Topic: Bithority- How to decentralize more the Bitcoin mining resources! (Read 139 times)

OK but...Forget miners...There is also costs of buying Bitcoins for Bitcoiners, right?!...Should other poeple supply their costs for buying Bitcoin?..No! This is the cost that anyone should supply himself regarding his pocket size! Otherwise Bitcoin would get worthless! Therefore, there is a cost for any value! and I think that's clear enough....So, lets rephrase your question more reasonably: How can we decentralize the cost of establishing mining farms (capital cost, not operating cost!) for "wider range" of investors? (bcuz not everyone can and should start mining...there are some requirements!)

Answer: Bithority will be able to provide the necessary infrastructure for even capital cost financing, later on, when it can catches enough traction from folks in Bitcoin community. For instance, miners who already have running mining farms for a while, they can get a credit score from the Bithority token holders so that they can apply for financing their Capex of mining. And definitely, as in many financial means, there will be some risks for those lending money per the capital cost (establishment cost) which Lenders should accept and deal with! So you see this can also happen, but this is a solution already been implemented in many lending platforms worldwide and even without Bithority!
As an expert in bitcoin mining that has been consulting industrial scale farms, I can tell you the problem of the miners is not their capex but it is their opex!

When I am talking about decentralization of Bitcoin mining, it doesn't mean every single individual on earth should be able to get into mining but it means we need a wider/diverse range of investors to get into mining with the minimum dependency and effect from governors and states!

  As a result, I still claim that Bithority can "vastly decentralize the Bitcoin mining ecosystem"

Assuming that Bithority succeeded in solving the financing problems of miners when the market is down and the return is low, but it did not solve the problem of “mining centralization”, as there are costs of establishing a mining farm that only investment funds can bear, in other words, you solved a problem that miners do not complain about while Bithority's idea is to decentralize mining, something it has not achieved.

Thanks for asking... So regarding current hash-rate rental platforms (apart from many of them that are scams or called cloud mining), we can name several defects including: They are centralized, NOT trustless, and they don't create bilateral dependencies between miners and investors. I assume the two first points are clear so i go for the 3rd one.

 In all of current hash-rate renting platforms, miners have the upperhand! It means they sell part of their Bitcoin hashrate without being dependent on investors! So what happens is that they are currently renting their hashrates in prices that are NOT economical for real Bitcoiners/investors! They can also cancel or change their plan of sale upon their will! No say of clients/users in the sale plan. And this won't make any dependency for them on retailers, and as a result, their main source of investments will still remain from corporate/institutional investors NOT retailers!
Being dependent on institutional budgets make them more centralized and away from retail communities of Bitcoiners!
I believe that if the mining force is going to be more decentralized then miners have to rely on non-KYC (unknown) retailers' budget rather than corporations assets (which states can easily rule them)

💡 Now, the Bithority economy, can make attracting benefits enough for miners to urge them come on the protocol and raise fund for their operational costs from retailers!... Benefits such as: quick non-KYC fund-raise (dodging all bureaucracy, jurisdictions, funding obstacles, credit demonstration, third-parties verifications, etc)

@Crypto Panter
I need some clarification, so I hope you can help me better understand if there's any significant difference between Bithority's rental services and other established hash rate rental services.

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In connection with issues surrounding the centralization of mining, it's worth noting that we already have a few products specifically made for home miners who have smaller budgets ^{[production of such rigs appears to be on the rise]}.

Bithority -->>  Bitcoin Mining Control Authority
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Bithority is the idea behind making an autonomous protocol/network that provides a trustless platform for renting Bitcoin hashrates to any-scale investors! The Bithority idea can vastly help to decentralize the Bitcoin mining ecosystem.....But how?!  

Problem:
Why only a few people can have access to special resources (budgets, energy, suitable place, etc) needed for mining Bitcoin?! [/li][/list]

• Doesn't it make the whole Bitcoin mining ecosystem more centralized in hands of those few people/institutions?  

• Shouldn't we concern about the more centralization of mining capacity in hands of a few?!  

              
Obstacles:

• Typically miners will be automatically biased toward those who facilitate their necessary budgets, which in most cases are institutions or a special echelon of the society!  
  

• How should miners provide for their significant operating costs, especially when the market is extremely bearish?!

• Could they find any other resources other than financial institutions to rely on for supply of their critical budget and cost?  

The ideal Solution: Bithority idea    

• What Bithority can do for miners?

         answer: When they are in need of budgets, instead of selling their Bitcoin or taking finance from institutions, they can rent their hashrate in exchange for cash over Bithority protocol and raise their necessary fund through any-scale investors and Bitcoin enthusiasts. This will make them independent of states money!  

• What Bithority can do for retail-investors?

         answer: All Bitcoin enthusiasts, or let's say any-scale investors, can participate in mining through investment on Bithority protocol in exchange for miner's hashrate renting  

Benefits :

• No need to trust any third party (trustless protocol will verify both sides of hashrate renting)  

• No need of KYC, or any identity verification for both participants. (full privacy)

• Miners' need of critical operating budget will be provided and they don't need to sell their Bitcoins or take any institutional loan

• Miners will vastly become dependent on people's money (retail money) other than states/institutional money!

• Bithority autonomous protocol can help to decentralize hashrate among any-scale investors and any-scale miners around the world, no matter where you live or who you are! (no KYC or identity/entity promoting needed)

Ideal image in a post-Bithority world:

Any people around the world, with good access to cheap energy resources or infrastructure can start plug in their miners and after initiation and proving their hashrate to Bithority protocol, they can be verified and begin to rent their hashrate to raise fund for their operation cost from Bithority retail investors.

More resources: https://github.com/syvita/bithority