Mining farms are data centers that are designed to mine cryptocurrencies. They were developed due to the immense competition to mine cryptocurrencies faster. With the rise in the market value of these tokens, the mining farms also became increasingly complicated, requiring more technical, energy and financial resources.
Since mining farms require an abundance of resources and investments, to gain profit from them, a group of people usually pool their resources and investments.
Where are the world’s largest cryptocurrency mining farms?
The exact location of the mining farms is kept confidential due to the risk of physical damage and high profitability. However, China is estimated to hold about 70% of the world’s mining making them the leader of mining.
The cold climate and the cheap electricity cost at Iceland attracts a large group of miners there. This allowed Iceland to have some of the largest mining farms in the world.
BitFury, a diversified blockchain company, is the largest industrial miner outside China. They have three data centers on the Tbilisi economic zone territory and currently mines about 12% of all the bitcoins..
What are the requirements to set up a mining farm?
Mining farms can be installed in warehouses, offices and even houses, at any place where there are well-ventilated, dry and secure spaces. All you need is an adequate amount of power and an internet connection.
A UK-based crypto mining company, Easy Crypto Hunter, provides complete hands-free mining with hosting facilities wherein they offer to run your farm.
Besides, mining farms need not get more complicated as a single computer can control all the rigs.
What are the advantages to mining at scale?
While tempting to create a couple of rigs, as it could open up more flexible options, there are few advantages to mining at scale:
1) Price Reduction: Some companies provide price reduction on larger orders of equipment by offering economies of scale discount. An example of one such company is Easy Crypto Hunter.
2) Utilizing the Mining Power: Mining pools having a large amount of power and will help you reap a higher share of the rewards. The higher the risk, the more the chances of receiving potentially high rewards. You can even earn master nodes to get paid by mining master node coins and holding onto them.
3) Maximize financial opportunity: Using different strategies on various mining systems can help diminish the maximum amount of risk, all the while, maximizing the business possibilities.
4) Unforeseen Benefits: The larger the number of rigs, the higher the heat output. Customers can save on heat by monetizing it. They can do this by installing them to heat existing commercial space. This essentially makes heat a valuable byproduct.
5) Solution to the Hash Rate Problem: Mining farms are capable of solving the hash rate problem. Hash rate can be defined as the speed at which a mathematical problem is solved and is measured by hash per second (H/s). As more miners are getting connected to the network, more and more users begin to claim new coins while the supply remains constant. The high competition in the mining department requires participants in the chain to have the more powerful technical equipment.
A higher hash rate would mean that miners can solve the mathematical problems faster. Thus, the more miners that are connected to the network, the higher the hash rate the miner should have to address the mining problem.
The productivity of the largest farms is estimated to be around 1015 H/s. Mining farms allow the hash rate to be maximized by magnifying the productivity of computers.