News
news 1950s Science Kit Had Real Uranium
news We're Probably Living in a Simulation, Elon Musk Says
news It’s Now Possible To Telepathically Communicate with a Drone Swarm
news New material to 'speed spacecraft to 134,000,000 mph'
news The future of food: what we’ll eat in 2028
news Descend Into England’s Network of Secret Nuclear Bunkers
news British UFO hunter’s laptop was ‘wiped’ after mysterious death
news Expert warns satellites could be hacked and used as giant 'radio frequency weapons'
news 1,000-year-old Maya document that tracks the movement of Venus is real
news Google Maps' strangest objects revealed
news The Russian Family That Cut Itself Off From Civilization for More Than 40 Years


Username:
Password: or Register
 
Thread Rating:
  • 0 Vote(s) - 0 Average
  • 1
  • 2
  • 3
  • 4
  • 5

This Is What Happens When Bitcoin Miners Take Over Your Town
BlackCat
Every day is an extra day
User ID: kaput
03-09-2018 06:40 PM

Posts: 1,958



Post: #1
This Is What Happens When Bitcoin Miners Take Over Your Town
Advertisement
https://www.politico.com/magazine/story/...ure-217230

This is a long read but very interesting.

[Image: ?url=https%3A%2F%2Fstatic.politico.com%2...-3977b.jpg]

Eastern Washington had cheap power and tons of space. Then the suitcases of cash started arriving.

By PAUL ROBERTS March/April 2018

Quote:[...]

Bitcoin miners were now caught in the same vicious cycle that real miners confront—except on a much more accelerated timeframe.

To maintain their output, miners had to buy more servers, or upgrade to the more powerful servers, but the new calculating power simply boosted the solution difficulty even more quickly.

In effect, your mine was becoming outdated as soon as you launched it, and the only hope of moving forward profitably was to adopt a kind of perpetual scale-up: Your existing mine had to be large enough to pay for your next, larger mine.

Many miners responded by gathering into vast collectives, pooling their calculating resources and sharing the bitcoin rewards.

Others shifted away from mining to hosting facilities for other miners. But whether you were mining or hosting, mining entered “a scaling race,” says Carlson, whose own operations marched steadily from 250 kilowatts to 1.5 megawatts to 5 megawatts.

And it was a race: Any delay in getting your machines installed and mining simply meant you’d be coming on line when the coins were even harder to mine.

Just when it seemed that things couldn’t get any worse, they did.

As mining costs were rising, bitcoin prices began to dive.

The cryptocurrency was getting hammered by a string of scams, thefts and regulatory bans, along with a lot of infighting among the mining community over things like optimal block size.

Through 2015, bitcoin prices hovered in the low hundreds. Margins grew so thin—and, in fact, occasionally went negative—that miners had to spend their coins as soon as they mined them to pay their power bills.

Things eventually got so grim that Carlson had to dig into his precious reserves and liquidate “all my little stacks of bitcoin,” he recalls, ruefully. “To save the business, we sold it all.”

[...]

[Image: ?url=https%3A%2F%2Fstatic.politico.com%2...n-5940.jpg]

A Cat may look upon a King.
Quote this message in a reply
Monk-1
Registered User
User ID: 1337
03-09-2018 06:43 PM

Posts: 5,739



Post: #2
RE: This Is What Happens When Bitcoin Miners Take Over Your Town
lol
Quote this message in a reply
Black [email protected]
We All Watching
User ID: 1337
03-09-2018 06:47 PM

Posts: 1,823



Post: #3
RE: This Is What Happens When Bitcoin Miners Take Over Your Town
People have been robbing banks, stores, drug dealers...

How long long till they start robbing people like this, not long I would say
Quote this message in a reply
BlackCat
Every day is an extra day
User ID: 1337
03-09-2018 06:48 PM

Posts: 1,958



Post: #4
RE: This Is What Happens When Bitcoin Miners Take Over Your Town
Quote:By the end of 2017, even with the rapidly rising difficulty, the per-bitcoin cost for basin miners was around $2,000, producing profit margins similar to those of the early years, only on a vastly larger scale. Marc Bevand, a French-born computer scientist who briefly mined in the basin and is now a tech investor, estimates that, by December, a hypothetical investor who had built a 5-megawatt mine in the basin just four months earlier would’ve recovered the $7 million investment and would now be clearing $140,000 in profit every 24 hours. “Nowadays,” he told me back in December, miners “are literally swimming in cash.”

Of course, by the end of 2017, the players who were pouring into the basin weren’t interested in building 5-megawatt mines. According to Carlson, mining has now reached the stage where the minimum size for a new commercial mine, given the high levels of difficulty, will soon be 50 megawatts, enough for around 22,000 homes and bigger than one of Amazon Web Services’ immense data centers.

A Cat may look upon a King.
Quote this message in a reply
LoP Guest
lop guest
User ID: 1337
03-09-2018 06:50 PM

 



Post: #5
RE: This Is What Happens When Bitcoin Miners Take Over Your Town
In the age of Climate Change and people being asked to be a little aware of how much energy you consume.

Some schnitzels invent crypto currencies, that require immense computer power and electricity.

Total waste of energy.

They say if it was a country all those miners, it would be 61th in the word list of nations by energy use.
Quote this message in a reply
LoP Guest
lop guest
User ID: 1337
03-09-2018 06:52 PM

 



Post: #6
RE: This Is What Happens When Bitcoin Miners Take Over Your Town
https://arstechnica.com/tech-policy/2017...explained/

Quote:The skyrocketing value of Bitcoin is leading to soaring energy consumption. According to one widely cited website that tracks the subject, the Bitcoin network is consuming power at an annual rate of 32TWh—about as much as Denmark. By the site's calculations, each Bitcoin transaction consumes 250kWh, enough to power homes for nine days.

That much energy to acquire something intangible. A non-currency that is not FDIC insured, is not backed by a resource, and leaves you with no recourse if it's stolen from you.

It's a waste. 32Twh was wasted last year. Energy that could have been better used elsewhere.
Quote this message in a reply
BlackCat
Every day is an extra day
User ID: 1337
03-09-2018 06:59 PM

Posts: 1,958



Post: #7
RE: This Is What Happens When Bitcoin Miners Take Over Your Town
LoP Guest  Wrote: (03-09-2018 06:50 PM)
In the age of Climate Change and people being asked to be a little aware of how much energy you consume.

Some schnitzels invent crypto currencies, that require immense computer power and electricity.

Total waste of energy.

They say if it was a country all those miners, it would be 61th in the word list of nations by energy use.

Seriously, I can't think of a more foolish use of energy.

Quote: “They are bringing suitcases full of cash,” Carlson says, adding that such ploys invariably backfire. Adds Miehe, “I mean, you know how they talk about the animal spirits—greed and fear? Well, right now, everyone is in full-greed mode.”

Nor was it simply the deep pockets.

At these prices, even smaller operators have been able to make real money running a few machines in home-based, under-the-radar mines.

Take the 20-something Wenatchee man we’ll call “Benny”—he didn’t want to be identified—who last July bought three mining servers, set them up in his house (one in the master bedroom and two in the living room)—and began mining Ethereum, bitcoin’s closest cryptocurrency rival.

As Ethereum climbed from $165 in July to nearly $1,200 in January, Benny had not only repaid his $7,000 investment but was making enough to pay his mortgage.

As a side benefit, this winter, Benny’s power bill went down: The waste heat from the three churning servers kept the house at a toasty 78 degrees. “We actually have to open the windows,” he told me in January.

His servers, meanwhile, pretty much run themselves—although, when he’s at work, clerking at a grocery, he monitors the machines, and the Ethereum price, on his phone. “It’s just basically free money,” Benny says. “All I have to do is wake up in the morning and make sure nothing crashed during the night.”

A Cat may look upon a King.
Quote this message in a reply
BlackCat
Every day is an extra day
User ID: 1337
03-09-2018 07:14 PM

Posts: 1,958



Post: #8
RE: This Is What Happens When Bitcoin Miners Take Over Your Town
Quote:Many also fear that the new mines will suck up so much of the power surplus that is currently exported that local rates will have to rise.

In fact, miners’ appetite for power is growing so rapidly that the three counties have instituted surcharges for extra infrastructure, and there is talk of moratoriums on new mines.

There is also talk of something that would have been inconceivable just a few years ago: buying power from outside suppliers.

That could mean the end of decades of ultracheap power—all for a new, highly volatile sector that some worry may not be around long anyway.

Indeed, one big fear, says Dennis Bolz, a Chelan County Public Utility commissioner, is that a prolonged price collapse will cause miners to abandon the basin—and leave ratepayers with “an infrastructure that may or may not have a use.”

A Cat may look upon a King.
Quote this message in a reply
BlackCat
Every day is an extra day
User ID: 1337
03-09-2018 07:25 PM

Posts: 1,958



Post: #9
RE: This Is What Happens When Bitcoin Miners Take Over Your Town
Quote: ...Many residents he hears from aren’t keen to see so much public power sold to an industry whose chief product is, in their minds, of value only to speculators and criminals. “I mean, this is a conservative community, and they’re like, ‘What the hell’s wrong with dollars?’” says Bolz. “If you just went out and did a poll of Chelan County, and asked people, ‘Do you want us to be involved in the bitcoin industry, they would say not only ‘No,’ but ‘Hell no.’”...

[Image: ?url=https%3A%2F%2Fstatic.politico.com%2...n-4342.jpg]

A Cat may look upon a King.
Quote this message in a reply
BlackCat
Every day is an extra day
User ID: 1337
03-09-2018 07:32 PM

Posts: 1,958



Post: #10
RE: This Is What Happens When Bitcoin Miners Take Over Your Town
Iceland is another place that's being overrun by this.

http://www.rappler.com/technology/news/1...en-iceland

Quote:REYKJAVIK, Iceland – Around 600 computers used to mine bitcoin were stolen in Iceland in a series of large-scale heists in December and January, police said on Wednesday, March 7.

The servers were taken from data centers in Reykjanesbaer, near the Keflavik international airport in southwestern Iceland, and Borgarnes on the west coast.

Around 10 people were brought in for questioning, and two Icelanders in their 20s and 30s are currently in detention suspected of involvement in the crime, a police spokesman for southwestern Iceland told AFP.

He suggested the thefts could be linked to organized crime.


"Everything points in that direction," he said.

[...]

Iceland has become a magnet for cryptocurrency farms, blockchain technologies and data centers because of its cold climate which is instrumental in cooling the energy-consuming servers, and its low electricity prices

A Cat may look upon a King.
Quote this message in a reply
LoP Guest
lop guest
User ID: 1337
03-09-2018 09:08 PM

 



Post: #11
RE: This Is What Happens When Bitcoin Miners Take Over Your Town
Yes, and these rat bastards are also the reason that finding a decently priced new generation graphics card is next to impossible.

They are filling up their fantasy money box's with them.

The price of greed, they shall learn it.
Quote this message in a reply
LoP Guest
lop guest
User ID: 1337
03-09-2018 09:12 PM

 



Post: #12
RE: This Is What Happens When Bitcoin Miners Take Over Your Town
So, total waste of energy.
Hardly any video cards and nice gaming.
And these coins probably make you lose all you invest in them in the end.

And that from such an idealistic corner of IT anarchist/freedom fighters, in the nineties.

Idealism can be dangerous, if it doesn't work.
Quote this message in a reply
LoP Guest
lop guest
User ID: 1337
03-09-2018 09:33 PM

 



Post: #13
RE: This Is What Happens When Bitcoin Miners Take Over Your Town
Bitcoin is complete shìt.. useless crap. Waste of energy. It's so overvalued it's laughable, considering it is useless. The only reason it's worth anything is because of the retarded HODLers who hoard the crap, while the vast majority of the other crap is being held by a handful of people. Total scam. Artificial scarcity.

If you want a crypto-currency to send money there are far better options over Bitcoin.. options that are cheap, secure and energy efficient. If you want to use blockchain as an encrypted ledger, you don't need Bitcoin.

Useless garbage.
Quote this message in a reply
LoP Guest
lop guest
User ID: 1337
03-09-2018 09:36 PM

 



Post: #14
RE: This Is What Happens When Bitcoin Miners Take Over Your Town
Just wait until the full bitcoin load has been mined and you need to actually pay even more for every transaction.

I will congratulate them on the most successful modern pyramid scam.
The few got very rich while the many will be left with worthless data.
Quote this message in a reply
LoP Guest
lop guest
User ID: 1337
03-10-2018 09:13 AM

 



Post: #15
RE: This Is What Happens When Bitcoin Miners Take Over Your Town
''miners''? more like thieves, spies, liars and hackers
Quote this message in a reply
Advertisement









Contact UsConspiracy Forum. No reg. required! Return to TopReturn to ContentRSS Syndication