MGT launches 2PH/s Bitcoin mining device to combat Chinese mining pool dominance

China has long been considered a threat to the capitalist economic system. The world’s most populous country has been accused of cannibalizing jobs in other countries as it remains a favorable manufacturing destination for companies around the world. Likewise, the Asian country has now established itself in the Bitcoin space.

According to the analysis of some large Bitcoin mining pools, more than 51% of the total Bitcoin network computing power is held by the top three mining pools, and all three mining pools are from China. This is also one of the reasons why many Bitcoin network members are worried, because they believe that this situation will lead to a centralized trend in the current decentralized Bitcoin network. At the same time, they are also worried that China will eventually take over the entire Bitcoin.

There are many factors that have led to China's current dominance in mining operations. China's labor costs are relatively cheap relative to the rest of the world. China's vast manufacturing industry, which can produce almost everything, also makes China an ideal region for producing mining hardware. Leading Bitcoin mining hardware manufacturers have taken advantage of these advantages to develop and produce advanced Bitcoin mining hardware that can generate a lot of computing power and is more energy-efficient. Electricity costs in China are lower than in many developed countries, making mining operations more economical.

As the Chinese Bitcoin community begins to dominate the Bitcoin industry, many people, such as security expert John McAfee, are interested in countering China's supposed threat to Bitcoin. As a result, McAfee's company, MGT Capital Investments, has announced plans to launch a huge Bitcoin mining facility in the United States. The new mining facility uses hydroelectric power and is currently under construction in Washington State. By August of this year, the mining facility will generate more than 2 peta hash/s of Bitcoin mining power.

Hydroelectricity is cleaner and cheaper than other standard electricity sources. It is reported that the equipment invested by MGT Capital will use 16nm ASIC, and the final computing power will increase by more than 5 times to 10PH/s.

MGT’s product launch comes at a time when the Bitcoin halving is approaching, and some mining companies, such as KnCMiner, have announced closures due to rising energy and operating costs. However, MGT believes that the current situation is very promising for them.

Recently, MGT also appointed Roger Ver, a very well-known figure in the Bitcoin ecosystem, as their advisor.