Category Archives: Bitcoin

A closer look at the infrastructure supporting the bitcoin network and other blockchain technologies.

Data Centers Feel the Bitcoin Shakeout

Industrial mining operations’ margins have been squeezed by the recent collapse in the price of bitcoin. After soaring as high as $1,100 in late 2013, the value of a bitcoin has plunged to about $230. This has had a huge impact on bitcoin cloud mining, with some firms shutting down or halting payouts to customers.

Bitcoin: An Infrastructure Market in Transition

At Data Center Knowledge: As sharp price declines wreak havoc with the economics of Bitcoin mining, some entrepreneurs see a shift to transaction fees as the future of the virtual currency. A shift from mining rewards to transaction fees has implications for the data center industry, which could gain more business from industrial Bitcoin miners if the facilities supporting the network need to be enterprise-friendly. Bitcoin mining pioneer Dave Carlson Carlson believes e-commerce will create a major opportunity for dedicated Bitcoin mining operations. ““My belief is that if you’re Michael Dell and your revenues from bitcoin become meaningful, you may want to know where your transactions are being processed,” said Dave Carlson, the CEO of MegaBigPower, one of North America’s largest mining operations. “You may not want to rely upon a mine in China.” Read the full article at DCK.