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Bitcoin Inside: Crypto Mining Farm to Open in Former Intel Facility

· June 23, 2018 · 12:00 am

California-based 3G Venture II has paid $13 million for a significant portion of an old Intel chip plant in Colorado Springs, which it intends of turn into a new bitcoin mining operation.


Mining Farms Opening Around the World

Miners have been flocking to cities that offer cheap electricity to reduce costs and increase profits, and it looks like Colorado Springs may join the list. At just 7.94 cents per kilowatt-hour, the town’s commercial electricity rates are more than 21% lower than the national average. City leaders have been using these lower prices to entice new businesses into the area – and it appears to be working. Walmart and FedEx both have data centers in the area which require large amounts of electricity to run. Bitcoin mining farms have similar power needs, making Colorado Springs a great place to set up shop.

Much of the town’s economy is based in the high-tech sector, with companies like Verizon and Hewlett-Packard setting up offices. In 2000, Intel opened a 1.4 million square foot semiconductor plant in the area that boasted an extensive electricity network – including its own substation and two separate power feeds – among other features. A several years-long decline in the industry caused Intel to close down the plant in 2009 and there it has remained abandoned – until now.

Mining Farms Opening Around the World

California-based 3G Venture II has purchased a “large portion” of the old Intel plant and – according to city economic development leaders  – plans to convert it into a bitcoin mining operation. With a purchase price of $13 million, the acquisition includes 30 acres of land and more than 700,000 square feet spread across four buildings. Three of the buildings – 85,000 square feet in total – will be used for the actual mining operation. The company intends to lease space in the remaining building – a huge 4-story, 640,000 square foot facility – to industrial tenants.

Cheap energy and size of the facility aside, one of the primary factors that drew the interest of 3G Venture II’s owner, John Chen, was its power infrastructure. The on-site substation and dual separate power feeds are a huge boon for any mining operation. Without it, a similar operation might have to spend hundreds of thousands of dollars more in order to achieve the same setup.

Hashrate Follows Price?

Cryptocurrency mining has really taken off in the past year, with new, with increasingly more efficient hardware hitting the market every few months. Bitcoin is mined using pieces of hardware known as ASICs, or Application Specific Integrated Circuits. These machines can perform mining calculations thousands of times faster than consumer grade hardware, making them an attractive choice for people looking to open large-scale operations. In addition to hardware costs, miners also need to worry about the electrical costs of running that many machines – hence the exodus to locations with cheaper electricity and cooler climates.

Bitcoin’s current bear trend doesn’t seem to discourage miners, however. Since January, the price has fallen well over 60 percent. yet the hash rate – the total computing power of the network – has nearly tripled from 13 EH/s to just around 37 EH/s. The hash rate is a good indicator of the overall security of the network – the higher the hash rate, the more difficult it is for someone to launch an attack.

One would think that a more secure network would be more valuable, but the market doesn’t really seem to care. We’ll see how the price reacts to this consistent hash power increase over the next few months.

What do you think about these large-scale mining operations? Do you think the current bitcoin mining landscape is too centralized? Let us know in the comments below!


Images courtesy of Blockchain.info, Bitcoinist Archives, Shutterstock

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Crypto Cannabis Conference 2016 to Examine Bitcoin, Legalization

Source: bitcoin

Crypto Cannabis Conference 2016

At 4:20pm Denver time CCC is announcing the Crypto Cannabis Conference (CCC) 2016 is hosting its second annual event in Denver, Colorado on October 21-22, 2016. The conference is special in that it works to connect the cannabis and cryptocurrency industries. While Marijuana laws have been changing at the state level, with almost half of the United States adopting medical use statutes, the plant remains illegal at the federal level. Conflicting laws have made it difficult for businesses in the cannabis industry to get proper banking services. Many banks do not work with the industry due to the real threat that the federal government could issue punishment.

Also Read: Denver, Colorado to Hold Crypto Cannabis Conference

While some credit unions and small banks serve cannabis businesses under secrecy, there is still a financial divide between legal cannabis businesses and the mainstream economy. Bitcoin can help fill that gap. By accepting bitcoin and using it up and down supply chains, marijuana businesses will have access to a secure financial system that is just as effective as traditional banking — if not more.

Crypto Cannabis Conference 2016: Bitcoin, Legalization and the Law

This year, the Crypto Cannabis Conference is being presented with major sponsors Canna Investor Magazine, Chronic Lifestyle Magazine and the Cannabis Community Project. Bitcoin and crypto businesses along with several other cannabis magazines and companies will also be added over the course of the summer.

Robert Stephan started the CCC to bring together the two budding industries. He has included the fintech industry as well, bringing on speakers who are knowledgeable about the benefits of cryptocurrency.  There are many different providers of not only point of sale systems but also debit card, tax software and cold storage systems for a businesses financial ease of use.

Hangout Chats as well as in person presentations at CCC 2016

Last year, Roger Ver, Caleb Chen, Tone Vays, Joby Weeks, Arie Y Levy Cohen, Manny Perez, Jerry David Chan, Dr. Daniela Vergara spoke at the conference, and also participated in a Google Hangout. Roger Ver had this to say about the Cannabis and Bitcoin industry fitting together.

Any industry that’s having a hard time dealing with traditional banks is a prime target for Bitcoin adoption. The medical marijuana industry falls directly in this camp.

At the 2015 conference, Arie Y Levy Cohen discussed FinTech’s place in the Cannabis and Bitcoin industry, while Agricultural Genomics Foundation Founder Dr. Daniela Vergara talked about genomic research in cannabis and some of the results from the Cannabis Genomic Research Initiative.

Earlier this year, CCC hosted a Bitcoin Q&A panel at the Cannacon meeting in Seattle, moderated by Caleb Chen.

Many speakers are slated to present at CCC 2016, covering topics aimed at the conference’s two main goals:

  1. Educating newcomers on the basics of cryptocurrency. During the conference’s morning session, attendees will be able to participate in hands-on exercises to get a feel for how Bitcoin works.
  2. Exploring compliance, accounting methods and anti-money laundering measures.

 

The list of speakers as we noted is ever growing. Experts from many parts of both the Cannabis and Bitcoin industry will be speaking and taking questions.  Most will also be participating in the after parties and VIP events.  Several of the industry speakers are:

 

Derek Porter, CEO, Security Grade Solutions.

Carl Lehburger, Founder PureVision, Technology, Inc.

Peter Klamka, Managing Partner, Bitcoins Direct, llc

Michael Tew, CEO, Cannasys, Inc.

Kevin McKernan, Medicinal Genomics

Joseph Ciccolo, President, BitAML, Inc.

David B. Bush, Esq. David’s Law

Adella Toulon-Foerster, Legal Professional. Blockchain/bitcoin/crypto advocate, Current
Cogent Law Group,

Edgar Hamm, Grow Hemp Colorado, Co-founder of Hempslist and 1620 Solutions

At the end of each day, a Q&A panel will be hosted where attendees can ask industry experts anything they want.

The Crypto Cannabis Conference for 2016 is a must go event. Ticket information can be found on the CCC website.

Are you going to the Crypto Cannabis Conference this year? Let us know in the comments section.


Images courtesy of CCC2016cannahacker.commedicinehunter.com.

The post Crypto Cannabis Conference 2016 to Examine Bitcoin, Legalization appeared first on Bitcoinist.net.

Crypto Cannabis Conference 2016 to Examine Bitcoin, Legalization

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