Sunday, February 11, 2018

Hamilton's massive cryptocurrency mining lab

The heart of Hamilton's east end sounds like an unusual place for a mining operation running flat out. They're not mining precious metals. They're mining cryptocurrency — a digital currency that few boast to understand. A company called CryptoGlobal is betting big on it. How big? Real big.
The company's building looks unassuming, but step inside and a wall of heat hits followed by the whirring of hundreds of fans from banks of computers. 5,000 machines are running at their facility, and by April twice as many will be operational.

Why is the "mining" operation here? "Hamilton is a fantastic place. It has one of the best utility companies in the world. It's 40-odd minutes from Toronto". And 'mining'? "It's not like digging for gold" Segal said. "What it is is running very powerful computers that solve complex algorithms and by doing that, allows people to use the block chain to transact." The tally, or "block chain" is one of the most important ways in which these currency systems prevent fraud. Miners are then in turn rewarded for supporting the system.
Retail investors have poured money into digital coins, enticed by the huge run-up in prices. Regulators say cryptocurrencies are highly speculative, highly risky, and are dangerous investments. Another massive $530 million hack of a Japanese cryptocurrency exchange late last month renewed worries about the security of the industry.