The Revolution Will Not Be Centralized: OMB x Bitaxe

The revolution is not an apple that falls when it is ripe. You have to make it fall. - Che

Bitcoin mining has been captured.

The introduction of ASIC chips, while enhancing the security of the Bitcoin network, has also established substantial barriers to entry, effectively excluding average home miners and centralizing hashrate. The result is an unsettling centralization at the core of Bitcoin's foundation that only strengthens with each halving: block production. What began as a decentralized network, secured by cypherpunks with CPU solo mining, has evolved into an industry dominated by massive, publicly traded entities and a handful of mining pools. ZK is in possession of the uno-reverse card it is about to be pulled - The era of home miners rising up has begun, disrupting the centralized dominance and reigniting the decentralized vision of Bitcoin - and it’s all thanks to one tiny opensource project. This isn't just a research or a analysis piece—I'm already tipping the scale with my own hand and fully intend to slam down on it when the moment is right. But first, let's explore the context.. (see below)

The C word - Centralization

There are many layers to the centralization on Bitcoin that goes beyond just mining—it’s about control over the entire Bitcoin eco supply-chain. Hardware, software, manufacturing—all of these elements are increasingly concentrated in the hands of a few large players and rarely mentioned. This centralization poses significant risks to the integrity and security of the Bitcoin network long term. The high barriers to entry for retail miners exacerbate this centralization moat, creating a survival-of-the-fittest scenario where the largest mining pools continue to grow stronger, attracting more miners and further entrenching their dominance (more on pools below). To stay viable, most miners (especially small-medium size) end up joining these pools, creating a vicious cycle that increasingly centralizes control and makes Bitcoin more vulnerable. It’s not all doom and gloom though….

Bitaxe Enters The Chat

There is a potential solution to most of the centralization issues resulting from the above trends —Bitaxe. This open-source project offers a pathway back to the decentralized ethos that Bitcoin was founded upon. Bitaxe is a fully open-source ASIC Bitcoin miner. Skot and all of the other GitHub contributors have made everything needed to build one publicly available—from design and hardware to software and manufacturing instructions (github link at end). Important to note, Bitaxe the opensource project does not manufacture or sell these units, they simply put the recipe on how to build one out there. The Bitaxe is designed to operate on standard household electricity, current models use just a single ASIC chip with energy consumption comparable to a computer charger.

Assembling a Bitaxe from scratch requires a blend of electrical engineering skills, specialized tools, and a determined mindset. It’s not for the faint of heart, but for those who rise to the challenge, it represents the ultimate act of decentralization. It’s a DIY project that every true Bitcoiner should have on their bucket list to achieve true self sovereignty enlightenment. If you dont have the time to build one from scratch - a few operations have started selling Bitaxes but most have very few if any in stock, delayed shipping, and component quality greatly varies between each seller… (stay tuned below - zk got u)

Sounds too good to be true - A home asic bitcoin miner that you could build or buy for less than ~$200 USD/0.003 Bitcoin ? Below I explore the other side of the equation, why you should expect no profit, and explain why Bitaxes are the spark that ignites a new era of bitcoin mining and decentralization. This is just the tip of the Iceberg.

The Odds: Dark side of The Equation
Mining with Bitaxe Supra vs. State Lotteries

Before divulging more information on specific plans - in order to understand Bitaxe’s potential, a quick comparison of the probabilities involving mining a block with a bitaxe vs winning state lotteries provide a decent comparison. A Bitaxe Supra, which operates at ~750 GH, offers a 1 in 862,240,000 chance of mining a block—approximately 0.00000000116%. This translates to about a 1 in 6 million chance of mining a block per day (1 block every 10 mins assumption), based on current network difficulty. To put this in perspective, the odds of winning the Powerball jackpot are about 1 in 292 million, and for Mega Millions, about 1 in 302 million. The main advantage on the Bitaxe side is that a block is mined on average every 10 minutes vs state Lotteries drawings that are way less frequent than every 10 minutes…. Statistically, you're more likely to be struck by lightning (1 out of 1,107,143) or attacked by a shark (1 out of 11.5 million) than mine a block with a Bitaxe… but you are more likely to mine a block with a bitaxe than you are to win the powerball.

A key difference, unlike playing the lottery, where participants effectively fund state programs with little chance of a return, running a Bitaxe means contributing to the security and decentralization of the Bitcoin network. Instead of feeding a state’s revenue through lottery ticket sales/taxes—where only around 60% of the ticket sales fund prizes, with the rest funneled into state’s pockets—Bitaxe operators contribute directly to the decentralize the network. Each watt of power consumed by Bitaxe strengthens the network, ensuring its resilience against attacks, diversifying Bitcoins power base, and upholding the decentralized ethos at Bitcoin’s core.

If you have less of an appeal to emotional utilitarian arguments - see below

A institutional miner like the classic Bitmain S19 miner contains 300+ ASIC chips while the current Bitaxe Supra designs uses only 1. So why would anyone even consider a Bitaxe when the odds of mining a block are stacked so brutally against you? ? Check out block 853742 on-chain—it was mined by a Bitaxe. The miner walked away with 3.192 BTC (block reward plus 0.067 BTC in fees). This isn't just a statistical anomaly; it's proof that even in the harshest odds, the Bitaxe can break through. However, It’s critical to look at the bigger picture from a network perspective to understand the other reasons. Remember Bitcoins value is in many ways a reflection of how strong the Bitcoin network is….

Strength in Numbers: Network Greater Than Self

While one Bitaxe is effectively inconsequential to all participants, the real power lies in numbers. Imagine a world where one million Bitaxe Supra devices are operational. The odds of mining a block would shift dramatically—1 in 862 per block or ~1 in 6 of mining a block per day. The math starts to enter the banana or disruption zone as hashrate on these devices increases - 1m Bitaxe Hexs (6 chips per Bitaxe) in operation would equate to a 50% chance of mining a block per day or expected to mine 1 block every 36 hours. 1m Bitaxe Hexs would revolutionize the landscape, making solo mining not just feasible but a viable method to combat the centralization currently choking the industry when viewed as a whole. An inflection point exist, once a critical hashrate from Bitaxes and home miners is operational the old guard of Bitcoin mining is disrupted and the large mining centralization points are uno-reverse carded, a collective open source effort of plebs will reshape the future of mining. Hypothetically, the more lottery and home miners that are out there - the more likely we reach a point where it could flip-flop or reset the current dynamics, encouraging large miners to solo mine based on economic incentive alone.

Lottery Mining vs. Pool Mining
Imperative to understand

The contrast between solo “lottery” mining and pool mining is stark. Today, the majority of Bitcoin’s hashrate is concentrated in fewer than half a dozen pools, with many sharing the same payout address on chain - showing additional points of centralization on-chain (proxy pools?). The tradeoff being solo miners receive the full block reward (3.125 Bitcoin + fees or ~$200k todays value) while miners pointing to a pool receive a daily/weekly payment representing the % share of their hashrate represented in the pool minus pool fees .

Over the past decade, pools have dominated block production, making it increasingly difficult for smaller operations to stay competitive. Pools have also played a important role in Bitcoin’s growth, offering predictable cash flows that have enabled miners to secure capital and hedge. For demonstration purposes, a Bitaxe Supra pointed at a pool may yield about 50 sats a day via lightning payouts, “worthless” in todays Bitcoin in most geographies but could add up exponentially over a long time horizon as Bitcoin increases. Although Bitaxes are running at a similar efficiency using modern ASIC chip(s), the low initial cost barrier to entry and cheap run rate comes with a high price per hash rate equating to a horrible return on investment/payoff period vs todays typical “big box” miners. It may take decades to make your initial investment (tuition) back with a bitaxe using a pool - hence why this is for demonstration, Bitaxes are designed to be used as a lottery miner and the odds are strongly against you ever hitting a block…. hence the section on lotto odds.

hold up ! zk really wrote a substack over a ~750 Gh miner wtf ?

The Bitaxe Evolution Revolution

Bitaxe represents just the beginning of this potential revolution. The project has already seen several iterations, with one of the next designs in development aiming to incorporate six chips instead of one, maintaining the same efficiency while increasing hashing power to ~3-4Th. Bitaxe is no longer a mere concept; the genie is out of the bottle and one has mined a block successfully. As Bitaxe and home mining evolves, I predict it will prompt a shift in the worlds consciousness on energy sparking a renaissance.

Introducing the irrational actor to Bitcoin Mining - Decentralizing Hashrate

Large Bitcoin mining operations usually have certain restrictions placed on them during certain periods of high grid demand or are economically incentivized to sometimes stop mining bitcoin and to sell power back to the grid/utility. Although good business, this has the potential to pose a risk to Bitcoin as a widespread event could cause a majority of hashrate to stop temporarily - leaving the network in a weakened state/ cheaper to attack. A critical mass of Bitaxe and home based hash rate mitigates this in theory. Bitaxe is on the other-side of the barbell on the cost curve of mining in terms of running/maintenance cost. Bitaxes electricity use is negligible (~$5-$15 a month) and once a Bitaxe is plugged in, it’s most likely not shutting off due to grid demand or curtailment. In simpler words - Bitcoin needs irrational actors to de-risk all of the rational ones from a game theory profit prospective. This risk grows further when you consider publicly traded companies are legally obligated to do whats in the best interest of their shareholders (not Bitcoin) 100% of the time. Bitaxes and all home miners help diversify away from the pure economic for profit side of Bitcoin adding a new dimension of decentralization to the motherchain. DIY mining and home mining also presents great educational opportunities and helps expand Bitcoin’s attractiveness outside of the “sound money” camp.

Memes made by 4

Energy Arbitrage: The Game-Changer

Bitcoin mining, and the energy sector at large, are on the brink of a major shift as hinted above. Energy has been mispriced for too long, Bitaxe and home miners are set to challenge this imbalance. A tiny open-source lottery miner that can be purchased for ~$200 might seem insignificant, but it will open peoples eyes to the arbitrage opportunity that could disrupt the current energy grid and billing systems. As with any market, true arbitrage opportunities are typically closed quickly once discovered, but this one may prove more resilient. The existing grid and billing systems will be forced to adapt or risk being “exploited”.

Until the costs of these changes outweigh the benefits, there’s still time to get in early. By the time the traditional energy systems catch up, renewable energy sources like solar power will have become more widespread for retail mining , potentially leaving out the outdated grid entirely. A Bitaxe is not the most efficient tool to capitalize on this arbitrage, but it’s setting the stage for a new era of how energy is used in the home. This isn’t just theoretical—it’s happening now.

Here are some purely hypothetical examples to open your mind. Keep in mind that I think a Moores law like effect applies to Bitcoin mining, even more so with AI aiding in R+D. As additional hashrate comes in smaller and cheaper versions, the arbitrage strengthens. This is just the start…

Airbn’Bitcoin

Airbnb is broken, and it’s not just the lodging industry that's ripe for disruption. Airbnb thinks you pay for short term housing rentals, and thats true for most of its customers. The ones that view Airbnb as renting short term electricity arrangements may view Airbnb as a power provider, with this view many arbitrage opportunities potentially arise. Imagine renting a room and using that as a base to run a miner, extracting Bitcoin while also enjoying your Airbnb. Power isn't directly billed to the end consumer, and with the right setup, you could be mining Bitcoin essentially for free. If your already renting a Airbnb - why not take full advantage of what your paying for ? As Bitcoin’s value skyrockets and mining equipment becomes more efficient, this type of arbitrage will become glaringly obvious. Airbnb and similar companies will have no choice but to adapt their policies, likely introducing additional fees or charging for electricity.

College Mining Rooms

Imagine a world where college dorm rooms become the epicenter of a Bitcoin revolution. If you’re a student living in campus housing, chances are you’re not paying directly for electricity. So why not use that to your advantage? By setting up a Bitaxe in your dorm room, you turn your room and board cost into a potential mining operation. Your electricity is included in your housing fee, effectively allowing you to mine Bitcoin at no extra cost. This is more than a financial hack; it’s a pathway to creating circular Bitcoin economies on campus. Students can potentially amass KYC-free sats while helping to spread Bitcoin adoption among their peers. With minimal incremental cost and a fixed utility fee, the risk-reward ratio for mining in this setup is extraordinarily compelling. As Bitcoin’s value rises and mining tech evolves, students with access to free or included electricity are sitting on a goldmine—one that could potentially fund their education and ignite Bitcoin circular economies .

Office Mines: The Corporate Coup

Now, picture this: you're still in the matrix working the daily grind in a 9-to-5 job, and like most office/employee relationships - you don't pay for office power. You strategically place a Bitaxe under your desk and let it rip. With every 10-minute interval, you have the nano chance to mine a block while your office picks up the tab for the electricity. Imagine mining a block and netting more Bitcoin in one day than your entire year’s salary—without spending a dime of your own money outside of initial Bitaxe cost. This setup is a long-term, low-cost strategy that capitalizes on unclaimed or unnoticed office utilities. Why wouldn’t you exploit this opportunity when the startup costs are negligible and the potential rewards are astronomical?

The Final Frontier: Power Distribution Law
digging in a Bit more

Future arbitrage potential comes from two sources: Bitcoin block subsidies/fees, and the heated air produced by mining. While Bitcoin itself is obviously valuable, currently worth around $60k USD, the heated air side of things is a bit more challenging to monetize. Hot air is much more difficult to transport compared to Bitcoin, hence a 24/7 liquid spot market does not exist. Important to emphasize that hot air and potentially some noise are the only outputs when Bitcoin mining. When you consider the billions being spent on heating/hot air every year you will start to understand Bitcoins mining true potential. Bitcoin mining operations that harvest heat already exist in many creative ways across a diverse industry set, from Russian bath houses in NYC to drying wheat in China. The concept has been proven and as product improves, disruption is guaranteed. Industrial Bitcoin heating operations will become increasingly more popular and this trend will start making its way to the normal household market quickly. A bitaxe is not designed to give off much heat but home miners with heating as its main function are growing in popularity and set to take off over this cycle.

Ok so Bitcoin is valuable, hot air is valuable but where is the arbitrage ? Almost there mortal - as mentioned above energy is severely mis-priced, often times it’s even given to you for effectively free. How many college kids got an electricity bill for their dorm room each month ? How many employees pay for electricity in their office each month ? How many people ever paid electricity for an Airbnb ? At a public library (or any public building) ? Free energy exist in many ways (future substack on that one…) but often many times energy is simply given away for free based on status quo commercial and residential practices. Bitaxe allows you to capture this energy for the lowest barrier to entry, however the odds are against you…

The more Bitaxe and home mining units in circulation, the harder it will be for traditional power companies, employers, college campuses, Airbnb etc and retail services to ignore the disruption. The number of ASIC chips a Bitaxe can run will grow, proving consumer demand for more specialized retail mining rigs. Eventually, solo miners using renewable energy could become the majority in Bitcoin mining, breaking free from the centralized model with utility company chokepoints that currently prevails.

This is the frontier where we must stake our claim. Decentralization isn’t just an idea—it’s a necessity. Bitaxe and home mining is more than just a gamble; it’s a weapon in the fight for a decentralized future to protect Bitcoin. The revolution is already underway, and this is just the beginning. Bitaxes are just the start…

The Final State - Renewables

The real arbitrage lies within renewable energy. Mining Bitcoin via renewable energy also has superior decentralization properties when compared to using traditional power sources / utility companies. Solar is the final frontier for house hold renewables and mining. The majority of bitcoin blocks being produced from solo mining bitcoin off a sufficient supply of renewable energy via open source hardware distributed across non purely economic/retail actors globally represents maximum decentralization.

Opensource x Ordinals

Ordinals which itself is an open source project and other open-source projects like Bitaxe are the perfect match, igniting a revolution rooted in transparency, online collaboration, and unstoppable collective power. As Bitcoiners involved in Ordinals protocol converges with projects like Bitaxe, we will witness the rise of a decentralized force, fueled by contributions from a geographically dispersed community united by a shared vision for Bitcoin's future. Holder verification on-chain via Discord and other chat applications, ensures instant and trusted information dissemination and collaboration further strengthening the movement. Unlike most big for-profit miners, Ordinal participants are in it for the long game, with a vision for Bitcoin that transcends short-term gains, focusing instead on its enduring legacy and decentralized power.

Bitaxe, much like ghost guns (3d printed guns) in terms of the 2nd amendment, represents a disruptive force that challenges traditional regulatory frameworks by its very nature. Both are decentralized, open-source creations that empower individuals to take control with easy to purchase items, operating beyond the reach of centralized authorities. Just as ghost guns bypass conventional manufacturing, sales and license controls - Bitaxe puts Bitcoin mining into the hands of a global community, defying attempts at regulation or monopolization while extinguishing chokepoints. With a tiny barrier to entry, KYC-free sats, no tracking, and operating entirely beyond government regulation attempts blending in with household electricity, Bitaxe is poised to shift the home mining market fundamentally. As demand grows and the market is proven for Bitaxes, the lowest cost barrier to entry home miner, home mining applications with more hashrate will see “hockey stick” growth in a similar fashion.

Declaration of War - Call To Action

Talk is cheap, talk in crypto group chats is even cheaper. Over the past few months, ZK has been silently scaling up manufacturing efforts of various Bitaxe devices, home miners, and “related products”. While its still the early innings, I believe we have the largest manufacturing capability, and hold the largest inventory by far of these devices. As discussed above, R+D along with contributing back to the open source community is critical as products evolve to progress home mining operations and the Bitcoin network. ZK is committed to quality mass production of these units and to large R+D investments as it is critical to achieve economies of scale lowering unit price to maximize hashrate deployed.

What the fuck does this have to do with OMB ?
As the Ordinal and Runes protocol is now officially out of beta - OMB Bounties are now out of test net. Future incentives involving home miners that build upon what was learned from OMBounties will be rolled out when the time is right. OMB holders will serve a extremely valuable role in this process as they will actively participate in R+D, product design + testing, and will serve as a decentralized force to maximize hashrate deployed once the incentive system is rolled out. I will also be only hiring exclusively OMB collectors to assist on this mission (many different types of roles from customer service to PCB board technicians). To reiterate, Bitaxe is just the start as this represents the lowest entry cost to a fully open source home mining device. More powerful units and applications utilizing heat will be next wave, along with “related products”. For now, all products are exclusively for OMB collectors via raffles for free (check discord - live shortly) while manufacturing is scaled up and R + D advances.

Information regarding the first public drop of OMB Bitaxes and related mining products will be disseminated via this substack and OMB discord.

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Decentralization is not a state that is simply achieved or not achieved; it’s an ongoing war that must remain strong at its weakest points to survive. Open-source resources, encryption, and decentralization will be the tools of the most powerful force ever assembled.

Measure success in two mains ways:

the number of lives you improve and the number of Bitcoiners you inspire along the way

thanks for reading
-zk shark

collect art: https://magiceden.io/ordinals/marketplace/omb
Bitaxe Github: https://github.com/skot/bitaxe