ASIC Miner Hosting and Bitcoin Colocation
Bitcoin started as an obscure form of digital currency. It was recognized by those immersed in the digital world, but ignored by almost everyone else. That is, at least, until Bitcoin gained worldwide recognition. That’s when most people realized that turning a profit with Bitcoin was possible. And now there’s an increasing number of people who want to become the next “bitcoin millionaire”. Don’t run off thinking that Bitcoin is an easy way to get rich. There are several things you need to understand before getting involved. For instance, are you familiar with Crypto colocation and ASIC hosting?
If not, then it’s time to learn a thing or two.
The concept of colocation is easy to grasp. It’s basically a form of hosting in which a business or person stores their own personal servers in a data center. The data center is managed and operated by a service provider or host.
Most people who are serious about ASIC mining of Bitcoins prefer colocation for several reasons.
1. Colocation is convenient. Building a privately-owned data center isn’t feasible for most people. The expense of building a data center is just too high for most bitcoin miners. And in addition to building the center, it would also be necessary to hire a trained staff and purchase additional equipment.
2. Colocation puts the responsibility of security on the service provider. In most cases, servers stored in a data center are protected by advanced high-tech security measures.
3. Most Bitcoin miners prefer to work in a group, usually referred to as a pool. Having servers stored in a central location generally makes things more manageable for those in the group.
The Link between Bitcoin and ASIC
An application specific integrated circuit (ASIC) is a device for mining Bitcoin. The device uses an algorithm known as SHA-256 to complete calculations and audits to earn Bitcoin. You profit when you earn, so you want to make this process easy as possible.
Before Bitcoin gained national recognition, most miners were hobbyists earning Bitcoin using nothing more than a simple home computer. Things are different now, and you need the right equipment to get in the game.
If you’re serious about earning a profit, then you’ll need an ASIC device. You can try to mine by using a GPU, CPU, FPGA, or a USB device, but it would basically waste your time and result in an astronomical power bill. You need the best equipment to successfully compete in the Bitcoin market.
Once again, this highlights the benefits of colocation. An ASIC device is a workhorse. It uses a ton of electricity, makes a lot of noise, and generates a high-level of heat. In fact, for the device to work correctly, it needs a permanent home in a cool room set to a specific temperature. Most people don’t want the hassle or stress of having an ASIC device in their home. That’s why colocation is usually a wise choice for Bitcoin mining.
The Importance of a Reliable Host
The data colocation center is the host that houses your ASIC device. These devices usually cost thousands of dollars, so you want to make sure you have a reliable host. A good host will make sure the center is set up correctly and working as it should. If the host is reliable, then you shouldn’t have anything to worry about.
Whenever something becomes popular, there are usually some people waiting to take advantage of the Bitcoin miner hosting situation. This is also true when it comes to hosting and colocation services. The increase in Bitcoin miners has caused an increase in companies offering hosting. Most of these companies are reputable, but there are a few bad apples in the bunch.
Here are some tips for spotting a reliable colocation ASIC miner host:
1. The host should provide clear and specific information about their services. The facility should have the ability to keep your ASIC device safe from thieves or vandals. They should also use reliable temperature control methods to prevent your device from overheating. Your device will likely share a room with several other devices. That means there’s a risk of overheating if the temperature isn’t controlled.
2. The host should willingly provide information about fees. The last thing you want is to get blindsided by hidden expenses or other surprise charges. Inquire about how energy costs are calculated. The host should charge you only for the electricity that your device uses.
3. The host should offer a fair contract. You should also have an opportunity to examine the contract before signing. Most hosting contracts require a 12 or 24-month commitment. Carefully read the contract, and feel free to ask questions. A good host will gladly answer any questions you have.
4. A good host should provide uptime of at least 99.9%. If the center has high rates of downtime, then that’s a bad sign. You have no chance of making money if your device can’t do its job. It’s also important that the host guarantees your device will be monitored and correctly configured.
If the host meets all of your needs, then you have a winner. It might take several meetings before you find the right fit. But it’s important to find the host that’s best for you.
Learn More about Bitcoin Mining
Bitcoin mining has a steep learning curve. Learning about colocation ASIC miner hosting is just the beginning. You’ll need to learn about choosing an ASIC device, how much you can expect to pay, and much more. But if you’re serious about turning a profit, then you’ll love learning about Bitcoin.