An overview of the colocation hosting market for ASIC computers. This data indicates to me that our price of US$1300-1500 will be competitive, and that offering a user-friendly sales process will attract a higher paying customer. (“Singles” are customers who want to host a single miner.)
A quick comparison of all the cloud mining providers I could find. I don’t know what the appeal is here, except that you can buy in for a relatively small amount of money and most of them promise daily payouts. This kind of mining would not produce much profit at all, but might possibly be a fun way to buy Bitcoin. Compare this to our mining profitability analysis where the same hash power for one year costs $2,795.
[The following is not investment advice.]
This is a demonstration of how to estimate your returns from mining Bitcoin.
The process of mining involves purchasing, installing, selling, packing, shipping, configuring, repairing and monitoring computer server hardware. ASIC hardware requires constant ventilation with LOTS of power in a dust-free space where you can make an unlimited amount of high-pitched whining mechanical noise 24/7. And that’s just the hardware.
“The low cost of electricity in Quebec is of interest to the global bitcoin industry…”
Asian investment in mining operation in Quebec/Labrador
Estimations of the electricity rate and monthly bill in BC, keyed on N number
of units @ X demand. The Antminer S9 uses up to 1.45kW. This data shows that the minimum number of Antminer S9’s we must be running to qualify for the lowest rate from BC Hydro is 104.
Any colocation business is very formulaic: plug-in the client’s computers and keep them online. After setup, most of the business is in handling customer accounts, shipping and receiving.
At it’s inception in 2009 Bitcoin could be mined on any computer. Years later it became possible to mine much faster using PC video cards, the kind for super realistic 3D gaming. In 2013 came ASIC, which is a single-purpose chip designed only for the purpose of mining Bitcoin. With each step forward in technology the old ways of mining become obsolete.
Data centres do not typically use passive cooling, instead relying on fans and air conditioning to manage the heat by force. ASIC miners produce far more heat than the computers in most data centres.
ColdMine is a planned colocation host for Bitcoin mining hardware which features: passive cooling, high security and 95% renewable energy. The company will start lean and rapidly expand, taking advantage of existing industrial infrastructure and the cold Canadian climate. We aim to lead the colocation market in Bitcoin mining for small accounts.