List Of The Biggest Bitcoin Cryptocurrency Mining Areas In The World
Cryptocurrency mining is one of the most important industries around cryptocurrencies, something that started back in 2009 when Satoshi Nakamoto generated the first Bitcoin block in the network.
But today, the situation is different. The crypto mining industry has expanded to all over the world, and more than 100 different countries are now connected to the blockchain. According to data revealed by Blockchain.info, the market has generated profits for $4 billion dollars, without including the sale of mining equipment.
It is also important to mention that as popularity for these activities grow, the complexity of the network also increases. At the moment, 80% of the total number of Bitcoin has been mined and the inflation rates will be reduced in the future. Furthermore, the production of cryptocurrency becomes more complex, and the mining process takes more time and energy.
In addition to it, miners have to sell between 30 to 60 percent of the money they earn from mining activities in order to pay for energy and other maintenance costs. But the industry is still growing, miners can receive up to $20 million dollars per day in transactions.
Those who are interested in mining need to buy equipment to do so, like graphic cards or ASIC miners. In 2017, the demand for GPUs increased exponentially and most companies like Nvidia and AMD, which had to change their growth expectations.
Nvidia, one of the most important GPU manufacturers increased its revenues by more than 50 percent, compared to the second quarter of 2016. AMD, instead, increased 18 percent. After the bear market that we are experiencing now, the revenues of these companies has been reduced.
Enterprises like Bitmain have built mining farms of industrial proportions. Some other companies were able to create entire plants full of miners. Indeed, old industries have been the best places for these investors to settle their operations – and even better if they are located near cheap electricity sources.
Just to mention one of these cases, CoinMint decided to open a mining farm in a former aluminium smelting factory in upstate New York.
Cointelegraph presented the most important mining farms in the world.
This mining farm has been launched in 2012 and it is located in the United States, more specifically in Washington, and it has a hashrate of 1.3 PH.
Dave Carlson is the owner of this mining farm, the biggest in North America. He is a software specialist and entrepreneur with 10 years of experience. At the beginning, the farm was known as MegaBigPower, but later it was renamed into GigaWatt, and in just one year, it became a multimillion-dollar business.
Carlson says that he has 15 employees and has to pay for all the operations more than $1 million dollars. And mining earnings were not enough, he decided to attract additional investments by starting production of mining equipment based on Bitfury chips.
Carlson says that one of the key elements of his business is that he has cheap electricity power, paying $8.42 per kWh for businesses.
This company was launched in 2014 and it is located in Iceland with a hashrate of 1000 GH. Genesis mining was located between Bosnia and China, but at the moment, the company is located between Canada and Iceland.
Genesis mining farms are the largest electricity consumers in Iceland. Bitcoin mining farms, cooling issues and electricity consumption are in generally hidden. Genesis does not disclose the precise location of his farms due to security policies.
Dalian Mining Farm
This cryptocurrency mining farm has been launched in 2016 in Dalian China. It mines 750 BTC monthly, it as a hashrate of 360000 TH and electricity costs of $1.1 million dollars.
China is one of the most important countries for mining activities. A lot of farms are located in the country. Moreover, it has a geographic advantage because companies can purchase mining equipment at low prices and without paying delivery. China has one of the lowest prices for electricity as well as Venezuela, Ukraine and Taiwan.
System administrators are ready to live in dormitories near the industries where they work, which makes the system very efficient. With low energy prices, and good workers, mining farms in the country are very efficient.
Swiss Mining Farm
The company has been launched in 2016 and is located in Linthal, Switzerland with an unknown hashrate. This is the largest mining farm in Switzerland and it is located in the village of Linthal, in the eastern part of the country. The owner is Guido Rudolphi, which had a mining farm in Zürich but it was too expensive to run it.
The new farm is located in a former factory building and has lower prices than in Zürich. According to Rudolphi, Bitcoin is in a similar situation that internet was at the beginning of the 90s.
Russian Mining Farms
An important country in the mining market is Russia. The farms in Russia mine over 600 BTC every month with a hashrate of 38 PH. The biggest farm may be located near Moscow, but the exactly location has not been disclosed. Moreover, the currency is generated by 3000 Antminer S9. In order to cool this amount of equipment it is necessary to use a modern system from Iceland. Apparently, over $120,000 dollars per month are needed to pay for electricity.
Biggest Bitcoin Cryptocurrency Mining Areas Conclusion
Mining farms started to appear all over the world, and at the beginning the owners were just enthusiasts. But the market has been growing during the last ears and now, the profits are very high. In the future, the number of farms may keep increasing everywhere around the world.