Bitcoin and cryptocurrencies, in general, are getting a lot of attention. Thanks to the bullish Bitcoin cycle, there are a lot more investors that want to get BTC. But, also Bitcoin mining that is a crucial part of the blockchain network, is getting popular for big investors and businesses. In fact, around the world, huge Bitcoin farms are established with the only goal of getting BTC.
What is a Bitcoin Farm?
First, let's explain what Bitcoin mining is. Bitcoin mining is a process conducted by the miners, users on the network, that need to solve complex math puzzles in order to verify the transactions on the network, and by doing so, they secure the network and discover new BTC.
Their impact is crucial on the available supply of BTC as well as the overall safety of the network. For the work they do, they get a block reward when new transactions are added to the network. But, unfortunately for solo miners, it is very difficult to mine profitably, on your own, due to two reasons.
The first reason is Bitcoin halving, and an event programmed to happen after 210,000 BTC are mined. It splits the block reward in half, which means the main prize gets smaller. The next reason is that the process of becoming more difficult when the collective computing power in the blockchain network increases. But, as the blockchain network keeps growing, you can only imagine that to succeed, you will need a lot of computing power. Therefore a large investment in high-quality computer equipment is necessary.
The mining farms are developed in response to this situation. A mining farm is set in a large space, like a warehouse, and it uses special mining computer equipment, as well as air conditioning to prevent the equipment from overheating and other resources to achieve the best results from Bitcoin mining. Some mining farms have their own investors, and they operate as start-ups.
Liaoning Province, Northeast China
This mining farm is based in Liaoning Province, northeast China. And it's one of the largest mining farms in the world. It operates in a huge space of a refurbished, abandoned factory. The computing power of the farm is 360,000 TH, and they are able to mine over 700 BTC on a monthly basis.
So, it is definitely understandable with this level of competition why so many people, especially those that don't have an option to join a farm or mining pool, invest in BTC on online exchange sites.
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Linthal, Switzerland
Guido Rudolphi is the owner of the mining farm that initially was located in Zurich, but the electricity costs were too high, and he moved it to a small village where the farm operates efficiently. Again the farm is located in a factory building, and it successfully mines BTC since 2016. The cool climate also helps the mining process and prevent further overheating of the equipment. This is one of the largest farms in Switzerland.
Reykjavik, Iceland
The cold temperatures in Iceland are also beneficial for mining. The Genesis Mining farm was founded in 2013, and since then, it has become a famous brand in this industry. It generates a hash rate of 1000 GH, and it is the largest cloud mining company worldwide. Genesis Mining Farms are also located in Canada and Bosnia.
Moscow, Russia
There isn't a lot of information about the location of one of the largest mining farms in Russia. However, it is estimated that approximately 600 BTC are mined on a monthly basis, with a hash rate of 38 PH per second. It's worth mentioning that 3% of all nodes in the blockchain network are Russian. Cryptocurrency mining is still not legal in Russia, although trading is legal through licensed sites.
Amsterdam, Holland
Bitfury is one of the oldest mining farms in the world. Variety Vavilov, the founder of the company that also offers services in the field of blockchain technology, artificial intelligence, and cryptocurrencies. Since it was established in 2009, the company has grown substantially and offers services to over 17 countries all around the world.