The basis of Bitcoin and other cryptocurrencies is the mining application. The transactions for the production of crypto money on the blockchain and the transfer of crypto coins are called crypto money mining. The hardware that performs the transactions is called a miner. Bitcoin mining is a mechanism that secures the network, provides rewards, and is the key to the decentralized ethos of cryptocurrency. Mining adds transactions to the blockchain and unlocks the new Bitcoin. But mining is not equally optimized in all areas.
The efficiency of mining can differ if several key factors are considered. Because mining involves computers that solve complex math problems, it’s best done where electricity is plentiful and affordable, technology is available, and internet connection isn’t an issue. Also, the regulatory environment around Bitcoin mining differs from country to country and indeed from year to year. Revolutions of this nature rarely occur according to a precise road map. While crypto coins were not as common as they are today, mining was a formation that people could do, but as a result of the popularity and increasing costs, it started to be done with the facilities established by the companies over time.
So what does cryptocurrency mining mean? Which countries are doing successful Bitcoin mining?
How to Mine Cryptocurrency?
There are many ways to mine cryptocurrency. Now we will talk about these ways briefly.
CPU Mining
CPU mining is a type of mining that anyone can do with computers that are based on processing power and have high processing power. As a result of the difficulty of transactions in the blockchain and the inadequacy of the processors, this method, which is not as popular as it used to be, is not used much today.
GPU Mining
The loss of popularity of CPU mining due to high electricity consumption and low storage space has led to the rise of GPU mining. The fact that video cards are faster than the processor in performing repetitive or similar operations has led to the adoption of GPU mining as the ideal method. Although the cost is more than CPU mining, considering the return, GPU mining is more prominent in terms of price performance.
Cloud Mining
It is a method of mining by renting from facilities established by companies and individuals. With the developing technology, the difficulty of the processes has led to the need to have more than one machine and now mining has started to be done through the established facilities. It is important to find a reliable company or person in this type of mining, which is done through the rental of the machine in a certain time frame from a company that does GPU mining. The crypto coins you have earned during this rented process are transferred to your wallet and the process proceeds in this way.
Countries That Have Been Successful in Bitcoin Mining China
We can say that China is the country that dominates the market. When it comes to mining Bitcoin and other cryptocurrencies, China is indeed the beast of the Far East. When we look at the percentile in crypto money mining, it is seen that China dominates the market with a great superiority and 65% of the mining in the world takes place in China. Most of the mining in China is done in the Xinjiang – Uyghur Autonomous Region. The region, which accounts for one-third of all mining activities, also draws attention as China’s largest energy production region. Cheap electricity is already available, and some energy companies are said to be diverting their excess energy to bitcoin mining facilitiesto avoid waste. China is home to many of the world’s largest mining pools, made up of large groups of miners who pool resources and share processing power. When cheap labor and tech-savvy individuals come together, China becomes the perfect geography for Bitcoin mining.
Iceland
Iceland, both geographically and politically, away from China, is a small island nation. The country’s hydroelectric and geothermal power plants are causing an influx of miners, including Genesis Mining, creating an abundance of affordable energy. Crypto mining equipment not only requires a large amount of energy, but also generates a large amount of heat. It is necessary to cool the equipment, and this can most easily be achieved in a colder environment such as Iceland. A strong technology environment, the presence of venture capital, and a friendly regulatory environment make Iceland a preferred destination for mining.
Venezuela
Venezuela has become a favorite destination for Bitcoin miners, thanks in large part to cheap energy prices. Recently, political instability and social turmoil have affected almost all aspects of life in the South American country, and mining is no different. Hyperinflation has caused many to trust Bitcoin, and the government has even launched its own cryptocurrency, the Petro, but critics are skeptical of the use and future of this currency.
