David Vorick, lead developer of Sia, recently shared a blog post titled “The State of Cryptocurrency Mining,” which provides a perspective into the cryptocurrency mining world.
First off, we’d like to express our appreciation for David and what he’s achieved with Sia. The crypto community revolves around transparency and trust, and we hope to someday work with David and his team.
That said, the article reflects some persistent misunderstandings about our business, and we’d like to take the opportunity to clear up the confusion. We’d like to briefly address the most egregious ones.
“Playing Dirty”
The article accuses Bitmain of “playing dirty,” claiming that that the company has attempted to block Obelisk from manufacturing in China.
Considering the truly vast number and diversity of suppliers in China, it’s difficult to consider that Bitmain could possibly exert such powerful control over a competitor’s supply chain to the degree the article suggests. The article does try, though. Indeed, this section—fully six percent of the total article—tries to accuse Bitmain of “playing dirty” while stating twice that there is no evidence of same.
There are numerous suppliers and other third-party agencies involved in the manufacturing of a miner, both in China and elsewhere.
This is, at its very bottom, a conspiracy theory, much like some of the other ones we frequently encounter. This brings us to the next item.
A3 and “Flooding the Market “
The article asserts that Bitmain floods the market with its mining rigs. Here is what really happened: At launch, Bitmain introduced a strict one-miner-per-user batch allocation policy and other methods [1][2] in order to restrict hoarding and combat centralization. The number of miners made available per round was purposely limited to help further regulate their introduction into their respective ecosystems. Since then, we’ve enforced this policy with the launch of all ASIC miners for cryptocurrencies that can be profitably mined by GPUs. The article’s calculations here are merely speculative.
Again, in an article that makes a number of accusations, we wanted to tell our own side of the story. Our license-to-operate within the cryptocurrency ecosystem is vital to our business and we do not take it for granted. We will continue to provide industry-defining mining hardware and services, while remaining sensitive to the communities in which we participate.
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