Iceland Provides Advantages To Bitcoin Mining

Bitcoin miners are happy right now because the digital currency is surging; something that has not occurred since February 2014. Bitcoin miners are the people responsible for the creation of new bitcoins through a mining infrastructure. Individuals or organizations that contribute computing power to keep the network up and running are rewarded with a newly created piece of the digital currency. With the right process and equipment, the payout can be lucrative that is why many people have become dedicated to bitcoin mining.

People can mine in their homes but there are companies that let their customers mine using cloud mining that does not require any special hardware. These companies have invested in huge data centers that perform insane computations while consuming large amounts of power. When people join large pools, it becomes more profitable than mining through their own computers and power.

One example of a company that is offering cloud mining is Genesis whose operations are now based in Iceland. Why Iceland instead of Bosnia or China? Iceland happens to have the three important qualities for successful mining: cheap electricity, good internet connections and a cold climate. Climate is extremely critical for data centers because the mining hardware generates an overwhelming amount of heat while consuming huge amounts of power. The cold climate of Iceland helps the organization save on cooling costs. The savings can make a huge difference between earning a profit and losing money.

Genesis is the single largest consumer of power in Iceland. Since Genesis gets a good deal on electricity, one bitcoin will cost about $200 to mine if you disregard all other costs. The price of a bitcoin nowadays is $690. There are certainly other costs aside from electricity. Genesis spends for hardware, production and staffing. Aside from mining bitcoins, Genesis has also started mining Ethereum, another type of digital currency that is less expensive to mine.

Before you start to invest your money in mining digital currency, it is important to learn How Bitcoin Mining Works. You also have the option to use special software developed for mining or you can join a pool established by large facilities.