Abundant and cheap electricity: This is the primary driver of profitability
Posted: Wed May 21, 2025 6:18 am
Reason: Thousands of ASICs running 24/7 consume significant power. The energy consumption is driven by the network's difficulty, which adjusts to maintain a 10-minute block time, regardless of the number of miners.
Estimates: Bitcoin's total annual energy consumption ranges from approximately 90 to 150 TWh (Terawatt-hours), which is a substantial percentage of global electricity use.
Specialized Cooling Systems: ASICs mexc database generate a tremendous amount of heat. Bitcoin data centers require sophisticated and robust cooling infrastructure (e.g., industrial fans, large HVAC systems, evaporative cooling, or even immersion cooling where hardware is submerged in dielectric fluid) to prevent overheating and maintain optimal performance. Location in cooler climates can help reduce cooling costs.
Proximity to Cheap Electricity: Due to the high energy demands, mining farms are almost always located in regions with:
Renewable energy sources: Increasingly, miners seek out areas with excess renewable energy (hydroelectric, geothermal, wind, solar) to lower costs and address environmental concerns. Some even utilize stranded energy (e.g., flare gas from oil fields) that would otherwise be wasted.
Robust Infrastructure:
Electrical Design: Specialized electrical infrastructure (power distribution units, transformers, backup generators) is needed to handle constant, high power draw and minimize downtime.
Estimates: Bitcoin's total annual energy consumption ranges from approximately 90 to 150 TWh (Terawatt-hours), which is a substantial percentage of global electricity use.
Specialized Cooling Systems: ASICs mexc database generate a tremendous amount of heat. Bitcoin data centers require sophisticated and robust cooling infrastructure (e.g., industrial fans, large HVAC systems, evaporative cooling, or even immersion cooling where hardware is submerged in dielectric fluid) to prevent overheating and maintain optimal performance. Location in cooler climates can help reduce cooling costs.
Proximity to Cheap Electricity: Due to the high energy demands, mining farms are almost always located in regions with:
Renewable energy sources: Increasingly, miners seek out areas with excess renewable energy (hydroelectric, geothermal, wind, solar) to lower costs and address environmental concerns. Some even utilize stranded energy (e.g., flare gas from oil fields) that would otherwise be wasted.
Robust Infrastructure:
Electrical Design: Specialized electrical infrastructure (power distribution units, transformers, backup generators) is needed to handle constant, high power draw and minimize downtime.