How will we stop the evil free market Chinese?

[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/

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[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