(CRYPTOcurrency mining) The competitive process for a cryptocurrency confirms and adds new transactions to the blockchain using the Proof of Work (PoW) method. The winning miner is awarded a certain amount of currency and/or transaction fees. The mining methods are as follows. See work proof algorithm.
Listen to the individual
Anyone can buy special mining hardware and connect to the Internet. It was more viable in the early 2010s than it is today. However, new currencies come online all the time, and if they use the Proof of Work (PoW) method instead of Proof of Stack (PoS), then regular computers or computers with advanced GPUs may be sufficient for mining. Are View miner hardware and GPU.
Organizations pool their resources to acquire large quantities of mining hardware. Mining ponds are also open to the public, allowing anyone to add their computer to the network. See Pool Mining.
People can rent time on the cloud mining service and pay a monthly fee. See Cloud Mining.
The miners who are trying to solve the mystery of bitcoin and Ethereum use two big corrupt, huge amounts of electricity. Known as the “proof of work” consensus algorithm, the Digiconomist website states that bitcoin and Ethereum together use as much energy as Indonesia. However, Ethereum is changing its consensual approach, which began in late 2020 (see Ethereum 2.0). Unlike corrupt mining. See Consensus Methods, Crypto Mining Malware, Blockchain, Bitcoin Mining, and Crypto Jacking.
The world’s largest bitcoin mining farms
Rockdale, Texas – In this rural town of 5,600 people, two big names in bitcoin mining are fighting for market share and cheap electricity.
These competitors are also next-door neighbors.
The bidder – a firm derived from Bitmain, a major Chinese bitcoin mining company – is one-fourth of a mile down the road from Riot Blockchain, one of the largest publicly traded mining companies in the United States. is one of the. The two are tenants of a property once owned by Alcoa, an aluminum company, but they have something in common.
Riot’s Whinstone Mine is run by a team that promotes transparency and opens its doors to the media daily, while Bitdeer is far away, shrouded in mystery, and certainly not of interest to viewers. Is.
In this industry, everyone likes Oh top-secret, we have proprietary information Well you don’t have to, Winston CEO Chad Harris told CNBC.
You take a cable, you put it in a machine made by someone else, you turn it on, you connect a pool, and you make a bitcoin.
Located an hour northeast of Austin, the Rockdale Classic looks like rural America. There are rolling hills, green grass pastures, hay bales, and Walmart – which Mayor John King says is the main driving force behind the sales tax, a major source of revenue for the city’s annual budget.
But for a more sensible look, Rockdale offers all the fixing of a bitcoin miner’s dream home: corrupt friendly politicians, large tracts of land, and ready to redesign the previously abandoned industrial infrastructure. , And the ability to plug into Texas’ power grid.
The Texas Electric Reliability Council, or ERCOT, is a non-profit organization that operates the Texas grid. The grid has been deregulated, meaning consumers can choose between providers.
Because large-scale miners compete in low-margin industries where energy is their main variable cost, they have reason to migrate to the world’s cheapest sources of power. Competition between electricity providers in Texas is a good thing for miners because it usually translates to lower rates.
Winston, Bit Der Bitcoin Mining Farms
Rockdale was once the world’s largest aluminum plant, run by Alcoa. But according to Texas President Lee Brecher, since its inception in 2008, it has been shutting down its energy supply, which means that energy capacity is about to be depleted. Due to the prohibited cost of construction. Blockchain Council
The arrival of corrupt miners removed this imbalance.
In addition, miners can be flexible in the face of power supply and price fluctuations. Unlike the aluminum smelter or any other business, miners can handle any closure without major financial loss.
This flexibility is important for a state that has recently struggled with the reliability of its power grid, which is different from the rest of the country.
ERCOT sometimes asks consumers to save energy between heat waves. The state suffered notoriety after severe winter storms earlier this year.
Mayor King says today’s arrangement between miners and ERCOT is very simple and mutually beneficial. Not only do miners use electricity otherwise it is wasted, but they also act as an “interruptible load”, meaning they can shut down all their machines with a few seconds’ notice when the grid is in a pinch. I have and need extra strength. The miners do so voluntarily because of financial incentives.
The miners are determined to buy a certain amount of electricity and what they do is sell it back in the market [value] and make a profit,” King explained. They have a contract for two cents or three cents and they can sell it for $9 per kilowatt-hour.
There were a lot of things that went wrong San Ted Cruz R-Texas said of the coming winter storm of 2021 that devastated much of the state. But I think bitcoin has the potential to solve many of its aspects.
bitcoin and the mining industry
Cruz, whose views on the bitcoin and mining industry have become more widespread, recently addressed the issue at the Texas Blockchain Summit in Austin. During his keynote interview, Cruz pointed out the importance of the ability of bitcoin miners to turn on or off in seconds – a feature that is very useful when it comes to meeting energy demand. Need to move back to the grid.
A lot of the debate around the bitcoin sees the bitcoin as an energy consumer Cruz said. There is one way to strengthen it.
James Gibson, Rockdale’s director of economic development, says the town is ready for 160 acres.
King has already interviewed about 40 mining companies seeking to set up shop there, most of them Chinese miners. Earlier this spring, Beijing cracked down on its domestic corrupt mining industry. Exiled miners have since taken refuge in places like the United States, which has recently become the largest mining site on the planet.
“It has the money. They have the equipment. They just need a place – and power, hurry,” Gibson said.
David vs. Goliath
At the main entrance to Bitdeer’s Rockdale mine is a small tan shed with light blue trim, staffed by a smiling, enthusiastic guard. There are no gates to stop unpleasant vehicles and no spike strips on the floor. Considering how secretive Bitdeer is as a company, getting into a property seems relatively welcome – and surprisingly easy.
But the company is still largely closed. CNBC asked for a tour and interview, and we were told that when they were “pricing” the meeting, the person in charge had been traveling for several weeks, and it was difficult to explain their schedule.
The mayor, whose son took a full-time job with Bitdeer this year, shared a bit about the operation.
Unlike Riot’s Whinstone Mine, once built in dense jungle, Bitdeer took possession of a closed alcohol smelter, which was easily connected to large power lines. King says most of the football-tall buildings that Bitdeer now owns were built in the 1950s and were to be rebuilt – a process that involved filling the floor with concrete. Aluminum was once processed into melting pots.
According to King, Butt Der is “spreading as fast as it can be made.”
Not much is known about the details of how Bitdeer’s bitcoin mining operation works. CNBC reached out to ask how many mining rigs and employees they have on-site, as well as how much cryptocurrency they withdraw in a given month, and the company did not respond.
When Winston first broke ground in Rockdale in January 2020, many saw him as the Goliath of David to Butt Der. Harris, the CEO of Winston, was from New Orleans, where he was known for selling pre-decorated Christmas trees to wealthy families. CTO, Harris’ youngest son had blue hair and dropped out of college after his new year.
“It doesn’t matter what Alcoa told us, we agreed,” said Harris of the preliminary talks.
“They were like, ‘You need that money for a deposit,’ and we were like, ‘Absolutely, no problem.’ “You need a Moody’s rated guarantor,” he said, “and I’m like, ‘Absolutely, no problem.'” Harris explained. Remind him that he was broken and had no guarantor, but Harris always had the same answer “It’s easy. “Yes,” he said.
Harris’s leadership style is not just about reform. Whinstone CEO tells CNBC that his greatest skill is sending money to suppliers as soon as possible. I always joke that when a billion dollars come into a company’s account there is no way accounting is going to send it back again. They’re going to force people to do that – whatever.”
This strategy has repeatedly borne fruit for Winston as the value of the bitcoin has skyrocketed over the past year or so.
we have bought all the orange groves in the US. You can raise your hand to every last stick in the pipe,” Harris said. “And then they call back a week later that they’ve made a mistake.” “We can’t afford it.” We’re like, ‘Just send the money back.’ And then they say, ‘Wait, I think we can fix that.’
Harris broke the ground in January 2020 when the bitcoin was $ 4,100, he turned on the ear when it was, 6,100, and Harris remembers thinking that if the bitcoin could only hit $ 8,000 a coin, they wouldn’t go bankrupt. Will The coin recently touched a new record high of about $ 67,000 in mid-October.
“When we showed up here, it was a jungle place,” Harris told CNBC from his office – one of the many people inside a prefab roof trailer attached to the ear. “We didn’t have power lines … crazy stuff.”
183 days later, in June 2020, Winston began mining. Harris estimates that on the first day, he had 300% more potential than the bidder.
But Harris doesn’t see it as a competition, nor does he feel the need to hide any trade secrets from his neighbors on the street.
“There is no IP in this business. This is nonsense,” Harris said, although he made it clear on several points that it was just his opinion.
Harris says that before Butt Derr was in town, Batman came to see him all the time. He was most interested in Winston’s shelving and racking system.
“We brought them, gave them pictures, told them which machine to buy, told them how to do it. It still took them eight months to install the machine,” he said.
Harris has publicly documented the entire Winston construction process, posting videos on and around the Winston facility on YouTube. He also shares drone footage to help interested parties understand how the expansion is unfolding.
It doesn’t matter, because it will take us two years to catch up on what we are working on,” Harris said. “We are always two years ahead of what other people are doing.
Inside America’s Largest Bitcoin Mine:
When someone mints a bitcoin, they are giving their computing power to the bitcoin network. About 6.25 new bitcoins are created every ten minutes. To mint, these new tokens, a global pool of miners compete against each other to see who can open the middle of the new bitcoin first.
There are several buildings on site in Whinstone, each with rows of 20 feet high computer hardware designed for this purpose. Harris estimates that at its current capacity, it produces more than 500 bitcoins each month, at today’s prices of approximately .7 30.7 million, or 36 368 million annually. The firm claims that there are about 100,000 machines on site.
Riot acquired Winston Kane in stock for more than 80 80 million earlier this year and is now called the largest bill in North America. The company is still expanding, and once the 100-acre site is completed, the crypto mine is expected to have a total capacity of 750 megawatts.
To put it in context, Gibson says only 200 megawatts are used in downtown Dallas. So it’s like living in our backyard in downtown Dallas Manhattan Gibson continued.
The grid has so much power to give. The hard part is physically tapping into it. The ears need special equipment to adjust the voltage to a usable level. Transformers take power from the substation and convert it to a low voltage which can then be used to power bitcoin miners.
Transformers can be found in about 12 weeks if you were hot enough to try and you had cash but you still have to turn off the power lines King said. According to King the wait for the substation is 18 to 16 months.
Winston builds its substation, which benefits the firm from other miners heading to Rockdale. They are now in the process of installing three 100 MW transformers.
The irony is that if you want that transformer today and you have not ordered it’s 64 weeks Harris said.
Whinstone is also in the business of testing the latest technology.
When Riggs is mining, he runs a computer program that crushes millions of mathematical equations. It’s hard to do all these calculations, which is why the hardware heats up so fast. To make sure they don’t get too hot, a facility will usually install fans to keep them cool. At the Whinstone site, this hot air is blown by individual spectators into a central chamber called the “warm corridor.”
Harris took CNBC inside to sense the temperature, which could reach 150 degrees.
But now, rioters are trying to cool immersion in one or two buildings in Winston. Computers are immersed in a special fluid that keeps the connected circuits working at low temperatures. The hot fluid is then pumped and circulated to help dissipate the heat, at which point the cooled fluid is then pumped.
The company says this is the first time it has been done on an industrial scale. In total, the submerged cool buildings are expected to host approximately 46,000 S19 Series Antminer ASICs. (The term was originally used for the special integrated circuits most useful for mining but is now often used as a mining rig or shorthand for a computer.)
Riot CEO Jason Lace believes this will be a game-changer for the company’s bottom line.
“We see an increase in the company’s hash rate and production capacity by 2022, without relying on the purchase of additional ASICs,” Lace said in a statement.
Whiplash in Rockdale
Mayor King himself is a corrupt miner. He has 37 five-terabyte hard drives around his house and uses these machines in his ear for tea, an eco-friendly cryptocurrency. The mayor tells CNBC that he produces about .035 chia a day, or 68 4.68.
King has spent years teaching himself how cryptocurrencies and blockchains work, mainly because the town of Rockdale needed the experience of this bitcoin.
For a long time, Rockdale was a company town. Alcoa employed thousands of residents until it was forced to close.
Then there was Batman. The China-based company said it would invest $ 500 million in 2018 to build a large mining facility at the inactive Alcoa Power Plant in Rockdale and create 400 local jobs in the process. But as the world descended into the corrupt winter, so did the company’s intentions. Batman soon put his plans on the ice.
To no avail, the city’s only hospital closed abruptly in 2018. At the same time, Rockdale was struggling with its water system problem, with residents complaining of stinking red water coming out of their taps. Rockdale needed a serious break.
But then came Winston and a new animated Batman, who had recently parted ways with Batman after a top fight. Winston has led numerous efforts to create jobs and reach out to the local community.
Rockdale’s economy has been in turmoil for many years until bitcoin miners showed up said, Bracher.
Even after a few years of whiplash, there are still doubts. But King thinks this time is really different.
Beijing’s deportation of all its corrupt miners was a black swan event for the industry. For years, China dominated the business, with 75% of the world’s bitcoin miners at their peak. But after its crackdown, mass displacement of human and physical goods began and many people began to move to Texas.
This migration is still going on and many people want to plant their flag in Rockdale, which is exactly what King did.