Changes in the Cryptocurrency Market Strand Bitcoin Miners

13 Oct 2021 by Michael Kriech

For many years now, cryptocurrency has been a hot topic of conversation. Most people are familiar with cryptocurrencies, and may have even purchased Bitcoin in the past. However, in the last few months data center providers have been inundated with bitcoin miners desperate for more space and power. What changes has the cryptocurrency market undergone that have increased demand?

In the article below, we’ll review everything you need to know about cryptocurrency, the current state of the market, and where you can turn to in order to procure services for your mining equipment.

What is Cryptocurrency?

Cryptocurrency is best described as a type of digital currency because you can only use it on computers.

Cryptocurrency is a type of online payment that you may use to buy and sell products and services. Many businesses have created their currencies, known as tokens. You can exchange those tokens for the company’s goods or services. Consider them arcade tokens or casino chips; you will need to convert actual money for cryptocurrency to use the good or service.

Moreover, Blockchain is the technology that underpins cryptocurrency. Blockchain is a decentralized technology that handles and records transactions across numerous computers. The security of this technology is part of its attractiveness.

Why are Cryptocurrencies so Popular?

For several reasons, cryptocurrency enthusiasts get drawn to it. Here are a few of the most well-known:

Cryptocurrencies Do Not Link to International Governments

Cryptocurrencies have no ties to international governments. This disconnect means that cryptocurrencies can remain steady even when a country is in upheaval. Some investors consider cryptocurrencies as a viable way to secure their assets. This benefit is one of the reasons why the value of cryptocurrencies has risen and continues to rise over time.

Fees Are Incredibly Low

One of the main reasons cryptocurrency is so popular worldwide is that it has very low transaction fees. When you use other online payment methods, you will frequently get charged a lot of money. Thus, the extremely low fees associated with other cryptocurrencies will be a far better deal for you.

Cryptocurrency is Getting Simpler to Use

As cryptocurrency becomes more widely used, it will reach an ever-increasing number of people. As a result, there is a rise in awareness and overall popularity. More individuals are becoming aware that this is a viable choice, and many of the issues surrounding cryptocurrencies are getting addressed.

Profitability is a Great Possibility

People get involved with cryptocurrencies for a variety of reasons, including the possibility of profit. Many people who invested in cryptocurrencies before they became extremely popular profited handsomely. Because the market has not cooled in recent years, investors are still benefiting from cryptocurrencies today.

Cryptocurrency Market Changes

Bitcoin mining has long been an industry that offers high profit margins but now is as good a time as any for miners. Why is that? For one, a crackdown in China on bitcoin mining has taken out an extremely large number of machines in the global network used to verify transactions and create new bitcoins. As a result of there being less miners in the market, profitability is soaring as the amount of energy needed to solve for a bitcoin block is plummeting.

Unprecedented Opportunity

The dropping cost of power needed to solve for a bitcoin block is great for people that already have their machines up and running. But what if you’re currently looking for a home for your equipment or looking to expand your existing network of machines? Data center space for bitcoin mining equipment is in such high demand right now that in some instances miners are offering bounties for referrals to crypto friendly data centers.

Miners that have previously hosted their equipment in China are now in a mad dash to secure a home for their equipment and get back into the game. It used to be that finding machines to mine bitcoin was the greatest hurdle in the cryptocurrency market. Now, the bottleneck has moved to finding hosting facilities.

You can’t simply build a massive data center in a matter of months, so miners are left trying to find providers that are willing to allocate the space and power needed to mine for bitcoin. The data center industry has not initially been friendly to bitcoin miners as their equipment requires large power draws 24 hours a day, 7 days a week. This leaves many bitcoin miners unsure of which providers to turn to for services. However, there are several providers who are poised to accommodate cryptocurrency miners and their equipment.

Crypto Friendly Hosting Providers

At Datacenters.com, our provider agnostic approach allows us to partner with hundreds of different data center operators, offering the widest selection of solutions possible. As a result of this, we’re uniquely positioned to know which hosting providers are accommodating of bitcoin miners and which aren’t. As most miners know firsthand, not every data center is willing to allocate the space and power necessary to operate a successful mining operation.

Datacenters.com is the leading technology platform, directory, and online marketplace for data center solutions. Our portfolio consists of 340+ providers with 2,900+ facilities in 85 countries, allowing users to search, compare, and contact industry leading solution providers with the click of a button.

Our team of expert advisors are available to guide you along the path – free of charge. Schedule time today to speak with our team so they can connect you with providers eager to win your business. Datacenters.com are the experts in crypto hosting solutions. Contact us today to find out why.

Author

Michael Kriech

Michael brings twenty-three plus years of IT and telecommunications experience to Datacenters.com. With a wide range of expertise, Michael assists his clients in determining the best solutions needed for their technology roadmap. As information technology infrastructure evolves, Michael continues to suggest and present comprehensive, stable, and scalable solutions. This helps clients take advantage of the best and latest technologies that support company objectives while freeing up time to concentrate on core competencies. With a passion for helping organizations meet their goals, Michael is willing to go the extra mile to support his clients. A Navy Veteran and proud husband and father, Michael and his wife (Jessica) spend their spare time raising puppies as a volunteer for Canine Companion for Independence (CCI).

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