5 most interesting facts about mining. What is worth knowing about the extraction of cryptocurrency?

Did you know that today, more electricity is being spent to maintain mining than to provide for 158 countries, including Hungary, Ireland, Slovakia and Serbia, and the total income of all miners exceeds $ 7 billion? So, all the electricity consumed would be enough to ensure comfortable living conditions for 6 million people in the UK. Want to know more interesting facts about mining? Then read on.

1) The main country cryptominer

Did you know that for many years China has been the largest player in the digital coin mining market? Despite the increased attention of local authorities to the issue of the use and production of cryptocurrencies, China alone accounts for about 62–70% of all capacities, which support the performance of the Bitcoin network.

There are even special indices for calculating the optimal energy consumption during mining of digital coins. For example, the most popular index from the company Digiconomist, which is called the Bitcoin Energy Consumptions Index. In addition to it, there is a similar index on the optimal calculation of energy consumption during the mining of the Ethereum coin. But a global registry has not yet been developed, which would chronicle the global energy consumption from mining installations.

2) PoW and PoS – for whom the future?

As you know, today there are two main ways of mining. This is the PoW algorithm, which uses the power of computing equipment, and PoS, where, using the masters, owners of a large number of coins lease them to the network. For all these processes miners are rewarded.

According to Brave New Coin, about a third of all miners today use the traditional PoW algorithm. PoS accounts for 18%. About 8% more use a hybrid of these two algorithms. Approximately 4% of miners use new approaches, such as PoC or POI. The remaining 40% of cryptoactive assets are produced either as intermediate tokens or protocol tokens.

3) Mining revolution in Canada

Quebec City is famous all over the world as one of the cleanest cities in the world. In addition, there is a company called Hydro Quebec, in whose network there are as many as 30 large mining farms. It is curious that the electricity that is used here for the extraction of bitcoins is generated thanks to the local hydroelectric station in the most ecological way possible. So, the former head of the company Montereal Internationals even called this city “a place of green Bitcoins”.

Moreover, Hydro Quebec provides one of the lowest electricity tariffs in North America, where data centers pay only 2.46 cents per kilowatt-hour, and private individuals pay 3.92 cents per kilowatt-hour. However, here the interesting facts about mining are just beginning.

4) Mining costs are getting bigger.

According to the investigations of the Elite Fixtures company, the most favorable for mining are countries such as Sweden, Ireland and Norway, which are distinguished by cheap hydropower. At the same time, South Korea is considered the most expensive country for mining cryptocurrency, where mining of only 1 VTS will cost you about $ 25,000.

At the same time, in Venezuela, the extraction of one bitcoin coin costs about $ 531. If we talk about the CIS countries, for Ukraine this figure is about 1,850 dollars, for Belarus – 2,170 dollars, for Kazakhstan – 2,830 dollars, and for Russia – 4,670 dollars. For example, for the USA this indicator is $ 4750, for Japan – $ 8700 and for Germany – $ 14,200.

5) The evolution of mining chips

Today, there are three main stages in the development of cryptovalt mining technologies.

• Mining on the CPU in 2009-2011. That time when on any computer it was possible to fully engage in mining. It is the CPU of your PC or laptop that fully provided the necessary power for the extraction of coins.

• Mining on the GPU in 2011-2013. The beginning of using video cards for cryptocurrency mining has become a new stage in the evolution of the entire mining industry. These were mostly video chips, which were often used for multi-functional computer programs or realistic video games.

• The appearance in 2013 of ASIC-machines. When the cost of a military-technical cooperation exceeded $ 1,000 and many people realized the seriousness and prospects of the mining industry, special computing devices began to be developed that are designed for the most efficient mining of cryptocurrencies – ASIC or “Asiki”. Today, it is this computing equipment that forms the basis of the entire Bitcoin network and many other popular coins.

In fact, there are many more amazing and interesting facts about mining, about which you can talk endlessly. But agree that the above data is enough to understand how curious and diverse this industry is.

Leave a Reply

Your email address will not be published. Required fields are marked *