The recent rise in the value of cryptocurrencies has led more and more people to mine for virtual coins. But that requires huge computing power. And from here starts a vicious circle. The more powerful the mining equipment, the higher the electricity bill, used both to power the machines and to cool them. To make a good profit, cryptocurrency miners look for places where the climate is cool and the price of energy is low. Bitcoin is mined using an enormous capacity of the computers involved in the process, with a huge need for electricity. Mining involves huge hubs, the size of aircraft hangars, located in the coldest corners of the world. A Chinese company called Bitmain, specialized in blockchain technology, also created the first equipment to mine cryptocurrencies. These asic antminers appeared more than 10 years ago and spread throughout the world quite quickly. Although the difficulty in obtaining rewards is great, Bitmain has managed to keep up and release on the market more and more powerful miners, but also a higher energy consumption. If you are passionate and have a vision for the future, you believe that physical money will be replaced by virtual money in the form of coins, you can purchase Antminer equipment from China by placing the order directly online on the Bitmain website, and you will receive the products in plenty quickly home. It can be true, all the currency replaced or it can be unreal, so we risk losing everything. Everything depends on you but also on the rest of the people if we want to accept the change of the world or not. With time we will see what will happen and what the future holds for us in the madness of technology.
I'll start by saying that bitcoin mining at home is no longer profitable. So who else is mining? Who would pay big bucks on their energy bill to maintain the grid? I will resume. In our country, bitcoin mining at home is no longer profitable. Remember that proof of work means processing power invested in the network, and for this processing power you consume electricity, which you will have to pay for. There are some who can earn from this activity, because they have no current costs.
In some countries electricity is very cheap compared to European countries or China, where mining has not developed very well. China is the best example and has become the main bitcoin mining ground in the world because of this, having a true monopoly on mining. Some people have “home” electricity, free of charge, produced in the yard with the help of electric panels, wind, etc. Green energy is sensational if we talk about mining, because the monthly investment becomes zero. So, if you have green energy, you can use it to earn cash, more than if you sold it for green certificates.
In third place would be the cold areas of the globe. A miner can comfortably heat your apartment in the winter, without the need for large, energy-consuming fans. 100 miners, however, crammed into a closed and unventilated space, are guaranteed to burn in no time. But if you place the mine somewhere in the Nordic countries (Finland is already a player in this market, already two years ago) the cooling can be done much easier.
That means cheap bitcoin mining, which is currently only done with dedicated miners. Cheap, possibly free electricity and low temperatures (whether you get them with fans or rely on climate). Big bitcoin farms have a good chance of getting some preferential, lower price electricity contracts.