[HN Gopher] Police Destroy 1,069 Bitcoin Miners with Big Ass Ste...
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       Police Destroy 1,069 Bitcoin Miners with Big Ass Steamroller in
       Malaysia
        
       Author : giuliomagnifico
       Score  : 106 points
       Date   : 2021-07-18 17:40 UTC (5 hours ago)
        
 (HTM) web link (www.vice.com)
 (TXT) w3m dump (www.vice.com)
        
       | teslaberry wrote:
       | oh the humanity!
        
       | noxer wrote:
       | "This is good for bitcoin" - Bitcoin people
        
       | rasz wrote:
       | What a waste, they destroyed ~1000 perfectly good 1KW PC power
       | supplies :(
        
         | userbinator wrote:
         | Now the poor Chinese kids who will likely end up salvaging the
         | bits have an even harder time...
         | 
         | Making e-waste recycling harder doesn't really help anyone.
        
         | qwerty456127 wrote:
         | Exactly. Whenever I see something like this (e.g. Philippines
         | police has also bulldozed some expensive cars recently) I
         | always wonder if they actually are idiots or have extracted the
         | valuable internal parts first.
        
           | dandanua wrote:
           | They are 100% idiots. In Russia, the government even destroys
           | sanctioned food from the West
           | https://www.youtube.com/watch?v=06TZrP5Vg0s They just don't
           | give a f
        
           | pjc50 wrote:
           | I suspect big conspicuous destructions like this are the
           | reverse of US asset confiscation; destroying the thing is a
           | signal that you're _really serious_ about stopping it, rather
           | than just confiscating it and letting the police keep the
           | proceeds.
        
             | zamalek wrote:
             | It also prevents those machines from magically "appearing"
             | in a new mining op.
        
               | qwerty456127 wrote:
               | Perhaps there are reasons beyond my understanding why
               | this is a wrong idea but if I were the head of the
               | government I would rather officially sell the machines to
               | a legitimate tax-paying mining operation or (if we are
               | low on electricity and don't want any mining in the
               | country) sell them on eBay to whatever a foreign party
               | interested to get the funds for the budget. If the
               | hardware would appear at an illegal mining facility in
               | the country again I would just confiscate and sell them
               | again making even more funds for the budget.
        
               | birdyrooster wrote:
               | I'm sure by the end of your paragraph you began to see
               | how this can be gamed to not help the country.
        
               | Syonyk wrote:
               | "Hello, Dear Sir! I am most foreign of foreigners,
               | wishing to buy your Bitcoin Printing Mint Equipment, paid
               | in your local currency, for export out of your fine
               | country."
               | 
               | "... really? You're the guy we seized these from, holding
               | your finger under your nose like a mustache. To cover
               | your mustache."
               | 
               | If you object to the entire principle (or, at least, need
               | to be seen objecting to the entire principle), destroying
               | the assets in a visible public spectacle is the way to
               | go.
               | 
               | California had at least some high profile "street racer"
               | destruction back in the day, and I don't believe any
               | western government, upon seizing a big load of cocaine,
               | goes about trying to figure out how they can unload it to
               | someone else. At least, in easily tracked ways...
        
               | michaelmrose wrote:
               | Cocaine does have SOME medicinal use but corruption of
               | the product by being mixed destroys any possibility of
               | legit use. This isn't true of computers.
        
               | qwerty456127 wrote:
               | > really? You're the guy we seized these from
               | 
               | Ok, let them buy it again and seize it from them again if
               | they use it unlawfully. Double profit.
               | 
               | > seizing a big load of cocaine, goes about trying to
               | figure out how they can unload it to someone else
               | 
               | Because there is an internationally agreed war on drugs.
               | Cocaine (unlike meth which can be officially prescribed
               | as Desoxyn in the US and heroine which also is used
               | medically in some cases e.g. in the UK) is officially
               | considered pure evil with no legitimate medical use (it
               | can be used for good but in practice 99.9% of its use is
               | abuse and even the 0.1% who use it for good also do that
               | illegally).
               | 
               | AFAIK there is no international agreement on fighting
               | cryptocurrencies mining so far, the mining equipment (let
               | alone the power supply units) are perfectly legal to
               | manufacture, sell, buy, own and use (unless you actually
               | steal electricity to power them) in many countries.
               | 
               | Even such a totalitarian and unreasonably conservative
               | country as Iran officially allowed (and taxed) mining
               | until they found out they are running low on electricity.
        
               | jlarocco wrote:
               | The goal of a government isn't to make a big profit.
        
               | dylan604 wrote:
               | It is the goal of the gov't contractors that the gov't
               | has hired to do the actual work of the gov't
        
           | JackFr wrote:
           | On the other hand big destructive displays like this are big
           | signals that it's not police corruption and theft (like with
           | the perverse incentives "civil forfeiture" creates in the US)
        
             | [deleted]
        
       | svgnright wrote:
       | What are they doing about toxic coal plants?
       | 
       | How can we minimize the external costs of energy production?
        
       | i_am_proteus wrote:
       | A well-placed hyphen would add some clarity to the title.
        
         | alkonaut wrote:
         | Big Ass-Steamroller
        
           | wtfrmyinitials wrote:
           | 37
        
             | have_faith wrote:
             | I thought you were mistaking referring to rule 37 instead
             | of rule 34 until I saw the reference.
        
             | yesenadam wrote:
             | https://xkcd.com/37/
        
       | paulpauper wrote:
       | They could have resold them
        
       | Animats wrote:
       | The heavy equipment operator isn't very good. I suspect there's a
       | cop driving the thing, and the guy hanging off the right is
       | coaching him.
        
         | Zababa wrote:
         | I've never operated heavy equipment myself and have no idea
         | what would be good or bad driving. Could you explain a bit
         | more? I'm curious.
        
       | jl6 wrote:
       | Could obsolete Bitcoin ASICs be used to mount any sort of attack
       | on SHA-256? There's a huge, huge amount of SHA-256 going on in
       | Bitcoin at the moment - does the ASIC become useless once it is
       | no longer used for Bitcoin, or could it be made to compute
       | SHA-256 for some other nefarious purpose?
        
         | jazzyjackson wrote:
         | The collisions that ASICS search for are a few leading zeros,
         | even with the whole Bitcoin network at your disposal I don't
         | expect it's practical to find an exact 256bit collision.
        
           | AareyBaba wrote:
           | 3Blue1Brown has a convincing visualization of the size of
           | 2^256.
           | 
           | How secure is 256 bit security?
           | https://www.youtube.com/watch?v=S9JGmA5_unY
        
         | mindslight wrote:
         | If there becomes a surplus of power-inefficient hashing gear
         | that is no longer profitable to operate, and the aggregate
         | capability of that "dark" hashing power grows significant
         | compared to the online hashrate, it could be used to carry out
         | a 51% attack. But since ASIC efficiency gains are due to
         | increasing hashrates (with roughly constant power density),
         | this seems unlikely.
        
         | tptacek wrote:
         | Nope. No plausible amount of computational power that works in
         | any way known to modern science will directly break SHA256.
        
           | rospaya wrote:
           | Even a quantum computer?
        
             | [deleted]
        
             | seibelj wrote:
             | My understanding is that one-way functions are not broken
             | by quantum computers.
        
               | Filligree wrote:
               | Depends on the function.
               | 
               | But not sha256, no. I think you'd almost have to design
               | it to be vulnerable, if you want that.
        
               | thaumasiotes wrote:
               | My understanding is that in the general case you can see
               | a quadratic speedup, so a 256-bit search space would
               | suddenly collapse to what is effectively a 128-bit search
               | space.
               | 
               | Not a big deal by itself.
        
               | tromp wrote:
               | Bitcoin's hashcash PoW is not a 256-bit search problem
               | though. At current difficulty levels, it's closer to an
               | 86-bit problem, so Grover's algorithm reduces that to the
               | equivalent of a 43 bit search space.
        
             | MauranKilom wrote:
             | It reduces the strength of SHA256 to that of SHA128,
             | roughly speaking. 2^128 is still outside any practical
             | reach whatsoever. (Google breaking SHA-1 after
             | cryptanalysis still required some 2^60 operations iirc).
        
             | ohhhhhh wrote:
             | even if that did happen in the far future, there are
             | quantum proof encryption methods
        
             | unixhero wrote:
             | Ask Grover, google it
        
             | ben_w wrote:
             | I always assume security is worse than the most effective
             | known attack, but IIRC it's currently thought to be safe
             | against quantum computers: https://eprint.iacr.org/2016/992
             | 
             | 2^166 ~= give a separate quantum computer that does as many
             | QOPS as the the most powerful supercomputer does FLOPS to
             | each human who has ever lived and have each of them run for
             | a thousand times the age of the universe.
        
       | walrus01 wrote:
       | I'm looking forward to more news articles (I know it's debatable
       | if Vice is real news) that use 'big ass' to describe anything of
       | immense size.
        
       | rhn_mk1 wrote:
       | Funnily enough, destroying miners is not going to make mining any
       | slower. Just less energy intensive.
        
       | jxf wrote:
       | They couldn't at least reuse them? Are mining rigs useful for
       | purposes other than mining?
        
         | dawnerd wrote:
         | Bitcoin asics are basically just ewaste once they're no longer
         | useful or profitable. Since they're designed for just Bitcoin
         | there's not really any other use. You can get older asics first
         | cheap on the secondary market (although most sellers try to
         | scam people not knowing previous generation miners are
         | useless). Maybe useful if you want a unique way to heat a room?
        
           | sfe22 wrote:
           | Also expensive way to heat a room, and loud
        
             | Nextgrid wrote:
             | > expensive
             | 
             | Compared to heat pumps? Yes. But compared to resistive
             | electric heating it's just as good (if not better, since
             | you could theoretically recoup some of the burned energy as
             | cryptocurrencies).
        
           | jxf wrote:
           | Then I wish they'd recycled them instead of destroyed them.
        
             | MiguelHudnandez wrote:
             | An early step in recycling is usually shredding. It's
             | better to remove big things made of known metals first
             | (like copper wires and aluminum cases), but if they keep it
             | all together it can still be processed.
        
         | [deleted]
        
         | detaro wrote:
         | Depends. FPGA-based ones can be purposed for other things in
         | principle, ASIC-based ones probably not, and afaik the latter
         | is what's common for Bitcoin.
        
           | thrtythreeforty wrote:
           | My understanding is that FPGAs have been unprofitable for
           | Bitcoin since the first ASICs were taped out.
           | 
           | FPGAs are still profitable for other coins that are memory-
           | limited. Bitcoin is just brute force compute.
        
         | JCWasmx86 wrote:
         | Maybe do some number crunching for science?
        
           | robbedpeter wrote:
           | Malaysia: Crunching achieved!
        
         | AlexCoventry wrote:
         | Maybe they could be used to study the distribution of SHA256
         | hashes, with an eye to uncovering vulnerabilities in the
         | algorithm?
        
         | dogorman wrote:
         | I think you mean reuse, not recycle. The first step in most
         | recycling processes is a shredder.
        
           | jxf wrote:
           | True enough; edited.
        
         | londons_explore wrote:
         | Most mining rigs have zero use for anything but mining.
         | 
         | A few mining systems are GPU's (used for mining certain types
         | of crypto), and those can be resold for other uses, although
         | typically after being used for a few years for mining they
         | might be damaged and no longer usable for other uses.
        
         | ars wrote:
         | > Are mining rigs useful for purposes other than mining?
         | 
         | Nope. Other than maybe the power supply they are single purpose
         | devices - they crack hashes, that's it.
        
           | captn3m0 wrote:
           | Might be good for computing rainbow tables perhaps? But not
           | much use for sha256 hashes.
        
       | Ajay-p wrote:
       | Title ..checks out! I wonder why the government did not just
       | seize these miners and put them to use for the local economy? If
       | it makes money, why not?
        
         | ars wrote:
         | Miners don't really make much money - the value of bitcoin is
         | almost exactly equal to the cost of electricity to mine the
         | bitcoin.
        
           | geofft wrote:
           | Also, because these rigs were apparently using stolen
           | electricity, chances are that the only reason it was
           | profitable for the owners to operate was that they _weren 't_
           | paying market rates for electricity. So there's no way to
           | legalize the operation and make it profitable (either because
           | local electricity costs are higher than world average, or
           | because these particular miners were inefficient, or
           | whatever).
        
           | Slartie wrote:
           | That's simply not true. Electricity prices vary by a
           | considerable factor, even among the cheapest sources. The
           | Bitcoin price is identical, globally. These two can only
           | coexist if there is a considerable margin to be made in
           | mining, allowing for it to be profitable in a relatively wide
           | span of electricity prices (of course still excluding the
           | highest-priced sources, it is not that wide!).
           | 
           | As far as my information goes, there were times when mining a
           | >30k$ coin was possible for less than 4k$ in electricity, if
           | you had access to really cheap sources. That's far from
           | "don't really make much money".
        
             | jazzyjackson wrote:
             | Bitcoin price is not identical globally as there is not one
             | global market for trading fiat, not disagreeing Re:
             | electricity prices, just nitpicking
        
               | cesarb wrote:
               | There might not exist a single global market, but
               | whenever the Bitcoin price is different in these markets,
               | there's an arbitrage opportunity. As a silly example, if
               | the Bitcoin price was 4.000 USD in one market and 40.000
               | USD in another market, you could buy one Bitcoin in the
               | first one, sell it in the second one, and pocket the
               | 36.000 USD difference. Buying Bitcoin in a market
               | increases the price there (suppose there were 10 Bitcoin
               | for 4.000 USD each and 12 Bitcoin for 4.200 USD each,
               | after the first 10 Bitcoin are bought the price is now
               | 4.200 USD), and selling Bitcoin in a market decreases the
               | price there (it's the same dynamic in the opposite
               | direction). After some time, the prices will converge.
               | 
               | That is: as long as arbitrage between the markets is
               | viable (for instance, it must be possible to move Bitcoin
               | and fiat between the markets at a low enough cost), even
               | though there's no single global market, the prices will
               | tend to be close enough.
        
               | celticninja wrote:
               | Bitcoin price is identical globally. The price of bitcoin
               | in USD/GBP/EUR is pretty much the same with respect to
               | the values of each currency. There may be outliers, eg.
               | Venezuela, but that's because it might be priced in the
               | local currency, which is itself inflating at a rapid
               | pace, so it loses value against bitcoin and the dollar or
               | euro
        
         | aqme28 wrote:
         | If the government sees something as a public Bad[1], they're
         | not going to put it back into the economy.
         | 
         | If the government seizes drugs, they don't just redistribute it
         | because it "makes money."
         | 
         | [1]: Regardless of whether you agree with the government here.
         | I also don't know if bitcoin mining is illegal or if it was
         | just the stealing of electricity that was a problem.
        
           | [deleted]
        
           | MrStonedOne wrote:
           | They didn't seize the miners because the miners are bad on
           | their own. this isn't like drugs. the miners aren't banned
           | here.
           | 
           | They seized them because they were used in other crime, ie,
           | stealing electricity.
           | 
           | They could have recouped some of the cost of that stolen
           | electricity by selling them to an outfit that actually pays
           | for electricity.
        
         | lvs wrote:
         | Oh, and the government could deal all the heroin and guns it
         | seizes too. What could possibly be wrong with that idea?
        
           | MrStonedOne wrote:
           | They didn't seize the miners because the miners are bad on
           | their own. this isn't like drugs. the miners aren't banned
           | here.
           | 
           | They seized them because they were used in other crime, ie,
           | stealing electricity.
           | 
           | Do police not auction off the cars they seize for their use
           | as a getaway car?
        
         | bigmattystyles wrote:
         | Presumably because they'd have to pay for power
        
           | BelenusMordred wrote:
           | Malaysia has some of the cheapest retail power on Earth.
           | 
           | This is the usual performative nonsense by a foolish
           | government. They could have easily sold them at auction like
           | they do with all sorts of other seized goods. ASIC's go for a
           | few thousand dollars each.
        
             | ericd wrote:
             | Perhaps it's among the cheapest because it's subsidized as
             | a public good?
             | 
             | EDIT: According to Wikipedia, it's heavily tiered and
             | heavily subsidized, but also that it shouldn't be
             | particularly helpful for mining, unless they're splitting
             | it into a bunch of accounts to stay in one of the lower
             | tiers:
             | 
             | Domestic consumer pricing per kWh used, subsidized
             | 
             | 4.95 @ 1 to 200 kWh
             | 
             | 7.59 @ 201 to 300 kWh
             | 
             | 11.73 @ 301 to 600 kWh
             | 
             | 12.41 @ 601 to 900 kWh
             | 
             | 12.98 @ 901 kWh onwards
             | 
             | (exchange rate of 4.4 MYR to US$1 on 24 November 2016)
        
       | pjc50 wrote:
       | A common phrase in finance for doing some low-profitability
       | activity that has a big downside risk is "picking up pennies in
       | front of a steamroller".
        
         | anyfactor wrote:
         | Crypto mining really isn't for any country that doesn't have
         | energy surplus and favorable political situation (exception
         | being China of course).
        
         | neatze wrote:
         | If my memory does not fails me, this is quote from a book;
         | 
         | When Genius Failed: The Rise and Fall of Long-Term Capital
         | Management
        
           | kgwgk wrote:
           | The saying predates that book and LTCM:
           | 
           | As one CRT trader said: "It's like picking up dimes in front
           | of a bulldozer. You can make a lot of money, but you have to
           | keep your eyes on the bulldozer."
           | 
           | https://books.google.ch/books?id=OV07tT2nsLoC&pg=PA140&lpg=P.
           | ..
        
           | pjc50 wrote:
           | Now there's a name from history. Their business model,
           | selling lots and lots of out-of-the money options and collar
           | trades, is one that people seem keen to replicate in crypto
           | space. Profitable when volatility low, goes bang dramatically
           | when it spikes.
        
             | dmurray wrote:
             | A great trade if you can get enough leverage that someone
             | else is on the hook for much of the downside risk, as LTCM
             | managed.
             | 
             | Also, their famous trade was not actually selling
             | volatility through writing options, but sla convergence
             | trade in government bonds (short the most liquid one, which
             | trades at a premium, get long a very similar bond which has
             | the same cashflows but does not benefit from being blessed
             | with the "most liquid" status). The crypto equivalent here
             | is probably being long stablecoins, though even the best
             | stablecoins have orders of magnitude less backing than
             | Treasuries.
        
       | Eric_WVGG wrote:
       | hey super cool my dudes, I'm sure your department or community
       | couldn't use a cool million from some university who wanted to
       | research folding proteins, or any of a number of startups who had
       | some machine learning needs... just the coolest, vroom vroom
       | crunch
        
         | version_five wrote:
         | I has a similar initial reaction but my guess is it's not
         | really feasible to repurpose these. I think (my knowledge is
         | out of date) that dedicated miners are basically just asics
         | designed to compute hashes really fast (presumably optimized
         | for bitcoin blocks and cycling through a nonce). Unless another
         | useful application is really close to that, you probably can't
         | use them for it.
        
           | dmos62 wrote:
           | I'd wager that the idea was to have a PR stunt. Common good,
           | etc., not really a priority here.
        
         | jazzyjackson wrote:
         | The AS in ASIC is "application specific" - unless you're
         | researching how many kilowatt hours it takes to find a hash
         | with 17 leading zeros, the machines serve little purpose.
        
         | ars wrote:
         | Bitcoin miners can't be used for anything else except cracking
         | hashes.
         | 
         | You could maybe save the power supply.
        
         | dna_polymerase wrote:
         | Looks like ASICs. These are worthless for anything besides
         | mining BTC. Another counterpoint to Bitcoin. Ethereum has
         | protections in place (had, Eth 2.0 changes everything again) to
         | prevent ASICs.
        
           | enlyth wrote:
           | Protections in place which created a global shortage in GPU
           | availability for machine learning and gaming, sounds like
           | they didn't work great
        
           | freeone3000 wrote:
           | The countermeasures are "uses more RAM than is convenient".
           | The ASIC counter-countermeasure was to add more RAM. The
           | countermeasure was effective for 18 months.
        
             | boring_twenties wrote:
             | Monero has more extensive ASIC-countermeasures in place:
             | https://github.com/tevador/RandomX
        
               | noxer wrote:
               | And FBA consensus "coins" don't need countermeasures
               | because they dont need any kind of proof of waste lottery
               | to make progress.
        
             | gfodor wrote:
             | So they steamrolled a bunch of cases, power supplies, and
             | RAM? Kind of ironic.
        
               | freeone3000 wrote:
               | Not PC cases and not PC power supplies, and probably not
               | PC RAM. ASIC-based miners are built like embedded
               | systems. None of these parts could be reused for general
               | purpose computation.
        
       | ars wrote:
       | Direct link: https://www.youtube.com/watch?v=c_tcg9kOfkg
        
       | Havoc wrote:
       | Why not take them apart for recycling? Once they're mush that's
       | harder
        
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       (page generated 2021-07-18 23:01 UTC)