The cryptocurrency markets tumbled in 2018 with bitcoin dumping over 75% from its December 2017 all-time highs. In general, the bears mauled the bulls throughout as evident from the cascading plunges. Although the prices seem to have bottomed in the first week of 2019, there is major uncertainty transpiring in the markets. But, Australia-based company AWS mining plans to launch a huge cryptocurrency mining farm amidst these tentative conditions.
Characteristics Necessary for a Mining Farm Location
AWS Mining COO/Founder, Daniel Beduschi said that the best location needs to have abundant energy supply to make the processes economically viable. Since mining requires a lot of electrical energy supply, getting it at cheap rates is a primary determinant on where to set up these farms. Energy supply in Russia is abundant and it is also available at considerably cheap prices.
After a location is acquired, geo analysis of the area is also vital. The temperature is important since the machines involved produce a lot of heat. Russia has cold deserts that make it viable for these mining farms. Cool areas ensure that investors save money that they would otherwise invest in extensive cooling systems.
Tax laws are also important since they determine the costs involved in bringing the required machines. Also, government incentives determine the locations of the farms since they determine the profit margin that the company can get from any jurisdiction. Russia offers ideal conditions for business growth which has attracted investors to launch the mining farm despite the current market challenges.
Security is also vital for the investors. When safety is guaranteed, individuals and institutions make large investments in an area enabling it to grow economically through a symbiotic relationship. The farms enjoy cheap energy from the government while they deliver economic growth in their chosen locations.
Through the set up of this mining farm, new jobs will be created which translates to economic growth for the Russian Federation through the payments of various taxes and excise duties.
According to AWS Mining COO/Founder, Daniel Beduschi, currently, around 6 hectares of land are prepared for operational need.
Goals of the Farms
The goal of these farms is to make cryptocurrency mining accessible to all users irrespective of their location, technical knowledge, age, investment, or experience. AWS MINING can process instant withdrawals and payments. It also offers appropriated support all through the whole mining process. This new method is considerably different compared to the traditional models of mining that need configuration and maintenance of highly specialized hardware.
When bitcoin was launched into the market, digital coin mining was possible using ordinary computers. As its popularity and the number of transactions increased, the block’s complexity enhanced. Currently, users need to invest significant amounts of money to mine any cryptocurrencies on their own.
Technical skills are also necessary since mining involves setting up proper infrastructure comprising of high tech machinery. Thus, cloud mining is an excellent way to get good profits through an automated mining service, but there’s a risk that mining contracts can be invalidated any time like was in Genesis mining situation so additional precautions are always advisable.