Although cryptocurrency mining is concentrated in China, the largest bitcoin mining facility all over the world will be opened in Texas. Recently, a Louisiana- based company Whinstone US Inc. and german bitcoin mining firm Northern Bitcoin AG collaborated to open the largest bitcoin mining facility.
Due to the merger, the new bitcoin mining facility will be opened on a 100-acre land with a capacity of 1 gigawatt. As per the details revealed, the construction of the mega farm will be divided into 3 phases. Phase 1 is scheduled for Q1 next year and by Q4, the entire farm which is said to be equivalent to 57 soccer fields is expected to be completed.
Both companies have been quite successful in attracting clients way before the completion of the farm. Regarding the initiative taken by both companies, the CEO of Northern Bitcoin AG, Mathis Schultz, said:
With this merger, we are catapulting ourselves faster than originally planned to the top of the world in bitcoin mining. Together, we have a dominant leadership position in this fast-growing industry and are well-positioned to benefit significantly from the future development of blockchain technology.
Bitcoin mining is an essential procedure for maintaining the working of bitcoin. Bitcoin miners are responsible to validate transactions made on the bitcoin network and add new blocks to the blockchain. For doing that, they require high computing power and bear electricity costs. That’s why for doing so, they are awarded bitcoins i.e 12.5 BTC.
Bitcoin is a programmed cryptocurrency that has a fixed supply rate. After every 10 minutes, a new block is added to the bitcoin network and miners are awarded. Although now they are awarded 12.5 BTC, after the next halving scheduled in 2020, miners will receive 6.25 BTC for adding a block.
As the bitcoin mining industry is growing and more and more miners are trying to enter, the difficulty of mining is only expected to rise in the future. With bitcoin supply decreasing over time due to bitcoin halving and causing bitcoin’s price to rise, bitcoin mining might become more profitable in the upcoming years. Let’s see how miners competing all over the world are able to survive in a difficult environment.