Re: Wall Observer BTC/USD - Bitcoin price movement tracking & discussion
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OMG - you envision a fee market (long before it's neccessary), but you can not see the commoditization of mining equipment hence re-decentralization of mining!?
OMG - you envision a fee market (long before it's neccessary), but you can not see the commoditization of mining equipment hence re-decentralization of mining!?
I don't understand what you mean. Explain?
If I remember right, there is even a paper written on this topic. But for the start, this should work: https://www.reddit.com/r/Bitcoin/comments/2o71hh/physics_and_economics_will_distributed_mining_im/
"As someone who comes from a physics and engineering background, over the long run I'm not concerned with mining centralization. Physics will ensure it is distributed."
"As a result, the mining centralization we see in Greenland and large data centers becomes enormously unprofitable. Any centralization of mining would REQUIRE heat recycling, which severely limits data centers and necessitates distribution unless you introduce heat pumps, which also increase cost."
--submitted 1 year ago
How's that decentralization goin' thus far?
The guy doesn't understand that mining is centralized in China, not Greenland.
He doesn't understand that it's economically idiotic to heat your hot water with miners, because miners need *cold water* going into the waterblocks -- recirculating hot water for cooling ain't cooling, it ain't gonna do much. If hot water was used at a constant rate, 24/7, he might have a better point, but it don't work like that.
Regardless, *mining is concentrated around cheap electricity,* not where it's cold (Greenland).
The fact that silicon might hit quantum dead end "round the year 2024" ain't doing diddly for us now.
TL;DR: don't buy his "physics and engineering background," he doesn't think things through.
P.S. If you wanna talk about particulars of utilizing waste heat, I'll be glad to.
P.P.S. LOL, HE'S the bro behind "That is why we are building a bitcoin miner that fits inside a water heater."
I remember when IceDrill was selling us stories about their farm providing heat for apartment complexes
Well, the heaters are just one thought. But I think there is more to the thought of commoditization (e.g. longer and longer development circles for ASICs). BTW: I don't see mining centralization as a big problem. There is always competition by other crypto-currencies to balancethings in Bitcoin.
Let's get to the heat waste discussion: Maybe it would be possible to gain back some energy by using Stirling engines. https://en.wikipedia.org/wiki/Stirling_engine
>I don't see mining centralization as a big problem.
In that case, the point's moot. I don't see it as a catastrophic problem, but it's a serious one. One that effectively nulls any pretensions to Bitcoin being "decentralized."
>heaters are just one thought
It's an awful thought. It's fail.
>Stirling engines
Not sure if srs. https://en.wikipedia.org/wiki/Heat_engine#Efficiency <==and that's just what's theoretically possible.
Have you also considered this?
Put it this way: Let's say Chinese coal-fired Electricity is 2 pennies per kWh, and yours is 4 pennies. Your Stirling engine manages to convert 3% of wasted heat back into electricity. Yeah.
Bonus: if Stirling heat reclamation made sense, Chinese megaminers would use it too. They'd make the thing, too -- you'll buy it from them
Seriously tho, read the laws of thermodynamics, it's straightforward stuff.