Where is Bitcoin mining going?
It has always been a matter of curiosity for the users who produce and sell equipment related to Bitcoin mining, why they did not produce bitcoin with these equipments and sell the machines, and started to use Bitcoin. For this reason, production costs, ie electricity and space costs, are often expressed. Apparently things are changing now.
According to a report in Bloomberg, Sweden-based Bitcoin mining equipment maker KnCMiner will stop selling equipment and produce mining equipment on its own. The company currently holds 5% of all the hash power on the Bitcoin network, with a 20% target for newly acquired investments. The company started production in June 2013 and now produces 25% of the machines used for Bitcoin production globally.
The biggest reason for KnCminer’s decision to be taken as profitability. In other words, for this company, selling a machine is less profitable than doing Bitcoin mining with that machine.
Calculations show that Bitcoin, which will be produced within the next few years, will be worth about $ 2 billion, with only about 1,310,400 Bitcoins going into the market in the next year, almost $ 500 million worth of equipment her appetite is getting bloated.
This situation may not always be the same for every company; because the cost of production, that is, the cost of electricity and space, varies between countries. For this reason, KnCMiner, who is currently mining in a helicopter hangar in Boden, Sweden, is heading to Iceland, where his electricity costs are much lower by expanding production sites. It is estimated that producing in Iceland, when all expenses are calculated for this company, can make more profit than selling equipment.
As is known, Iceland is very rich in natural thermal resources and electricity is generated at a very low cost from these sources. Electricity costs for homes and businesses are almost free, and so much electricity is generated that the country can use it, which is driving Iceland to search for new markets like Europe.
But Bitcoin miners are not immediately anxious; because the electricity for the big producers in Europe, America and China, and therefore the cost of production, is still high and for this reason the sales have to continue. However, there are big things that change, according to KnCMiner manager Sam Cole, Bitcoin mining; from homes and garages, to small businesses first, then to large corporations, and finally to massive data centers.