Coin mining without any extra effort

Want to start Coin mining today? The era of the “gold rush” is in the past, but the miners’ desire to make money is not. Only now, for the extraction of precious metals, enthusiasts have “moved” to the Internet space. However, the same problems remained with the equipment: it must be properly assembled, maintained, and protected. And also, to provide powerful voltage.

To solve this problem, they began to resort to the construction of mining hotels outside the settlements. What does a suburban crypto farm look like and decide the fate of finance? Let’s find out.

Reasons for the emergence of mining hotels

In the beginning, crypto mining was a hobby of only a few enthusiasts. Even the possibility of exchanging coins for real money was not particularly attractive. This continued until 2017, until the boom happened and the value of the digital currency started to skyrocket.

But although at that time many “miners” came to the mine, almost all of them wore rose-colored glasses. Most had no idea what awaited them.

And almost immediately they ran into problems:

  • exorbitant load on home electrical networks;
  • the need for proper organization of cooling systems and the constant noise from them;
  • the need to monitor the proper functioning of the equipment 24 hours a day.

Mining was not immediately perceived strongly in the business community, with many treating it as a small side income. As soon as coin mining took the form of a legal enterprise, the need arose for qualified management of mining operations. Soon its owners realized that placing equipment in a small apartment brings too many inconveniences and limits the scale of the business.

And an alternative entered the picture: a separate world of mining.

The step-by-step process of its creation can be described as follows:

  • First you need to find a separate room.
  • Then you should bring him an industrial power line.
  • After that, connect to a reliable Internet provider.
  • The next step will be the signing of a contract for the protection of the premises.
  • And finally, you’ll need to be ready to go to the site at any time to troubleshoot.

All this required substantial financial costs, the availability of free time and a great desire to plunge into a new business.

Crypto-hotel business: characteristics of the organization.

The mining hotel is a special room designed exclusively for the organization of crypto-farms, where all conditions for their comfortable work are created. The crypto miner will only need to bring the equipment and pay the rent. The company that owns the hotel will take care of the rest.

His responsibilities include:

  • provide an uninterrupted connection to the electrical network, designed for industrial loads;
  • creation of optimal environmental conditions (temperature, air humidity, cleanliness);
  • competent organization of the fire extinguishing and ventilation system, the workspace for the mining of cryptocurrencies;
  • multi-line high-speed Internet connection;
  • 24-hour security provision and strict access control;
  • Hiring a team of highly qualified specialists to monitor the operation of the equipment and solve problems;
  • creation of a 24/7 “live” technical support for competent customer orientation and problem-solving assistance.

The competitive advantage is the provision of additional services. Demanded by miners, for example, repair, maintenance and configuration of equipment, privileged right to lease additional capacities.

As a general rule, mining hotels are located in places with cheap electricity, outside the city, which reduces general costs, since this item of expenditure is the main one in the production of cryptocurrencies.

If they open, then someone needs it.

The emergence of mining hotels as a business is attractive to both owners and digital miners. The former can mine cryptocurrencies without their own equipment (although most often part of the workspace in the territory is occupied by business owners).

The list of benefits for miners is broader:

  • electricity cost cheaper than when placed in your apartment;
  • there is no need to search and equip areas for farms;
  • the equipment is under 24-hour protection and professional supervision of specialists;
  • peace and quiet at home, family and neighbors are happy;
  • It is possible to remotely manage your farms.

Of course, there are also disadvantages. For miners it is:

  • the risk of equipment loss by choosing an unreliable contractor;
  • unfair compliance with the terms of the contract by the management and employees of the mining hotel;
  • the need for monthly rent;
  • deduction of a percentage of the mined cryptocurrency for additional services;
  • Non-compliance of the actual conditions with those declared.

Business owners’ earnings are fickle. It depends on the state of the cryptocurrency market and the transparency of local legislation regarding such activities. For example, with the growth of the currency, the number of miners who want to rent a space also increases. But during periods of falling prices, many, on the contrary, close their farms, and the influx of new customers practically dries up.

Although the most logical thing would be to buy equipment and increase the number of farms during a downturn in activity. At this point, prices are at their lowest point and yields at their highest point. After all, most miners, due to loss of profitability, have to turn off their devices more often, and due to increased costs, they almost immediately sell the mined coins.

The correct mining strategy is to be able to:

  • Focus on scaling capabilities during periods of crypto market depression. Whenever possible, buy equipment from less experienced colleagues. Focus on accumulating cryptocurrencies, resorting to your implementation only when absolutely necessary.
  • Wait for the right moment, catch X and sell the crypto when the next bomb comes. And in the next round of mining enthusiasm, get rid of outdated devices and exchange them for current models.

Demand drives supply growth

The number of mining hotels, as well as the miners themselves, is constantly growing all over the world. In Russia alone there are more than 40 large sites (designed for a capacity of more than 10 MW). They are managed by reliable and time-tested companies: BitRiver, BitCluster, CryptoUniverse, IBMM, UMC, LAZM. There are also hundreds of small participants in the Russian market, whose age does not exceed 2-3 years.

The main players are in China, Canada, the US. In almost every country, there are local companies that rent space for mining farms.

Not all places are suitable for organizing a large mining hotel capable of providing high-quality tasks. Several factors must be taken into account. One of the main conditions is the proximity to a powerful source of electricity. To connect to high-speed Internet communication lines, a developed infrastructure is required. Serviceability is important. Finally, the organization of security and fire protection is mandatory.

For example, the Russian market leader in providing services in this area is BitRiver, founded in 2017. The company manages mining hotels with a total capacity of 150 MW. Among its clients are miners from Russia, Japan, China, South Korea, Brazil, Lithuania, India, Poland. Plans include the opening of a new hotel in Buryatia (rated capacity 100 MW) and Bratsk (82 MW).

The mining hotel business is in great demand. Here is what BitRiver CEO Igor Runets has to say about it: “Today we see a demand for at least a capacity of about 400 MW. To fulfill it, it is necessary to carry out a large amount of construction work. Now we are looking for suitable options for the purchase of land and real estate to launch new data centers.”

To finance projects, the BitRiver management decided to issue its own tokens. By implementing them on the crypto exchange, Bithumb plans to attract investments in the amount of $35 million and a total of 100 million BTR tokens will be issued. Each of them, 3 months after the purchase, will grant the owner the right to use 8.64 kW/h in the company’s mining hotel. For such “miners” the cost of 1 kWh will be only 4 cents. If desired, it is allowed to pay with these tokens up to 10% of the bill for the services of a mining hotel. A good incentive will be the free repair of mining equipment if necessary.

Likewise, the holders of crypto products will receive a premium of 10% of the annual balance in the same unit. To further stimulate investors, the company promises to repurchase all assets issued before April 12, 2026 at their face value of 35 cents. Conclusions

As you can see, the future of the mining hotel market is very promising. The business gives the owner the opportunity to mine cryptocurrency even in the absence of his own team. And the use of new locations with cheap electricity reduces the cost of maintaining the space, which increases revenue.

The legislative vacuum can become the only brake on the direction. It leads to the fact that market participants have to register a business in foreign jurisdictions, where, as a result, the money paid in the form of taxes also flows. Obviously, reaching a new level is only possible if appropriate laws are adopted that unambiguously regulate the industry.