- 9 July 2006
Cheap computers and cheap electricity to run them with is what makes it profitable in one place versus another.
As a business it has more in common with smelting metal, particularly aluminium or magnesium, than with any other conventional business. Cheap electricity is the key - hence why smelters are built where power is cheap not necessarily where the ore is mined (pure coincidence if both the ore and cheap power happen to be available in the same place). Labour cost is a far lesser consideration and it's the same with Bitcoin.
ASX boss was talking about "block chain" or "distributed ledger" type transactions on the ASX. Basically shortening the T2 waiting period for trade transactions to clear. December this year they plan to have made a decision on the tech. being viable. From about half way mark.
Yep, organized crime. I guess when you don't understand how the technology works, you just make stuff up. Anyways, back in developments on this technology.
A Tokyo-listed company is spending over $300 million to get into bitcoin miningGMO Internet Group, based in Tokyo, normally does incredibly boring things like registering domain names and hosting web services. But it, too, has caught the bitcoin fever, one that some people think has created a bubble in valuations.
GMO announced today that it plans to spend more than $320 million to start mining bitcoin in the first half of next year. Some $10 million is available for bitcoin miners to accumulate each day, at the current bitcoin price of around $4,600. The firm says cryptocurrencies like bitcoin will evolve into “universal currencies” that will create a global “borderless economic zone.”
GMO plans to develop its own mining chips, claiming they will operate at an unprecedented degree of efficiency. If GMO successfully introduces the chips, it would trigger an arms race within the bitcoin mining industry. The proposed chips will use 7 nanometer nodes, which would be four times more energy efficient than the current industry standard 16 nm nodes. Because bitcoin mining is a competition, once 7 nm nodes are in use, all other miners will have to upgrade to stay in the game. “It’s clearly the next generation of miners,” said Diego Guiterrez, chief executive of RSK Labs, which develops software for miners.
GMO’s business model for its mining unit resembles that of established players in the field, such as China’s Bitmain. GMO plans to operate its own mines, rent them to others, and develop its own chips that it will sell packaged as mining rigs. It plans to locate its mine in northern Europe, presumably some place with cheap, excess electric power. It says it will invest more than 10% of its non-current assets, which stand at $320 million. Bitmain had no comment.
Bitcoin back up to 5k AUD.
1k jump in the last 7 days.
China ban still ongoing issues. Looks like they want to regulate the Bitcoin market.
Ethereum is also getting ready for their Metropolis update. Ethereum is going after VISA. Currently they are limited to 7 transactions per seconds, trying to get to 1 million per second.
Interesting times we live in......