Mining is the use of computer equipment to record and verify the correctness of transactions on blockchain.
6-7 years ago, it was possible to mine BTC onhome PC. Today, the largest mining farm in the world consumes 7,500 kWh per hour. This is more than is required for a smelter to smelt aluminum.
The largest mining farms
The energy costs for running on the bitcoin blockchain are such that the process requires the power of a small power plant. And the closer the line to 21,000,000, the more resources are consumed by mining rigs.
Therefore, data centers are being built next to nuclearstations, in mining and steel works or near sources of "green" energy. Cheap and stable power is a key element for cryptocurrency mining.
The mining sector has now become centralized because over 80% of all coins are mined by several powerful pools of China, Russia, the United States, and Canada.
The Celestial Empire has become the leader in bitcoin mining.Here Bitmain manufactures the world's most sought-after mining rigs, and the country's rural areas have cheap electricity with uninterrupted delivery.
The largest mining farm in China is located in Dalian.
Dalian Port Company Ltd mines about 730 BTC inmonth. The equipment used has a capacity of 360,000 TH, which is 15% of the entire Bitcoin network. However, the cost of electricity for this farm is $ 1,170,000 per month.
But even with such a sum of accounts, the company's income at the rate of $ 34,000 exceeds $ 20,000,000 monthly.
Chinese equipment giantminers also opened a Bitmain Ordos data center in Inner Mongolia, which is under the PRC's jurisdiction. The mine is located near the city of Ordos in the SanShangLiang Industrial Park.
Here, blockchain computing is performed by 25,000 machines that are served by 50 employees. About 680 BTC are mined here every month.
The list of the largest mining farms also includes the Russian Bitriver mine, located next to the Bratsk hydroelectric power station. The equipment was installed in the shops of the currently inactive aluminum plant.
In addition to direct connection to power supply fromThe hydroelectric power plant, which supplies 100 MW per year, is another nuance that makes Bratsk a great place for mining cryptocurrencies: the Siberian climate with its long and cold winters.
The idea to build a data center in Bratsk came toto the team of billionaire Oleg Deripaska in 2015 En + Group Plc and its division United Co. Rusal, which was controlled by a sanctioned businessman, owns the Bratsk hydroelectric power plant and aluminum smelter.
The equipment used on this farm has a hash rate of around 38 PH, which allows mining around 20 BTC per day (600 per month).
This puts Russia in the list of the most powerful countries in the mining industry, the value of which today is several billion dollars.
Although Russian legislation does not recognizedigital money and transactions with them, Bitriver does not mine on its own, but only provides equipment in the data center and technical services. This means that his business is legal, and the regulatory authorities cannot have claims against Deripaska.
United States of America
GigaWatt is a cryptocurrency mine launched in 2012 in Washington state.
Its founder, Dave Carlson, succeeded in just12 months to turn your farm into a multimillion dollar business. And the owner of the largest data center in the United States started his journey with mining on his own GPU.
Although the exact location of the farm is obscured byprosecution by state tax authorities, journalists believe that this mine has a hash rate of 1.3 PH and that it produces about 10 BTC per day. However, the owner claims that his company's monthly electricity bills exceed $ 1,000,000.
Carlson chose Washington State for mining because ofthe fact that it has the cheapest electrical resources in all of North America. The cost of energy in this country for industrial enterprises is $ 8.42 per kWh.
Dutch company BitFury, founded byis a Latvian citizen Valery Vavilov, is a software developer and manufacturer of mining equipment. The mines she oversees own almost 15% of all mined BTC.
BitFury opened 3 data centers between 2014 and2017 They are located near the cities of Tbilisi, Batumi and Gori. The area of the free economic zone, which was created for the functioning of the mines, is 18 hectares.
The investor is the Georgian Coinvestment Fund, founded by the founder of the Georgian Dream party and billionaire Bidzina Ivanishvili. The foundation has invested almost $ 10 million in the Batumi farm.
The total power consumption of the centers,according to JSC "Telasi", it is about 65 MW per year. This pool is completely private and cannot be connected to. The number of working installations and the volume of mined cryptocurrency are not announced. But it follows from the calculations that BitFury-Georgia receives about 320 BTC monthly.
Alpine Mining is the leading coin supplier in Switzerland.
Its founders, Ludovic Thomas and Christophe Lillo, have opened two crypto mines in the country:
- in the farm village of Linthal;
- in the town of Gondo, canton Valais, next to the hydroelectric power station.
The authorities gave the opportunity to officially open the farm,because the power of the hydroelectric power station was unclaimed: after a natural disaster 10 years ago, almost all residents of Gondo left. It was considered a depressed community with 40 residents, so any investor who could breathe life into a dying city was welcomed with open arms.
In addition to a small amount of BTC, Alpine Mining mines its own digital coins as part of a shared pool and leases the computing power of computers.
Equipment is leased for quantum computing andblockchain application development. The company began to provide services for setting up and optimizing data centers. Her team recently completed the installation of a data center with over 40,000 GPUs in Norway.
Although the examples above are compiled from all overof the world, the largest mining farms are still located in China. This superpower is second to none when it comes to competing computing power. Chinese mines are responsible for 65% of the hashrate of the Bitcoin network. In addition, the Celestial Empire is actively involved in the cryptocurrency market. Companies in this jurisdiction are also the largest manufacturers of mining equipment.
It should be added that popular digital exchangers and exchanges with millions of daily turnovers are also owned by Chinese companies.
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