There never seems to be a dull week in the world of bitcoin mining. Over the past few weeks, we’ve seen a preview of our cyberpunk future in the form of a bitcoin mining meltdown, Gavin Andresen gives his thoughts on bitcoin mining centralization and a new piece of disruptive mining hardware from two brothers. Let’s take a closer look at the three biggest stories in bitcoin mining right now.
Fire Takes Out Bitcoin Mining Facility
In one of the most bizarre bitcoin stories in general over the past year, a massive fire has reportedly taken out millions of dollars worth of mining hardware in Thailand. There were three buildings at the mining facility, and all three of them were affected by the fire. It is estimated that millions of dollars worth of mining hardware has been destroyed. The disaster actually took place on the 14th of October, but photos of the accident did not surface until this week. According to Coindesk, the miners responsible for the mining facility were a group of Europeans who decided to relocate to the Asian island.
Gavin Andresen is Not Overly Concerned with Mining Centralization
Gavin Andresen was recently interviews at the Web Summit in Dublin, Ireland, and his answer to the problem of mining centralization in bitcoin seemed to indicate that he isn’t too worried about the issue over the long term. He noted, “Centralization of mining is going to go in waves. Now you see economies of scale for companies that create huge mining farms where electricity is inexpensive. Once those chips become commodities and inexpensive, you’ll see it decentralize again.”
This is an aspect of bitcoin mining centralization that has been discussed by others in the past, but it doesn’t seem to get enough consideration when people are debating whether or not mining pools have too much power over the network. An analogy that Andresen used to further explain his point had to do with the history of the computer. He explained the lack of computers available to the general public while he was in college, and he compared it to the PC revolution that came less than a decade after that. Although there are centralized facilities for mining bitcoin right now, it’s possible that everyone could be mining bitcoin all the time once the “Internet of things” is fully realized.
Bitcoin Brothers are Building New Supercomputers to Mine Bitcoins
Bitcoin Brothers is a company that has been working on powerful new supercomputers that will be used solely for mining bitcoin, and the company claims that their machines are better than anything else on the market right now. Their goal is to make the bitcoin mining process more efficient for the average user, and they plan to take advantage of cloud mining rather than shipping their new machines all over the world. One of the founders of the company is an ex-German cryptologist named Mark Welle, and he’s working with his brother on this new project that takes a shot at the bitcoin mining industry from a new, different angle. The company is said to control six petahashes of power on their supercomputers. Each one of their new supercomputers contains 260,000 ASIC chips.