21–30 of 46 posts
Earlier quoted context omitted.
> So you are looking at a pure profit of $197k per month. Not including liquidity issues and fees for turning that stuff into actual money, at least until you can start paying all your bills with bitcoin.
$200k/month is not going to run you into liquidity issues.
What is their internet connection, fiber? Surely they must have a special contract or multiple providers.
I don't think Bitcoin is a big bandwidth user. A lot of little/small connections.
I wonder about the effects of such establishments on the Bitcoin ecosystem as a whole. In theory, they're supposed to strengthen the network by providing more hashing power. But what worries me is the onset of mega-pools composed of such factories that will gain >51% of the network's computational power effectively gaining a monopoly on Bitcoin.
I wonder about the effects of such establishments on the Bitcoin ecosystem as a whole. In theory, they're supposed to strengthen the network by providing more hashing power. But what worries me is the onset of mega-pools composed of such factories that will gain >51% of the network's computational power effectively gaining a monopoly on Bitcoin.
There is no reason factories like this would WANT to disrupt the Bitcoin network if it's their source of income.. If any organization can get enough hashrate to topple the network, they will lose all that money by toppling the network.
I wonder about the effects of such establishments on the Bitcoin ecosystem as a whole. In theory, they're supposed to strengthen the network by providing more hashing power. But what worries me is the onset of mega-pools composed of such factories that will gain >51% of the network's computational power effectively gaining a monopoly on Bitcoin.
That's the one thing that keeps eating at me. Would it not be trivial for a large corporation or government entity to throw enough money around to accomplish this? The only response I hear is that the market will magically prevent this.
But let's just go with your assumption that some entity with big pockets decide to run a majority attack against Bitcoin miners. How much effort and money would it require?
1 year and 20 billion dollars; here is why:
The best 20-28nm mining ASICs require about 1 watt per Ghash/sec. The network is currently at 170,000,000 Ghash/sec so it would require at least 170 megawatt of ASICs, or a ~200 megawatt datacenter (with PUE = 1.15). The fastest TOP500 supercomputer facilities barely reach 20 megawatt. The biggest datacenters in the world are just about 100 megawatt. So the attacker would require two of the world's most powerful datacenters (in terms of electricity and cooling) to attack Bitcoin. But it would take at least 1 year to plan, design, build, and deploy the hardware in two such facilities. And the Bitcoin network will continue to grow during this time. It has grown by 400x in the last year (400,000 to 170,000,000 Ghash/sec). By the lowest estimate, the network will grow at least by 10x in the next year (170,000,000 Ghash/sec to 1,700,000,000 Ghash/sec). So you need to plan to build not 2, but 20 world-class 100 megawatt datacenters by August 2015 to be ready to have a chance to majority-attack Bitcoin. Knowing that a 100 megawatt datacenter costs $1 billion [1], you need pockets with $20 billion in them. And if you under-estimate the growth of the Bitcoin network in the next 12 months, you will have failed and wasted $20 billion for nothing.
[1] http://www.greendatacenternews.org/articles/share/416983/
Is there any estimate of how much income this particular mine can produce, compared the the capital outlay and the ongoing costs?
This operation currently mines about $262k per month: 230e9 (each machine does 230 Ghash/s) * 2500 (# of machines) * 3600 (second/hour) * 730 (hour/month) / (2^32 (average number of hashes to solve a block at diff=1) * 19.8e9 (current Bitcoin difficulty)) * 25 (BTC/block) * 590 (USD/BTC) = $262000/month The article says their electricity bill is $60k per month. Subtract the 3 employees salaries, say $5k per month (th…
3600 coins per day * 30 days * 588.41 BTC/UDS * 0.003 = $189831.60 USD gross per month?
Earlier quoted context omitted.
That's the one thing that keeps eating at me. Would it not be trivial for a large corporation or government entity to throw enough money around to accomplish this? The only response I hear is that the market will magically prevent this.
Subverting the entire Bitcoin network is almost certainly not as much as a 1 ACE problem. (Aircraft Carrier Equivalent)
Is there any estimate of how much income this particular mine can produce, compared the the capital outlay and the ongoing costs?
This operation currently mines about $262k per month: 230e9 (each machine does 230 Ghash/s) * 2500 (# of machines) * 3600 (second/hour) * 730 (hour/month) / (2^32 (average number of hashes to solve a block at diff=1) * 19.8e9 (current Bitcoin difficulty)) * 25 (BTC/block) * 590 (USD/BTC) = $262000/month The article says their electricity bill is $60k per month. Subtract the 3 employees salaries, say $5k per month (th…
If you pay $5k for such kind of 24/7 job in China you'll make a middle man very happy.