Decentralized finance world is still a vague and mysterious industry, despite existing for more than a decade (since 2008). Be it as might be, throughout the time the more and more people become interested in it. This happens due to various reasons: some want to get closer to technological progress, some to try a new branch, some simply to make money, etc.
Not only differ motivations to start a cryptocurrency activity, but the ways of doing it as well. Mining is one of those. Long story short, mining is a process of creating new bitcoins – which take place after computers accomplish multiple digital tasks. To do so, one will need particular equipment and also energy to power it.
In the article below, you will take main insights into bitcoins value and how to do mining hosting at home or colocation centers. Keep on reading!
Bitcoin as a Resilient Asset
Bitcoin is one of the most popular currencies on the decentralized financial market. It was first launched in January 2009. In the period of time from 2009 to 2011 the price for 1 BTC was very low ($1 or even less), afterwards its state is constantly changing. Sometimes its value is growing and sometimes, otherwise – falling. For example, in October 2021 it was $66,000 per 1 BTC, yet in January 2022 it was almost twice lower – $35,000. The rise to $50,000 has been expected in March 2022, yet with the situation in the world it became impossible, now it is postponed to May 2022.
As you have probably guessed, the main problem with bitcoin, as well as any other cyber currency, is its non-stability and uncertainty. Therefore, such investment requires attentive research and analysis of the industry. There is not one versatile opinion on such a business too.
There are experts who claim it is worth nothing and cannot be fairly called an asset because it is not at all resilient; and there are those who think completely differently. Economist Peter St Onge claims that value and price comes solely from supply-demand connection. Consequently, the more people use bitcoin for transactions and savings, the more backing it has as an asset.
To invest in cryptocurrency does not always mean purchasing it but also producing it. Now let’s head to how to do it at your place or with aid of hosted crypto mining providers.
Physical Mining At Home
If for any reason, one wants to mine bitcoin at their home, instead of hosted crypto mining, it is quite possible to make. What is needed for this?
- Equipment. You will need to provide yourself with powerful servers/ rigs/ miners (e.g. CPU, GPU, ASIC, FPGA, etc.)
- Suitable space. When building a mining shed keep in mind it makes lots of noise and requires proper ventilation, so that servers do not overheat.
- Knowledge and skill. It is crucial to fully understand how everything works and be capable of fixing a breakage, when there appears one.
- Budget. Along with rigs, mining sheds can turn out to cost thousands of dollars (depending on scale). Plus, you have to consider your electricity tariffs.
Hosted Bitcoin Mining
Bitcoin mining hosting centers, also known as colocation centers, may become a great alternative for those who intend to mine, but lack opportunity or desire to do everything themselves.
Hosting is a professionally organized space where servers are housed and cared for. Usually, they are intended for numerous servers of different types. They are designed in a way to create the most suitable conditions for the high-tech powerful rigs: location, humidity, ventilation, and so on. Moreover, there work experts, who look after the proper functioning of machines.
The major benefits of using such services are:
- regular professional care for rigs;
- safe keeping of miners;
- expert opinion and consultation;
- 24/7 support;
- data security guaranties.
Investments here reduce to charges for service itself and paying by electricity tariffs.
Once a position on how you are going to mine your coins is determined, it is time to proceed to the next stage. In case you have selected mining at home, it will be building a shed. And if you decided to get competent qualified help – set about analyzing offers of colocation.
The best mining hosting service
Nowadays the market presents a lot of providers of crypto mining hosting services. On the one hand, such variety is wonderful, but, on the other, which one of them to choose?
Before making a final decision, one should conduct pieces of research on the available to him or her hosting by the terms of location (where do you need it to be located: nearby your town or any other specific place). Afterwards cut down the list of consideration to a few of them by the following criteria:
- A company has to have a number of positive reviews. Hence, it should be trustworthy and reliable.
- Check the legal aspect.
- Check if it provides regular support.
- Make sure it does not charge any additional commissions.
- Is the pricing rational?
- Also, it is reasonable to check the electricity data. The price written on bills will depend on the region and the approach energy was obtained.
For instance, let’s take a closer look at a specific provider. Bitcoin mining hosting service at minery.io:
- is totally legal with clear transparent papers;
- no hidden commissions;
- suggests insurance and 24/7 support;
- utilizes green and affordable electricity. Not only it makes the platform attractive from the expenses point of view, but ecology as well.
So, finally, does it make sense to host your own mining rigs? There is no single meaning or universal answer to this question: whom how. It might be quite worthwhile for those who come to know the particulars of mechanics, are ready to dedicate a great deal of their time and effort to caring and fixing the equipment. Otherwise it makes more sense to apply for the assistance of a company that is glad to do these things for you.