How to build a crypto mining farm?

Written by Anna Komashko
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Investing reporter
ECOS community manager...
6   min.
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How to build a crypto mining farm?
Content

To mine cryptocurrency, you need a crypto mining farm. What is a crypto mining farm? It’s a special computer that quickly solves cryptographic tasks). All cryptocurrencies work through a network of farms connected to the Internet. Farms solve cryptographic problems and thus provide transactions.

Farm owners are rewarded for the fact that their computers are included in the cryptocurrency network and serve it. Some farms can serve one or more currencies, each with its own network.

Basic Tools to Start Mining

  1. The main thing in the farm is computing equipment. This is a special part of the computer, which in ordinary life is responsible for the calculation of three-dimensional graphics and video. A modern graphics card or ASIC is like a separate computer. It has its own memory, special processors, its own cooling, and it also consumes quite a lot of energy.

    Mining income depends on the number, performance and power consumption of graphics cards or ASICs. The faster the card solves cryptographic problems, the faster you earn. The more energy it needs to do this, the more your electricity bills. Along with this, cryptographic tasks are gradually becoming more complex, so faster and more energy-efficient equipment is needed.
  2. Virtual wallet. Payment for mining will come to a virtual wallet. You need to create it on one of the exchanges. You can withdraw money from the wallet to a bank card, a commission is taken for the withdrawal. It can be reduced (you need to conclude an agreement with the exchange).
  3. Mining pool. There are many cryptocurrencies, each with its own technical features, its own exchange rate and its own computer network. Mining of each currency takes place in a separate pool. A pool is a server that distributes cryptographic tasks among miners.
  4. Mining software. For each currency and type of graphics cards, the farm has its own programs. After this sorting, the choice is subjective. There are programs with and without a graphical interface, with settings for one or more currencies.

Important Terms in mining

There are two groups of factors on which profitability in mining depends:

  • The situation in the cryptocurrency market. These are factors that cannot be influenced. It is impossible to influence the number of miners in the world, the difficulty of mining coins and cryptocurrency rates.
  • The performance and settings of your computer. These factors can be influenced. For example, you can add a second graphics card to double the yield.

More and more people mine crypto, and because of this, it becomes more difficult for everyone. In an ideal world, coin prices grow along with the complexity, because this way the profitability is kept at the same level.

Mining Difficulty

The network automatically increases the difficulty of calculations when there are too many miners. Thus, a constant rate of issue of new coins is maintained. The higher the complexity of the calculations, the less efficient your equipment, and hence the lower the profitability.

For example, the complexity in the Bitcoin network is so high that even the most powerful video cards do not bring any tangible income. Therefore, special ASIC miners are used to mine Bitcoin.

Power Consumption

To mine cryptocurrencies, miners have to spend a large amount of electricity necessary for the operation of specialized devices. The calculations required to reveal transaction blocks load video cards, processors, and ASIC equipment; you have to not only connect devices, but also connect cooling systems. Electricity for mining is of great importance.

The amount of energy consumed depends on the hash, the type of connected card and device requests. Crypto miners operating in Russia spend about 10% of their profits to pay for the electricity they use. Reducing consumption is possible by setting a Power Limit or choosing an altcoin that does not require a full load of the device.

Bitcoin’s Value

Earlier we talked about the technical aspects of cryptocurrency mining. These aspects determine how much cryptocurrencies you will get by mining.

But you will want to get real money, which is accepted everywhere. Therefore, you have to exchange cryptocurrency for fiat money. The exchange rate depends on the market capitalization of the cryptocurrency. And capitalization is determined by the prevalence of cryptocurrency, the interest of investors, the degree of its acceptance, and many other factors.

Therefore, the profitability in fiat also depends on the rate of the mined cryptocurrency. For example, a certain coin is worth $150. You have two such coins. You can sell them for $300. If tomorrow the rate doubles, then you will still have 2 coins, but you can sell them for $600 already.

Cryptocurrency rates are unpredictable and constantly changing. The coin may sharply depreciate tomorrow, or it may suddenly become the most expensive cryptocurrency on the market. Keeping savings in cryptocurrency, their value in dollars is constantly changing up and down, depending on the exchange rate.

A Chinese Bitcoin Mining Farm Case Study

China once created a fertile climate for investing in cryptocurrency infrastructure. There were also organized financial platforms, and private conversion services on Chinese domains, and mining. Chinese mining farms are located not only in Sichuan province. A similar giant is also present in Hong Kong. The company is located about 14 km from the administrative center of Hong Kong – in the Kwaichun area (on the territory of the seaport).

Despite the modest occupied space, a fairly large number of high-performance Bitcoin mining ASICs were “crammed” into this room. All thanks to the intensification of the cooling method, which allows you to “compress” the placement of computing units closer to each other (cooling is carried out by the immersion method using a liquid coolant). This method also significantly saves energy consumption.

As for the mainland, the largest Chinese mining farm is owned by HaoBTC. What is attractive about scaling is its similarity. Everything is very much like the Hong Kong version (there is also liquid cooling, which saves kilowatts). The main difference between the continental farm is its capacity: it is bigger – the hash rate was 4.7 PH/s.

Largest Bitcoin Mining Farms in the World

Mining centers already occupy vast areas and mine thousands of cryptocurrencies daily. Where are the largest crypto mining farms in the world located? Meet our top!

Mining farm in Norway

Kryptovault is a Norwegian provider and data center operator, and the largest bitcoin miner in the country. The company’s farm is located near Oslo (the capital of Norway), and its area is approximately 5 thousand square meters. Kryptovault manages 6.5 thousand mining installations, and plans to increase their number to 15 thousand by the fall.

Mining farm in South Spain

Chinese energy company Risen Energy has entered into an agreement with Spanish startup CryptoSolarTech to launch two farms to mine cryptocurrencies using solar energy. As part of this agreement, two mining enterprises will be built near the Spanish city of Malaga, using energy stored by solar panels. They will form a single center. Solar panels installed in the cryptocurrency mining center will generate up to 300 MW of electricity per day

Mining farm in Sweden

Miami-based The Future of Mining (TFOM) has built a massive mining data center near Alvsbyn in northern Sweden. The American company entered into an agreement with the city authorities, according to which TFOM leases a 1,500 sq. m.

Mining farm in Italy

In Italy, at the moment, the conditions for locating mining centers are not the most favorable, so basically there are only home private miners there.

Mining farm in Canada

In British Columbia, Canada, a production-scale mining farm DMG Blockchain Solutions has been launched. This farm covers 27,000 square feet and will use only 60 megawatts at first (there is a possibility to increase this number to 85 megawatts in the future).

Mining farm in Russia

The largest mining farm in Russia is called Bitriver and is located in Bratsk in the Irkutsk region. In total, there are more than 20,000 mining devices in the data center, and Bitriver notes that there is an opportunity to increase their number to 67,000. At the same time, En+ supplies the farm with up to 100 MW per year.

Mining farm in China

A number of Asian media outlets reported on a large mining enterprise discovered in southwestern China, in Sichuan province. It is reported that the approximate number of mining farms at this facility reaches 210,000 and most of them are based on the latest graphics cards.

In which country is mining the most profitable now?

Surprisingly, the most profitable mining is now in Armenia. More specifically, in the Free Economic Zone of Armenia, which was established in 2018. Residence in it exempts companies from taxes, VAT, import and export duties. But you shouldn’t create a company for private mining, right?

ECOS participated in the creation of FEZ and provides cloud mining services. She also has a direct contract for the supply of electricity directly from the Hrazdan TPP, so these are actually the most favorable conditions for cloud mining in the world. The absence of taxes and cheap electricity allow the company to take minimal commissions for their services, and customers receive unique conditions.

Key Differences Between Bitcoin Mining Farms and Traditional Data Centers

Although traditional data centers are quite similar to cryptocurrency mining centers, they have several key differences:

  1. Data centers usually have to perform many tasks, while mining centers only need to mine cryptocurrencies.
  2. Mining centers produce a huge amount of heat, so they are very well ventilated and cooled. For the same purposes, use a large area or placement in places with a cool climate.
  3. The equipment in the mining centers is always running at full capacity in order to earn as much as possible, so the amount of energy consumed is also greater than in a regular data center.

Can Data Centers Pave the Way to a Greener Bitcoin?

Data centers around the world will consume about 4% of our planet’s electricity, because they use it around the clock, helping companies to function smoothly and without interruption. However, as a result of this, they emit a lot of CO2 emissions into the atmosphere and their environmental damage is comparable to the aviation industry.

Mining centers have joined this process and in the near future all of them will have to evolve into “green” data and mining centers. To do this, they can use natural cooling, recycling of equipment and indirect waste, and natural energy.

Conclusion

The number of crypto mining farms is increasing every year, because this is one of the most profitable ways to invest in cryptocurrencies (crypto mining farm investment). We hope our article has explained how they work and where the biggest crypto mining farm is located. Learn cryptocurrency and earn!

You can build your own mining farm with ECOS! Don’t miss the opportunity to buy ASICs from just $4999!


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