“We want poor people to mine Bitcoin and not rich people,” says specialist

"We want poor people to mine Bitcoin and not rich people," says specialist

Key facts:
  • Bitcoin miners are a leverage position of the future of BTC, according to Daniel Frumkin.

  • Bitcoin’s Lightning network is a competition to the main cryptocurrency network, they claim.

Bitcoin (BTC) mining, as a necessary activity for the operation and development of the network, should expand to other territories. Among them, Latin America, which can be seen as a key niche to promote growth and guarantee the future of the industry.

So He suggested Ethan Vera, the COO of the mining firm Luxor Mining, during a talk about mining at LatBitConf, an event dedicated to the market leading cryptocurrency thatwhich is being held this week in El Salvador.

According to Vera, after China’s onslaught against mining, much of the hash rate went to the United States, country that has the best capital and infrastructure market, he said.

«So we as bitcoiners have to work in multiple ways, and for various reasons it is very important that the network is decentralized. If a country has 50% of the network, then let’s use the traditional banking system, “he said.

Thus, he spoke of developing countries, which, in his view, have “many opportunities and challenges»When it comes to mining. “And we are working on those challenges,” he said.

North American miners can go to private providers and receive easier financing, but Latin Americans don’t have that option yet. We are working with financiers to make them feel comfortable investing in this region, because it is important for Latin America to become a relevant player in the future of the Bitcoin network.

Ethan Vera, Chief Operating Officer, Luxor Mining.

The blockchain expert Rocelo Lopes agreed with Vera. In his view, large-scale Bitcoin mining is important and rejected accusations that it affects the environment, since this activity “only uses 0.5% of the energy that is spent and wasted in the world.”

For him, mining should be done in impoverished countries, like Venezuela, Angola or Zimbabwe, where, he says, “families can have 10 machines without being controlled.” “We want the poor people to mine and not the rich,” he said.

However, it predicts a short-term future where BTC mining will become a centralized activity, where about 20 people are those who control the industry.

And in the same vein, spoke Daniel Frumkin, who is a member of the BTC mining company, Braiins Systems. He was blunt in stating that if bitcoin is successful, then the miners too.

In his view, miners are a leverage position for the future of BTC. “In the end it is a good thing for the BTC ecosystem and it will continue to evolve in a good direction, a good thing for miners.”

In fact, recent weeks have seen positive expansion for the mining industry. For example, recently the new miner from the manufacturer Bitmain, the S19 XP, was officially launched, which promises to be a 36% more profitable than its previous version, fact registered by CriptoNoticias.

Similarly, the announcement made by Canaan, another mining hardware producer and company that is also fully in business. As indicated, they intend to increase their own hash rate.

"We want poor people to mine Bitcoin and not rich people," says specialist
From left to right: Rocelo Lopes, Ethan Vera, Daniel Frumkin and moderator Anibal Garrido.
Source: @labitconf / twitter.com

The Lightning network, competition for miners?

During the panel, experts discussed the Bitcoin Lightning Network (LN), which facilitates and speeds up payments with BTC, which is necessary to increase scalability.

For Ethan Vera, the BTC community relies on LN, something that “takes volume out of the chain.” In fact, highlighted the network as something positive for the development of cryptocurrency.

“The best way to look at it is that it is a development for BTC, a good feature, (because) buying through the Lightning network, I think it will lead to more adoption of BTC later on, which will ultimately increase usage. general and transaction fees for higher adoption. Things like LN are going to benefit the miners in the long run, ”Vera said.

Rocelo Lopes, meanwhile, affirmed that the existence of the LN is competition for the main BTC network, something that, he suggests “is always good.” The expert argues that the network is just a new way to force change the Bitcoin protocol and force it to be even better.

When we see the essence of this, which is the Satoshi Nakamoto document, when the majority decide to change, then they must apply the change. The good thing that LN is doing is that it is telling the BTC core to change because if not, we will take care of everything. It is a competition.

Rocelo Lopes, blockchain expert.

For Frumkin, Bitcoin’s Lightning Network is positive, by admitting that miners cannot support many transactions on a single blockchain. “It is good for us if the utility of BTC increases, for the miners and for all of us,” he said.

What the experts expose is related to the most recent Arcane Research report, precisely on LN. According to the study, in a matter of 10 years, 700 million people will use the network to pay for services streaming, like Netflix or Podcasts 2.0, as reviewed by CriptoNoticias.

The estimates are given after a significant growth in LN utilization. Such a boost was given by the adoption of bitcoin as legal tender in El Salvador, the report states.

Mining, something indispensable for Bitcoin

In a historical context in which Bitcoin mining is criticized by other niches, and even by promoters of other cryptocurrencies, the experts agreed on the relevance of the activity.

And it is that, as is known, mining guarantees the existence of Bitcoin, the security of the network and the effective distribution of the first cryptocurrency on the market.

According to the panel speakers at LaBitConf, the industry is much less polluting than other economic activities and they argue that, even centralizing, It will continue to be a fundamental part for the permanence of the entire ecosystem.

In the end, Bitcoin mining is, as the name of the conversation, a “Strategic role for society and other industries”.

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