Bitcoin's mining power hits a new record as 600K new ASICs

Why Bitcoin is the worst thing for renewables, and good news only for coal: it's inflexible demand

A comment on my blog post about Proof-of-Work from Janne M. Korhonen, who started following this Bitcoin rubbish because of his interest in energy policy.
Thanks, this is very good explanation. Just one addition: energy researchers around the world snigger at claims made by Bitcoin enthusiasts about how Bitcoin supposedly promotes renewable energy use.
On the contrary, Bitcoin mining is one of the least renewable-compatible industrial processes there are. (As long as we’re not talking about hydro or geothermal, both of which have very specific siting demands and are not really expandable in most developed countries.)
The reason for this is simple. New, promising renewable energy sources, namely wind and solar PV, do not produce steady power like coal plants or hydro stations do. Instead, for reasons that should be obvious, they produce only during favorable weather conditions. In no case do these conditions prevail for more than approximately 45% of the time. (That’s top-end “capacity factor” from very large offshore wind power plants; for typical solar PV, the capacity factor would be from 8 to 15 percent.)
So for the rest of the time, the electricity needs to be provided by some other means. This is THE major problem and bottleneck with renewable energy expansion plans these days: the generators themselves are already relatively cheap, but they produce intermittent power.
Yes, there are some ways these problems can be mitigated (e.g. vast interconnector networks connecting multiple generator sites), but weather conditions tend to correlate over long distances. Night, in particular, tends to fall equally no matter how many solar panels you have installed. Batteries are another theoretical solution, but the RE + battery combo required for steady 24/7 power supply will not win any awards in the least cost energy category any time soon (that is, as long as coal burning is allowed). So one of the main headaches for those of us who are interested in cleaning up the world’s energy system is how to increase the flexibility of demand.
Now in Bitcoin, we have expensive, single-purpose investments in ASIC miners. These investments need to be recouped as fast as possible, because otherwise the miners will become obsolete before they gain even their costs. Who does seriously believe any miner in his right mind would throttle the mining operations in response to power supply?
Yup, none.
Even the old bugbears of inflexible, energy-intensive 24/7 processes like smelting are getting into flexibility act and redesigning their technology to better respond to variable supply. Yet here we have people who blithely claim that adding extremely inflexible demand is great for renewable energy.
Spoiler alert: it’s great for coal.
Update: He's written it up as a post now:
https://jmkorhonen.net/2018/05/25/bitcoin-is-not-a-good-fit-for-renewable-energy-heres-why/
submitted by dgerard to Buttcoin [link] [comments]

Will crypto mining kill polar bears?

Bitcoin mining uses as much electricity as a small country. Many people hate it for this reason, its one of the more popular arguments against crypto currencies. Will crypto mining kill polar bears? I think not. I think it will help save polar bears. "Bear" with me.
Germany produces a significant part of its electricity from renewable energy: wind and solar. As we all know, these sources are intermittent and seasonal, as is demand. When the share of renewable energy in the overall energy mix becomes large enough, the result is inevitable: temporary and seasonal overcapacity. This isnt just theoretical, energy prices in germany and the UK where effectively negative last Christmas: http://www.businessinsider.com/renewable-power-germany-negative-electricity-cost-2017-12//?r=AU&IR=T
As explained in the above article, this isnt a rare freak occurrence, its expected and this will have to be become much more common if as a society, we want to transition away from fossil fuels. Because to do that we need (much) more renewable energy sources. A study I saw for Germany calculated they needed at least 89% more capacity, just to handle peak loads. But that also implies an incredible amount of overcapacity when demand isnt anywhere near peak, or when supply is above average due to favorable weather. Storing excess renewable electricity, in most places is very expensive and inefficient. So much so that its rarely even done. This is a major problem. Wind turbines are therefore feathered, solar panels turned off, excess electricity dumped in giant electrical heaters, offered for free or even offered at negative prices. Renewable energy may have become cheaper than other forms per KWH, but thats only if when you can sell all of your production. And its only true if the consumption occurs near the renewable energy source and not 100s or 1000s of kilometers further. Building capacity that can only be used 50% or even 10% of the time, or building infrastructure to store surplus electricity is still very expensive, as is transporting renewable energy over long distances.
I know what you're thinking. Mining wont help here, because mining intermittently is something that seems crazy today; miners keep their expensive machines on 24/7. But thats only because today, the overall cost structure of a (bitcoin) miner is heavily tilted towards hardware depreciation. Particularly for anyone paying retail prices for mining asics. This will change completely, because of two related reasons:
1) mining efficiency improvements will taper off.
Mining asics have been progressing extremely rapidly, from being based on CPUs and FPGA's, to using 20 year old obsolete 180nm process technology in the first asics, to state of the art 16nm chips today. This has resulted in at least a million fold improvement in efficiency in just a few years, which in turn lead to hardware investments that needed to be recovered in a few months or even weeks (!) before they were obsolete. Opportunity cost has been so high, that miners have literally chartered 747s to transport new mining equipment from the manufacturer in China to their datacenters in the US.
This cant and wont last. 12nm and 7nm asics are about to be produced, or are being produced now. It doesnt get better than that today, and it wont for many years to come. Moore's law is often cited to show efficiency will keep going up. That may be true, but until now the giant leaps we have seen had nothing to do with moore's law, which "only" predicts a doubling every 18 months. Moore's law is also hitting a brick wall (you cant scale transistors smaller than atoms), and only states that transistor density increases. Not that chips become more efficient or faster, which increasingly is no longer happening (new cpu's are getting more cores, but run at comparable speeds and comparable power consumption to previous generations).
What all this means is that these upcoming state of the art mining asics will remain competitive for many years, at least 3, possibly more than 5 years, and thus can be used and written off over that many years. But they will still consume electricity during all those years, shifting the overall costs from hardware to electricity.
2) Mining is still too profitable (for anyone making their own asics) and mining hardware is therefore still too expensive (for everyone else)
Miner hardware production rate simply hasnt yet been able to keep up with demand and soaring bitcoin prices. This leads to artificially low mining difficulty, making mining operationally profitable even with expensive electricity, and this also leads to exuberant hardware profit margins. You can see this easily, just look at the difficulty of bitcoin. When the price dropped by 70%, did you see a corresponding drop in difficulty? No, no drop at all, it just keeps growing exponentially. That only makes sense because we are not yet near saturation, or near marginal electricity costs for bitmain & Co. Its not worth it yet for them to turn off their miners. Its not even worth it yet for residential miners. Another piece of evidence for this, is bitmains estimated $4 billion profit. But mining is a zero sum game, over time, market forces will drive hardware prices and the mining itself to become only marginally profitable. We're clearly not close to that -yet. You might think so as a private miner, but thats only because you overpaid for your hardware.
Lets look at todays situation to get an idea. An Antminer S9 retails for $2300 and uses ~1300W at the wall. If you write off the hardware over a year, electricity and hardware costs balance out at an electricity price of $0.2/KWH. Anything below that, and hardware becomes the major cost. But how will that evolve?
As difficulty keeps going up, bitcoin mining revenue per asic will decline proportionally, until demand for mining asics will eventually taper off. To counter that, prices of asics will be lowered until they approach marginal production costs, which by my estimate is closer to $200 than $2000. Let say a 1300W S9 equivalent at that point gets sold at $400 leaving bitmain a healthy profit margin; that would mean each year a miner would spend 5x more on electricity than on hardware. Hardware will remain competitive for more than a single year though. Say you write it off over 3 years, now you're spending 15x more on electricity than on hardware. Intermittent mining like 50% of the time, but with free or virtually free electricity will become economical long before that.
By now, I will hopefully have convinced you of the viability of mining with intermittent excess renewable energy; intermittent mining with renewable energy will not only become viable, it will become the only way to do it profitably. Renewable energy at the source is already cheaper than any carbon burning source. Even in Quatar, they install solar plants because its cheaper than burning their own gas. Its transporting and storing the electricity that usually is the problem. Gas can easily be transported and stored. Wind and solar energy can not. And thats a massive problem for the industry. But mining doesnt need either. You can mine pretty much anywhere and anytime. All you need besides electricity, is a few containers and an internet connection for a solar plant or wind farm to monetize excess energy.
Moreover, mining is a zero sum game, a race to the bottom. As long as its profitable for green energy providers to deploy more hardware (which will be true as long as they can at least recover their hardware investment), difficulty will go up. Until it becomes unprofitable for anyone who has to pay for his electricity. No one gives oil, coal or gas away for free, so anyone depending on those sources of electricity, can not remain competitive. If bitcoin price were to go up so much, that there isnt enough renewable electricity production in the world to accommodate the hashrate, bitcoin miners will simply install more solar and wind farms. Not because of their ecological awareness, but because it makes the most financial sense. And during peak demand periods, why wouldnt they turn off the miners and sell their electricity to the grid for a premium?
Basically crypto mining would fund renewable energy development, and solve the exact problem laid out in the article linked above: provide overcapacity of renewable energy to handle grid peak loads, without needing any government funding or taxation on carbon based sources, without needing expensive and very inefficient energy storage. From the perspective of a green energy producer, energy storage, like a battery or hydrogen production, is just an expensive and intermediate step between producing electricity and getting paid for that electricity. Crypto mining will do the same thing, converting excess electricity in to cash, only much more efficiently.
TL:DR, deploying more renewable electricity overcapacity is both very expensive and very necessary if we want to save polar bears. Financing for these large scale green energy projects will either have to come from tax payer money to store or subsidise the largely unused excess electricity, or it will come from crypto mining. Market forces will drive crypto mining to use the cheapest energy. Renewable energy already is cheaper per KWH than carbon based power, and nothing is cheaper than excess and thus free (or negative value) renewable energy. Bitcoin mining's carbon foot print will therefore become ~zero. If you take in to account the effect of financing and subsidizing large scale renewable energy development that can also be used to supply the grid during peak demand periods, its carbon footprint will be hugely negative.
BTW, if you wonder what Blockchains LLC is going to do with 61K acres near Tesla's factory; my guess is solar plants and crypto mining. Expect to see renewable energy development and crypto mining to merge in to one single industry. Check out envion to get a glimpse of this future. Im not endorsing their token as an investment, I havent researched it at all, but the market they are going after is a very real one and its about to explode.
submitted by Vertigo722 to CryptoCurrency [link] [comments]

MinedBlock Solutions And Distinctivenes

  1. Bitmain Antminer S9 –BTC/BCH (BCHABC)
  2. Bitmain Antminer L3++ –LTC
  3. Bitmain Antminer D3 –Dash
  4. Custom built 8 GPU rigs –ETH/ETC

You can use the links below to learn more details about the project and join the token sale.
Website
Whitepaper
Telegram
Reddit
Twitter
Facebook
bounty0x username: hashin
submitted by tgzcoin to ICOAnalysis [link] [comments]

MinedBlock Review

MINEDBLOCK REVIEW #1


Introduction
The birth of bitcoin led to several hundreds of cryptocurrencies, though the main idea behind cryptocurrency is to secure and anonymous way to transfer currency from one person to another. To further develop this anonymity, Satoshi Nakamoto developed a digital ledger of bitcoins transactions called Blockchain. The digital currency Bitcoin has now taken the world by storm. Despite new innovations and technology of green energy in power sector, the amount of electricity spent in the process of mining bitcoin has essentially become a huge barrier since past few years. Since many cannot afford to buy Bitcoin directly from merchant or individuals, they turn to mining.
The Bitcoin Blockchain has been congested due to the numbers of miners on the network, so therefore making mining difficult. However, mining which is a very popular method of earning Bitcoin requires a higher amount of processing power. The more the processing power you have, the faster the verification of payments. The latest study published in the journal Joule, researched that the entire Bitcoin network consumes about 2.55 gigawatts of electricity currently, and can reach to 7.67 gigawatts in future. The innovation of MINEDBLOCK will help create a unique mining facility which will focus on mining multiple coins from within the top 50 by market cap to ensure maximum revenue for customers to enjoy.
MINEDBLOCK SOLUTIONS AND DISTINCTIVENES
THE MINEDBLOCK TOKEN (MBTX)
The MinedBlock (MBTX) Token is an ST-20 token deployed on Polymath platform on the Ethereum blockchain technology. The token will be run as a Security Token Offering to enable revenue sharing business strategy.
MinedBlock utilizes two different tokens model in the operation model. These are Security Token and Utility Token. The utility token is MBTU which is an ERC-20 Token built on the Ethereum blockchain technology.
USE CASES OF MBTX AND MBTU
TOKEN SALE
Investors will go through KYC to be eligible for the token sales while US investors will have to be accredited before taking part in the sales. The token will also be subject to 90 days vesting period from the date the softcap is achieved.

Kindly visit the below website for more in depth knowledge about the project:
Website: https://www.minedblock.io/
Whiteppaer: https://www.minedblock.io/assets/MinedBlockWhitepaper.pdf
Facebook: https://www.facebook.com/MinedBlock/
Twitter: https://twitter.com/mined_block
Telegram: https://t.me/minedblockofficial
Reddit: https://www.reddit.com/MinedBlock
https://www.youtube.com/watch?v=qj9qKmcrTbg
bounty0x.io id : kupabeyi
ETH adress : 0xe6b015ceEb86d7f828DF95E1B595138F14129D5a
submitted by fa0ti2h to u/fa0ti2h [link] [comments]

DISTINCTIVENESS OF MINEDBLOCK

DISTINCTIVENESS OF MINEDBLOCK
https://preview.redd.it/m5pnuflfjyv21.png?width=936&format=png&auto=webp&s=42e3d72638c11f76336582ea3e9c884acef4e4e5
MINEDBLOCK will help create a unique mining facility which will focus on mining multiple coins from within the top 50 by market cap to ensure maximum revenue for customers to enjoy.
MinedBlock leverages blockchain technology and the decentralized method in creating a mining facility that will be mainly for mining many coins from the top 50 in the cryptocurrency market.
MinedBlock showcase transparency to customers as they will help maintain, replace and expand and be responsible for the cost of physical assets.
MInedBlock will utilize a mixture of ASIC units with Custom Built GPU Mining Rigs. Investment will be divided in to the below equipment:
  • Bitmain Antminer S9 –BTC/BCH (BCHABC)
  • Bitmain Antminer L3++ –LTC
  • Bitmain Antminer D3 –Dash
  • Custom built 8 GPU rigs –ETH/ETC
The MinedBlock Mining farm will be situated in Iceland as it a cryptocurrency friendly county where the cost of electricity is less and the weather condition is fine. Thy will be utilizing the ASIC Bitcoin and Bitcoin Cash mining units with GPU mining rigs built and configured from the UK before moving them to a facility in either Iceland, Canada or Sweden.
Mining activities will be monitored and switched between coins when the difficulty and success rate fluctuate. The aim is to maintain maximum efficiency.
The MinedBlock Token sale will run as Security Token Offering to enable our compliant revenue sharing business model. This is the best way as it will help protects both the business and customers from any future regulation.
Kindly visit the below website for more in depth knowledge about the project:
Website: https://www.minedblock.io/
Whiteppaer: https://www.minedblock.io/assets/MinedBlockWhitepaper.pdf
Author’s bountyOx username : Obembe
submitted by bboossmmaann to CryptocurrencyICO [link] [comments]

[uncensored-r/CryptoCurrency] Will crypto mining kill polar bears?

The following post by Vertigo722 is being replicated because some comments within the post(but not the post itself) have been openly removed.
The original post can be found(in censored form) at this link:
np.reddit.com/ CryptoCurrency/comments/80mbpb
The original post's content was as follows:
Bitcoin mining uses as much electricity as a small country. Many people hate it for this reason, its one of the more popular arguments against crypto currencies. Will crypto mining kill polar bears? I think not. I think it will help save polar bears. "Bear" with me.
Germany already produces a significant part of its electricity from renewable energy: wind and solar. As we all know, these sources are intermittent and seasonal, as is demand. The result is inevitably temporary and seasonal overcapacity. This isnt just theoretical, energy prices in germany and the UK where effectively negative last Christmas: http://www.businessinsider.com/renewable-power-germany-negative-electricity-cost-2017-12//?r=AU&IR=T
As explained in the above article, this isnt a rare freak occurrence, its expected and this will have to be become much, much more common if as a society, we want to transition away from fossil fuels. To do that we need more renewable energy. A study I saw for Germany calculated they needed at least 89% more capacity, just to handle peaks loads. That also implies an incredible amount of overcapacity when demand isnt anywhere near peak, or when supply is above average due to favorable weather. Storing excess renewable electricity in most places is very expensive and inefficient. So much so that its rarely even done. This is a major problem. Renewable energy may have become cheaper than other forms per KWH, but who wants to invest in solar or wind power when you cant sell your energy to the grid for much of the time, and especially during those times where it actually produces the most energy?
I know what you're thinking. Mining wont help here, because mining intermittently, a few hours per day or a few days per week is something that seems crazy today; but thats only because today, the overall cost structure of a (bitcoin) miner is heavily titled towards writing off hardware. Particularly anyone paying retail prices for mining asics. This will change, because of two related reasons:
1) mining efficiency will taper off.
Mining asics have been progressing rapidly, from using 20 year old process technology to absolute state of the art now. This has resulted in million fold improvements in efficiency in just a few years, which in turn lead to hardware investments that needed to be recovered in a few months or even weeks (!) before they were obsolete. This cant and wont last. 12nm and 7nm asics are about to be produced, or being produced. It doesnt get better than that today, and it wont for many years to come. 5nm wont become available before 2020 at the earliest, and likely later than that, especially in meaningful volume. More over, Moore's law is hitting a brick wall (you cant scale transistors smaller than atoms), and only states that transistor density increases. Not that chips become more efficient or faster. This is already becoming evident. Compared to a few years ago, CPUs have gained more cores (ie, more transistors), but a 4 year old highend cpu like a Haswell core i7 runs at comparable speeds, and comparable power efficiency with today's chips. All this means that these state of the art mining asics will remain competitive for many years, and can be written off over many years. But they will still consume electricity during those years, which will then become the primary cost.
2) Mining is still too profitable (for anyone making their own asics) and mining hardware is therefore still too expensive.
Miner hardware production rate simply hasnt yet been able to keep up with demand and soaring bitcoin prices. This leads to artificially low mining difficulty, making mining operationally profitable even with expensive electricity, and this also leads to exuberant hardware profit margins. You can see this easily, just look at the difficulty of bitcoin. When the price dropped by 70%, did you see a corresponding drop in difficulty? No, no drop at all, it just keeps growing exponentially. That only makes sense because we are not yet near saturation, or near marginal electricity costs for bitmain & Co. Its not worth it yet for them to turn off their miners. Its not even worth it yet for residential miners. Another piece of evidence for this, is bitmains estimated $4 billion profit. But mining is a zero sum game, over time, market forces will drive hardware prices and the mining itself to become only marginally profitable. We're clearly not close to that -yet. You might think so as a private miner, but thats only because you overpaid for your hardware.
Lets look at todays situation to get an idea. An Antminer S9 retails for $2300 and uses ~1300W at the wall. If you write off the hardware over a year, electricity and hardware costs balance out at an electricity price of $0.2/KWH. Anything below that, and hardware becomes the major cost. But how will that evolve?
Based on some experience in the industry, I recognise the high startup costs of developing an asic, particularly on an advanced process, but my guess is the BOM for a miner like the S9 without PSU is below $200; depending on yields and binning, and the wafer prices they can negotiate with TSMC, it could be as low as $100. The fan might literally be the most expensive part. As difficulty keeps going up, demand for asics will eventually taper off, and market prices will head towards marginal costs. Let say an S9 equivalent at that point gets sold at $400 leaving bitmain a healthy margin; that would mean each year a miner would spend 5x more on electricity than hardware. Hardware will remain competitive for more than a single year though. Say you write it off over 3 years, now you're spending 15x more on electricity than the hardware. Intermittent mining with free or virtually free electricity 50% of the time will become feasible long before that, hardware costs will become almost a moot point and mining even a few hours per day of a few days per week might actually make sense.
The result is that crypto mining will give green energy producers a way to efficiently monetise local, seasonal or intermittent excess energy production. Instead of paying people to use their excess electricity, they will be paid for it, and they will earn pretty much the global average electricity rates for it, as mining difficulty will adjust to around that level. That means investing in renewable energy is now much more lucrative, because you dont have to worry about what to do with your excess production. It may even make sense if you cant sell a single KwH to the grid. But anything you can sell for a price above your mining profits, will be extra.
By now, I will hopefully have convinced you of the viability of mining with renewable energy; but its not only viable, it will become the only way to do it profitably. Renewable energy at the source is already cheaper than any carbon burning source. Even in Quatar, they install solar plants because its cheaper than burning their own gas. Its transporting and storing the electricity that usually is the problem. Gas can easily be transported and stored. But mining doesnt need either. You can mine pretty much anywhere and anytime. All you need is a few containers and an internet connection.
Moreover, mining is a zero sum game, a race to the bottom. As long as its profitable for green energy providers to deploy more hardware (which will be true as long as they can at least recover their hardware investment), difficulty will go up. Until it becomes unprofitable for anyone who has to pay for his electricity. No one gives oil, coal or gas away for free, so anyone depending on those sources of electricity, can not remain competitive. If bitcoin price were to go up so much, that there isnt enough renewable electricity production in the world to accommodate the hashrate, bitcoin miners will simply install more solar and wind farms. Not because of their ecological awareness, but because it makes the most financial sense.
TL:DR, deploying under utilised excess renewable capacity is both very expensive and very necessary if we want to save polar bears. Financing for large scale green energy projects will either have to come from tax payer money to subsidise excess electricity, or it will come from crypto mining.
BTW, if you wonder what Blockchains LLC is going to do with 61K acres near Tesla's factory; my guess is solar plants and crypto mining. Expect to see renewable energy development and crypto mining to merge in to one single industry. Check out envion to get a glimpse of this future. Im not endorsing their token as an investment, I havent researched it at all, but the market they are going after is a very real one and its about to explode.
submitted by censorship_notifier to noncensored_bitcoin [link] [comments]

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