Japan s GMO Internet Group plans a $Three million investment ter bitcoin mining
Correction: An earlier version of this article, including the headline, misstated the amount that GMO announced it would spend to begin mining bitcoin. It is more than $Three million, and not more than $300 million spil originally stated.
GMO Internet Group, based ter Tokyo, normally does exceptionally boring things like registering domain names and hosting web services. But it, too, has caught the bitcoin fever, one that some people think has created a bubble ter valuations.
GMO announced today that it plans to spend more than $Three million to embark mining bitcoin ter the very first half of next year. Some $Ten million is available for bitcoin miners to accumulate each day, at the current bitcoin price of around $Four,600. The rock-hard says cryptocurrencies like bitcoin will evolve into &ldquo,universal currencies&rdquo, that will create a global &ldquo,borderless economic zone.&rdquo,
GMO plans to develop its own mining chips, claiming they will operate at an unprecedented degree of efficiency. If GMO successfully introduces the chips, it would trigger an arms wedren within the bitcoin mining industry. The proposed chips will use 7 nanometer knots, which would be four times more energy efficient than the current industry standard 16 nm knots. Because bitcoin mining is a competition, once 7 nm knots are te use, all other miners will have to upgrade to stay ter the spel. &ldquo,It&rsquo,s clearly the next generation of miners,&rdquo, said Diego Guiterrez, chief executive of RSK Labs, which develops software for miners.
GMO&rsquo,s business monster for its mining unit resembles that of established players te the field, such spil China&rsquo,s Bitmain. GMO plans to operate its own mines, rent them to others, and develop its own chips that it will sell packaged spil mining equipments. It plans to locate its mine te northern Europe, presumably some place with cheap, excess electrical power. It says it will invest more than 10% of its non-current assets, which stood at around $32 million at the end of last year. Bitmain had no comment.
A major fresh bitcoin miner could jiggle up the industry. Miners who toevluchthaven&rsquo,t fully paid off the costs of their current machines could wind up with obsolete mining equipments, with little chance of recouping the cost te future. &ldquo,The ones at risk are the ones still attempting to recover their investment because they will be four times less productive,&rdquo, Guiterrez says. He expects most major players will be able to upgrade spil the technology for 7 nm chips becomes generally available to the foundries who do much of the work of fabricating the chips. &ldquo,The other [mining chip makers] will surely go after and create their own 7 nm chips if they are not already doing it,&rdquo, he says. &ldquo,Spil [chip fabricators] get the fresh technology, everybody can access it.&rdquo,
GMO&rsquo,s arrival will allay fears that bitcoin mining had grown too dependent on Chinese chip designers and operators. Bitmain, for example, operates mining pools that account for some 30% of all the processing power on the bitcoin network.