China accounted for 70% of Bitcoin mining, former developers announced that the experiment was a failure

ByMichael Coghlan

The virtual currency "Bitcoin" (Bitcoin), which appeared in the paper in 2008 and the first client in 2009 was born, is a mechanism whereby a new coin can be obtained by "mining" using a dedicated program So the organized mining group was flooded with mining. As of 2016, China is responsible for 70% of "mining", the community management is no longer functioning properly and the person in charge of core development said "The experiment of bit coin was a failure" It is supposed to be a situation to do.

BBC - Future - We looked inside a secret Chinese bitcoin mine
http://www.bbc.com/future/story/20160504-we-looked-inside-a-secret-chinese-bitcoin-mine


The total amount of bit coins is set to 21 million BTC. Software called miner is used for mining, coins are available in a short time if fewer people (minor) are mined, but it is automatically adjusted so that mining becomes more difficult as mining becomes more difficult .

In order to raise the efficiency of mining even a little, it is necessary to improve the processing speed. So, among large scale mining groups, things that build up a water cooling system using the whole building appeared.

A water cooling system using the entire building has appeared at Bitcoin's mining facility - GIGAZINE


As of October 2014, the group that owns mining facilities in Dalian, China earned 180 million yen a month for 6 facilities in total.

Infiltrate a huge facility that earns about 180 million yen in a virtual currency in a month, is not known and its actual condition? - GIGAZINE


BBC received a guide from Mr. Chandler Kuo, a bit coin entrepreneur, told me that he showed me the latest facility. Currently, the Chinese government's attitude toward bit coin is unclear, so it is said that it was a mountainous area where it is necessary to bring an oxygen cylinder, even though the location of the facility can not be revealed.

According to Mr. Kuo, the family run a ranch where cattle are raised, and since money has been accumulated, he decided to invest in bit coins. At this time, the value of 1 BTC is 450 dollars (about 50 thousand yen), and by continuing to move the mining machine, 50 BTC can be digested in one day.

Mr. Kuo started the business in 2014. At that time, the world accounted for 40% of bit coin mining in the world, but it has increased to 70% as of 2016 and it is said to occupy a very important position. Mr. Kuo already owns two facilities, but now it is constructing another new facility and if completed it will be responsible for 30% of the world's mining.

Furthermore, Mr. Kuo who is also developing applications that can be mined with smartphones and tablets said, "Bitcoin is" freedom for me. "It can be used anywhere, anywhere, not owned by the country, "Bit coins are those of" everyone ", he said.

However, for bit coins, former developer Mike Hearn announced that the experiment was "failed" and has disposed of all the bit coins he owned.

The resolution of the Bitcoin experiment - Medium
https://medium.com/@octskyward/the-resolution-of-the-bitcoin-experiment-dabb30201f7


Has the promise of Bitcoin brought to nothing? | TechCrunch Japan
http://jp.techcrunch.com/2016/01/20/20160119is-bitcoins-promise-going-up-in-smoke/

Mr. Hearn, who has always said that "bit coins are done as experiments", knew that bit coins might fail from the beginning, but sadly that failures were inevitable in this way I will.

Mr. Hearn cited "failure of the community" as the reason why "failure is inevitable". The system is controlled by a handful of people, and worse, the network is on the brink of a technical collapse.

Mr. Hearn
· I can not move the money I have
· High priced fee will rise more quickly and unpredictable
· After the buyer leaves the store, you can cancel the settlement with one button
· There is a large amount of "unprocessed" and settlement's doctor
· It is under the control of China
· Company and people involved are in "civil war state"
... .... It critiqued critically as to who wants to use such a payment network. Especially, China's minority holds 70% of mining, it is said that the speed is slow as if connecting the whole world with "cheap hotel Wi-Fi".

further,Coinbase known as startup that can transmit and receive bit coinsThe BAN from the official site and the official community, the community itself is no longer thinking that it is insane.

Nonetheless, this "failure" remark is Mr. Hern's viewpoint. Mr. Garbin Andrésen, a bit coin core developer, seems that Mr. Hearn is "bit coin crisis" as being too overly pessimistic.

@binarybits@OctSkywardYes, Mike is too pessimistic.

- Gavin Andresen (@ gavinandresen)January 15, 2016

A bit coin that is a P2P network is never "ended because the server has gone down." What kind of direction will the virtual currency spread this far from now?