Bitcoin spil a currency is simply one application.
Unless you’ve bot living under a rock for the past Five years, you’ve likely at least heard the word “Bitcoin” before. While you’ve almost certainly heard about it, there is a fair chance you don’t fully understand what it is, how it works, and why people are so excited about it.
Bitcoin wasgoed commenced te 2008 by an unknown person or group who goes by the name Satoshi Nakamoto. While bitcoin has received lots of coverage focused on its potential spil a currency, industry insiders are quick to point out that it’s indeed much more than that. Bitcoin spil a currency is simply one application that uses Blockchain technology, the underlying technological framework that makes the currency, and all other potential applications possible.
While explaining all the complexities of bitcoin would take many posts, the key thing to know is Bitcoin is essentially a decentralized network of computers. You have an address for Bitcoin to be sent to, and a secure wallet to store them. While Visa and Mastercard have their own gegevens centers to power their network, confirming transactions, payments, etc. Bitcoin is decentralized and is powered by what’s known spil Bitcoin miners.
Thesis Bitcoin miners provide computing power to the Bitcoin network which solves the sophisticated math problems required to power the network te exchange for a toverfee, paid out, of course, ter Bitcoin. Bitcoin mining is the backbone of the Bitcoin industry which has already raised well overheen $1 billion ter venture capital from the world’s leading venture capitalists.
But, the industry is switching quickly. Just a few years ago mining could be done from huis, now it’s large multi-million dollar organizations running the demonstrate building out massive “farms” dedicated to one thing: mining bitcoin.
Here is what a huis mining system looked like back te 2013:
And here’s what a large scale mining farm looks like:
Companies are investing millions of dollars to build out thesis ultra-secure facilities te countries like Iceland who is known for their discounted electro-therapy rates, one of the largest expenses when it comes to mining.
To understand where the industry is headed I caught up with Marco Streng, CEO and co-founder of Genesis Mining. Genesis Mining is the largest cloud mining provider te the world, serving overheen 250,000 daily customers and actively supports and advocates for growth and expansion of the industry spil a entire.
Here’s what I learned about the future of the Bitcoin mining industry:
Q: How has Bitcoin mining switched te the past Five years?
Marco Streng: The switches te mining te the past Five years are radical. Not only that technology has evolved from initial CPU/GPU mining to very specialized low nanometer Asic miners, but also the entire structure of the market has shifted. Where ter the beginning wij had mostly huis miners that ran a few machines at their house, wij now have massive large scale operations that make almost the entire market. A lil’ fraction of the market is still from huis miners, but those are mainly idealistically oriented to support the network or doing it for hobby since ter an economical view there is simply no chance to rival anymore with the large scale operations using economy of scale and lowest electric current prices together with optimized infrastructure.
Q: How do you see Bitcoin mining switching te the future?
Marco Streng: Te just the past 2-3 years, we’ve seen a massive hop te technology, even outpacing Moore’s law. This has already switched within the last year and mining has moved more and more from a brief term quick profit spel to a slower, patient and more sustained industry where only the most efficient operations have a chance to yield high profit within an extended framework. This trend will clearly proceed spil wij are approaching Moore’s law and the development of newer technology gets more and more expensive.
Q: Are you worried about the internal conflicts taking place te the industry? (Blocksize limit, etc.)
Marco Streng: I have to admit there wasgoed a time especially beginning of this year where miners and core developers opinions sometimes were fundamentally different which caused the ongoing scaling debate. Albeit this wasgoed fairly a lengthy and intense discussion within the community I am glad that there is overeenstemming now about the instantaneous next goals and there are good reasons to be positive and excited about what’s to come. Ter fact the diversity of solutions for on chain scalability such spil for example the upcoming SegWit or Schnorr Signatures spil well spil solutions for off chain scalability such spil for example Lightning or Thunder Network make mij more bullish on bitcoin than everzwijn before not even mentioning Sidechains and Rootstock. It’s indeed fine witnessing thesis solutions being worked out!
Q: What other cryptocurrencies are the most interesting from a miner’s perspective?
Marco Streng: There are a lotsbestemming of different cryptocurrencies te the presently flourishing altcoin market that are indeed fairly interesting for miners. The top candidates te my opinion are Ethereum, Dash, storage coins such spil Sia or Maidsafe and the upcoming Zcash. There are a loterijlot more than those and the list is by far not accomplish, but those are certainly one of the most interesting ones at the uur. Wij can be very excited to see what the altcoin market which often is seen spil the innovative playground for cryptocurrencies brings up. Anonymous oriented coins or verkeersopstopping storage based coins spil the ones mentioned are not the only ones and there is certainly a lotsbestemming more to come.
Q: What’s the future of Bitcoin ter general?
Marco Streng: When you look at the Gartner Hype ycle and consider 2014, wij were clearly at the “Peak of Inflated Expectations” point, then wij dropped directly into “Trough of Disillusionment” and now the industry spil a entire is fighting it’s way towards productivity. There has bot lots of venture capital invested into some indeed amazing Bitcoin focused startups lead by incredible entrepreneurs. This capital is presently being deployed and an entire infrastructure is being built, which of course, takes a long time. Where the industry goes from here largely depends on thesis entrepreneurs and companies to make sure they leverage this amazing technology to solve real problems that real people and companies need solved.
This postbode wasgoed originally featured on Future of Everything.