One of the primary means of accumulating cryptocurrency is through the process known as ‘Mining.’ In simple terms, this mining refers to the computational process of ‘solving’ the complex mathematics within each block using a computer’s processing power. Once solved it allows the miner access to the cryptocurrency stored within the block itself. A ‘Mining Farm’ is a group of computer servers or hardware equipment being used to mine cryptocurrency.
Crypto mining is often a very computationally complex process. Bitcoin for example often requires huge amounts of processing power to solve a single block, therefore enterprising groups and entities have found that the pooling of resources yields much more profitable results. Liaoning Province in the Northeast of China is one example of a truly massive Bitcoin Mining Farm. The entire mining farm occupies a large disused factory floor and as of March 2021 can still only yield roughly 700 BTC every month.
Bitcoin Mining Farm Infrastructure
To have a profitable Mining Farm, investors must consider the sizable level of infrastructure and capital needed to operate these complex mining facilities. For instance, the computers within these facilities require massive levels of power and this huge level of energy consumption brings large overhead costs, as well as other considerations. These computers, while consuming this vast amount of energy also generate huge amounts of heat.
In turn, this heat requires cooling which is also energy-intensive and often expensive. This level of energy consumption and crypto mining, in general, has a large carbon footprint. This is concerning when considering environmental matters and in the future, may bring large carbon taxes.
Some innovative enterprises have found ingenious means of circumnavigating some of these energy considerations, such as geothermal energy.