Skip to main content

Why Host Your Bitcoin Mining Server at at Colocation Data Center?

A common question we are asked all the time, is "Why would I host my server at a data center, and not at my house, or my office?". The Short Answer: Scalability.

While it is initially cost effective to keep mining servers in a residential or small commercial setting, the saving's quickly diminish as the mining operation scales up. There are many costs that are often ignored when a Bitcoin Mining operation starts up. While nearly everybody is immediately aware of the electrical costs involved in the endeavor, hidden costs quickly add up. These include:


  • Electrical Infrastructure Costs: Typical new construction provides for a code allowable wattage consumption of 38,400 watts. This is 34 Antminer S1's or 20 Cointerra Terraminers. This power figure negates electricity needed to actually live or work at the location, and it negates cooling costs. Installing approximately 20 x 20amp electrical outlets also costs money.

  • Cooling Infrastructure Costs: It will take approximately 40% of the electrical consumption used by a miner to cool the space it is in, if mechanical cooling is necessary. This leaves only 23,040 watts available for actual mining power, and it also adds 40% to the cost of the net electricity used for the operation. With the national average of $0.12 per KWh, that brings the total to $0.16 per Kwh with cooling costs involved. Also, a net consumption of 23 Kw will require about 6.5 additional tons of cooling. Most large houses have about 6 tons for comfort cooling, this will mean a total of 12 tons of cooling necessary. Installing this additional air conditioner costs money.

  • Long Term opportunity costs: With the increasing Bitcoin Difficulty, one must take into account whether the costs of installing 20 x 20amp plugs, and 6 additional tons of air conditioner will make a good long term investment.

When it comes to crypto currency and mining for coins, the old adage of "time is money" holds true more than ever. This needs to be in the forefront of your thought process when deciding how you will go about this process. Make sure you choose a data center that will understand how valuable your uptime is!

In the end, a true data center will have not only battery backup, but a secondary power source, such as a generator. They'll also have network redundancy. These are 2 more things that will prove to be valuable to your experience.

Save yourself the worries of power consumption, electrical consumption and the fear of downtime for your equipment. Colocate your equipment and start earning your coins!




Source by Rich Tota

Popular posts from this blog

The Basics of Cryptocurrency and the Way It Works

In the times that we're living in, technology has made unbelievable advancement as compared to any time in the past. This evolution has redefined the life of man on almost every aspect. In fact, this evolution is an ongoing process and thus, human life on earth is improving constantly day in and day out. One of the latest inclusions in this aspect is cryptocurrencies.Cryptocurrency is nothing but digital currency, which has been designed to impose security and anonymity in online monetary transactions. It uses cryptographic encryption to both generate currency and verify transactions. The new coins are created by a process called mining, whereas the transactions are recorded in a public ledger, which is called the Transaction Block Chain.Little backtrackEvolution of cryptocurrency is mainly attributed to the virtual world of the web and involves the procedure of transforming legible information into a code, which is almost uncrackable. Thus, it becomes easier to track purchases an…

Forex MegaDroid - The Trading Robot That Applies Two Trading Strategies

It is important for novice traders to gain the basic knowledge of Forex trading at the very beginning of their attempts. After you get the rough ideas of what those charts, tables and axis mean, then you should study in details about which trading style suits you the most. Currency trading involves completely different styles. People should opt for their own strategies, but basically there are two primary types of analysis: the technical and the fundamental. A few traders would choose one of the two, some will combine them, others just follow what the robot tells them. Forex Megadroid belongs one of the few automated programs that applies both trading strategies. Forex traders who choose to use technical analysis always base their analyzes on the currency market trend. They read charts and recognize the common patterns for the price movement. Different traders may employ various reporting system to make the analysis easy to read or update. For the users of technical analys…

Virtual Currency Games

Every little boy's (and many grown men's) dream of making a living by playing video games is edging closer to reality. The recent release of HunterCoin and the in-development VoidSpace, games which reward players in digital currency rather than virtual princesses or gold stars point towards a future where one's ranking on a scoreboard could be rewarded in dollars, and sterling, euros and yen.The story of the millionaire (virtual) real estate agent... Digital currencies have been slowly gaining in maturity both in terms of their functionality and the financial infrastructure that enables them to be used as a credible alternative to non-virtual fiat currency. Though Bitcoin, the 1st and most well known of the crypto-currencies was created in 2009 there have been forms of virtual currencies used in video games for more than 15 years. 1997's Ultima Online was the first notable attempt to incorporate a large scale virtual economy in a game. Players could collect gold coins …