It all started with mining bitcoin (BTC) in the bedroom. What started as a hobby with multiple mining rigs has grown to twenty industry mining farms around the world. When we expanded our business to a new industry, we had to figure out what worked and what didn’t through trial and error, because there is no evidence of it.
It’s not easy to build a scalable operation with multiple locations like ours, but if you want to start your own mining business, scale your own, or invest in a mining company, here are seven of the best lessons we’ve learned. help you move on to the next steps.
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Lesson 1: Making money requires (a lot)
There was a time when you could extract bitcoins from a laptop or set up multiple mining rigs in your room and in your room and it was profitable. But then again, miners created more competition and those who wanted to stay profitable had to expand their business.
Soon, an amateur miner could not keep up with mining in the bedrooms and needed a warehouse – or a warehouse – full of mining rigs day and night to stay profitable. We expanded with the industry and smoothed our growth as we evolved, but those who want to join today no longer have the opportunity to start from the bottom and work their way up. This means investing in capital intensive projects from the start.
Lesson Two: Building Long-Term Relationships
Although the bitcoin mining industry is growing rapidly, it is still heavily supported by a few large players in power. For example, a large-scale mining company might not only order new equipment from any supplier it wants.
Currently, there are only a handful of suppliers supplying equipment, and their production cycles are dependent on several chip manufacturers who closely monitor shipments, not to mention the fact that we are currently experiencing a global shortage of chips. This means that success depends not only on efficient and well-organized operations, but also on building relationships in the industry, many of which will be long-term.
Lesson 3: Improving Operational Efficiency
When we talk about operational efficiency, large miners remain profitable when they have an edge over the competition. This means improved electricity, the latest hardware, and no glitches or problems that could lead to a loss of processing power.
Make operational efficiency a priority. For example, in March 2020, when the bitcoin price fell below $ 4,000, few miners were able to survive the uncertainty and volatility, and we were forced to leave, but it survived thanks to our operational efficiency.
Lesson 4: never stop being creative
An old adage says, “Create or die.” In Bitcoin mining, where data centers must remain strong and fast to remain profitable, there is no choice but to keep innovating. Most importantly, it means keeping the equipment up to date and not becoming obsolete. Mining must be properly planned and calculated for the replacement of equipment, since the equipment may be in demand for some time. Remember that any downtime will cost you money.
Innovation also means creating better and more efficient ways of doing business, such as creating software specifically designed to manage mining operations. In this industry, technology will give you an edge, and even the smallest improvements will keep you ahead of the competition.
Lesson 5: Choose Your Location Carefully
Ornament “location, location, location”. While bitcoins can be mined anywhere, large-scale mining must take their location into account when setting up a store for a variety of reasons. Not all locations will offer the same energy sources at the same prices, so miners need to find locations that not only have abundant and cheap electricity, but also provide clean and sustainable electricity.
Related: Air Purification: Renewable Bitcoins May Provide A Clean Energy Future
Finally, go to a website that encourages bitcoin miners in the knowledge that political winds won’t change overnight and all transactions will be closed, as recently happened in China and Iran.
Lesson 6: Time is Money
I said this before, but actually time is money and any downtime or delay in processing power can be costly. This means having significant operational control over hardware upgrades, a mine maintenance plan, and software that can effectively manage operations. It also means getting creative.