Why colocation is the only viable bitcoin mining solution
In the early days of bitcoin, mining from home was a real possibility for the average person. There was enough coin to be mined and it could be done at a low enough cost that all you needed was a moderately powered GPU to turn a profit. Nowadays, however, mining bitcoin profitably requires a much greater wealth of resources that are not as readily available. Here are the main reasons mining colocation is the only solution to the increasingly difficult task of mining bitcoin.
A rise in competition
Over the past several years, the bitcoin market has become exponentially more competitive as the number of miners has increased and the availability of bitcoin has decreased. This rise in competition has made solving bitcoin blocks much more difficult – and that difficulty isn’t going away. In fact, it is now 14,000 times more difficult to mine bitcoin than it was five years ago. This all translates to a need for more power to mine bitcoin successfully, and inexpensive power is not easy to find – without colocation.
High difficulty equals high power costs
Crypto mining ultimately comes down to being able to solve blocks as quickly as possible by using as little power as possible. This is why colocation represents the winning advantage over home mining. Colocation facilities are designed to operate using low-cost power, keeping more money in your pocket while hosting your high-end equipment and operating your rig at max efficiency. They are also more secure than your home and often include in-house experts to oversee your efforts. Paying more than your competitors for electricity simply puts you at a disadvantage.
Cloud mining is not a viable alternative
Cloud mining is often perceived as an alternative to bitcoin colocation, but it doesn’t present a profitable option in the long-term. The concept of cloud mining allows you to mine without any hardware of your own and still be a member in a mining pool. The fact that you don’t have any control over the equipment or its operations quickly diminishes your contribution and your ability to scale. With colocation you get more power for less cost on a recurring basis, and that’s the only way bitcoin mining can work today.
Colocation with Compute North
Serious bitcoin miners need to be using colocation. The maximum efficiency combined with the low cost of power presents an unmatched ability to turn a profit in even your most challenging mining efforts. Compute North is an expert colocation partner capable of helping miners’ operations reach their full potential. Contact us today to start making the most of the world of bitcoin.