Bitcoin is a cryptocurrency located entirely online and not linked to a central bank. Its origins are surrounded by mystery and very few people. Bitcoin mining is done by powerful computers that solve difficult math problems.
The luck and hard work required by a computer are one of those problems that come down to digging gold in the ground while digging in a sandbox. Bitcoin miners add the latest valid transactions in blocks. The blocks are then entered into the public folder in chronological order, called a blockchain. Blockchain is used to confirm that transactions have taken place within the network’s Bitcoin nodes. Mining is intentionally designed to use a lot of resources. It is difficult, and each block must contain a proof of work, verified by other Bitcoin nodes each time they receive a block since bitcoin mining is essentially an assumption, which makes it possible to produce hashes.
Today, bitcoin mining is so competitive that it cannot be profitably mined with the latest ASICs. When using older desktop computers, GPUs, or ASIC models, the cost of power consumption exceeds the revenue generated. We have reached the point where Bitcoin mining farms have become the majority of the network. Bitcoin mining farms are places in the world where mining takes place on a large scale, usually where energy is cheap.
Mining farms, therefore, have computers, servers, and cooling equipment on their premises. Parts of China see many such centers because of their hydroelectric power, but the country is looking to reduce the exploitation of bitcoin, which could send operations elsewhere. Canada and Iceland are two possible places for bitcoin mining where energy is inexpensive because it comes mainly from renewable sources such as wind power and hydroelectricity. The Bitfury mining facility in Georgia uses a naturally cold climate to reduce operating costs and keep the mining units in service. There is no doubt that, as the value of cryptocurrencies continues to increase, we can expect to see more Bitcoin mining farms unveiled shortly.