A Bitcoin mining farm is a computer data center that focuses exclusively to mine Bitcoins. The farm is a huge repository where there are several modern and the newest hardware equipment is at work around the clock with the hope and goal to strike a big booty in the form of bitcoins. Bitcoin had a spectacular upswing in 2017 and it peaked at about $19,300 USD.
Cryptocurrency mining started exactly 10 years back with bitcoin mining. It was more out of curiosity and as a hobby that people took to mining at that time. It was done from the convenience of their homes and in a leisurely manner using their personal computers. Now it is an industry, the most-talked-about business and everyone wants to get involved in some way or the other. The situation changed soon. From CPU to GPU to ASIC and now bitcoin mining farms. Now miners must invest very high figures to get hold of professional equipment that does only one job- mine bitcoins.
How Does Bitcoin Work:
Bitcoins, unlike the fiat currencies, are generated by mining using a computer. Fiat currencies are printed by the Governments. The paper money is used to buy goods and services. Bitcoin does not have a central authority regulating it. You cannot print bitcoins. You want them, you have to buy them or mine. Mining is a process where you must solve some mathematical puzzles that are assigned to you. When you solve them, you are given a few bitcoins as a reward/ compensation for your effort.
To ensure there is no cheating or double spending, the transaction requires the approval of the bitcoin miner who started the process. The miner then chooses a block and inserts it into another block in a method termed as hash. It basically is an encryption and is a jumble of letters and numbers. However, it is not as simple as it sounds. About 5 to 15 new blocks are verified and created every 10 minutes. The time will not be consistent. It could vary each time and can complete within seconds or drag on to several hours.
What is Required to Run a Farm:
As one of the Bitcoin mining farm co-founders explained it is similar to an agricultural farm in its features. While the latter requires huge land, minerals, and irrigation, the mining farms need continuous power, top-level cooling systems, and other safety devices and professionals to manage and monitor the equipment. It is believed the workers actually spend their entire day in the bitcoin mining farm under severe-climatic conditions. The computers can generate a lot of heat and create sound that can be quite irritating to the ear.
China Dominates the Market:
Bitcoin mining is under control to a large extent by China. The China based mining pools control over 70% of the bitcoin network’s total hash rate. In addition to being home to some of the largest manufacturers of mining hardware, China also plays host to many of the largest bitcoin mining farms. This primarily is due to the low electricity costs there.
However, the situation has changed now. The government has put pressure not to transact offering 0% trading fee. Even the hardware manufacturers and cryptocurrency developers are resisting the China dominance.
As mentioned, the electricity costs are low. This helps when you determine the profitability of mining. The miners made in China peak efficiently and can easily outlast the other devices made elsewhere. Coal is abundantly available and it is the cheapest way to get electricity.
The Best Setup in India:
The bitcoin mining company in India helps people from any region of the world to accrue digital assets and take part in the blockchain technology. The idea is simple and easy to follow. If you are a miner, you must buy the best mining equipment to mine bitcoins. They provide calculators for you to get an estimate on how much you could earn with the equipment.
In case you lack the technical skills to manage your hardware or do not wish to buy the hardware, you can buy the cloud mining services. You buy hashing power and pay a subscription as well as part of your rewards to the service providers.