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Over the past week, the Bitcoin 2022 conference was held, where various business giants in the mining industry voiced their take on the mining industry.
Miners Lie At Two Extreme Ends
Many mining companies are running their scaling operation at a rapid scale. In one panel, speakers highlighted the point that if miners are not being highly cost-competitive and using the most efficient and latest machines, they will have to face difficulty in keeping up.
Chairman and CEO of Core Scientific, Mike Levitt, points out that over the past few months, the capital markets have become stiffer, making it more complex for any miner between a large scale miner and a very small miner. He explains that a miner can be very small and make less money or be “scaled and efficient.”
Levitt believes that there are two crucial factors: the cost of goods, inclusive of equipment and power, and the productivity level stabilized by a well-designed operation.
While CEO of Riot, Jason Les, says the lack of knowledge is the biggest hurdle in front of anyone who wants to enter the industry.
What Does Decentralized Mining Mean? At the Geographical vs Ownership level
The discussion also touched upon the topic of decentralized mining and what is it about? Does it mean the ownership of machines, or is it about geography? Many speakers are of the opinion that it is the latter; let’s get further deep into it:
According to the Chief mining officer at Bitfarms, Ben Gagnon, decentralization is referred to as an entirely physical location historically. However, he says that the physical distribution of the mining equipment doesn’t actually matter, considering the vulnerability of a 51% attack. What in actuality matters is ownership of the mining equipment. “I can control 51% of hash rate all throughout the world. I don’t need to control it all in one location,” he adds.
Upstream Data Owner Stephen Barbour notes hash rates as the most important factor. He says that the Hashrate can be outspread jurisdictionally.
Also Read: The Miami Bull: Mecha Charging Bull Signifies Hope To Crypto Sector at Bitcoin Conference
Home Mining
Home mining, too, received quite a lot of praise at the conference. When the host asked the audience if they had ever tried mining at home, many hands were seen rising.
Some speakers voicing their opinions said that the future products would assist people who are not tech-savvy to do mining at home.
Coin Heated owner, Jonathan Yuan, is already a step ahead and is using the heat waste from Bitcoin miners as a product, collaborating with different companies.
Yuan shared that he is working with a whiskey Distillery, and they wish to preheat all their water. He then explains that if someone is cooling their ASICs, then they are actually getting warm water.
Miners Seek Stability
The landscape of the mining industry has changed with China’s crackdown on mining last year and the latest exodus of miners from Kazakhstan.
During a panel, Fred Thiel, CEO of Marathon, says that stability has proved to be one of the main factors in searching for new mining locations.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.
