market Chinese?

[digitalindustry]

http://www.thecoinsman.com/2014/08/bitcoin/inside-one-worlds-largest-bitcoin-mines/

Massive ASIC productive capacity.

In most cases free electricity.

A healthy sense of free market capitalism.

= mining monopoly lost.

[1714971977]

1714971977

[1714971977]

1714971977

[1714971977]

1714971977

[1714971977]

1714971977

[digitalindustry]

One positive for Australians

Australia economic survival relies on just the iron ore price.

If the Chinese furiously move capacity into building mining facilities this could prop the iron ore price and save the Australian economy.

Otherwise its Detroit.

We really should have tried to globally corner the market on iron ore.

[Watoshi-Dimobuto]

http://www.thecoinsman.com/2014/08/bitcoin/inside-one-worlds-largest-bitcoin-mines/

Massive ASIC productive capacity.

In most cases free electricity.

A healthy sense of free market capitalism.

= mining monopoly lost.

Sadly there are nothing we can do to stop the Chinese from taking over the world.

[MineForeman.com]

I am sorry... why are they evil?

[azguard]

Sadly there are nothing we can do to stop the Chinese from taking over the world.

You're right about it.
There is no way to spot them so this is not a debate.
They are all over the place and all over the world.

[Swordsoffreedom]

I am sorry... why are they evil?

No idea, also since when do we complain about the Free Market  
He-he unless its because now that the coin in the literal sense of Bitcoin has turned towards most ASIC production coming from China were going to complain about the free market and want strong regulations. (Classic American arguments XD)

http://www.investopedia.com/terms/f/freemarket.asp

Anyways by definition your arguing that the Government should control ASIC mining ?

A market economy based on supply and demand with little or no government control. A completely free market is an idealized form of a market economy where buyers and sellers are allowed to transact freely (i.e. buy/sell/trade) based on a mutual agreement on price without state intervention in the form of taxes, subsidies or regulation.

But as an aside is that Friedcats facility who else could get that much hash built up in China?

[eid]

Sadly there are nothing we can do to stop the Chinese from taking over the world.

You're right about it.
There is no way to spot them so this is not a debate.
They are all over the place and all over the world.

On the contrary, they have quite distinct features!




I'll get my coat..

[cccarnation]

My grandfather worked in the bitcoin mines during the Depression. Have you ever seen what ion lung does to a man? It's not pretty.

[unexecuted]

My grandfather worked in the bitcoin mines during the Depression. Have you ever seen what ion lung does to a man? It's not pretty.

Kids today got it all so easy. They will never have to download a 10 seconds porn at 2.5 KB/s while praying to the connection not fall, and all thank to us.

[BitCoinNutJob]

http://www.thecoinsman.com/2014/08/bitcoin/inside-one-worlds-largest-bitcoin-mines/

Massive ASIC productive capacity.

In most cases free electricity.

A healthy sense of free market capitalism.

= mining monopoly lost.

Sadly there are nothing we can do to stop the Chinese from taking over the world.

I disagree, we can beat their efficiency by allowing greater innovation with things like bitcoin etc.  Think about it they are still corrupt right? while they are corrupt they must have weak points.  How are the people going to feel about bitcoin being blocked? they know its not "evil".  Unhappy people are less productive.   China wont be able to stifle innovation if they want happy people.

& if china dont stifle innovation there is no problem because we'll end up with more decentralization, less single point of failures, borders having less meaning. 

[illymoka]

What's going to happen to all that hardware when every block has been found?
Are the processors too specific to to anything else?, or will we see some interesting projects that create new algorithms to make use of all that running infrastructure?

[StatusSeeking]

What's going to happen to all that hardware when every block has been found?
Are the processors too specific to to anything else?, or will we see some interesting projects that create new algorithms to make use of all that running infrastructure?

If the 1mil per month figure was accurate, they'd need a pretty profitable gambit to keep the infrastructure going. I'd imagine they'll sell what they can at bulk rate, or it'll be outdated enough at that point they just sell it for scrap.

[Bitcoinpro]

My grandfather worked in the bitcoin mines during the Depression. Have you ever seen what ion lung does to a man? It's not pretty.

u sure it wasn't sweat rash

[digitalindustry]

I am sorry... why are they evil?

they have too much free market aspirations.

the free market is really taking off.


the free market failed in 2008 (didn't you see that?), that's why taxpayers had to give the Banks all the money and doom the rest of their lives. (and probably their children's)

If we had of had more centralized regulation the the people and taxpayers wouldn't have been as irresponsible and would have done the right thing, now they are paying the price.

clearly the people and taxpayers were doing free market type things which caused the Bank failures.

now its all happening again, don't you know that Bitcoin could crash in price??

if this happens we ultimately need a Central authority and a global ID to save it as no one is going to bail it out

(not even selfish taxpayers)

[digitalindustry]

I am sorry... why are they evil?

No idea, also since when do we complain about the Free Market  
He-he unless its because now that the coin in the literal sense of Bitcoin has turned towards most ASIC production coming from China were going to complain about the free market and want strong regulations. (Classic American arguments XD)

http://www.investopedia.com/terms/f/freemarket.asp

Anyways by definition your arguing that the Government should control ASIC mining ?

A market economy based on supply and demand with little or no government control. A completely free market is an idealized form of a market economy where buyers and sellers are allowed to transact freely (i.e. buy/sell/trade) based on a mutual agreement on price without state intervention in the form of taxes, subsidies or regulation.

But as an aside is that Friedcats facility who else could get that much hash built up in China?

no one is arguing that a government should control mining, but it should be properly moved to an independent central authority, like a "Global Central Bitcoin bank"

something efficient like that.

because in this free market the original monopoly holders will not be able to compete.

[digitalindustry]

What's going to happen to all that hardware when every block has been found?
Are the processors too specific to to anything else?, or will we see some interesting projects that create new algorithms to make use of all that running infrastructure?

If the 1mil per month figure was accurate, they'd need a pretty profitable gambit to keep the infrastructure going. I'd imagine they'll sell what they can at bulk rate, or it'll be outdated enough at that point they just sell it for scrap.

how can you possibly asses the costs?

do you know the operating budget?

do you understand exchange rates?

[digitalindustry]

My grandfather worked in the bitcoin mines during the Depression. Have you ever seen what ion lung does to a man? It's not pretty.

I had ion lung - but it cleared up, it was better than E-bowl-a, that was a cricket app I downloaded on my blackberry. (it was terrible)

[Datcracktho]

Weren't you out of the bitcoin game? 

[BitCoinNutJob]

China hardware can only strengthen the network and more people interested the more who will find ways to keep the ship floating.

[PalmerLaura]

My grandfather worked in the bitcoin mines during the Depression. Have you ever seen what ion lung does to a man? It's not pretty.

I'm sorry for your loss

[QuestionAuthority]

[NotAtOld]

Every newbie that asks if he should start mining should see this!!!

[eid]

The hidden player behind these Chinese miners is, of course, Emperor Ming!




Who indeed?

[Dawnbreaker]

Every newbie that asks if he should start mining should see this!!!

Does mining mean stealing other peoples bitcoins? Can someone please explain this to me?

[digitalindustry]

China hardware can only strengthen the network and more people interested the more who will find ways to keep the ship floating.

I never thought of that well put , cancel everything i said.

Key points:

- floating
- strengthen network.
- people
- ship
- only

[digitalindustry]

The hidden player behind these Chinese miners is, of course, Emperor Ming!

There is a good chance that there is some evil free market black magic voodoo taking place.

We can only pray to our central planners and ultimate authority and hope to be saved.

[numismatist]

One positive for Australians

Australia economic survival relies on just the iron ore price.

If the Chinese furiously move capacity into building mining facilities this could prop the iron ore price and save the Australian economy.

Otherwise its Detroit.

We really should have tried to globally corner the market on iron ore.

Interesting. I never thought those ASICs are mostly cast out of iron ore. Would make them rather heavy weight, wouldn't it?

[p2pbucks]

  I know the owners of this mining factory , they are not evil & so does the market itself .
Sure ,there are tons of guys engage in bitcoin indurstry in China , it seems nothing can stop them 

[Bizzaran]

Every newbie that asks if he should start mining should see this!!!

Does mining mean stealing other peoples bitcoins? Can someone please explain this to me?

Mining confirms transactions and secures the network. Miners are subsidized by new coins being put into circulation. As we approach 21 million coins the subsidy is reduced until it is replaced entirely by transaction fees.

[numismatist]

Mining confirms transactions and secures the network. Miners are subsidized by new coins being put into circulation. As we approach 21 million coins the subsidy is reduced until it is replaced entirely by transaction fees.

Altcoins traditionally fail when some several subsidity reductions occured (coins with shorter lifecycle out there)

A coin cannot exists on transaction fees. Those are merely a security against blockchain spam attacks.

So when mining becomes impossible due to subsidy reduction, and transaction fees cannot compete with altcoins out there, Bitcoin will simply extinct.

[wasserman99]

Mining confirms transactions and secures the network. Miners are subsidized by new coins being put into circulation. As we approach 21 million coins the subsidy is reduced until it is replaced entirely by transaction fees.

Altcoins traditionally fail when some several subsidity reductions occured (coins with shorter lifecycle out there)

A coin cannot exists on transaction fees. Those are merely a security against blockchain spam attacks.

So when mining becomes impossible due to subsidy reduction, and transaction fees cannot compete with altcoins out there, Bitcoin will simply extinct.

This is not true over the long term. As bitcoin becomes more widely used the amount of TX per time period will increase, increasing the amount of TX fees included on a per block basis. Today's norm of only .03-.1 in TX fees per block will likely no longer be the case after some amount of time. The hope is that there will be enough TXs to pay enough TX fees to cover the cost of mining.

[digitalindustry]

One positive for Australians

Australia economic survival relies on just the iron ore price.

If the Chinese furiously move capacity into building mining facilities this could prop the iron ore price and save the Australian economy.

Otherwise its Detroit.

We really should have tried to globally corner the market on iron ore.

Interesting. I never thought those ASICs are mostly cast out of iron ore. Would make them rather heavy weight, wouldn't it?

If they were charitable enough to build them from Iron that would be great, although I've just heard that the RBA (Aust Reserve Bank) is planning an Iron ore QE, in which we print and buy back Iron ore, upon which we will build houses and knock them back down again to both generate jobs and keep the iron ore prices up.

an amendment suggested building just a large block of iron and then melting it back down again, burying the results at sea (as per Islamic tradition.)

[digitalindustry]

I know the owners of this mining factory , they are not evil & so does the market itself .
Sure ,there are tons of guys engage in bitcoin indurstry in China , it seems nothing can stop them 

tell them from me that i love them.

in a non homosexual way.

(subject to % of drugs)

[collinstar]

Every newbie that asks if he should start mining should see this!!!

Does mining mean stealing other peoples bitcoins? Can someone please explain this to me?

About 150 bitcoins are spread among miners every hour. They are freshly created, specifically for the miners profit, so they don’t steal anyone’s coins.
edit: also the mining farms don’t do anything meaningful (most of the computations are immediately discarded), they mine for the sake of mining, to register the owner as a person on top of the pyramid.

[superbd]

Every newbie that asks if he should start mining should see this!!!

Does mining mean stealing other peoples bitcoins? Can someone please explain this to me?

About 150 bitcoins are spread among miners every hour. They are freshly created, specifically for the miners profit, so they don’t steal anyone’s coins.
edit: also the mining farms don’t do anything meaningful (most of the computations are immediately discarded), they mine for the sake of mining, to register the owner as a person on top of the pyramid.

So assuming this is true and the article says it's about 5% of the bitcoin mining network, that means this facility is generating $2.7 million per month minus $1m in electricity for a profit of $1.7m per month. Because it's china I'm going to assume this ware house was much cheaper to build than in the US and go with $10 per sq ft for about $320,000 to build. Based on the previous calculations, we can deduce that this facility is running 4.42 pentahashes per second. Now assuming they bought in bulk so they get a huge discount on machinery, lets say they got their equipment for $1k per T/H. So they probably paid $4.42m for the equipment.

Total cost to start this farm? $5.72 million dollars to generate $1.7 million per month in profit. That would be all fine & dandy if difficulty didn't go up.

Maybe someone more familiar with how fast difficulty goes up and tell us all when these guys break even...or should i say IF they break even. (assuming price stablity of course because if they are just mining to hold coins, they should've bought them straight out)

[Onanula]

So assuming this is true and the article says it's about 5% of the bitcoin mining network, that means this facility is generating $2.7 million per month minus $1m in electricity for a profit of $1.7m per month. Because it's china I'm going to assume this ware house was much cheaper to build than in the US and go with $10 per sq ft for about $320,000 to build. Based on the previous calculations, we can deduce that this facility is running 4.42 pentahashes per second. Now assuming they bought in bulk so they get a huge discount on machinery, lets say they got their equipment for $1k per T/H. So they probably paid $4.42m for the equipment.

Total cost to start this farm? $5.72 million dollars to generate $1.7 million per month in profit. That would be all fine & dandy if difficulty didn't go up.

Maybe someone more familiar with how fast difficulty goes up and tell us all when these guys break even...or should i say IF they break even. (assuming price stablity of course because if they are just mining to hold coins, they should've bought them straight out)

Except there is no way they are paying anywhere near $1K/TH. Think about it this way: two ANTMINER S3s do almost a TH and are a little bit over half a BTC each - long story short retail would be around $500/TH and you can BET with the connections these guys probably get it for half of that cost or less!

Think of it this way: You are buying hardware direct from the factories that make these things extremely cheap. ANTMINER S1s early on sold for over $4K each, and dropped to a couple hundred bucks just recently. The "cost" to actually make the units is less than that latter number...

[RoboRoy]

I am sorry... why are they evil?

as far as i know tradefortress aka yan wang is a chinese too

[leezay]

Every newbie that asks if he should start mining should see this!!!

Does mining mean stealing other peoples bitcoins? Can someone please explain this to me?

About 150 bitcoins are spread among miners every hour. They are freshly created, specifically for the miners profit, so they don’t steal anyone’s coins.
edit: also the mining farms don’t do anything meaningful (most of the computations are immediately discarded), they mine for the sake of mining, to register the owner as a person on top of the pyramid.

So assuming this is true and the article says it's about 5% of the bitcoin mining network, that means this facility is generating $2.7 million per month minus $1m in electricity for a profit of $1.7m per month. Because it's china I'm going to assume this ware house was much cheaper to build than in the US and go with $10 per sq ft for about $320,000 to build. Based on the previous calculations, we can deduce that this facility is running 4.42 pentahashes per second. Now assuming they bought in bulk so they get a huge discount on machinery, lets say they got their equipment for $1k per T/H. So they probably paid $4.42m for the equipment.

Total cost to start this farm? $5.72 million dollars to generate $1.7 million per month in profit. That would be all fine & dandy if difficulty didn't go up.

Maybe someone more familiar with how fast difficulty goes up and tell us all when these guys break even...or should i say IF they break even. (assuming price stablity of course because if they are just mining to hold coins, they should've bought them straight out)

Where did you get the electricity figure? It wasn't mention in the article on the electricity consumption and rate.

Also your analysis didn't include the ASIC miner depreciation cost, which is around 20% per month on average. So the entire operation has a hardware turn over rate of twice a year, and may not be profitable unless it is part of a supply chain or if they offer cloud mining service.

[MineForeman.com]

I am sorry... why are they evil?

as far as i know tradefortress aka yan wang is a chinese too

Still don't get why this is evil.

For several reasons they have an economic advantage and they are using that advantage to make money (lots of it hopefully).  In the mean time, they are helping the bitcoin network and getting paid for it.

Nothing evil there.

Neil

[sandykho47]

I don't get why you say evil 
I think this is big advantage, not evil 

But, the place is extremely big.
And how does Free Market connected to ASIC Miner 

This is a picture how big is inside 

[Swordsoffreedom]

no one is arguing that a government should control mining, but it should be properly moved to an independent central authority, like a "Global Central Bitcoin bank"

So what your arguing for is the centralization of Bitcoin mining and the centralization of mining nodes
Seems like your asking for a system that has no redundancies, which is what a Bitcoin Full node provides.
http://www.coindesk.com/bitcoin-nodes-need/

[Littleshop]

My grandfather worked in the bitcoin mines during the Depression. Have you ever seen what ion lung does to a man? It's not pretty.

I bet that is caused by dust transactions. A Satoshi is very small and can get lodged deep in the lungs.

[QuestionAuthority]

My grandfather worked in the bitcoin mines during the Depression. Have you ever seen what ion lung does to a man? It's not pretty.

I bet that is caused by dust transactions. A Satoshi is very small and can get lodged deep in the lungs.

LOL

That's why my wife wears her mask whenever she's mining.

[Ondago]

So assuming this is true and the article says it's about 5% of the bitcoin mining network, that means this facility is generating $2.7 million per month minus $1m in electricity for a profit of $1.7m per month. Because it's china I'm going to assume this ware house was much cheaper to build than in the US and go with $10 per sq ft for about $320,000 to build. Based on the previous calculations, we can deduce that this facility is running 4.42 pentahashes per second. Now assuming they bought in bulk so they get a huge discount on machinery, lets say they got their equipment for $1k per T/H. So they probably paid $4.42m for the equipment.

Total cost to start this farm? $5.72 million dollars to generate $1.7 million per month in profit. That would be all fine & dandy if difficulty didn't go up.

Maybe someone more familiar with how fast difficulty goes up and tell us all when these guys break even...or should i say IF they break even. (assuming price stablity of course because if they are just mining to hold coins, they should've bought them straight out)

They just keep investing in more equipment until the price skyrockets and they make a sweet profit.

[NikkieBeraj]

So assuming this is true and the article says it's about 5% of the bitcoin mining network, that means this facility is generating $2.7 million per month minus $1m in electricity for a profit of $1.7m per month. Because it's china I'm going to assume this ware house was much cheaper to build than in the US and go with $10 per sq ft for about $320,000 to build. Based on the previous calculations, we can deduce that this facility is running 4.42 pentahashes per second. Now assuming they bought in bulk so they get a huge discount on machinery, lets say they got their equipment for $1k per T/H. So they probably paid $4.42m for the equipment.

Total cost to start this farm? $5.72 million dollars to generate $1.7 million per month in profit. That would be all fine & dandy if difficulty didn't go up.

Maybe someone more familiar with how fast difficulty goes up and tell us all when these guys break even...or should i say IF they break even. (assuming price stablity of course because if they are just mining to hold coins, they should've bought them straight out)

Apparently, people can now get 8TH for about $5 to 6k from Asicminer.

[JimminyCricket]

China hardware can only strengthen the network and more people interested the more who will find ways to keep the ship floating.

Yup - but it'll be floating at a much lower price if they don't stockpile their BTC but instead sell it immediately as they mine it.

[Orjaner]

About 150 bitcoins are spread among miners every hour. They are freshly created, specifically for the miners profit, so they don’t steal anyone’s coins.
edit: also the mining farms don’t do anything meaningful (most of the computations are immediately discarded), they mine for the sake of mining, to register the owner as a person on top of the pyramid.

I wouldn't say they don't do anything meaningful. The computations are required work in order to solve the Byzantine Generals Problem.

[BlockShame]

About 150 bitcoins are spread among miners every hour. They are freshly created, specifically for the miners profit, so they don’t steal anyone’s coins.
edit: also the mining farms don’t do anything meaningful (most of the computations are immediately discarded), they mine for the sake of mining, to register the owner as a person on top of the pyramid.

I wouldn't say they don't do anything meaningful. The computations are required work in order to solve the Byzantine Generals Problem.

I feel like that's poor wording. They're not "solving" the Byzantine Generals problem, they're essentially using excessive amounts of hashrate as part of Satoshi's solution to the Byzantine Generals problem.

[Rira6ade]

About 150 bitcoins are spread among miners every hour. They are freshly created, specifically for the miners profit, so they don’t steal anyone’s coins.
edit: also the mining farms don’t do anything meaningful (most of the computations are immediately discarded), they mine for the sake of mining, to register the owner as a person on top of the pyramid.

I wouldn't say they don't do anything meaningful. The computations are required work in order to solve the Byzantine Generals Problem.

The Byzantine Generals Problem has been mathematically proved to have no solution. Bitcoin is a workaround, not the first, but certainly the most computationally intensive.

[digitalindustry]

About 150 bitcoins are spread among miners every hour. They are freshly created, specifically for the miners profit, so they don’t steal anyone’s coins.
edit: also the mining farms don’t do anything meaningful (most of the computations are immediately discarded), they mine for the sake of mining, to register the owner as a person on top of the pyramid.

I wouldn't say they don't do anything meaningful. The computations are required work in order to solve the Byzantine Generals Problem.

The Byzantine Generals Problem has been mathematically proved to have no solution. Bitcoin is a workaround, not the first, but certainly the most computationally intensive.

What about if used DNA and cloning technology to re-clone an actual Byzantine General, could this cloned General solve the problem?

* of course we have to recreate his life exactly as it was based on crude records , but that would only take the construction of a series of small villages and teams of stage actors.

Would be worthwhile if we finally got an answer.

[Timetwister]

How can the free market ever be evil? Do you know what does free market mean? Do you know that in the free market only voluntary transactions, where every parts considers that wins, take place?

[Hashminepower]

Well, the china people are just putting their advantage to use. We can only be jealous how cheap their resource are that enable them to do all this mega thingy

[gonnafly]

This is a pretty terrible looking operation. Expect a ton of BTC mining to move to Iceland where cooling is free, and electricity is very inexpensive. Since bandwidth is that countries biggest issue and it doesn't apply in the case of centralized mining I imagine it will take over.

[CokeCoin]

Oh my god! This is skynet!

[GTA]

Who funds this operation?

[Summer,69]

Using avalon machines as doorstops... like bosses

[digitalindustry]

This is a pretty terrible looking operation. Expect a ton of BTC mining to move to Iceland where cooling is free, and electricity is very inexpensive. Since bandwidth is that countries biggest issue and it doesn't apply in the case of centralized mining I imagine it will take over.

sounds desperate.

will they be using the new "viking chip" the native Icelandic SHA256 ASIC chip?

[digitalindustry]

Who funds this operation?

mostly the US Federal Reserve.

[polunna]

I thought that Bitcoin is forbidden in the PRC

[bambino]

Could a mining farm of this size be enough to create a 51% attack or is there really that much hashpower that this is nothing? Mind you I haven't really checked bitcoins current overall hashrate

[blatchcorn]

Could a mining farm of this size be enough to create a 51% attack or is there really that much hashpower that this is nothing? Mind you I haven't really checked bitcoins current overall hashrate

Not enough power for them alone to create a 51% attack.  They would need to partner with other farms to do so.

[itsAj]

Could a mining farm of this size be enough to create a 51% attack or is there really that much hashpower that this is nothing? Mind you I haven't really checked bitcoins current overall hashrate

Not enough power for them alone to create a 51% attack.  They would need to partner with other farms to do so.

The incentives for someone carrying out a 51% attack are simply not there. In order for someone to potentially have the hashpower to be able to carry out such an attack, they would need to invest in machines that can, for all intensive purposes, only mine bitcoin, these machines would be able to mine at least 1800 bitcoin per day (roughly $900,000 worth at current prices). If someone were to attempt to carry out such an attack, any bitcoin they have mined, but not sold would likely substantially decline in value, and the value of their equipment would also become essentially worthless, not the mention the lost potential revenue from continuing to mine in an honest fashion.

[digitalindustry]

Could a mining farm of this size be enough to create a 51% attack or is there really that much hashpower that this is nothing? Mind you I haven't really checked bitcoins current overall hashrate

Not enough power for them alone to create a 51% attack.  They would need to partner with other farms to do so.

The incentives for someone carrying out a 51% attack are simply not there. In order for someone to potentially have the hashpower to be able to carry out such an attack, they would need to invest in machines that can, for all intensive purposes, only mine bitcoin, these machines would be able to mine at least 1800 bitcoin per day (roughly $900,000 worth at current prices). If someone were to attempt to carry out such an attack, any bitcoin they have mined, but not sold would likely substantially decline in value, and the value of their equipment would also become essentially worthless, not the mention the lost potential revenue from continuing to mine in an honest fashion.

that is the weakest argument i've ever heard to explain human behavior.

you re presupposing that the miner would be a single person, and you delete from your equation a number of other vectors.

plus as i stated in my "oracle investment advice" the Cap is irrelevant, its the forward progression of time in the equation, the use/collapse Paradox was only one paradox.

what about the Time/Value Paradox ?
goes kind of like this:

If the original monopoly wants to hold a "high value " they have to do that as time progresses forward, this "time" allows for the market to effect it as competitors have based the cost on the "value"; however the longer in "time" the monopoly holds the "value" the more chance the market has to act.

if the monopoly is broken, a stand off ensues, this is where underline "cost" becomes a very large factor.

i.e you could see this situations where Samsung forced Apple's hand.


Apple Sued Samsung for this or that retarded reason, Samsung paid up then increased the price of the Processors that Apple purchased from Samsung, and compensated themselves.

If one Manufactured ASIC chips, who has a better cost ratio?

so how do you know that the Chips you are sold aren't compensating directly for the cost of the mining?

in other words Welcome to the real free market, welcome to real economics.

[gogxmagog]

Civilizations last about 200 years. The age of western dominance is coming to an end. It will be China's turn to dominate next. Can't be stopped. Welcome your new betters.

[lovegood]

How in the world do they control the humidity? Of course I guess this equipment does not need to last long. A year maybe?

[panju1]

One government crackdown and all the massive ASIC capacity is going to gather dust.

[Bitbirdhunt]

China hardware can only strengthen the network and more people interested the more who will find ways to keep the ship floating.

[SueGiant]

http://www.thecoinsman.com/2014/08/bitcoin/inside-one-worlds-largest-bitcoin-mines/

Massive ASIC productive capacity.

In most cases free electricity.

A healthy sense of free market capitalism.

= mining monopoly lost.

Sadly there are nothing we can do to stop the Chinese from taking over the world.

Yeah, and theres a billion of them!

[QuestionAuthority]

http://www.thecoinsman.com/2014/08/bitcoin/inside-one-worlds-largest-bitcoin-mines/

Massive ASIC productive capacity.

In most cases free electricity.

A healthy sense of free market capitalism.

= mining monopoly lost.

Sadly there are nothing we can do to stop the Chinese from taking over the world.

Yeah, and theres a billion of them!

You could nuke them. That might stop a few.

[counter]

Weren't you out of the bitcoin game? 

This ^^^ .  I'm confused also why your worried about the Chinese miner's when your so sure the price of Bitcoin is going nowhere but down?

[giveBTCpls]

How are you worried about the Chinese? they will help BTC a lot once it starts gaining mainstream tier adoption, USD and EUR will start shrinking, BTC and CNY will start growing and complimenting each other.

[knifeedge]

Gotta say, I liked this better when it was GPU mining. This environment where the Chinese manufacturers are controlling the network is a bit ridiculous and makes me lose faith in the system.

[MightyStorm]

Gotta say, I liked this better when it was GPU mining. This environment where the Chinese manufacturers are controlling the network is a bit ridiculous and makes me lose faith in the system.

This is a bit off-topic, but there ARE ASIC-resistant cryptocurrencies (e.g. Bytecoin which uses X11). They probably won't be ASIC-free for long (someone estimated 2 years until there could be an X11 ASIC), but...shrug

[superbd]

BEHOLD! the burning of electricity to maintain a primitive consensus mechanism.

[RogerBTCrabbyt]

The chinese is your friend.

[tl121]

BEHOLD! the burning of electricity to maintain a primitive consensus mechanism.

Better than burning gunpowder or uranium to maintain a more primitive consensus mechanism.

[AllYouCanDo]

What are the specs on that wire powering the facility? Someone here surely knows.

[coinmaster222]

The chinese is your friend.

Yeah well, I can't see why some people can't ebrace this. They hold the biggest piece of the market. We beed to be friendly to them.

[Bizzaran]

So rough gestimate, how much is this setup mining in a day in dollar terms?

[AriceInWonderland]

Looks impressive, but I worked at an IBM facility for a while where there were multiple datacenters that were football field sized. What I saw in there was mind boggling and makes this look like child's play. Not that this is a competition, just putting that out there, that in comparison to the big boys (IBM, Google, etc) this isn't overly impressive. One has to wonder though what they will do if BTC price drops to $100 or less.

[azguard]

NO way to stop it they have warehouses with so much hash power that they can do antrhing.
So only way is to bomb the place...

Kidding no point of doing that only rise price of electricity for 1000% there.
Maybe this will solve this.

[vitaminwater]

people don't realize that it's still not very profitable. As chinas economy grows and GDP rises, bitcoin will become a less efficient allocation of resources and people will turn to other things. As it stands it's probably more profitable to invest in starcraft or runescape. Many warehouses are designed to be turned into anything at a moments notice. Tomorrow a huge raspberry pi mine could be making counterfeit nike's, it's all up in the air at this point.

[lightningmccoin]

Is this a racist thread? Hmmm first of all, the chinese made products are pretty awesome. It gives chances to those who have none to experience what the rich people have.

[betterchoice]

Is this a racist thread?

[digitalindustry]

I'm in no way racist against the "West" or Western way of life to suggest so is ridiculous as i am a "westerner"

I just see the facts for what they are.

China has a lot of free market aspects that are currently more "free" than the "West"

getting angry at the facts is like going to McRonalds every day to eat and then getting angry at your Fat each night.

[betterchoice]

Price scissors？

[liteboozer]

I'm in no way racist against the "West" or Western way of life to suggest so is ridiculous as i am a "westerner"

I just see the facts for what they are.

China has a lot of free market aspects that are currently more "free" than the "West"

getting angry at the facts is like going to McRonalds every day to eat and then getting angry at your Fat each night.

Its McDonalds and we should thank the Chinese for making it easy for everyone to get the best products they can with lower price.

[eid]

I'm in no way racist against the "West" or Western way of life to suggest so is ridiculous as i am a "westerner"

I just see the facts for what they are.

China has a lot of free market aspects that are currently more "free" than the "West"

getting angry at the facts is like going to McRonalds every day to eat and then getting angry at your Fat each night.

Its McDonalds and we should thank the Chinese for making it easy for everyone to get the best products they can with lower price.

I agree; it is McDonalds.


Also, I'm going to personally thank any Chinese I see today for giving me cheap goods of decent quality to buy. Perhaps we should all do this and make it the official thank the Chinese day. Let's hope I don't meet anyone from the province of Tibet; what a faux-pas that would be!

[youdacapt]

There are many theories about the acquisition market, especially when we live in a very densely populated country. China gives hope for it all. Indeed, less quality than quantity, but it was the best way to expand decentralized to various developing countries.

if there is no market as such, Monopoly will only spin in developed countries like the United States and Europe. I should be grateful to the Chinese state. although the highest risk of low quality is the number of consumer dissatisfaction. bitcoin market in China is driving a major development for the whole asia

[TKeenan]

Is this a racist thread?

If Chinese are actually evil, is it still racist?  And is it so that racist threads are problematic?

[Blackdeath]

Is this a racist thread?

If Chinese are actually evil, is it still racist?  And is it so that racist threads are problematic?

We should not blame all chinese as not all chinese are bad.
There are many good chinese I am with. They are my friends and they are willing to help me when I'm in need.

[dfox101]

Chinese are actually chasing the money, they follow the free market rules, nothing wrong there. Any other countries can develop asic factories and make people interested in mining. The only unfair point is that many Chinese mining stealing state's electricity.

[shinratensei_]

NO way to stop it they have warehouses with so much hash power that they can do antrhing.
So only way is to bomb the place...

Hey, you forget about 51% hash attack can't be controlling the validation of the transaction.

[steelhouse]

Sadly there are nothing we can do to stop the Chinese from taking over the world.

End minimum wage and make America rich again.

[agamasrori]

Chinese are actually chasing the money, they follow the free market rules, nothing wrong there. Any other countries can develop asic factories and make people interested in mining. The only unfair point is that many Chinese mining stealing state's electricity.

Yes you are right nothing we can do. That is risk of free market rules, I think chinese didn't break any rule. I think if we make better of bitcoin spreading and circulation it would be good it will reduce chinese domination. Thats my opinion.

[pooya87]

Is this a racist thread?

If Chinese are actually evil, is it still racist?  And is it so that racist threads are problematic?

if chinese having access to cheap mining equipment because it is being made in their country. and if them going out of their way to try and struck a deal with electric companies to get special contracts for cheaper electricity means they are evil, then ok.

[Juggy777]

Chinese people have a huge monopoly over the market and it's not entirely impossible to remove their lead, for that some country would have to offer really cheap electricity which I had hoped would be usa with Trump in and he would help in breaking Chinese hold over Bitcoin, but sadly most users have said he won't. It will take a huge effort to get rid of Chinese people, but sadly theres no unity among the community and no country that can be as cheap as Chinese

[TKeenan]

It will take a huge effort to get rid of Chinese people,

Don't get rid of Chinese.  Then there will be no more cheap things.

[dontryjustdoit]

Sadly there are nothing we can do to stop the Chinese from taking over the world.

You're right about it.
There is no way to spot them so this is not a debate.
They are all over the place and all over the world.

Starting today I learn to speak Mandarin Chinese!

[shinratensei_]

It will take a huge effort to get rid of Chinese people,

Don't get rid of Chinese.  Then there will be no more cheap things.

The cheap thing was coming from the Chinese people. The funny things.