What is Cryptocurrency Mining
To put it simply, Cryptocurrency Mining involves the verification, storage and securing of cryptocurrency transactions. As cryptocurrencies function without a ‘middleman’ (so to speak) to verify transactions, this function is carried out by the Cryptocurrency miners. Now unlike traditional currency, cryptocurrencies cannot be printed and new cryptocurrencies therefore have to be created. This is a simple term summation of the job function of cryptocurrency miners i.e. basically, they verify transactions and create new cryptocurrencies.
Mining Farms and Its Operations
Cryptocurrency Mining is dependent on three basic components; specialized computers, strong internet connection and a lot of electricity supply. The specialized computer hardware required for Cryptocurrency Mining is referred to as Application Specific Integrated Circuits (ASICs). In acquiring an ASIC, two things have to be considered. The price and the hash-rates. Anyone would prefer a pocket- friendly hardware rather than an expensive one given similar functionality. Now to the hash-rate. This is the configuration that tells you how powerful the ASIC is, the higher the hash-rate, the faster the ASIC. Electricity requirement for ASIC is also important. This is because the higher the hash-rate of an ASIC, the higher its electricity consumption.
Some of the most successful Mining Farms (who do not always disclose their specific locations due to security reasons), would attribute some success they have made to the availability of steady and low electricity rates. The five largest mining farms in the world are: GigaWatt in Washington DC, USA, Dalian Mining Farm, in China, Genesis Mining in Iceland, Swiss Mining Farm in Switzerland and Russian Farms in Russia. Like it has been mentioned earlier, the exact location of many of this farms are unknown. However, one known fact is a constant and that is the availability of electricity at very low cost.
Mining Consulting And Development Planning For Mining Farms
Operating a fully functional Mining Farm is a capital intensive exercise which often require equity or leverage funding. Without matching returns, the owners and investors in the mine could be presented with significant losses.
To operate a top notch Cryptocurrency Mining Farm, a few questions need to be asked and answered. Some of which are; How best to start? How to safeguard your assets? What is the trend in technology? How much should be invested? When is the right time to invest? and What currency should be invested in/mined. Now this is essentially the job description of Mining Consultants such as Bitcoin LAA. i.e. to answer and give solutions to the concerns of would be and existing crypto miners.
The importance of Mining Consultants in the Crypto world cannot be underestimated neither can it be overemphasized. These body of experienced fellows help in the planning, design and operation of any quality mining farm. Mining Consultants typically provide valuable services in the fields of Mine Construction, Technical operations, Marketing, Legal, Financial as well as Management services.
A not so obvious advantage of Mining Consultants is the professional reputation their representation provides the Mining Farm as potential investors and clients are better assured by the tested professionals rather than a bunch of dreamy young entrepreneurs and computer geeks. Having consultants also save costs as the Mining Farm can rely on advisors covering different areas rather than directly hiring staff for all fields
Mining Consultants also provide critical services in Strategic and Development Planning, Software Optimization as well as technical and executive training. Fundamentally, Mining Consultants aim to turn a bunch of tech guys, young entrepreneurs and a warehouse full of computers, servers and routers into a proper business with potential for multi-billion dollar earnings!
The blockchain and cryptocurrency world is a largely unregulated environment and the risk of losses due to a deliberate campaign of calumny or any other act of brigandage against a Mine farm or their product is real. Having your Mining Consultants provide legal expertise early on can save you from these issues.
Blockchain and Cryptocurrency technology is changing so rapidly that it is challenging to keep up with. The rate of change is also increasing with new applications appearing almost daily! This is a new industry that is barely a decade old and is fast changing. In fact, the technology is moving so fast that many players in the field do not understand the basics let alone attempt to consider the subtleties. Many Mining Farms have necessarily had to rely on Mining Consultants, even for their core technically activities to remain abreast with the changing environment. This has ensured a well run business without hindering the creative potential of the founders. Mining Consulting and development planning is therefore essential to having a well-run and successful Mining Farm.