Science

What impact could Elon Musk have on Bitcoin (BTC) mining decentralization?

With the ban on bitcoin (BTC) mining in China heavily impacting the hash rate of the flagship cryptocurrency, the need to diversify mining sources and further decentralize activities has imposed on industry players. Even if the United States has now filled the hashing power gap that was in China, and that activity is peaking again, the question of its decentralization still arises. It is important for the sector to limit the impact of a possible occurrence of this phenomenon by increasing the number of bitcoin mining sites in various jurisdictions. Knowing that the places of abundant energy production are located in remote areas, connecting to the Internet can be a big problem for miners who want to take advantage of these energy sources.

Improve connectivity in remote areas with power

Elon Musk’s Starlink could be the missing piece of decentralized bitcoin (BTC) mining to access parts of the world where energy is cheap but internet access is lacking. This is essentially what El Sultan Bitcoin, head of product marketing for Latin America at Ledn, developed in an editorial. Canadian company specializing in the provision of financial services in bitcoin (BTC).

The company, founded by Elon Musk, has set itself the task of developing its broadband Internet system around the world, especially in the least connected regions of the earth today, including South Asia, the East and Africa. A total of 3 billion people lack quality internet access.

While remote areas like Quebec in Canada and Sichuan in China produce a surplus of available energy, they can be home to huge bitcoin mining farms, but when it comes to remote energy production sites, connecting to the internet can be a big problem. when you know that traditional internet providers supply very little electricity to remote areas.

“It’s not hard to imagine miners subsidizing Starlink costs in rural areas to use wasted energy while still providing internet connectivity, given that a bitcoin miner powers greenhouses in the country. – Way down. If waste heat production is subsidized to grow food and flowers in one place, the same can be said for building internet services in unconnected areas in exchange for newly mined bitcoins. It would also be interesting to see how this can help reduce network centralization by ISPs,” he wrote.

Affordable cost

You should be aware that ISPs do not usually serve remote areas.

In addition, 60% of all Internet traffic in the bitcoin mining industry is provided by three service providers, according to DARPA, the US Department of Defense agency responsible for research and development of new technologies for military applications. Data that requires greater diversification of Internet access sources for miners.

In addition, El Sultan Bitcoin believes that for a multi-million dollar mining operation, access to an Internet service from Starlink should not be a big deal. Indeed, the importance of operating income makes connection costs seem minimal on the income statement. Please note that the hardware required to install a Starlink hotspot in a remote area is around $600 plus a $3,000 monthly subscription.

For El Sultan Bitcoin, with its broadband internet deployment technology, Starlink could be a key player in efforts to spur the growth of decentralized bitcoin (BTC) mining. This is due to the development of farms in remote areas where demand for electricity is lower than production, but where Internet access is difficult.

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Avatar of Luke Jose Ajinaku
Luke Jose Ajinaku

The failed cryptocurrency investment in 2017 not only did not dampen my enthusiasm, but only increased my enthusiasm. Therefore, I decided to study and understand the blockchain and its many applications, as well as pass on information regarding this ecosystem with my pen.

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