7 lessons learned from building and scaling Bitcoin mining operations
Support for mining BTC mining on an industrial scale requires sufficient experience for successful crypto mining.
The beginning was laid in a dorm room, then the hobby grew into the scale of mining around the world. There is no manual in this lesson, because everything was invented by trial and error.
Creating a multisite large-scale system like ours requires serious efforts. But if you really want to succeed and multiply what you already have, or start investing in this industry, here are some important lessons that will help you.
Lesson 1: To make money, you need (a lot of) money
Once upon a time, a regular laptop or a couple of installations in your room were enough for successful mining, but at the moment experienced miners have created a level of competition that requires expansion.
An amateur miner already had to take care of a large room full of installations running non-stop in order to continue to make a profit. Who started earlier, scaled up and moved along with the market. Beginners will have to start investing now with the existing capital.
Lesson 2: Establish Long-term Relationships
The sphere of cryptocurrency mining is still growing and is still very consolidated, the leadership is occupied by several people. For example, a large mining company can easily order the necessary equipment from any supplier you like.
There are not many equipment suppliers on the market right now, and their production cycles are based on only a few chip manufacturers, which heavily regulate the supply and create a shortage of chips. It turns out that success also depends on profitable cooperation in this industry.
Lesson 3: Obsession with Operational Efficiency
The operational efficiency of successful miners, their profit and competitiveness, depends on their competent optimization of electricity, the availability of the most modern equipment, the exclusion of interruptions and shutdowns leading to loss of computing power.
You should pay a lot of attention to operational efficiency. For example, in March 2020, when bitcoin fell below $ 4,000, those miners who did not have operational efficiency were forced to leave.
Lesson 4: Never Stop Innovating
The proverb says, “innovate or die.” When mining, all equipment must be the most modern, powerful and fast in order to make a profit. Therefore, there is no other way out but to innovate. It is necessary to constantly update the equipment and maintain the condition of the existing one. Operations need to be planned in order to replace the equipment in time. It is also mandatory to have something in reserve in case of unforeseen breakdowns. Any stop will be very expensive.
Innovations also include the development of the most successful work options for your company, the creation of the best mining software. The most modern technologies will give you an advantage, and you will be able to overtake your competitors.
Lesson 5: Choose Your location Wisely
Undoubtedly, bitcoin can be mined from anywhere, but it is still worth considering the location for large-scale operations. The type of electricity, its sources, and prices differ in different places. Therefore, it is worth finding the most profitable places so that electricity is both cheap and environmentally friendly and supplied without interruptions.
In addition, some countries impose restrictions on mining and from there you have to move to the most favorable places, such as from China and Iran.
Lesson 6: Time is Money
Any downtime will cost you serious costs, as will the latency of computing power. Therefore, constant operational control over the updating of equipment, the maintenance plan of mining installations and software that can effectively manage operations is necessary. It requires creativity and timely use of monetary resources to increase your profits. To do this, you must be sufficiently knowledgeable in your operations and know what to do in case of anything.
Lesson 7: Scale is Everything
The mining race has reached a huge scale. Therefore, if you are just starting out, you need a large scale, and scale is directly related to income: the bigger you are, the more profit you get.
Moving forward
The expression “faster, higher, stronger” can also be applied to bitcoin mining, so if you are ready to develop a strategy, invest time and money, solve problems and take risks, then you will like this industry and will bring income.
There are still many lessons that we have learned, and many lessons that we will learn in the coming years. Today we will continue to build this new industry, which is already creating the future of a decentralized currency and new ways of exchanging values around the world.
