What is a Bitcoin mine?

Bitcoin is a new thing that only appeared eleven years ago. Its essence is actually a special solution generated by a bunch of complex algorithms. A special solution refers to a set of infinite (in fact, Bitcoin is finite) solutions that can be obtained by a system of equations. And each special solution can solve the equation and is unique. If you use RMB as a metaphor, Bitcoin is the serial number of RMB. As long as you know the serial number on a certain banknote, it is equivalent to owning the ownership of this banknote. And mining is to constantly seek the special solution of this equation system through a huge amount of calculation. This equation system is designed to have only 21 million special solutions, so the upper limit of Bitcoin is 21 million. That is to say, the number of bitcoins is limited, so it has value.

Bitcoin mining requires a mining machine, which is a special computer, and the place where the mining machines are concentrated is also called a mine. Due to the current entry of Bitcoin into the investment market, the computing power level of the entire network continues to rise. It is difficult for a single mining machine, also known as the so-called Bitcoin mining retail investors, to mine Bitcoin. Run to get one bitcoin. Therefore, through the mode of large-scale mining and commercial operation, a large number of mining machines are concentrated in places with lower mining costs for large-scale mining, in order to average the cost of electricity and time, and thus obtain benefits. And the world's earliest mining base was established in China.

Since the main cost of Bitcoin mining farms is electricity consumption, a large Bitcoin mining farm may consume hundreds of dollars in electricity bills every month. Therefore, some countries with sufficient power resources and low electricity costs have become mine owners. first choice. China, Russia, and Venezuela are the countries with the most Bitcoin mines in the world. In China, Bitcoin mining farms are distributed in Kangcheng in Sichuan, Ordos in Inner Mongolia, and Tibet, because these places are rich in water resources and solar energy, which can support a large amount of electricity consumption. It is understood that 70% of the computing power in the world is concentrated in China. Although Bitcoin was not invented by the Chinese, China has undoubtedly become a major Bitcoin country.

What are the most famous encryption mines in the world?

1. GigaWatt

Established: 2012

Location: Washington, USA

Computing power: 1.3 PH

In young and profitable fields, the emergence of new players is often unpredictable. People who until recently repaired computers or worked in electronics stores became billionaires. One of them, Dave Carlson, started mining with ordinary GPUs and now owns the largest mining farm in North America.

The 10-year-experienced software expert and entrepreneur faced financial problems while working at a previous advertising agency before deciding to start mining and in 2012 he founded MegaBigPower, later renamed GigaWatt, in the basement of his home. It took one year to create a multi-million dollar business volume. Today, the mine is located in a former industrial warehouse. However, similar to other mines, its exact location has not been disclosed because the owners are reluctant to draw the attention of regulatory authorities.

2. Genesis Mining

Established: 2014

Location: Iceland

Computing power: 1000 GH

Another really big mine is Genesis Mining. Initially, the mines were located in Bosnia and China, but today miners are concentrated in Iceland and Canada. These countries have cold climates and low electricity prices, which are more attractive to cryptocurrency miners. The Genesis mine is said to be Iceland's largest consumer of electricity. Large mining farms are often kept secret about power consumption and heat dissipation, so they do not disclose the exact location of the farms for safety reasons.

3. Dalian Bitcoin Mine

Established: 2016

Location: Dalian, China

Mining amount per month: 750 bitcoins

Monthly electricity bill: $1.17 million

Computing power: 360000 TH

China is known for its many factories that produce video cards and ASIC miners. Therefore, miners in China have the advantage of purchasing equipment at a lower price. Equipment delivery is cheaper, and some are even completely free.

China is one of the countries with the lowest electricity prices, and other countries with low electricity prices include Venezuela and Ukraine. The most important factor in this matter is the decision of the Chinese government to encourage the industrial production of cryptocurrencies by lowering the official electricity price for these farms.

With a large population in China, competition for jobs is intensifying. In this country, the industrial cities have existed for a long time, and the workers have not been to the outside world at all. The same is true on mining farms, where administrators live in dormitories near the farm for relatively low salaries, ensuring the uninterrupted production of cryptocurrencies. All these factors have created fertile ground for the deployment of the largest mine in Liaoning province. Its city, Dalian, is the mining center of China and the world. It is a three-story mining farm with a specially designed ventilation system. Currently, the computing power of the Dalian mining farm accounts for more than 3% of the entire Bitcoin network.

4. Swiss Mine

Established: 2016

Location: Linthal, Switzerland

Switzerland's largest mine is located in the small village of Linthal in the east of the country. Its owner, Guido Rudolphi, previously ran a mining farm in Zurich, but found the operating costs too high. After nearly two years of searching, Rudolphi chose Linthal, a region that offers the most attractive electricity prices in Switzerland. The new farm, located in a former factory building, is considered the largest in Switzerland. Rudolphi insisted that financial interests were not a deciding factor for him. He believes that the world's demand for more Bitcoin is political. Rudolphi compares cryptocurrencies to the internet in the 1990s, when many people viewed such things with great skepticism.

5. Russian mines

Mining amount per month: 600 bitcoins

Computing power: 38 PH

Russia is also one of the countries where large mines are concentrated. The largest of these is thought to be located near Moscow, but the exact location of the farm was not disclosed. The Moscow mine can mine about 600 bitcoins per month. To cool the equipment, the Moscow mine uses modern ventilation equipment from Iceland. According to Slavorum.org, the mine’s monthly electricity bill exceeds $120,000.

In general, the major mining farms only started to emerge a few years ago. In 2014, these were mining farms for cryptocurrency enthusiasts. Mining farms now consist of large technical infrastructures with formal miner teams made up of professional employees such as GigaWatt, Genesis Mining, and Coinmint, among others. As network complexity increases and cryptocurrency prices drop, individual miners are exiting. However, those players deploying large-scale infrastructure are struggling to achieve the ideal balance between productivity and low cost.