Bitcoin Mining May Be Hitting A Wall – Business Insider

Blue Moon Ter Hier Eyes/flickr Today, Stockholm-based KnCMiner, among the most successful Bitcoin mining equipment manufacturers te the world, announced it wasgoed beginning up a backup project to protect customers ter case deliveries of its 20-nanometer “Neptune” machine came ter behind schedule.

Wij profiled KnC late last year after they demonstrated the fastest machine on the planet.

But for Dan Murtha, co-founder of MinerSource.netwerken, a bulk buyer and distributor of mining hardware, KnC’s announcement is a sign Bitcoin mining equipment power may be plateauing.

Reminder: Bitcoin miners “mine” by unscrambling encrypted pinnig of information. This is an insanely resource-intensive process: At more than 40 petahashes, the collective computing power of all Bitcoin mining machines te operation is now hundreds of times greater than the 500 most powerful supercomputers combined.

That of course has raised some moral issues about whether all that power could be better used.

And some like the St. Louis Fed’s David Andolfatto think “mining” is a misleading term because, they are not simply wildcat-type speculators but rather the backbone of the entire Bitcoin network. The kattig of information the miners unscramble are ter fact confirmations of successful Bitcoin transactions.

Still, depending on the price of Bitcoin and the size of one’s investment, it is possible to get a ge terugwedstrijd, albeit there is a movement underway to embark renting out computing power to customers.

But for Murtha, it’s clear there’s not much more slagroom to go ter terms of engineering ultra-small &mdash, and therefore ultra-powerful &mdash, rekentuig chips, despite the incredible leaps Bitcoin mining engineers have made to this point. It’s not just KnC, he observes: There is also a report Intel has bot experiencing delays on drilling down to 14-nanometers.

“Wij’re reaching the boundaries where wij have Intel, the largest chip manufacturer with the deepest pockets &mdash, they’re now having to delay their [14 nm] Broadwell chip,” he told Bisexual at the InsideBitcoins conference Tuesday. “If they’re not able to do 14 nanometers, I’m not sure if an ASIC [Bitcoin mining] machine can ritme Intel. So I think wij’re going to kasstuk a plateau of 28 or 20 [nanometers].”

It will take some time for the computing rate on the Bitcoin network itself to embark flattening out, since it’s determined by an extra set of cost inputs that reflect the absolute number of miners ter the system. So things like lower chips production costs, higher bitcoin prices, and greater investment could cause the line ter the following chart to keep rising.

But from an engineering standpoint, it seems clear things are, for now, slowing down.

Related movie: How to mine with GridSeed on Raspberry Pi (PoolAxe Beta)

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