As Cryptocurrency evolves, the crypto mining industry continues to expand. The numbers of large enterprise miners right down to the individual miner are growing and pushing the need for more mining infrastructure. And of course, it is not just crypto miners who are in search of low-cost computing power. The cloud, gaming, AI, e-commerce, social media, all drive the need for bigger and more efficient low-cost server farms across the globe.
The spectrum of machine demand is vast from the massive computing corporations like Google, Microsoft, and Apple to all industry and governments, to small business and individuals. Scale enables capabilities in terms of available capital and expertise.
Business models and lowering market entry have allowed for many small businesses and individuals to participate in blockchain endeavours such as mining cryptocurrencies. There is money to be made! Crypto mining competition is increasing with more entries into the market and machine performance advancing. Revenue is all about how fast and how much data can be crunched. Net revenue is about uptime and decreasing operational costs. Obtaining more revenue means more machines and more space…
The demand for appropriate mining or computing space is driving the colocation and hosting industry. In order to maximize dollars earned in the virtual realm, it does matter very much where the physical computing power is located. To keep costs down, cooler climates are sought to minimize the cost of keeping miners operating at their most efficient temperatures. Also touching on cost and uptime is a secure, reliable, low-cost source of electricity. Sounds simple initially but when the numbers are applied, the huge quantity of power and physical space along with secure reliable power, and bandwidth, all makes for finding a practical fit very challenging on a larger scale.
Keeping things simpler for the miners is what hosts are doing. Spaces and scales with existing infrastructure are being built out to save costs and pass along savings to their customers. So where are miners going?
Miners are seeking hosts that will maximize their bottom line. They look at all costs, services, and lease plan terms. Savvy miners understand the cost of setup and downtime, so want to find a great host and stay for a while. They look at jurisdictions and consider their timing, regulations, and how welcoming a region may (or may not) be political. Canada meets a lot of these criteria.
Knowing savvy miners and what really matters to their clients’ bottom line, CrytpoHost has decided to invest in Manitoba. The province has an abundance of reliable clean hydro-electric power. Manitoba’s hydro generation and stable grid keep mining uptime to a maximum. The province’s cool climate (average temps are summer18C and winter is -18C) with short summers keeps cooling costs low. Low cooling costs coupled with the low-cost hydropower allows CrytpoHost to pass along significant savings to mining clients. Manitoba is welcoming the opportunity to support the hosting industry in a practically meaningful way. The province has engaged all stakeholders in an effort to create a sustainable industry and has been watching other regions’ issues to learn. Manitoba is striving to produce a predictable environment for all stakeholders. Manitoba understands that it has a lot to offer the crypto mining industry. CrptoHost Canada and Manitoba are working together to create a profitable long-term hosting industry in Canada’s “Friendly” province.
A mining pool as its name suggests is a group of cooperating machines working together using their collective computing power to crack the current block difficulty. For the average user, this is the only option they really have to reap the rewards from cryptocurrency mining. The majority of mining pools are centralized in China due to the abundance of cheap electricity.
The next obvious question is what are the best pools to join? There are 20 major mining pools that you can choose from. Reffer to the pie chart below to see the distribution of computing power by mining pool.
All these websites offer very similar services the only things that differ from site to site is the cut or the fee that is applied to your payouts from the pool. Bitcoin miners can constantly switch pools easily if desired to maximize their profits. This means the market share of pools is constantly changing.
As the trade war between the US and China heats up cryptocurrency companies are about to get hit hard. President Donald Trump is imposing a 27.6% tax on mining hardware. This is because in June this hardware got classified as “electrical machinery apparatus”. Chinas top hardware producers such as, Bitmain, Canaan and Ebang are expected to be hit the hardest. Out of those three, Bitmain will be impacted the most as 51% of their sales were from overseas. This would essentially erode Chinas dominance over the mining industry. These tariffs, however, give the opportunity for new perspective and enticing markets such as Canada where electricity is cheap and regulations are relaxed.
What is Cryptocurrency Mining?
Cryptocurrency mining can sometimes be a complex process to understand and for most people, they understand it as the “finding digital coins”. Yes, this ultimately is the final result, however, the steps involved to get that coin are a little more complex.
Since these blocks are so heavily encrypted these so-called “math puzzles” require high computing power to be solved. This is where your computer hardware comes in to play, specifically your graphics cards and your computer processing units(CPU).
Cracking these blocks and adding them to the blockchain is roughly what mining is. Miners – which are your computers that contain the above-mentioned parts – are responsible for verifying transactions. The reward for successfully mining is a payment in that blocks coin. This payment is based on how much the miner’s hardware contributed to solving that puzzle.
Once a block is solved the coins are released and new block opens up. Each time a new block is opened up the difficulty of mining increases requiring more computing power. That is why we now see non-traditional computers called ASIC miners that are specifically built to meet the demand of the ever-increasing difficulty of solving these puzzles. The difficulty scales with the number of machines mining, meaning if there is an abundance of machines mining the difficulty will only increase but if there is not a lot then it becomes easier.
The importation of mining hardware into Canada, the sale of mining hardware within Canada and the operation of Bitcoin mining businesses within Canada are not prohibited under any Canadian federal laws.
Canadian federal and local provincial and territorial laws impose consumer and personal data protection, the conduct of business, health, safety, employment, taxation and other general laws which would apply to such activities as they would to any other businesses conducting business in a jurisdiction of Canada.
Buying, selling, and importing mining equipment (miners) are all legal in Canada. Operating businesses with miners are also legal. Like any business, there are Federal and Provincial laws affecting miners for consumer and personal data protection, the conduct of business, health, safety, employment, etc. There are no laws that target mining with special regulations.
The importation and sale of equipment and operation of such businesses are also subject to Canadian federal laws governing the use and transmission of proceeds of crime, anti-money laundering, international economic and other sanctions, as well as import controls.
There are no restrictions under Canadian federal laws that prohibit natural persons or companies from possessing, selling, trading, or engaging in the mining of Bitcoins in Canada. However, activities such as the possession, use, transfer, or trading of cryptocurrencies may also be subject to Canadian provincial securities and derivatives laws to the extent that the cryptocurrency is considered a “security” or a “derivative” by such laws.
No Canadian Federal Law prohibits anyone from mining, possessing, selling, or trading Bitcoins. Income or capital gain profits may be taxed.
Canadian Regulations may change by the governments when they are announced.
What do the Hash terms mean, really?
Blockchain and Bitcoin are not very old, but the increase in processing speed is incredible. CPU’s only a couple of years ago could hash at 1,000,000 hashes/sec.
ASIC speeds are now in the PetaHash range, about a billion times faster.
Here is the terminology, defined:K equals a thousand (units)M equals a million, which is a thousand times thousandG (Giga) equals a thousand times of the M. (a Billion)T (Tera) equals a thousand times of the G (a Thousand Billion)P (Peta) equals 1000T, (so 1 Million Billion Hashes/sec)For the exact number, 1 Peta = 1,000,000,000,000,000 units.
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