Decentralizing the Cryptocurrency Chip Market

Speaker 2
curve again let's go let's go back to the chips right there's a lot of interest right now in the united states like bringing chip foundries over to america uh essentially you know probably the biggest point of centralization and mining i think we've talked about a few of them, right? So we have these pools, they're kind of competing. We've got like the mining data centers, but then there are other people who produce the chips. Right now, there's essentially only two or three, right? I think it's still Bitfury, Avalon, and Bitmain. And there's, you know, a consolidation geographically of those chip makers. But there is a hope now, it seems like, for the United States to maybe diversify this. What's your view on that aspect of the kind of centralization curve here? It's really bad right now. Bitmain makes nearly
Speaker 1
everything. They make the chips. Bitfury is out of the game at that point. They're just, they're not. I think Bitfury's done. As far as I know, Bitfury is just out of it. They held on for so long. What's Minor is probably number two, but it's a distant. That's MicroBT. I think they're distant. It might be, it's hard to know exact numbers, but my hand-wavy guess is that Bitmain's got 80%. Unblock,
Speaker 2
Jack Dorsey's company has been working on this for at least three years now, right? That's the great white coat for for for bitcoin chips right yeah
Speaker 1
so we've got we got bitmain's really big the number two which is pretty small in comparison micro bt what's minor uh and then i think there's a number of other smaller ones that are that are out there way less popular like canonan and um it's like Dragonman I don't know those are small uh there's a couple new upstarts we have uh Ardyne uh coming in the picture uh Chain Reaction there's there's some new upstarts it's a very hard business so you know it's gonna be touch and go I think in the beginning for those ones uh Block is another important player that's come in the game. They have some prototypes of their ASIC. And as far as I know, they're on schedule to release this thing. Like I said, it's millions of dollars. I bet even Jack Dorsey with his deep pockets is like, dang, that's expensive. It's hard to do, but I've talked with several people over there about this. I think they're doing the right thing. They're, they're just marching forward, you know, going to get this done, take those first steps towards what really needs to happen, which is more manufacturers to go after Bitmain's lead. Now it's important to know that the Bitaxis currently use Bitmain chips. We're using the same exact chips. So that's not helping the chip decentralization problem or centralization problem at all. I think that's going to change. That's a goal of mine for this year is to get off of Bitmain chips and go after some of these other ones that I've talked about. I've been having conversations with all of them. That's a cool side effect of the bid axe project gaining so much popularity in the last year is that now some of these companies are like, okay, yeah, like, we'll talk to you. It was great. We're, we're, we do need more players in the chip business. But there's more to it than that. Right now, Bitmain makes the chips. They make the machines with the firmware. They make the hardware. They actually make a pool too. So they're like this whole stack that is all centralized on Bitmain. That's a problem. And there's a lot of work happening at sort of breaking that apart, right? That's where the Bitaxe comes in. We have our own firmware that's not developed by Bitmain. We have our own mining hardware, you know, around the chip that's out there. That's open source. People can fork that and run with it. So yeah, there's a lot of facets here that kind of need breaking it apart. And the chip is a big one, but it's the tip, the hardest to crack there.
Speaker 2
Interesting.

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