How will we stop the evil free market Chinese?

[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