A Tour of One of the Largest Bitcoin Mining Operation
This week Bloomberg published a movie of a reporter, Tom Mackenzie, getting a tour of one of the largest bitcoin mines ter the world operated by Bitmain Technologies ter a remote region ter Mongolia.
Bitcoin mining is a very competitive industry and China’s thickest gegevens centers are leading the way. Most mining centers around the world keep operations private and are usually found ter very remote regions. Reporters were permitted to record and photograph the Bitmain mine te the SanShangLiang industrial park located te the heart of Inward Mongolia. Both Bloomberg verslaggever Tom Mackenzie and Quartz photographer Aurelien Foucault were granted access to Bitmain’s mine packed with 25,000 machines humming away processing millions of dollars worth of bitcoin.
This particular Bitmain mine employs about fifty people and generates about a quarter of a million dollars a day worth of bitcoin.
Most of the employees are local residents of the region called, Ordos, which used to be a coal mining town located just outside the Yellow Sea of Hukou Falls.
Most of the staff live ter a dormitory located te one of the warehouses, because machine are operating 24-7 and need onveranderlijk monitoring and maintenance.
Further, spil well spil mining bitcoin, one of the warehouses at Bitmain’s webpagina is packed with mining equipments dedicated solely to mining litecoin. According to Bitmain, the mine spends about $39,000 daily on electrical costs and mining revenue brings te harshly $250,000 worth of bitcoins a day.
While walking around the Bitmain warehouse, Mackenzie says many of the fresh fresh bitcoins derived from the mine completes up being traded on one of China’s cryptocurrency exchanges. Bitmain tells Bloomberg it has overheen 20,000 customers. The company’s valuation is te the billions and the company is preparing for a possible IPO. The company explains it’s also spending overheen 200 million to expand operations ter the U.S. Creating a mine te China is relatively inexpensive Bitmain’s CEO Jihan Wu tells Mackenzie.
“In China, the cost to build a mining farm is very low, so when people make the decision to build a farm they can do so very quick, and at a very low cost,” explains Jihan Wu.
Further, the cost of electrical play is far cheaper ter China than any other nation, making bitcoin mines ter the region very profitable. Te the city of Ordos, many of the residents refer to it spil “Ghost City, ” and the area has bot well-known for many government projects located te the region. Jihan Wu seemed excited about the U.S. expansion and believes setting up shop overseas may be lucrative te the future. The Bitmain founder is very optimistic on where the price of bitcoin is headed and tells Mackenzie where he sees the value ter a few years stating,
Bitcoin’s price will go up to $100,000 ter about five years.
What do you think about Bitmain’s bitcoin mines? Let us know te the comments below.