bitcoin mining industry

What does a mining farm look like?

Let's take a look inside a real Bitcoin mining farm in Washington state.

Bitcoin mining farms completely use the ASIC miners to mine various coins. Many of these farms are minting several Bitcoins per day.

How much does a mining farm make?
it depends on many factors:

The price it pays for electricity
How old its mining hardware is
The scale of its operation
The price of Bitcoin when the miner sells it
The level of difficulty when the Bitcoin is mined

The largest factor affecting how much money a mining farm makes is how much it pays for electricity. Almost all mining farms are using the exact same hardware.

Since the reward for finding a block is fixed, and the difficulty is adjusted based on total processing power working on finding blocks at any given time, then electricity is the only cost that is variable. If you can find cheaper power than other miners, you can afford to either increase the size of your mining operation, or spend less on your mining for the same output.

How much electricity do mining farms use?

As we said earlier, mining farms use a lot of electricity. The amount they consume counts on how big their operation is. Although, the latest Bitmain ASIC miner consumes almost 1350 watts.

The total estimation in 2020 states that all mining farms will use about 75 terawatt hours of electricity which is harshly equivalent to 15 times the yearly energy consumption of denmark.

Where are mining farms located?

Mining farms are located all over the world. We don't know where every mining farm in the world is, but we have some educated guesses.

Most of the mining has been and still is located in China. It is believed that as much as 65% of Bitcoin mining occurs in China.

Why is so much Mining happening in China? Samson Mow of Block stream and former CTO of BTCC mining pool explains.

The major merit of mining in China are faster setup times and lower initial CapEx which, along with closer proximity to where ASICs are gathered, have driven industry growth there.