A Tokyo-listed company is spending overheen $Trio million to get into bitcoin mining

A Tokyo-listed company is spending over $3 million to get into bitcoin mining

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Correction: An earlier version of this article, including the headline, misstated the amount that GMO announced it would spend to begin mining bitcoin. It is more than $Trio million, and not more than $300 million spil originally stated.

GMO Internet Group, based te Tokyo, normally does amazingly boring things like registering domain names and hosting web services. But it, too, has caught the bitcoin fever, one that some people think has created a bubble ter valuations.

GMO announced today that it plans to spend more than $Trio million to begin mining bitcoin te the very first half of next year. Some $Ten million is available for bitcoin miners to accumulate each day, at the current bitcoin price of around $Four,600. The rock-hard says cryptocurrencies like bitcoin will evolve into &ldquo,universal currencies&rdquo, that will create a global &ldquo,borderless economic zone.&rdquo,

GMO plans to develop its own mining chips, claiming they will operate at an unprecedented degree of efficiency. If GMO successfully introduces the chips, it would trigger an arms wedren within the bitcoin mining industry. The proposed chips will use 7 nanometer knots, which would be four times more energy efficient than the current industry standard 16 nm knots. Because bitcoin mining is a competition, once 7 nm knots are te use, all other miners will have to upgrade to stay te the spel. &ldquo,It&rsquo,s clearly the next generation of miners,&rdquo, said Diego Guiterrez, chief executive of RSK Labs, which develops software for miners.

GMO&rsquo,s business prototype for its mining unit resembles that of established players te the field, such spil China&rsquo,s Bitmain. GMO plans to operate its own mines, rent them to others, and develop its own chips that it will sell packaged spil mining equipments. It plans to locate its mine ter northern Europe, presumably some place with cheap, excess electrical power. It says it will invest more than 10% of its non-current assets, which stood at around $32 million at the end of last year. Bitmain had no comment.

A major fresh bitcoin miner could wiggle up the industry. Miners who toevluchthaven&rsquo,t fully paid off the costs of their current machines could wind up with obsolete mining equipments, with little chance of recouping the cost ter future. &ldquo,The ones at risk are the ones still attempting to recover their investment because they will be four times less productive,&rdquo, Guiterrez says. He expects most major players will be able to upgrade spil the technology for 7 nm chips becomes generally available to the foundries who do much of the work of fabricating the chips. &ldquo,The other [mining chip makers] will surely go after and create their own 7 nm chips if they are not already doing it,&rdquo, he says. &ldquo,Spil [chip fabricators] get the fresh technology, everybody can access it.&rdquo,

GMO&rsquo,s arrival will allay fears that bitcoin mining had grown too dependent on Chinese chip designers and operators. Bitmain, for example, operates mining pools that account for some 30% of all the processing power on the bitcoin network.

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Spil bitcoin mining increasingly becomes more of a professional pursuit, hobbyists and newcomers have turned their attention to scrypt mining.

So, at CoinDesk, wij wondered, ‘why not attempt scrypt mining ourselves?’

Witness the movie to see how well wij fared:

Wij got our mitts on a Gridseed G-Blade miner, one of the very first scrypt miners te the market to use ASIC chips. ASIC chips have bot used to mine bitcoin for overheen a year, now they are making their way into scrypt mining.

That’s making scrypt even more attractive to new-comers.

MinerEU is the European distributor for the China-based manufacturer Gridseed. CEO and co-founder Jing Weide explains why it is lighter to get into ASIC scrypt mining:

“The clear advantage of scrypt ASIC mining is lower power consumption. It’s scalable: you can even set up a mining farm at huis. It’s also very effortless to set it up. Wij have streamlined the process. [. ] Ter a few minutes you can connect all the parts together.”

It is lighter and quicker to make money from altcoins rather than investing ter expensive and industrial bitcoin mining equipment. Mining equipment manufacturers have already announced refined scrypt-mining equipment.

While Gridseed G-Blade is one of the very first to be launched on the market, KnCMiner has already announced their plans to launch their scrypt miner Titan.

Mining Adventures at CoinDesk

Each Gridseed G-Blade miner has two boards with 40 GC335 ASIC chips on each one. This $1,600 miner promises a total hashrate of Five.2M.

Wij brought two of the two-blade miners into the office. Including installing the relevant software, it took us about an hour to set them up. But, now that we’ve done it once, next time would undoubtedly be quicker.

Depending on what you determine to mine, the come back on investment of thesis miners is three to six months. Wij determined to mine dogecoin and managed 100,000 doge with two miners ter a week.

That’s not a bad embark to our scrypt mining career, but it’s certainly possible to improve on the ROI by using the multipool.

“In theory the wise switching technology should give you a higher terugwedstrijd that mining one type of alternative coin, but the problem with that is the switching process. If wij switch it overheen from one coin to another, the calculation power will be lost during the transition.”

While we’ve parted with the miners, wij’re still working out what to do with our $58 worth of dogecoin – suggestions welcome ter the comments below.

The leader te blockchain news, CoinDesk is an independent media outlet that strives for the highest journalistic standards and abides by a rigorous set of editorial policies. Have cracking news or a story peak to send to our journalists? Voeling us at news@coindesk.com.

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