Mininghosting.com offers a miner hosting colocation service that lets you run your miners in a professionally managed facility. We have several hosting partners with professional teams available to keep your miner up and running in the most ideal environment. This way you don’t have to worry about allocating space in your own home or office for your crypto miners or the noise crypto mining produces.
What is bitcoin (BTC) mining?
Bitcoin (BTC) miners are an important part of the Bitcoin network. Miners generate almost uncountable amounts of hash codes; a string of numbers and letters counting 64 characters. The goal of the miner is to generate a hash code that fulfills the requirements given by the Bitcoin protocol. When successful, the miner may add a block containing transaction data to the blockchain and is rewarded with 12,5 BTC (after the halving in May 2020 this will be 6,25 BTC).
In short; miners generate random hash codes hoping to guess the right hash code at some point. It is therefore a game of chance. The more hash codes your miner generates, the higher the chance you will guess the right hash code.
What is Miner Colocation?
Back in the days, miners were able to mine bitcoin with their processors or graphics cards. But these times are long gone. Nowadays you often need an ASIC miner, specialized miners that perform spectacularly better than processors or GPUs. These machines work hard and generate a lot of noise and heat. To top it all off they consume quite a bit of electricity. You’ll have to perform special maintenance and make sure the conditions are perfect for you to get the absolute maximum out of your ASIC miner.
Miner colocation is a solution that helps you reach these goals without much hassle. In case you already own a miner, you can simply choose where you want your miner to be hosted. We have hosting partners in the United States of America, China, and Sweden. You send your miner to our partners, after which they will professionally install your miner. Aside from the fact that our facilities provide the best environment for your miners, the teams of our partners will perform professional maintenance to make sure your ASIC miner stays up and running.
Colocation vs. cloud mining
Aside from colocation, you can also mine cryptocurrencies through cloud mining services. Cloud mining means that you mine crypto with the equipment of a company. This equipment is located in the facilities of the company. In other words, you don’t own anything when mining crypto through cloud mining.
While this is a very easy way of mining crypto, it doesn’t generate as much profit as mining crypto with your mining rigs. The fees for cloud mining are often much higher than our mining colocation services as renting the equipment is added to the hosting price.