Bitcoin mining has been under the spotlight ever since the cryptocurrency boom in the world. Thanks to Bitcoin’s bull streak, many investors showed their interest in Bitcoins which further accelerated the mining process. To accommodate this demand, there are several massive Bitcoin farms around the world.
Bitcoin mining is a process done by ‘miners’ (software professionals) who solve complex mathematical problems to verify the transactions of the network. This way they secure the network and discover new Bitcoins. Not only do they make Bitcoins available, but they also check the overall security of the network. For this job done, they get a block reward with every new transaction added to the network. Unfortunately, this is not that easy for individual miners.
Bitcoin halving is an event that happens after 210,000 Bitcoins are mined. The block reward is split in half and the prize gets smaller. This is one of the reasons. Another factor that makes mining difficult for them is the fact that collective computing power in the blockchain network is increasing. So, the only way to succeed is by working with massive computing power. Hence, the need for Bitcoin farms has become prominent. Think of a Bitcoin farm as a warehouse with all the special mining computer equipment that is needed. Here are some of the biggest Bitcoin farms in the world, excluding China.
The small island nation of Iceland has hydroelectricity and geothermal energy plants that create affordable energy in abundance, attracting Bitcoin miners. Cryptocurrency mining equipment doesn’t just require tons of energy, it also requires a cooling environment, which is perfect for Iceland. Iceland has a strong tech scene, venture capital, and a friendly regulatory environment, which makes Iceland an excellent place for crypto mining.
Home to BitFury and other mining farms, Georgia in Eastern Europe has earned a name for itself in this sector. The nation boasts low electricity costs, favorable tax laws, and strong tech innovation which acts as an incentive for miners.
Hydroelectric plants in Quebec are attracting miners with their energy. After China banned cryptocurrencies and Bitcoin mining, many Chinese Bitcoin miners have shifted their base to Canada to carry on their activities. Canada also has a cool climate and friendly regulations that are an added bonus for the Chinese.
US states like Louisiana, Idaho, Washington, Tennessee, and Arkansas offer affordable energy. Bitcoin mining has become less regulated, despite some confusion on the legal framework. However, the US is a great place to profit from Bitcoin mining.
Successfully mining Bitcoins since 2016, Linthal is home to one of the oldest Bitcoin mining farms in the world. Initially, the farm was located in Zurich, but because electricity was pricy, Bitcoin mining was moved to a smaller village. The cool climate of the country prevents overheating of the equipment, making it an easier workplace.