Bitcoin mining is not a new term for the crypto industry. Basically, it is a process of adding the crypto transaction to the blockchain ledger. Bitcoins are mined to confirm all the transactions that are being processed on the public ledger. This whole process on the network is being managed by the miners, who assures all the processed transaction on the network are legitimate.
To facilitate this process, the miners need powerful computer equipment which either involves GPU (graphic processing unit) or an application-specific integrated circuit (ASIC). These powerful equipment help the miners to solve the complex mathematical puzzles and turn them into a shorter and random sequence of letters or numbers which is called the hash.
In the year 2009, when the first Bitcoin was mined, the miner used standard multi-core CPUs to generate BTC. But now they have specialized warehouses that have a huge amount of mining hardware. The mining pools working in these warehouses directly receives the hashing power.
Notably, the mining pools are a group of miners that work together to mine a bitcoin. They inked a deal according to which, the block rewards they earn at the time of mining would be distributed among them as soon they are unlocked.
The miners get the reward on the basis of the hash power they have contributed.
Problems Faced During Bitcoin Mining
Ten years ago, when the mining process was introduced the only thing required by the miners was a simple computer. But as the years passed, the industry noticed several changes and the process became a bit complex. The huge amount of equipment used during the process consumes way too much electricity.
In a recent report, it has been stated that currently, the power consumed by the mining industry is equal to the power of seven nuclear power plants combined.
People involved in the mining process have established their mining farm in those countries which could offer the technology as well as the access to cheaper energy resources.
Countries With Highest Share of Bitcoin Hashpower
Georgia, China, the US, Iceland, Switzerland, Russia, Venezuela, Taiwan and Ukraine are considered to be the best countries around the world for bitcoin mining. The mining companies present in these countries controls a large amount of network hash power for mining the cryptos. These countries not only offer electricity at the cheapest rate but also they offer several best equipment which helps the miner.
Among these the five best mining countries are:
Bitfury, one of the largest Bitcoin mining company is established in Georgia only. The company develops and sells the mining equipment to the users. As per the report, Bitfury mines 15 percent of all Bitcoin.
China is considered to be the global epicentre of mining. The country is responsible for offering a total of 65 percent of the world’s hash power to the mining pools. Notably, half of the country’s hash rate. i.e., 35.76 percent is generated in Xingjiang.
The country has a huge amount of plants which helps in manufacturing video cards and ASIC miners. The miners in China can purchase the mining equipment at a very low price. China offers electricity to the miners at a very low price.
The US is the home of 21 Inc., which is one of the largest mining companies around the world. The company based in California sells the low powered mining solutions to the miners. As per the report, 21 Inc. mined around 3 percent of all bitcoin.
Apart from 21 Inc. another company in the US involved in bitcoin mining is Gigawatt, which was launched in the year 2012. The founder of the company Dave Carlson started the company from his house basement and just in one year, the company became the multi-billionaire business. The company generates 1.3 peta hash power for mining bitcoin. The place, where its warehouse is based, offers the cheapest power in the country.
The country has one of the large mining farm, Genesis Mining. Earlier, the mining capacity of the farm was in China and Bosnia, but gradually it moved to Iceland and Canada. Iceland is considered to be one of the best countries for mining because the weather here remains cold and the electricity offered to the company at a very low cost.
The Swiss mining farm is the largest farm in Switzerland which is located in a small village of Linthal. It was established by Guido Rudolphi who already has a mining farm at Zurich too. Rudolphi has mentioned that the operating cost of mining farm in Zurich is very high. Rudolphi struggled two years to find mining which could cost low, then he found it in Linthal. But there also farm one issue that is related to the cooling of processors.
These five countries around the world are offering one or the other best thing that is required for mining bitcoin, that is the reason they are considered to be best.
The bitcoin mining process requires a hash power which helps the miners in minting a new bitcoin. Several countries around the world offer haspower to the miners at a very cheap rate.