28 July 2021
Bitcoin is getting a lot of traction these days. Thanks to the bullish Bitcoin price rally that constantly attracts more and more investors to dive into the Crypto space. As the institutional flow is continuously increasing, Bitcoin mining is also becoming an integral part of the Crypto industry. In fact, all around the world, huge Bitcoin farms are being established with a sole focus on mining Bitcoin.
What is Bitcoin Mining?
Bitcoin mining is considered the backbone of the Bitcoin network. It is a process conducted by the miners using specialized computers required to solve complex math puzzles for verifying the transactions on the network. By doing so, miners secure the network and discover new BTC. When a new transaction is added to the network, miners get a block reward.
Unfortunately for solo miners, it is tough to mine profitably, on their own, due to the following two reasons. The first reason is Bitcoin halving- an event programmed to occur when 210,000 BTC are mined. It automatically splits the block reward in half, meaning that the main prize gets smaller. The second reason is that the process becomes complicated as the collective computing power in the blockchain network increases.
So, to succeed, a large investment in high-quality computer equipment is essential. Many mining farms are developed in response to this situation.
Also read: What is Bitcoin mining?
What is a Bitcoin mining farm?
A Bitcoin mining farm is a large space, like a warehouse housing several computers dedicated to mining one or more Cryptocurrencies. These computers consume large amounts of energy, and thus air conditioning is needed to prevent them from overheating.
Different types of Machines stored in Mining farms
The two most common types of machines hosted in a farm are GPUs and ASICs. GPUs (graphics processing units) are specialized electronic circuits that are mostly used in computers and video games systems. They can be also used for mining Cryptocurrencies. ASICs (application-specific integrated circuits) are integrated circuits designed for a particular use. Typically ASICs are much more powerful at mining Cryptocurrencies than GPU’s given their focused functionality.
Here are the 5 Largest Bitcoin Mining farms in the world
Founded by Valety Vavilov in 2011, Bitfury is the oldest Cryptocurrency farm located in Amsterdam. Currently, BitFury mines about 15% of all Bitcoins. The company utilizes its naturally cold climate for reducing operating costs and keeping the mining rigs cool. Bitfury makes its mining hardware and runs its own pool.
To date, the government of Georgia has done everything in their power to help Bitfury expand its operations. This has been reciprocated by the company, which recently began a property ownership blockchain for the Georgian government.
Founded by Jihan Wu and Micree Zhan in 2013, Antpool is one of the largest private Bitcoin-mining firm in the world. Wu was the first person to convert Satoshi Nakamoto's Bitcoin white paper into Chinese. The firm also produces Application Specific Integrated Circuits (ASICs). Antpool earned $ 4 billion in 2017, despite the market slump and is considered as one of the wealthiest Bitcoin mining firms of the entire globe.
3. Dalian Mining Farm
Dalian Mining Farm is one of the largest Bitcoin mining centres in China. The farm has a massive hash rate of 360000 TH, making 3% of the entire Bitcoin network. This offers the ability to mine approx—750 Bitcoins per month.
Mining in China has become very popular due to ASIC, making the equipment cheaper and very convenient for delivery. China is very attracted to mining because it has reasonable electricity prices. The government also supports mining activities by reducing electricity charges for energy-hungry farms. Because of these factors, Dalian has become a popular mining hub industry in China, hosting a three-story rig with specially made equipment to optimize processing.
4. Genesis Mining
Established in 2013, Genesis Mining farm is the first mining facility exclusively developed to mine Ethereum. Today, it also mines other coins like Zcash, Dash, and Monero. The giant mining facility is solely powered by geothermal energy. It has a hash rate of 1000 GH and is the largest cloud mining company worldwide.
Apart from this, the company also focuses on the lease of computing power, meaning that Genesis allows users to purchase computing power lease contracts, enabling them to mine altcoins in the cloud. This gives everyone an affordable start in mining Cryptocurrencies. The company was originally located in China and Bosnia but has now moved to Iceland and Canada.
GigaWatt was launched in 2012 by Dave Carlson and is located in Washington. Dave is a Microsoft software engineer who first got into mining in 2010 after Satoshi published his Bitcoin Whitepaper. Owing to Carlson's consistent work, the company has grown substantially over the years and is now America's largest Bitcoin mining farm.
It has a hashrate of 30 MW and incorporates just over 1,700 GPUs. This facility can remain competitive in the Chinese dominated market due to the use of Hydropower that is readily available in Washington State. GigaWatt has also started selling its mining equipment.
Also Read: Top 3 Largest Bitcoin Mining Countries
Mining Crypto is an interesting concept. If you want to be involved in this process, the first step is to identify the Crypto you want to mine. Apart from this, you will also need the right software, ASIC mining hardware, and a great deal on electricity/power prices to win a big from Bitcoin Mining.
Disclaimer: The author’s views and opinions are for informational purposes only and do not constitute financial, investment, or other advice.