BTC Pool Party is a new Bitcoin mining pool that has gone into operation in the last few months. With so many mining pools and centralization driving several to close, a new pool is almost unheard of.
When CCN.com contacted BTC Pool Party, an interesting person in the Bitcoin mining hardware business turned out to be a very big part of it. Juan Garavaglia, the CEO of 112bit.com, is the VP in charge at BTC Pool Party. He is the lead Bitmain authorized distributor for the US and Canada and sells to Bitcoin miners of all sizes with some very large clients. Juan sat down with CCN.com for an interview on BTC Pool Party about what it means and where it is going. What we found was interesting, and a new level in mining pool management and transparency.
Could you tell CCN.com how you became part of the BTC Pool Party organization?
Over the past year we met several times just to share ideas and our vision of the Bitcoin Mining Business and a nice surprise for all of us is we agree in most of the vision and we agree on the solutions that the market require to move into a more transparent and reliable business environment, basically a more mature industry, after some time it became obvious we need to join forces I am CEO of 112 BIT.com but I believe its required to join forces in order to work for a better Bitcoin mining industry. A couple months ago board members of Microelectronics Technology Co (OTC:MELY) parent company of BTC Pool Party (www.btcpoolparty.com) expressed their intention to include me as their VP of Business Development, we exchanged our ideas and plans and it was obvious that this is the best decision.
BTC Pool Party was a current client of 112bit which turned out to be the catalyst allowing for the business plan to form and ideas to be exchanged. The parent company Microelectronics Technology being a US based publically traded company helped with the drive of a fully transparent Bitcoin mining pool. They wanted to make is all SEC compliant and easy to understand and use. Currently, the pool is up and running with the charts and stats being updated with more info this is after an intensive node test period in which this author is one of the testers of the pool.
How has the process been to get things done having a publicly traded company in the US? Were there regulatory Hurdles?
I do not think a regulation is bad itself, a regulation may promote an industry, may protect customers, may protect jobs and many other good things, I believe part of the transparency process is to be a public traded company, for us transparency and good business practices are not just a statement are a reality and we also include audited results of our pool operation. The level of the regulations that will be part of the Bitcoin business in USA is not clear yet but I don’t have any reason to think will affect badly the business, I know lot of people in this industry thinks the opposite but the reality is many people announce government intervention will kill the US Bitcoin environment but the fact is that don’t happen and I see outside China the most active investors are in USA and bring fresh money to develop this new industry.
Have you had any issues being able to setup and run the company and being able to say SEC compliant?
There were no issues being compliant and the proper permits and documents are all in place.
What is going to be your role as VP?
I will work to get the most efficient and large scale Bitcoin mining operation going in USA, and to manage all the relationships with large miners and suppliers to make that happen sooner than later.
Juan has stated and this has been verified by CCN.com that the first shipment of Spondoolies-Tech SP 20s is being installed at a staggering 1 peta hash to start out followed quickly by a 2nd peta hash of miners shortly thereafter. That is a 2 peta hash purchase from Spondoolies-Tech a large amount of money. This is in addition to the 600 th/s of Bitmain miners that will be moved to BTC Pool Party in the coming weeks by Microelectronics Technology. These moves will also be followed by several other large mining companies bringing their hash rate as well. CCN.com will have an interview with Shone Anstey the head of BTC Pool Party tech team and comments from Guy Corem of Spondoolies-Tech in the coming couple weeks as well with more info. CCN.com’s own Scott Fargo will be going on site at BTC Pool Party after the holidays to perform an open audit and provide the results to the community. We will be doing this with several other mining pools and cloud hashing companies in the new year as well. Stay tuned for them.
What are some of the challenges you have had in getting these relationships and deals for hardware in Place?
In a so dynamic business environment is crucial to be well informed and to have a clear idea of the future of the industry, many Bitcoin companies were born and died in the last 18 months.
It is crucial to choose the best partners at any time and also to have an internal team of development stacked with motivated people with a deep knowledge of cryptocurrencies. Even very smart people require some time in order to understand how it all works and the implications of every factor. To do that requires bright people and time, two things you can’t buy with money, and we have it. I have been able to quickly act and get those relationships in place and the miners on the way.
How will the transparent audit work and where will the results of that audit be published?
It is a key part of our business model and we require third party auditors to review all the mining process and their results. We will do so and quarterly we will make the auditor report public in our website.
We are doing this all because it is not enough to say we are transparent, we are building trust in this industry and require ourselves to be as open as possible.
What I know there are several costs to run a mining pool, you need to develop the platform, you need a rock solid network of nodes, you need to hire qualified people and qualified auditors, and all that costs money that is a fact, some miners still believe a pool may work with no fee or other way to generate revenues and that is simply not possible, I do not see yet any pool that seriously invests any money in order to be transparent, most of them are not even incorporated no directors, no phone, no address nothing, large investors require reliable pools that will guarantee the transparency of all the process. Others may share our vision but we are several steps ahead because we have been working with a team of developers for several months under the radar, designing a completely new solution that meets the requirements of small and large miners, with a network of nodes globally and a system that does not have a single point of failure all is redundant and developed in layers what let us be sure we will not have security breaches and we have the most advanced and efficient pool infraestructure, and because we trust in what we say we are adding a 1 PH+ of power in few days of our internal mining capacity and will expand it aggressively during the 2015.
We are going to be the largest mining operation will be in USA and we are the company that will create and operate them. It’s said the first minutes of a marathon some people are confused and think it is a 100 meter race, but we are building a strong infrastructure with our own technology with our own team takes time but is a significant advantage that will be more clear for the industry in the following months.
Even at the risk many people will think I am wrong I am sure 2015 will be a year with more news and changes than 2014, in 2016 the Bitcoin of 2014 will look like the stone age.
What I need to be clear is we are the only audited pool, a real company, real people and under US jurisdiction, and we are building the biggest and efficient mining operation in USA. We will have 5 -7 Peta Hash in a short amount of time with 70+ MW of mining online by the end of Q4 in 2015. What we are building will allow us to manage 1000’s of miners and be transparent for the investors and more importantly the industry.
BTC Pool Party has set some aggressive goals and has been progressing quickly. The node tests were very intensive and in our tests on the network were positive with quick changes to the nodes that allowed the widest amount of miners to work seamlessly and report properly. BTC Pool Party found their first block on Nov 3rd during these tests. They are moving their own Bitcoin miners to the pool as well to be able to make it competitive and be able to use the transparent nature of the pool and audits for the proper record keeping.
CCN.com will bring you more info on BTC Pool Party as the hash rate is brought over. We will also speak with several miners both large and small and find out their experience with the Bitcoin mining pool as they move their miners over as well.
Stay tuned for your mining news on CCN.com.
How do you feel about a transparent Bitcoin mining pool that will also have a 3rd party audit them quarterly and publish the results? Tell us below.
Disclosure: The author has participated in the testing of BTC Pool Party and has reviewed miners provided by 112bit.com previously.
Images from BTC Pool Party.