Russian Bitcoin Miners want 20% of Global BTC Mining

[xBDT Script 4371]

Russian Mining company Dmitry marinichev wants to take 20% of global bitcoin mining activity. They have been partnered with UK based exchange Cryptonex recently. They intent to grow the firms. As per the current block rewards and BTC price, the total earning will be $101.5m each month if they can grow it to 20%. Very much interesting.

News Source- https://bitcoinist.com/russian-bitcoin-miner-wants-20-percent-global-btc-mining/

Edited October 29, 2019 by xBDT Script

[Consignee 2395]

Does this mean that there will need only 31% to have a 51% attack. I do not think this will be a good thing for Bitcoin. The community needs to do something about it or what?

[WayOut 216]

32 minutes ago, xBDT Script said:

Russian Mining company Dmitry marinichev wants to take 20% of global bitcoin mining activity. They have been partnered with UK based exchange Cryptonex recently. They intent to grow the firms. As per the current block rewards and BTC price, the total earning will be $101.5m each month if they can grow it to 20%. Very much interesting.

News Source- https://bitcoinist.com/russian-bitcoin-miner-wants-20-percent-global-btc-mining/

In Russia, everything is going pretty well with mining, all because they have free sockets with electricity or even their own power plants, they also mine at enterprises by agreement with the management, this will not work in America, Europe and China.

[xBDT Script 4371]

Just now, Consignee said:

Does this mean that there will need only 31% to have a 51% attack. I do not think this will be a good thing for Bitcoin. The community needs to do something about it or what?

The crypto world is also getting centralized. Look back at the top 10 bitcoin rich list. Most of the coins are holding by a little amount of persons which is very bad in some ways. On the other hand, exchanges like Binance are trying to get the crypto space in their hand at all. Well, community can do something, expanding the mining community 😄

[hexwin 4931]

48 minutes ago, xBDT Script said:

Russian Mining company Dmitry marinichev wants to take 20% of global bitcoin mining activity. They have been partnered with UK based exchange Cryptonex recently. They intent to grow the firms. As per the current block rewards and BTC price, the total earning will be $101.5m each month if they can grow it to 20%. Very much interesting.

News Source- https://bitcoinist.com/russian-bitcoin-miner-wants-20-percent-global-btc-mining/

20%... are they crazy or what?

It is getting centralized for sure and looks like we can't escape that.
Just few of them can hold almost all mining for Bitcoin 

[dentolas 551]

4 hours ago, xBDT Script said:

The crypto world is also getting centralized. Look back at the top 10 bitcoin rich list. Most of the coins are holding by a little amount of persons which is very bad in some ways. On the other hand, exchanges like Binance are trying to get the crypto space in their hand at all. Well, community can do something, expanding the mining community 😄

Funny the amount of FUD against mining lately, and the BTC network is at it's high...

Always the same story... a few control the majority and there is nothing to be done except try to navigate all this and contribute the best way possible

I love mining, but power costs/issues on green energies and ASIC centralization are also not helping

[xBDT Script 4371]

18 hours ago, hexwin said:

20%... are they crazy or what?

Yeah it is crazy LOL but I really do not think they will be able to deal with it at the end.  Talking about 51% attack? It's only possible in theory. See the chart in real life:

 Source-   blockchain.com/pools

14 hours ago, dentolas said:

Funny the amount of FUD against mining lately, and the BTC network is at it's high...

Always the same story... a few control the majority and there is nothing to be done except try to navigate all this and contribute the best way possible

Yeah it is and it has to be us who will need to take initiative to aware the community. As you can see the hashrate is not going to change that much.

However we really need more industrial miners so that we can reduce the chances.
 

[hexwin 4931]

6 minutes ago, xBDT Script said:

Yeah it is crazy LOL but I really do not think they will be able to deal with it at the end.  Talking about 51% attack? It's only possible in theory. 
 

I don't think Bitcoin is in danger of 51% attack at current situation.
But othjer altcoins are not just possible but very probable to experiance that attack.
For example Bcash network there is one miner holding more than 50% of hashrate,
and all other smaller coins are even worse

[xBDT Script 4371]

Just now, hexwin said:

I don't think Bitcoin is in danger of 51% attack at current situation.

I was talking about if that Russian company get managed to grow to more 31%, they can have that power as well since they are targeting 20% now, it's possible that in future they will grow more.

Just now, hexwin said:

But othjer altcoins are not just possible but very probable to experiance that attack.
For example Bcash network there is one miner holding more than 50% of hashrate,
and all other smaller coins are even worse

Most of the PoW altcoins are at that risk, and we see it often. PoS coins are free of such kind of risk though. BCh is a shill, I know Roger and his group is the owner of most decentralized currency 😅

[Grace 236]

19 hours ago, xBDT Script said:

Russian Mining company Dmitry marinichev wants to take 20% of global bitcoin mining activity. They have been partnered with UK based exchange Cryptonex recently. They intent to grow the firms. As per the current block rewards and BTC price, the total earning will be $101.5m each month if they can grow it to 20%. Very much interesting.

News Source- https://bitcoinist.com/russian-bitcoin-miner-wants-20-percent-global-btc-mining/

But it will be so hard for them to take %20 of the earning.What if bitcoin falls down? I think they are thinking it like long term investment.Good movement!

[hexwin 4931]

14 minutes ago, xBDT Script said:

Most of the PoW altcoins are at that risk, and we see it often. PoS coins are free of such kind of risk though. BCh is a shill, I know Roger and his group is the owner of most decentralized currency 😅

Proof-of--Steak is also not good, as it is much more complex and there are many  bugs... 
All Pivx based coins where affected many times, and I don't see this will change for better

Edited October 30, 2019 by hexwin

[xBDT Script 4371]

6 minutes ago, SarapCrypto said:

This is an interesting news. Last week, there were news on two big bitcoin mining projects based in Texas, USA and now we have here a Russia-based one. I am happy because finally there is a chance that Chinese dominance on this industry can be lessened for good. The more players in this lucrative industry, the better for its long-term health.

It's not good for the decentralization. You know it will destroy the nature of the coin. Look at BCH where more than 50% mining activity id done by couple of persons.

 

Just now, hexwin said:

Proof-of--Steak is also not good, as it is much more complex and there are many  bugs... 
All Pivx based coins where affected many times, and I don't see this will change for better

PoS might be buggy( I am not sure what you are talking about though) but chance of 51% attack is relatively low than PoW coins.

[hexwin 4931]

14 minutes ago, xBDT Script said:

PoS might be buggy( I am not sure what you are talking about though) but chance of 51% attack is relatively low than PoW coins.

There is no 51% attack for Prrof-of-stake coins, but there are other dangers that can destroy any PoS coin.
So they fixed one issue, but they opened so many more issues with this

[lucky80 1046]

High-grade news,  More hash power. We need it as some miners are hanging their ASIC. So it is another milestone for bitcoin. Go ahead Red Bear power, or should we call it Nurmagomedov power. 

[bliznec 22267]

This means that the country Russia is most likely to enter the mining segment and can further change the course of events in bitcoin. The volume is more than likely and attractive and is recorded in millions of US dollars.

[WayOut 216]

3 hours ago, hexwin said:

I don't think Bitcoin is in danger of 51% attack at current situation.
But othjer altcoins are not just possible but very probable to experiance that attack.
For example Bcash network there is one miner holding more than 50% of hashrate,
and all other smaller coins are even worse

It is unlikely that this attack will be justified, and why should it be divided at all, if no one remains in profit, in order to get 51% you need a lot of money and several power plants!

[xBDT Script 4371]

Just now, WayOut said:

It is unlikely that this attack will be justified, and why should it be divided at all, if no one remains in profit, in order to get 51% you need a lot of money and several power plants!

Yeah, the company is planning to have 20% mining power, if it can get 20%, they can grow bigger in future as well. that's what we are talking about. Now imagine if they can get 20% mining power and this way, another 2 company as well, what if these 3 company get partnered, they can alter transaction as well since they have more than 51% mining power. I was talking about that potential risk, it's not happening so fast though.

[WayOut 216]

1 minute ago, xBDT Script said:

Yeah, the company is planning to have 20% mining power, if it can get 20%, they can grow bigger in future as well. that's what we are talking about. Now imagine if they can get 20% mining power and this way, another 2 company as well, what if these 3 company get partnered, they can alter transaction as well since they have more than 51% mining power. I was talking about that potential risk, it's not happening so fast though.

But there is BUT. They will not benefit from this, but simply spend power on anything, and even the price will fall below the plinth.

[xBDT Script 4371]

Just now, WayOut said:

But there is BUT. They will not benefit from this, but simply spend power on anything, and even the price will fall below the plinth.

You are not getting my point, Bitcoin is decentralized cryptocurrency and when they will be able to have it, it will bring centralization, it will break the currency. I hope you will not like that.

And they will of course get benefit from them, having 20% mining power = 20% of total BTC mined per day is going to their pocket.

[WayOut 216]

15 minutes ago, xBDT Script said:

You are not getting my point, Bitcoin is decentralized cryptocurrency and when they will be able to have it, it will bring centralization, it will break the currency. I hope you will not like that.

And they will of course get benefit from them, having 20% mining power = 20% of total BTC mined per day is going to their pocket.

Well, let's count ... Now the reward for the block is 12.5 BTC. For ease of calculation, let 1 BTC cost $ 10,000 (actually less). So, for 1 block, the cracker will earn $ 125,000. 6 blocks are mined per hour, totaling $ 750,000 per hour or $ 18 million per day. Minus $ 12 million in electricity costs. There remains $ 6 million per day of net income.

Thus, mining will justify the 51% attack in about 2,900 days or about 8 years. And this is not taking into account the doubling of coins, which happens every 4 years.

[xBDT Script 4371]

12 hours ago, WayOut said:

Well, let's count ... Now the reward for the block is 12.5 BTC. For ease of calculation, let 1 BTC cost $ 10,000 (actually less). So, for 1 block, the cracker will earn $ 125,000. 6 blocks are mined per hour, totaling $ 750,000 per hour or $ 18 million per day. Minus $ 12 million in electricity costs. There remains $ 6 million per day of net income.

Thus, mining will justify the 51% attack in about 2,900 days or about 8 years. And this is not taking into account the doubling of coins, which happens every 4 years.

This makes sense though, never think of this way really. Well, we are having halving on the next year as well, so you think it's not possible to have 51% attack, right? Good to know.

Nevertheless, it's still s hell lot of mining power to a single entity. 

[WayOut 216]

6 hours ago, xBDT Script said:

This makes sense though, never think of this way really. Well, we are having halving on the next year as well, so you think it's not possible to have 51% attack, right? Good to know.

Nevertheless, it's still s hell lot of mining power to a single entity. 

I think an attack is impossible, since there is practically no point in it. With the money spent, this will not pay off. But this is my opinion, can someone tell me something else

[xBDT Script 4371]

Just now, WayOut said:

I think an attack is impossible, since there is practically no point in it. With the money spent, this will not pay off. But this is my opinion, can someone tell me something else

Absolute!

The money, the amount of energy, the resources they will have to spend for it will be so large that  no one will try it. Who will want to get negative value by doing this.

Yes there are possibility that this corrupted authority can take this chance and can try something like then with the hope that they will destroy the entire confidence of the community. But I really do not see it is going to happen.

[WayOut 216]

1 minute ago, xBDT Script said:

Absolute!

The money, the amount of energy, the resources they will have to spend for it will be so large that  no one will try it. Who will want to get negative value by doing this.

Yes there are possibility that this corrupted authority can take this chance and can try something like then with the hope that they will destroy the entire confidence of the community. But I really do not see it is going to happen.

For some reason, the topic of the attack came precisely in a reme about Russian miners) Coincidence or marketing move !? This may be true.

[xBDT Script 4371]

Just now, WayOut said:

For some reason, the topic of the attack came precisely in a reme about Russian miners) Coincidence or marketing move !? This may be true.

Not sure about your point. 

I think Russia is very friendly for Crypto. If you see in BitcoinTalk forum and in there then you will see the userbase is really huge. So it could be a very common thing that some of the whales are from Russia because they were the early adopters even earlier from us who started around 2014 / 2015

Just now, Black25 said:

It would be bad for such a country as Russia to own a huge percentage of the bitcoin mining because they would have control over all the market and manipulate the price in their favors. 

I am not worried about it at all. The mining hash rate is basically very balancedly distributed till now.