Mining farms make cryptocurrency transactions possible, but they can pose a significant problem.
Cryptocurrencies are one of the most interesting assets, not only because of the amount of them that it is possible to acquire but also because of the technology they use to, in some way, have a shape.
For cryptocurrency transactions to take place, the figure of miners is needed. His work is similar to that of the classic worker who extracts minerals underground. But for this, they do not use explosives or pickaxes, but computer equipment.
The minefield of criptomonedas involves puzzle solving complex mathematical ranging completing chains of blocks within the blockchain. Once there is a complete sequence, the miner gets a reward in the form of the cryptocurrency he is mining.
But this activity requires a lot of energy and powerful computer equipment. This technology could be done until a few years ago with computers like the one you have at home, but each time the requirements have been increasing. Something logical, since the faster the puzzles are solved, the more reward you get. And cryptocurrency mining can be very profitable.
In the domestic sphere, mining cryptocurrencies is not profitable in Spain. First of all, for the price of electricity. The costs exceed the earnings that a miner can earn individually. And for that same reason, it would no longer only take very powerful and expensive equipment to make a profit. We would need several computers to make the investment profitable and ensure a return. Also, mining one cryptocurrency is not as profitable as another.
Cryptocurrency farms, what are they?
A cryptocurrency farm has the same meaning as a poultry farm, to make a profit. They are facilities in which we find a large number of computers performing crypto mining tasks. Laptops equipped with very powerful graphics cards are often used, remember that this factor is essential for profitable activity. In addition, farms are often established in places where electricity is cheap. Iceland, which obtains electricity through geothermal energy, is one of the havens of mining farms.
But it is China that monopolizes the crypto mining tasks since it is estimated that 70% of the miners' work is located on farms in the Asian giant. Countries like Iran have banned mining activities, as there have been numerous outages. of electricity in major cities due to energy consumption. Legislation regarding the mining of crypto assets is either non-existent or has very vague regulation. It should be remembered that cryptocurrencies are fully delocalized and do not belong to any institution or government.
How many computers can there be in a mining farm?
There are some that have up to 10,000 teams performing mining tasks. This requires a high voltage infrastructure that is permanently monitored. In fact, in countries like China, it is common for those who are dedicated to the management of these farms to live in them. They also need good ventilation, since the crypto mining task puts the equipment to the maximum of its possibilities. Large fans or air conditioning installations try to lower the temperature as much as possible. The heat reduces the performance of the equipment, and therefore, the mining speed.
We have talked about how interesting Iceland is when it comes to mining. Not only because of the cheap price of electricity but because it has internet networks that work very well and it is a relatively small island. Farms try to establish themselves as close to electricity generating facilities as possible. In this way, the performance can become interesting. The image of someone who bought a powerful graphics card and used an old computer to mine is now totally out of date.
The gamers on the warpath
What does it have to do with a player not being very in favor of the proliferation of these farms? Very simple, the computers that are in them need very powerful graphics cards. Such as the one they use so that their games develop their characteristics fluently. The problem is that mining companies are buying these graphics cards in bulk. As a result, they cannot access them. It is a practically impossible task. The most powerful computers, with integrated graphics, are also the object of miners.
Brands such as Nvidia have started to work not only to increase demand but to provide miners with specific graphics cards for this task. The objective, to continue taking a piece of the cake and answer both players and miners.