Lessons From A Decade Of Bitcoin Mining – Bitcoin Magazine


This is an opinion editorial by Marco Streng, CEO of Genesis Digital Assets, one of the world’s largest industrial-scale bitcoin mining companies.

We can put some hard numbers behind the growth of the cryptocurrency mining industry — a current market size of $2.29 billion, a CAGR of 28.5%, forecast to reach $5.29 billion by the end of 2028 — but the real growth in mining comes from the lessons learned over the years and implementing those lessons to become more profitable and sustainable.

I started mining bitcoin in my dorm room in 2012 and started industrial-scale bitcoin mining in 2013, just a few years after Bitcoin was created in 2009. Since then, our operations have scaled to include data centers around the globe and billions of dollars mined. Mining might have been a fun pastime back then, but scaling an industrial-size mining operation is a very different experience — one that takes focus, tact and the ability to learn from your mistakes.

Here are some of the top lessons I’ve learned over the past decade on how to scale bitcoin mining operations.

Lesson 1: Mining At Scale Requires Capital

Gone are the days of being able to mine bitcoin on a laptop, as large-scale mining operations have turned into a very capital-intensive industry. There’s not only the cost of the actual equipment and associated upgrades. There’s location overhead, payroll and all of the associated expenses of running a technology business in a location at scale. Funding for those expenses needs to come from somewhere — and not necessarily from reinvesting the bitcoin mined back into operational costs, either.

Source link Bitcoin Magazine


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