With revolutionary processor technology, the company Cryptotech claims that it will proclaim the majority of today’s bitcoin miners in the world
Entrepreneur Erik Solberg plans to set up a huge data center in Norway, which will be responsible for half of the world’s new bitcoin, with a power consumption of a big Norwegian city.
"We are going to outperform the Chinese, which today controls 60 percent of all bitcoin mining in the world. One side effect is that we move bitcoin from polluting coal to climate-neutral hydropower, "says Cryptotech chief Erik Solberg.
"Today, the bitcoin is mined for 30 million dollars a day. We are planning to control half of this, "said Solberg, who has several smaller greenhouse companies.
Together with two researchers in processor technology from the United States, the Norwegian engineer plans to set up a huge data center somewhere in Norway.
"We have found facilities that are big enough and have the kind of power supply we will need. But we have not gone out with any specific location. There are probably many who would like to put sticks in the wheels for us, in cases where sabotage is known from earlier in bitcoin context.
New transistor technology
The core of the business idea is Chryptotech’s new processor, based on a new, simpler and more efficient CMOS transistor.
This makes the processor both easier to produce, far faster, requires less power, less cooling, and that the cores are smaller, so there is room for much more on the same area.
Solberg says the simulations have confirmed that the Chryptotech processor will be six times faster than today’s most common bitcoin processor S9, and 25-30 times faster per. area.
“Adding all the benefits together will be a total of 125 times more efficient than the nearest competitor,” Solberg claims.
Solberg says he has minted bitcoin and several other crypto currencies since 2009. In 2012, he tried to start mining on a larger scale, but was downsized by his investors.
“Then I started a drones company instead, which was very hot at that time, and has continually regretted more and more,” says Solberg.
This summer, he contacted his former acquainted Tom Agan, with a background of chip design in, among others, Mostek, Cray and Honeywell, who again put him in contact with James Lupino.
- Only then did we know if the new unipolar technology Lupino had developed and could possibly be used for mining.
The data center is being added to Norway because of cheap power and stable political and geological conditions. The start-up will be in August 2018.
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Token sales for $ 200 million
The company is launching token sales of $ 200 million on its web sites.
Buyers are granted mining capacity rights for two years from August 2018. The company estimates a 5-point return, provided the bitcoin price is over $ 5,500, and far higher if it stays on today’s $ 17,000.
If the technology is so revolutionary, why not use it in other processors?
You can certainly. But a bitcoin mining chip is pretty stupid. It will solve a single type of equation, an SAH-256 algorithm, and may not add 2 + 2. A typical processor to solve all kinds of tasks takes five to seven years to develop, while a mining chip takes a few months.
According to the simulations, technology will work according to the plan. In February, the first prototype will be ready, and then it will be through its first production round at German Global Foundries.
Power for a city
The planned power consumption, however, becomes impressive if everything goes according to plan.
Even though one of Cryptotech’s mining devices will replace 70 Chinese, it will nevertheless be free to replace 50 percent of global bitcoin production. According to Solberg, up to 2.3 terawatt, which corresponds to around 5 percent of today’s Norwegian power consumption.
"But the whole plan is that the bitcoin award does not go to the basement?
- The Bitcoin award is of course the biggest variable here. But we have very low production costs, and the price must go extremely low before we go in minus. Then we speak 2012 levels of around $ 100.
Translated with Google translate and im tired so keep that in mind when reading ;O