Bitcoin mining is an exciting and rapidly developing industry shared by the mining machine hosting network Xiaobian (58kuangji. com). Because it is a new industry, and there is no manual for expanding Bitcoin mining business, most miners learn while walking, experience every possible problem, and strive to solve it. This article is about how to establish a successful large-scale mining operation guide. It is about the main factors to be considered when considering the location of new mines.

First factor: electricity price

Because mining operations require fast and powerful mining machines to quickly solve algorithms, power supply for hardware is the most expensive part of mining operations. Enterprises that think they have strong power are easy to be weakened under high electricity prices. Therefore, when selecting a location, the operation department needs to know not only what kind of power is the cheapest, but also what power modes are available in the region.

Bitcoin mining consumes a lot of electricity - about 110 TWh per year, which is about the electricity consumption of a small country. The running power of a single ASIC miner is slightly higher than 3000 watts, which is equivalent to running an air conditioner, a dryer or a space heater. Considering that the Bitcoin mining site is running hundreds or thousands of miners day and night, the price of electricity will be very high.

Second factor: availability of green energy

You may find cheap electricity, but is it sustainable? Green energy, such as wind, solar and hydropower, is cheaper than natural gas and coal. A report in 2019 found that "56% of all newly launched utility scale renewable power generation capacity provides electricity at a cost lower than the cheapest new fossil fuel combustion option."

However, although sustainable energy is the cheapest option in terms of cost, not all miners use sustainable energy. As more and more people realize what Bitcoin and mining are and invest in them, more problems arise around their use of sustainable energy.

The idea that all Bitcoin miners are using fossil fuels with greed and indifference is unfounded. ARK Invest and the Cambridge Alternative Financial Center found that 76% of miners actively use sustainable energy as part of their mining operations. In addition, the whole industry is promoting a more sustainable operation mode, from promising to reduce emissions through the new crypto climate protocol to using the waste heat of its own data center to power local greenhouses, mines and towns.

Third factor: mining friendly areas

Another question about site selection is: Can I mine here? If possible, will the political attitude towards mining change overnight and then completely close the mining operation? For example, China announced a ban on bitcoin mining and trading, and it is estimated that 90% of the mining business will be completely closed or forced to leave. Iran also banned Bitcoin mining last year. Therefore, it is a critical step not to build a mining site to select the location.

In addition, many mining companies have set their sights on owningNordic countries rich in green energy. Canada, for example, encouraged the mining of cryptocurrencies. During the closure of the epidemic, Canada regarded mining as a "basic service". In addition, due to the rich green energy and favorable political climate, many Chinese miners are flocking to the United States to establish new businesses.

The fourth factor: local talents

If there is no manual on how to establish Bitcoin mining business, it means that few people have direct experience on how to do it. Therefore, when you are looking for talents, you need to look for those industries or positions with similar functions and similar problem-solving abilities, because skills can be transferred.

For example, there are mines in northern Sweden, where Facebook, Google and many other companies have data centers - it is not uncommon to find data centers and mining mines close to each other. This provides a way to obtain and train talents more easily, for example, compared with places where existing talents have only factory or industry experience.

conclusion

Perhaps some people think that since mining is done digitally, mines can be built anywhere. But in fact, although you can mine Bitcoin anywhere, you need to consider more about field operations than opening a store anywhere you like. Keep in mind that whether you want to open your own mines or look for mines for investment, location will be a factor in the success or failure of the mining business.