Have you ever heard of mining farms? And do you know that they can be an investment opportunity for small investors? At the beginning of the bitcoin network, it was possible to minerate cryptocurrencies – and be rewarded for that – with home computers. Nowadays however, this is no longer possible. But large mining farms give the investor the ability to supply resources with promise of return in bitcoins or altcoins.
In practice, mining farms are technically equipped datacenters for mining bitcoins and other cryptocurrencies that work with this process. They emerged due to the constant increase in the difficulty of mining, which requires more resources. Whether they technical, energetic or financial.
We know that the miners are the computers in the network that validate the transactions. As a prize for this validation, they receive small fees and can mine new currencies by solving complex mathematical problems.
However, with the increase of the network, the competition increased between the machines, requiring powerful equipment. That is to say, the more miners, the greater is the mining difficulty. In this way, mining farms allow the optimization of this resources usage.
How the mining farms work?
Mining farms generally resemble a room with a large number of computers fully dedicated to this activity. They differ from ordinary computers because they are specially assembled for the mining activity. These companies seek profit through this activity. The main cost is the energy consumption.
China leads the bitcoin mining, accounting for around 70% of all the activity in the world. And this occurs despite the fact of being illegal buying and selling bitcoin in China. The largest farms, however, are in Iceland due to the low cost of energy. But the largest of all is located in Russia.
See which are the largest mining companies in the world and in which you can invest:
Genesis Mining
The Genesis Mining Farm was launched in 2014. Initially, the farm was located in China and Bosnia and is now in Iceland and Canada. Genesis Mining provides cloud mining services and enables customers around the world to purchase contracts and lease mining powers to get altcoins.
Gigawatt
GigaWatt is located in Washington, USA. The founder, Dave Carlson, began mining with his GPU – equipped home computer and now owns the most profitable farm in North America and one of the largest in the world. The company’s revenues allowed him to initiate the production of mining equipment and the sale to other people interested in mining
Dalian mining farm
China is the leading producer of ASICs and video cards for cryptocurrency mining. Cryptocurrency mining farms emerge in the provinces and small towns of China. One of these cities is Dalian and this is the most profitable farm in the world. More than 3% of the hash rate of the entire bitcoin network is concentrated there. It is a three-storey farm with advanced ventilation and dozens of people who provide their proper performance.
Bitmain / Antpool
Jihan Wu and Micree Zhan launched the BitMain in 2013. Located in a warehouse, it works with hundred of mining platforms 24 hours a day, 7 days a week. During 2017, Jihan and Zhan won US$ 4 billion and their farm is still very profitable.
Bitfury
Bitfury was founded in 2011 and operates far beyond mining. Its main focus is the blockchain and the implementation of this technology in the existing financial and management systems. In addition, it supports communities that would like to create new decentralized digital assets. It is one of the main names of the digital money ecosystem.
