In cases you don’t have the capital or space to run a mining operation, or if the electricity prices in your country are simply too high, there are several options that allow you to still mine cryptocurrencies such as bitcoin (BTC). In this article we will explain what one of these options is: Colocation.
Mining cryptocurrency can be very exciting for the enthusiasts among us. However, mining brings a lot of challenges to the table. A mining operation needs to be profitable to make sense. One of the most important factors that determines the profitability of your operation are the electricity costs in your country and local area.
In other words, the costs of the electricity that is needed to mine bitcoin, need to be lower than the current price of bitcoin. You can read more about the costs of bitcoin mining in one of our previous articles here.
As the popularity of bitcoin mining, and cryptocurrency mining in general, rose significantly, the competition on the market is fierce. This means that the margins to be profitable became smaller and smaller. Even the tiniest advantage could make you come out on top. It is therefore important to have everything in order, from the stability of your internet to the stability of your local electricity grid. On top of that, a mining operation produces a lot of noise due to the fans that keep your ASIC miners cool.
If you’re mining cryptocurrency as a hobby, all of these smaller factors might not be so important to you. But to be as profitable as possible it is of utmost importance to have all these details in order. Making sure everything is indeed in order and to prepare the infrastructure at your own property can be an expensive project.
Blockstream, a Canadian Bitcoin technology firm, will soon come with a solution: a colocation service. This means that cryptocurrency miners can send their mining rigs to a facility that was specifically built to house miners. In the announcement of August 8th Blockstream describes that it will take care of different steps of the process.
First Blockstream will take care of the logistics of your mining rigs. The company will make sure that your miners arrive in one piece at their facility. Then they will install your rigs professionally. From then on you will be able to control your miners with specially developed and fully transparent software. The bonus is that Blockstream will always have technicians on-site that will make sure that all is running smoothly.
Services like colocation services can help you make your mining operations become profitable. On top of that, you won’t have to deal with the sound pollution and the upgrades a bigger mining operation demands. With a colocation service you basically rent a spot for your mining rig, so that you can mine without a hassle!
Hosting service Miners.eu
Like Blockstream, also Miners.eu offers a colocation service. Thanks to our mining hosting service you will have lower electricity costs, save space and you will not have to deal with loud noises at your home or office. But it gets better.
Our experts will manage your mining rigs and will constantly monitor them to determine how they are doing and if they can be optimized. In other words, your mining rig will be in good hands! If you’d like to receive more information about our mining hosting service, please fill in the contact form here.