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How I started mining crypto. – Didar – Medium

How I started mining crypto. – Didar – Medium

First time I heard about bitcoin in 2017. My friends from the Bay Area told me to read about it. I started with googling and watching YouTube videos. It was interesting and I bought a couple of books and divided to crypto history.

From the very first moment I felt that this technology is promising and I was excited about it. While I was looking for ways to buy bitcoin, the price was climbing up every week. So, I decided to research more until the end of the year and not to rush.

After I read about mining, I was thinking about how to set up my own rig. I found a local guy who promised to help, but there wasn’t any single GPU on the market. To get 6 for set up you had to wait for a month and pay too much. Antminers at that time cost more than $4500 per unit from resellers.

It was really crazy times. So I didn’t find an adequate way to enter the market and decided to wait. While waiting I watched dozens of YouTube videos on mining and read a lot of articles. Till the moment I first bought my miners I was consuming knowledge.

And finally, in May 2018, I bought my first 20 ASICs. I immediately launched them at my friend’s place. In the beginning, there was a problem with the hash rate, as we were still learning how to set up proper internet and power supply. In practice, we were intensively improving the facility, as we wanted to get maximum out of mining.

After a month and a half, we decided to expand and made bulk order directly to Bitmain. Prices dropped nearly 35%, so we thought it was a good idea to buy more, as we gained experience with facility management. At the same time, my friends asked me whether I can host and manage miners for them if they buy some. I said yes, but offered a fee for hosting.

That’s how my hosting business started. And it grew rapidly since that time. As not only my friends were interested, but later I met a lot of international miners, who came to my country in search of cheap electricity. I started to think globally and understood the existing problem on the market. As prices of crypto declined significantly, in many places mining became unprofitable. That caused the migration of mining equipment to cheaper places.

Expansion of hosting forced me to rent a separate facility and connect 2 MW from power plant directly. That was made to decrease electricity price and operational costs, which in turns resulted in even cheaper rates for hosting. Sometimes my international potential clients cannot believe how can I provide such cheap hosting fee. Even here some people in comments say it is a scam. But the reality is that the level of life is so low, that this cheap electricity is really expensive for locals. Not everybody lives and gains salaries like in EU or USA.

The biggest challenge for crypto mining now is finding ways to make it more efficient and decentralized. Many companies building huge mining farms in locations without gaining access to the cheapest electricity. Big companies gaining more strength which lead to more centralized mining. I prefer having a lot of different miners all over the world, instead of, for example, Bitmain controlling 40–50% of hash power.

In the end, we all must contribute and try to improve the beauty of crypto.

Published at Sat, 06 Apr 2019 18:13:31 +0000

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Epicenter is hosted by Brian Fabian Crain, S?ƒbastien Couture & Meher Roy.