How does a bitcoin Chinese farm with a turnover of $ 1.5 million per month?

Four people control 3% of the entire Bitcoin network.

In a rural area of ​​Liaoning province in northeastern China, a bitcoin farm is located in a former factory building on the second floor, which was visited by representatives of the Vice magazine in a location not disclosed. This is just one of six sites owned by a group of four people. Only in October last year, they had computer power at 8 petaheshs per second. This is 3 percent of the entire Bitcoin network.

Farm workers work and live in the same noisy and unattractive rooms, they spend at home only four to five days a month. But the work allows you to be distracted by outsiders, for example, video games or audio books, and farm owners pay well. In the summer, the temperature inside jumps below 40 degrees, neither day nor night, the noise of industrial ventilation systems, which maintain a constant temperature for three thousand ASIC miners, does not stop. These are computing devices with microcircuits designed specifically for specific tasks and almost completely useless for solving others. Unfortunately, the models are not called - Vice journalists have committed themselves not to disclose any data on the technical components of the farm, or information on equipment suppliers. But it is mentioned that previously used Avalon, and the current typewriters are more smart and consume less electricity.

At the time of the visit, the price of the coin ranged around $ 375. At the expense of their six farms, a group of four people received 4,050 bit-coins per month, which was equivalent to about $ 1.5 million. At the peak, each of the six sites brought a hundred a day, but the complexity of mining and incomes change. At the time of the interview, it was possible to make 20-25 coins per day on each farm. By the way, the farm shown in the video consumes about 1,250 kilowatts, and every month comes the bill for 80 thousand dollars.
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Miner life is pretty boring. It is diluted only by attempts to open new sites and equipment replacement - in the corner there are already 900 cars that are out of order and dismantled for parts. The owners of the farms gathered the money for the equipment and managed the enterprise together. Vice does not indicate how the fall in Bitcoin influenced the business, but most likely the effect was deeply negative. Surely the owners were ready for this development. Jin Xin claims that cryptocurrency is an unambiguous future, but he acknowledges that technology is still at a very early stage of development, and because of this, its value is subject to jumps. In an interview, Xin said that he holds half of his own savings in bitcoins.

Mining is a method of cryptocurrency issuing. It looks like the process of working on a crypto task, the solution of which is rewarded by a distributed network. For Bitcoin, the reward is currently 25 coins. Every 2016 blocks, the network adjusts the complexity of the process, trying to keep the frequency of distribution of coins at the same level. The power of miners in the Bitcoin network, even in the early stages of development, quickly exceeded the computational power of the most powerful supercomputers in the world. Today megawatts of energy are spent on this process. The economic feasibility of mining is determined by the exchange rate, the cost of electricity and equipment are expensive specialized devices or video cards, in the case of Litecoin. Today, many are wondering who is behind the mask of Bitcoin author Satosi Nakamoto, but in reality the network is largely controlled by miners.