Inside a Bitcoin Mining Facility: What to Expect
February 27, 2020 - How-To Articles
If you are reading this, then you might have heard of Bitcoin mining and why it is on-demand. If you haven’t, here is an article where we take a deep dive and expound, stripping down to the bare bone what it entails. Bitcoin mining is at the center of most secure cryptocurrency. By virtue of extensive miner participation, Bitcoin is the most secure peer-to-peer network in the world. And it doesn’t matter what competitors and altcoin proponents say. Numbers don’t lie.
Bitcoin has a far superior hash rate, and the network has extensive adoption. Furthermore, from the marketplace perspective, a lot of exciting derivative products are being approved by influential regulators across the globe. In the United States, the CFTC gave the green light to Bitcoin Futures. In 2020, and upon the meeting of stringent rules, the US SEC could approve a Bitcoin ETF product, further increasing avenues for enthusiasts and shrewd investors. Generally, Bitcoin miners play a crucial role in this burgeoning ecosystem. But what exactly do they do?
In a nutshell, their sole purpose is to solve complex cryptographic puzzles generated by the Bitcoin network in exchange for BTC rewards. Mining is extremely competitive. Every 10 minutes, 12.5 BTCs-worth roughly $90,500 is released. A successful miner earns these coins and another bag of transaction fees. If what analysts are projecting turns out to be true and BTC soars to $50,000, the competition will be cut-throat.
For these simple reasons, it is just not feasible to mine at home. Yes, you could buy gear, buy a couple of the latest ASICs, install coolers and get to work, but electricity rates will simply push you out of favor. In some regions, costs per KWH can be as high as $0.20. Then there is the noise! The competition and the factors mentioned above means Bitcoin mining data centers form the backbone of the network.
However, have you ever thought of visiting one? If you haven’t, a visit to one will cement the reason why Bitcoin mining has been dubbed the modern-day Gold Rush. Instead of pickaxes and sieves, you get superior exteriors warehouses, or containers. There also has to be noticeable security as they are usually high-value targets and host to some expensive gear. What you will also notice is that a serious miner would host their staff in remote areas near sources of cheap electricity, and around crucial infrastructure like the internet.
VBit Technologies has theirs spread across Colorado and Alberta, Canada. Alberta has abundant power. On average, the cost of kWh can be as low as 3 cents for industrial businesses, depending on the provider. Add that to the cool nature means the cooling costs will drastically stop.
Upon setting foot inside a fully loaded warehouse, the loud blast of roaring ASIC fans and fans drilled on the walls will jolt you, an unceasing reminder that Bitcoin mining is a serious business. Over 20 technicians are employed by VBit Technologies to tend to these sought-after pieces of mining equipment. All of them must wear ear mufflers, with the most vital departments being the “Operations and Maintenance.”
It’s easy to see why. Given the continuous operation of these miners, day and night, technicians check the status of these miners-using laptops, going out to the “field” to fix malfunctioning ones. This work can be a monotonous but exciting because upon deployment and activation, they must be kept in operations every day of the week, all-year-round.
An operation plug and mine container are, on average, fitted with 1,600 Bitmain S9 miners. Each miner consumes 1,400 Watts of power, and each of these high-power fans generates between 70-90 dB of noise. Now, in an enclosed space, fitted with 1,600 interconnected ASICs nicely stacked in rows, the noise is amplified. The noise could be deafening if these containers are not tested and optimized for not only simple, conducive mining, but efficient energy consumption.
China is the primary manufacturing location for these ASICs. Bitmain is the leading supplier and the manufacturer behind the high-performance Antminer series.
In a typical Bitcoin mining facility, ASICs are cornerstone. A manufacturer-verified and tested Best Bitcoin mining gadget is an essential tool that keeps these Bitcoin mining hubs in business. Owners take their time to assess and deploy only the best and the most energy-efficient gear to use in their operations.
A timeline of how mining gear has evolved is enough testament of how manufacturers as Bitmain are rapidly changing to stay ahead of the curve and simultaneously unleash the best equipment to keep the network secure and highly reliable.
A Bitcoin data center will interconnect ASICs in series while taking care of power consumption and cooling. A normal ASIC consists of a Power Supply, a memory block, a connector, a broad set of microcircuits, and powerful fans. They might consist of the same basic components but come with different hash rates and power consumption requirements. Amongst other things, mining farm operators check the energy efficiency expressed as a ratio of energy used and hash rate expended. The lower the coefficient, the better the efficiency.
Inside, temperatures must be kept within the 15-20 degrees Celsius. It is regulated, but during summer, the higher ambient temperatures mean the propensity of them breaking is high despite the inside regulations.
However, your cooling needs will mainly depend on where you build these farms. If located in frigid regions where sunshine is expected, say 2-3 months every year, there is no need to invest in expensive cooling systems. Cooling is essential in warmer, tropical territories.
Many facilities now prefer length-based, dry cooling systems where large industrial fans work round the clock to blow the heat generated inside the facilities while keeping temperatures to within 15-20 degrees Celsius as aforementioned for higher efficiency and prudent utilization of space. Others settle for liquid or immersion cooling systems where chipsets are cooled by surrounding them with cold liquids, dissipating heat.
As a precautionary measure, you’ll notice that that fine-meshes surround these warehouses. They trap fine dust particles, preventing them from infiltrating and clogging these delicate miners. Often, when the dust settles on these miners, they overheat, causing seizures. Note that they are already overclocked, working at maximum output, and therefore, a slight change in temperature can easily cause overheating. A slight downtime means a drop in hash rate and, thus, efficiency and performance.
While the profitability of these mines is highly sensitive to Bitcoin prices, their role as gate keepers securing the network and keeping it as censorship-resistant as possible should not be understated. Government regulations continue to evolve. Some laws may even negatively impact their modus operandi. Nonetheless, they remain vital and must be in operation for Bitcoin as a coveted, store of value shield to exit.
VBit Technologies is one such cog. It has the design to thrive even in the depth of crypto winter. Ordinary users can put money into the burgeoning Bitcoin space through a Turn-key solution. This option is possible because VBit Technologies has strategic partnerships with Bitcoin mining data facilities across the US and Canada with access to cheap power.
With electric power rates as low as 3-4 cents, Bitcoin enthusiasts can profitably mine when they create a user account with the hardware data mining provider, purchase a mining package, and direct hash rate to a mining pool of their choice. Different from competitors, clients are part of the process and own the best Bitcoin mining equipment.
Getting started is easy and free. Sign up and start mining Bitcoin today!