Mining: 5 interesting facts

Written by Anna Komashko
Written by
Investing reporter
ECOS community manager...
2   min.

Over the past 11 years, cryptocurrencies have managed to become a part of our everyday life, millions of people are keeping an eye on its rates and news. During this time, mining managed to turn into a separate industry, where billions of dollars revolve and with which many interesting facts are associated.

Miner — Hegemon

Over the past few years, China has held a leading position in the field of cryptocurrency mining. In total, mining farms located there provide up to 70 percent of the bitcoin network hashrate, which is a source of great concern to representatives of the crypto community due to the real threat of ending the era of decentralization of the №1 cryptocurrency.

Bitcoin requires a lot of energy

Cryptocurrency mining based on the Proof of Work algorithm generates a lot of energy consumption necessary to calculate each new block in the blockchain of each coin. Moreover, the volume of calculations necessary to continue mining increases with the increasing number of issued tokens. To date, the cost of electricity spent on Bitcoin mining amounts to several billion dollars. To make it clear what kind of load is involved, it is enough to say that bitcoin mining requires more energy than such countries as Serbia, Slovakia or Hungary consume annually.

The evolution of computational complexity

At the early days of cryptocurrency it was possible to successfully mine new coins even on home computers, but the power of central processors for these purposes was already insufficien by 2011. Therefore, for the next two years, mining was inextricably linked with gaming graphics cards — the ceiling of its computing capabilities was achieved by the end of 2013. The mass production of special equipment to mine, called asics, which began in 2014 continues to this day.

Mining nationwide

No matter how hard the Venezuelan government tries to withstand the crisis, it has few reasons to be proud of. Hyperinflation has depreciated the national currency to the cost of the paper on which it is printed, the unemployment rate is breaking all records. Under such conditions, people who live in this country came up with their answer to general economic instability. Today, every fifth resident of Venezuela is related to cryptocurrency mining, and this is not surprising. No matter how volatile the Bitcoin or Ethereum exchange rate is, these coins are still several times more stable than Bolivar.

A project is just as important as a place

Industrial mining-center ECOS is located in the free economic zone in Armenia, near the Hrazdan power plant. The siting is based on accurate calculations, which were fully justified afterwards.

Mining equipment is located in a specialized container equipped according to all modern standards, under stringent precautions. The use of modern cooling equipment can also reduce the cost of maintaining the optimal brick temperature conditions at the facility. Due to this, residents of the ECOS project are provided with very attractive conditions for connecting the equipment to electricity. In addition, ECOS containers are very mobile. This means that they can be supplied on order, if one of the company’s customers will want to build his own farm.

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