Bitcoin and other cryptocurrencies are the future we’re heading towards, it would make their life so much easier. Life inside a Chinese bitcoin mining farm. Sequestered away in rural northeast China are six bitcoin mines owned by a secretive group of four people. As of October 2014, the six mines generated 4,050 bitcoins a month, equivalent to $31 Million with the current exchange rate of $7,640.30 per BTC/USD. Their collective computing power accounts for 3 percent of the entire bitcoin network.
Dalian China – Changcheng, to one of their bitcoin farms, also known as a bitcoin mine. Jin Xin, bitcoin mine manager said. “Dalian is a special place in the bitcoin mining industry because of it’s environment, air quality, and conditions are relatively better. Other cities’ mining conditions are pretty rough. The life for miners is pretty dull.”
They owned the no. 1 bitcoin mining farm in Changcheng. It’s a three-story building and they’re using the second floor. He is the general manager of the mining farm. He is in charge of it’s secure operations. These includes staff, equipment, and power supply. He and his friends did the project together. All of them are shareholders. They raised the money and resolve issues together.
They have six sites now. They’re doing their best to expand their base and open up more sites. To put it simply, they’re racing to answer a question on the internet. Whoever does the correct calculation will be rewarded. The reward are bitcoins, a virtual currency. At their peak, they we’re able to mine as many as 100 bitcoins a day [at each of our six sites]. But as difficulty and computing power increase, this ratio is gradually changing.
Electricity costs are a related factor too. The usage is about 1,250 kWh. Their monthly electricity bill is about $80,000 a month. On this scale and with this type of equipment, they can mine 20 to 25 bitcoins per day at each of our six sites. There are about 3,000 miners on Changcheng mining farm. First, each of their mining machines is connected to a power source. Then they’re connected to the internet. Once the miners are online, their computers can make setting adjustments. They can then generate an algorithm. Once the correct query has been calculated, a reward is then granted.
He believe that bitcoin will be the currency of the future and said. “It can’t possibly replace the current financial system, but the financial system is heading in that direction. Bitcoin value isn’t stable because we’re still at the early stage of it’s development. Frankly, it’s still in the mining phase. It’s similar to China’s transition from cash to using credit and debit cards for transactions. We believe in it because it’s the trend of this era. Has to go through during it’s development. Right now, the Chinese government neither supports nor opposes it. As long as the bitcoin market operates safely and legally, i think that the Chinese government will come to support it in the future.”
There are about 900 broken machines on the pile which are now deemed as their garbage. Because the Avalons cost more in electricity while providing a lower hash rate, it’s the product that should be eliminated from the market. The machines they’re using now have a higher hash rate. They recycle what parts they can and re-purpose them. The rest can only be treated as waste material.
Xia Yu – a technician said. “These fans have to work, otherwise the temperature is too high. If they get too hot, the machines breakdown. You can see the fans on the shelves. If anything goes wrong, the hash rate will decrease, and the backs of the miners will flash red. We also have big extractor fans over there. Twelve of those. When you walk in this room, you can feel a big gust of wind. It’s very good for heat dissipation. When running at full capacity, a person standing here could get sucked away.”
Most of their employees live on-site if they’re working. Compared to others in the same position in traditional domestic industries, their employees have a relatively high salary. Once the machine starts running they don’t accept that it stops due to human mistakes. Generally, common setbacks with mining include issues with electrical equipment, the power supply, the internet, or the computers themselves. These four things directly affect the profit of their mining sites.
The main qualification for their employees is computer skills. They need to have a deep understanding of computers. Other skills related to bitcoin will be taught after they get hired. The life of employees is simple, maybe a little boring. Besides monitoring the machines, workers sleep, read, or play with their cell phones. Because this mining operation is running 24/7, they need someone to be here for security purposes.
So when the employees are on duty, they need to be here at night for work too. The problem they fear most is massive system failure. For example, say they have 1,000 machines and 200 of them are down. They’ll have to find out what was wrong. Most problems are little easy to fix. The workload is not very heavy either. They can drink tea or coffee while watching the machines. They listen to their audio books on one side and play games on the other, have some water and smoke some cigarettes. They go over there and take a rest when they are tired. At the beginning, they wasn’t very optimistic.
But now they think it’s great.
We asked Jin Xin: Do you think it’s a good time to buy or invest in bitcoins? he answered – “In my opinion, yes.”