Bitcoin Brothers Aim To Disrupt Bitcoin Mining With New, More Powerful, Supercomputers
After over two years in stealth mode, the bitcoin mining supercomputer manufacturer, Bitcoin Brothers is launching its hosted bitcoin mining services, powered by what the company claims are better, stronger machines to make the mining of bitcoin more efficient.
Bitcoin mining is the process by which transactions are approved in the bitcoin ledger known as the blockchain and how new bitcoins are minted. For every successful verification of a bitcoin transaction the ‘miner’ is rewarded with 25 bitcoin (currently worth about $8,100).
The new services means that bitcoin miners don’t have to invest in their own hardware, and can instead mine using the latest and greatest (at least according to the company) in bitcoin mining technology.
While the explanation is simple, the process of validating transactions has become increasingly complex as the blockchain grows. And as the price of bitcoin has plummeted, margins are shrinking for miners, who have to buy costly computing devices purpose-built for mining, and base them in some far-flung locales.
This post was published at Tech Crunch on Nov 3, 2014.