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According to the educational edition of Tokens 24, Georgia has become the most profitable region in the world as for cryptocurrency mining after China. But in order to build your own farm for mining, you need to know where and what to mine, what kind of cryptocurrency is more profitable, how much the electricity costs and how much it will cost. We'll figure out what is needed to become a successful miner in Georgia.
The largest number of miners is concentrated in the Alazani Valley. The valley has the lowest electricity rate in the country, given the fact that Georgia is using cheap hydropower. For example, the average price for electricity in the country is 21.31906 tetri per 1 kWh, which is about $0.1 per 1 kWh. For comparison, in Germany electricity rates are three times more expensive: $0.36 per 1 kWh.
For many residents of Georgia, cryptocurrency mining is one of the types of additional earnings. For instance, a miner from Telavi Bezhani Buzhaidze gave an interview in which he told that he has been mining Bitcoin and Zcash since last year. It quickly became popular in the Russian-speaking segment of the Internet. His farm consists of three video cards and mines about $800 per month, while the cost of electricity is about $80. Thus, his farm acquired for $3000 paid off in a couple of months.
In general, you can mine in your own living room, as Buzhaidze does, but if it's a big business, you need to take care of a separate room to build your own farm.
For effective operation of mining equipment, the premises should be as clean as possible and free of dust, as the dirt disable coolers, impairing the performance of processors. According to the general opinion of miners, premises with special poured floor and walls made of sandwich panels are best for this purpose.
Another important aspect is good ventilation and constant temperature maintenance at the same level. Due to fluctuations in temperature, moisture may accumulate on chips, which disables the equipment.
You should also pay attention to the fact that, in addition to generating heat, the equipment also produces noise, which is unlikely be a pleasant thing for your neighbors. Therefore, basement or semi-basement rooms (they are cooler) are most often used for mining, as well as industrial buildings (they have soundproofing).
For example, in Tbilisi, you can rent a 155 sq.m. industrial building for 1500 GEL per month (about $615). However, it is an unprepared building in which it is necessary to make repairs, install air conditioning and set ventilation for mining in the premises.
To mine in Tbilisi, you can also rent a 70 sq.m. room with air conditioning, installed generator and Internet. It will cost 3590 GEL, or about $1500. Despite the relatively high cost of the rent, the room has almost all the necessary conditions for cryptocurrency mining.
The simpler option is a semi-basement room of 42 sq.m. for 1005 GEL ($411). But first, you need to check whether the farm will cause an overvoltage in the building network and whether it will be sufficiently cooled.
Once you have decided on the premises for mining, you need to understand what equipment to use to mine cryptocurrency: video cards or ASIC.
To do this, pay attention to the payback of the miners and the profit that they bring. The latter depends on the energy consumed and the algorithm by which the blocks will be calculated, that is, on the cryptocurrency you are going to mine.
The main difference between ASIC and video cards is that the latter perform calculations on any algorithms, that is, they can be used to mine any cryptocurrencies. However, today GPUs are no longer used for BTC mining due to too a large number of miners and low hash rate of the equipment, that is, the speed of block production.
Unlike video cards, ASIC is a specialized integrated circuit: it calculates blocks only by a certain algorithm, therefore it is suitable only for separate cryptocurrencies. This is what makes ASIC more efficient for BTC mining, since the time required to solve a mathematical problem is reducing, and the transaction speed is increasing.
To compare, we’ve calculated what profit will be provided by video cards and chips, depending on the calculation algorithm. The profit from cryptocurrency mining is approximate: it doesn’t include the cryptocurrency rate changes and premises rent. The mining calculator https://whattomine.com is used here.
Once you have selected the blockchain and equipment to be used, you need to take care of the main components of mining – reliable Internet and electricity.
From the energy resources point of view, Georgia is the most suitable country for cryptocurrency mining, since hydropower is very cheap here. The lowest price for electricity is available in the provinces and free industrial zones. And in some high-mountainous regions, people don’t pay for electricity at all. The average price for electricity in Georgia is 21.31906 tetri per 1 kW/h, which is about $0.1 per 1 kWh.
We’ve calculated how much energy will be required to support the farm that consists of 20 video cards Nvidia GeForce GTX 1070. One such GPU consumes about 12 kW per day, which will cost $1.2. Twenty video cards with uninterrupted operation consume electricity at $24 per day. However, these figures are indicated without taking into account subsidies, according to the highest electricity rates, including VAT.
As for the Internet, Georgia has a network of high-speed cable Internet and mobile 3G. The speed of 1 megabit is enough for a farm of 40 video cards. 4 video cards consume about 100 megabytes of traffic per day. Important aspects here are good signal and router, so when choosing an operator, you need to consider its coverage.
The first company that paid attention to the advantages of mining in Georgia was BitFury. Experts have already built two data centers in Tbilisi and Gori, receiving substantial benefits and subsidies from the government.
It is due to cheap electricity and absence of tax on cryptocurrency operations that Georgia became a new Mecca for digital gold miners.
To learn more about the conditions and equipment for cryptocurrency mining, as well as to communicate with professional miners, register for Blockchain & Bitcoin Conference Georgia.