Owner Bitcoin.org offers a radical response to the monopoly of Bitmain

According analysis research firm Bernstein Research, Chinese mining giant Bitmain in the past year were about $3-4 billion in revenues.

These figures are based on a conservative estimate of the gross profit of 75%, and operating margin to 65%. In the analysis Bitmain is compared to Nvidia: last year, the two companies earned about the same amount, but the last on the market for 24 years, when as Bitmain is only four.

The document also notes that in the field of production and sales of mining equipment to Bitmain account for about 70%, that is when people or companies want to invest in mining, they will almost certainly stumble on Bitmain.

And, of course, the company mines and manufactures equipment. According Blockchain.info on the pools, Bitmain account for over 40% of the world Hasrat.

In response to such "centralization of bitcoin" anonymous owner of the portal Bitcoin.org and Bitcointalk forum under the alias the Cobra community wrote an open letter which urges to think about modifying the algorithm a Proof-of-Work.

Cobra says that the network security of bitcoin is now tied to one company and one person. Does he mean the Jihan Wu, the owner of Bitmain:

While Bitmain controls most of Hasrat, the only thing that can save the network security is the threat of possible hard forks for the new PoW. But it will only work while the community is relatively small and shares the principle of decentralized bitcoin.

Cobra writes that in the mining market there are always new players, but they can't compete with Bitmain. He adds:

Hasraton already abused for political support is reckless and dangerous attempts hard forks. Loyalty [Bitmain] bitcoin doubtful, and it seems that they are more interested in supporting Bitcoin Cash, thereby undermining the network that provides them with work. Even more dangerous, that a company from China — a country with a long tradition of human rights violations, censorship, and overall negative behavior.

Jihan Wu responded on Twitter to the idea about changing Cobra algorithm Proof-of-Work:

It's cool. If you succeed, the share of bitcoin in the cryptocurrency economy will fall below 10%. Good luck.

Original Article


Leave a Reply

New smartphone 2018. New gadgets 2018. Big discont and great offer for you
24/7 Customer Service (800) 927-7671