What Bitcoin Did

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The Resiliency of the Bitcoin Network with Nick Hansen

Peter McCormack

Interview | Description | Timestamps | Show Notes

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The Resiliency of the Bitcoin Network with Nick Hansen - WBD414 Peter McCormack

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Location: Los Angeles
Date: Sunday 17th October
Company: Luxor Technologies
Role: CEO

Proof-of-work mining is at the heart of the bitcoin network consensus, ordering transactions into blocks and providing security. Without a healthy mining ecosystem, the Bitcoin network is vulnerable.

Earlier this year, China banned Bitcoin mining within the country. At that time, over 50% of the hashrate was said to be located in China. What followed was a huge drop in the hashrate as miners migrated out of the country. 

While, on the face of it, this could be seen as a negative, the outcome was a more decentralised hashrate and a smaller concentration of miners operating within an authoritarian country.

In addition, stressed economic conditions have led to increasing uncertainty in the supply chains surrounding the fabrication of new ASIC mining equipment.

So what is the state of the Bitcoin mining industry today?

In this interview, I talk to Nick Hansen, CEO of Luxor Technologies. We discuss the resilience of the bitcoin network, mining pools and the global economics of ASIC supply chains.

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00:03:40: Introductions
00:06:10: Background to Luxor
00:07:53: Mining pools explained
00:13:59: Challenges faced by mining pools
00:17:26: Peter's mining investment thesis
00:23:40: The crucial role of mining to Bitcoin
00:25:43: The China bans
00:30:20: Network resilience
00:38:52: Transition to hyperbitcoinisation
00:50:47: Taiwan and chip supply shortages
00:58:38: Trade in S9s
01:05:41: Expensive regrets
01:10:50: Prison reform
01:16:59: Final comments

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