Wattum is pleased to announce that we have secured a 12-month supply of 2,400 WhatsMiner rigs through a joint venture agreement with Integrated Ventures Inc. This expansion of our mining equipment inventory gives our clients around the world access to powerful mining rigs at competitive prices, even amidst a global shortage. 

Both companies have committed to purchasing a minimum of 1,200 units each of the model M31S/M30S WhatsMiner rigs manufactured by MicroBit. They offer a power efficiency of up to 42W/T and boast a hashrate of 80T – 110T based on the model selected. MicroBit will manufacture and ship miners starting in July 2021 on a monthly, on-demand basis. 

Wattum CEO Arseniy Grusha stated: “We are pleased to partner with INTV and to be an integral part of a 12-month Purchase Agreement with MicroBit, securing a supply of 2,400 units of WhatsMiners, models M31S/M30S – the most profitable and energy-efficient miners available. Both companies plan to collaborate on the expansion of distribution, mining, and hosting operations and plan to jointly launch data centers and mobile mining farms. We are looking forward to the next phase of mutually beneficial and profitable cooperation, with a focus on establishing Integrated Ventures and Wattum as leaders in the rapidly growing cryptocurrency market.”

“[Integrated Ventures] is very pleased to partner with Wattum and secure this valuable 12-month purchase agreement, especially during a period of a limited supply of mining equipment,” commented Steve Rubakh, CEO of Integrated Ventures, Inc., “This agreement expands the existing relationship with Wattum and represents another step in INTV’s strategic growth plan, designed to rapidly increase the Company’s projected revenue growth rate.”

This transaction is the latest in a set of actions taken by Wattum in order to fuel international expansion plans. Most notably, we recently announced a multi-year partnership with Integrated Ventures to execute colocation and hosting for their cryptocurrency mining operations in Kennerdell, Pennsylvania. This agreement will maximize and optimize hash rate, reduce direct mining operational costs, and provide further international reach of both companies. 

Wattum has additionally begun expansion into Kazakhstan, adding to its existing operations in the U.S., Canada, and Russia. This is not our only recent geographical expansion as we have also opened a sales office in Argentina, kindling our growth into the South American market with a dedicated team to contribute to the up-and-coming Bitcoin mining hotspot.

With this large acquisition of Bitcoin miners, Wattum is once again taking steps to ensure our customers have access to high quality mining equipment at competitive prices. To get started on your Bitcoin mining adventure, browse our available mining rigs today.

Projections for Bitcoin’s price to hit the momentous $100,000 milestone are looking increasingly promising as corporate leaders continue to embrace the digital currency. Perhaps the most prominent development comes from multinational companies both adding Bitcoin to their own balance sheets and accepting it as a form of payment from customers. These include digital payments company Square (whose Cash App has been accepting Bitcoin since 2018) and business intelligence company Microstrategy, which purchased more than $1B worth of Bitcoin in 2020. Among the most common reasons for corporations embracing Bitcoin are financial empowerment for their customers, hedging against inflation, and a belief that crypto is the future of finance, prompting early adoption with a long-term commitment.

Financial Empowerment

The city of Jackson, Tennessee has announced plans to integrate cryptocurrency, with Mayor Scott Conger exploring options to pay employees in digital currency and even mine Bitcoin to hold it on the city’s balance sheet. He proclaimed in a recent tweet, “Utilizing dollar cost averaging in appreciating assets, like #cryptocurrency is one way we bridge the wealth gap and financially empower people.”

Hedging Against Inflation

Nexon, the South Korean-Japanese video game publishing giant, invested $100 million into Bitcoin to hold as a hedge against inflation, as the investment provides security against decreases in purchasing power. The company predicts that this move will protect their purchasing power in the event of a potential currency debasement. 

Owen Mahoney, president and CEO of Nexon, stated: “Our purchase of Bitcoin reflects a disciplined strategy for protecting shareholder value and for maintaining the purchasing power of our cash assets.” Further discussing the benefits of Bitcoin, he added, “In the current economic environment, we believe Bitcoin offers long-term stability and liquidity while maintaining the value of our cash for future investments.”

Meeting Consumer Demand for Crypto Payments

Commercial real estate giant WeWork has also announced plans to hold Bitcoin on its balance sheet. This will occur in tandem with the company accepting cryptocurrency as payment for their services, fulfilled through a new partnership with crypto payment service platform BitPay. “When we think about the workplace of the future and business, we have to consider cryptocurrency a central part of that conversation,” said WeWork chairman Marcelo Claure, “Cryptocurrency helps build a stronger global economy.”

Financial Services giant Mastercard announced plans in early 2021 to support cryptocurrencies directly on their platforms and offer a crypto rewards credit card to the public. Their wide reach will create ripples for public acceptance and the adoption of Bitcoin in daily life.

Palantir Technologies, an American big data analytics company that counts the United States Department of Defense and the United States Intelligence Community (USIC) as its top two clients, has also recently announced that they will soon accept Bitcoin as payment for their services. Chief Financial Officer David Glazer stated that they are considering taking this one step further by including Bitcoin on their balance sheet. Due to large amounts of cash on hand, this would be a strategic move up from use of a treasury, employing a long-term planning perspective.

With speculation that Amazon may soon support payments with Bitcoin and other cryptocurrencies, investors are gearing up for the impact this would have on global crypto adoption and the prices of supported coins. This hypothesis stems from the creation of a new department labelled ‘Digital and Emerging Payments’, suggesting that the behemoth technology company is already well underway in developing these services. 

How to Capitalize on these Advancements

“We’re big bulls,” said Geoff Morphy, President of Bitfarms, “and when you can mine a Bitcoin for under $10,000 and it’s currently in the market at between $50,000 and $60,000, what we enjoy doing is putting it on the balance sheet and then because that’s effectively our adjusted EBITDA, we get the compounding feature of not just having the Bitcoin on our balance sheet from a low cost, but we basically embed our profit in there as well to compound it.”

However, this opportunity is not exclusive to huge corporations and their CEOs. Individual miners can purchase mining rigs and earn a substantial profit from Bitcoin mining. As Bitcoin prices are predicted to increase due to adoption from large, publicly traded companies and booming cities, the time to mine is now. These mainstream developments have increased the safety and reliability of mining return on investment as Bitcoin continues to establish deep roots in both the business and government worlds. Participating in a mining pool ensures steady profits and minimizes financial risk: apply today with Wattum to receive 25% off the initial fee for ViaBTC’s globally ranked mining pool and join global business leaders in capitalizing on future increases in the market for Bitcoin.

The recent crackdown on Bitcoin mining within China is likely to lead to an exodus of miners and equipment to other countries due to the imminent threat of a full ban. Chinese cryptocurrency exchange Huobi has also suspended its Bitcoin mining services, hosting services on its mining cloud platform, and the sale of mining equipment in mainland China. The company will be using this time to focus on overseas expansion, a strategy also adopted by Chinese miners and investors. This exodus begs the question of how miners around the world can capitalize on this expected firesale of scarce mining equipment.

Does this mean I can purchase this equipment for cheap in the U.S.?

Many Chinese miners are pursuing alternative routes to continue investing in Bitcoin, including the shifting of their operations to different locations. While many have been attempting to land hosting prices below $0.045/kWh, rates in the U.S. are much higher, with Wattum’s rates being among the lowest at an average of $0.05/kWh. Miners are unlikely to liquidate their equipment just yet, so high asking prices, import duties at a hefty 27% for the U.S., and shipping fees leave the purchasing price for this second-hand equipment at less than ideal rates.

The U.S. mining scene has been ramping up, with a power plant-turned-mining farm approaching completion in upstate New York, boasting a whopping 85 MW of power. However, nearly all mining space in the U.S. is pre-reserved, leaving little to no room for domestic hosting to handle an influx of equipment.

Accessing Trusted Hosting and Management

Wattum’s U.S.-based mining farm design and construction division charges up to $150,000 per megawatt (MW) for building a new mining facility. This price does not include land ownership, which increases expenses and limits flexibility and autonomy. Wattum plans to invest in a 50 MW hosting facility in Ohio, with expansion plans of up to 500 MW. Building costs and land ownership of this new facility will sit at $140,000/MW, with colocation services available to customers for as low as $0.039, further establishing Wattum’s commitment to customers in providing quality service at globally competitive rates.

As Bitcoin mining is a price-sensitive industry, Wattum has developed alternative hosting options in other countries to maximize margins for our customers in Asia, including a particularly attractive option in Kazakhstan. Kazakhstan’s government has embraced domestic Bitcoin mining, recently unveiling plans for a cryptocurrency and blockchain technology roadmap to stimulate these industries. Providing some of the world’s lowest energy prices, Kazakhstan also offers savings through affordable labour, management, and repair costs. Building a data center in Kazakhstan can cost as little as $125,000 per MW including land ownership. Contrasted with the cost of building colocation centers in the U.S., Kazakhstan is emerging as an ideal destination for Bitcoin mining.

A Budding Opportunity for the Eager Investor

As used Bitcoin mining rigs become available from Chinese miners, Kazakhstan may demonstrate what makes it so ideal. With readily available land, a welcoming government, and a shared border with China, Kazakhstan presents a highly attractive option for both Chinese investors looking to move their equipment, and international investors looking to acquire used mining rigs.

Recognizing this budding opportunity, Wattum has already taken proactive measures by developing strong ties throughout the country and with the Kazakhstani government. This has aided our planned joint venture with the founders of Enegix. Wattum also has plans to build a 15MW farm in Kazakhstan, which will offer affordable and secure hosting for our customers in a prime mining location.

Other companies are also moving to take part in this rapidly developing mining hub, including BIT Mining Limited which recently invested $9.33 million in the development of a 100MW mining data center in partnership with a local Kazakhstan mining company.

If you are interested in investing in colocation infrastructure in Kazakhstan, backed by a globally-recognized Bitcoin mining farm management company, contact Wattum to learn more.

Resolute to ongoing expansion efforts, Wattum Inc. announces a new partnership with the world’s largest crypto mining data center, Enegix LLC, based in Kazakhstan. The partnership will see the build-out and operation of a 16 MW facility, a commitment totaling $2 million USD.

With construction planned for July 2021, the two industry pioneers are in discussions for the financing and construction of an additional facility, adding another 50 MW to their proactive efforts. The estimated cost of this second facility amounts to $8 million USD.

“Interest in cryptocurrency mining is on the rise, and this partnership with Wattum will extend Enegix’s presence to the US. It will serve as a bridge for US customers while allowing international interest to grow and direct its attention to the many opportunities presented by Kazakhstan.”

– Yerbolsyn Sarsenov, CEO & Cofounder, Enegix LLC.

Because interest in cryptocurrency mining is on the rise as a lucrative investment, Wattum will be providing Enegix with a significant bridge into the US market through this partnership. Extending their reach to enthusiastic customers across the country, Enegix will establish its presence in the US by providing customers with an opportunity to access a reputable data center hosted in a country that has an energy surplus of 4000MW.

Currently operating a 180MW facility in Ekibastuz, Kazakhstan, Enegix is the largest-capacity data center in the world and accounts for more than 2% of the world’s Bitcoin hashrate at full capacity, which sits at 50,000 mining rigs.

This partnership with Enegix LLC cements Wattum Inc’s position as an industry leader in innovative collaboration and hints towards future plans for expansion.

“Wattum is pleased to be working with Enegix, once again collaborating to bring innovation and optimization that contributes to Kazakhstan’s growing recognition as a global Bitcoin mining leader that will revitalize the international Bitcoin industry. This venture will cement Wattum’s position in this developing industry while providing the best possible hosting opportunities to our clients. We have proven ourselves as a proactive organization, consistently making moves to better position ourselves and our partners for long-term growth.”

– Arseniy Grusha, CEO & Founder, Wattum Inc.

Mining, Opinion

Why Mine Bitcoin in Kazakhstan?

June 10, 2021

Contrary to popular belief stemming from its portrayal as a “third-world peasant country” in Borat, Kazakhstan is in fact a relatively safe and affluent country, hosting more than 6% of global Bitcoin mining hash power. The Kazakhstani government has shown support for domestic Bitcoin mining, recently announcing a planned cryptocurrency and blockchain technology roadmap aimed at stimulating those industries through a reduction in current regulations. The nation’s growing enthusiasm toward cryptocurrency is yet another example of crypto mining gaining an international presence.

One of the World’s Top Four Crypto Mining Destinations

As a crypto mining hub that currently ranks 4th in the world in terms of hashrate power, coming in after China, Russia, and the United States, Kazakhstan boasts many benefits including energy prices which are among the world’s lowest. Equipment imports such as fans and transformers are sourced either locally or nearby from Russia, resulting in a 30-50% cost savings in comparison to having them built in the U.S. Additional savings are seen in low costs for labour, management, and repairs. In an industry that requires enormous amounts of power consumption, these cost savings can make a monumental impact on miners’ bottom line.

The country’s central location within the CIS also allows for cheaper import duties and shipping costs, with some import options as low as 0%. Furthermore, Kazakhstan is one of the least densely populated nations on earth, ranking just below Canada and resulting in a large amount of well-priced land being available for mining farms. International interest has been sparked by this opportunity, with reports of a nearly $10 million USD investment for the construction of a mining data center that is expected to reach a power capacity of 100MW, further speaking to the lucrative nature of crypto mining in Kazakhstan that continues to be recognized and acted upon. By the end of 2020, Kazakhstan was already accounting for nearly 6% of the world’s cryptocurrency mining, which has since been amplified by knowledgeable investors.

Local Resources that Amplify your Investment

The climate in Kazakhstan provides ideal circumstances for optimal mining efficiency at these farms as cool temperatures year-round averaging at 50-60 degrees fahrenheit, and rarely exceed 80 degrees fahrenheit during the summer months. The maximum temperature that is tolerated by mining equipment sits at 90 degrees fahrenheit, after which point equipment must be turned off and allowed a cool-down period, while power supplies generally start to burn out at the 85 degree fahrenheit mark. This is avoided at mining farms in Kazakhstan; a significant benefit leading to support of the mining industry on behalf of the local ministry which has committed to helping grow these operations with an investment of over ₸80 billion Kazakhstani tenge ($180 million USD).

Low real estate cost ($5,000/acre of land), low energy prices ($0.032 kwh), low labor costs ($3/hr – $5/hr Engineer) within this region will only amplify this growth, with plans for further investment that will benefit both the government and miners as a steady surplus of electric power (4000 MW) in Kazakhstan enables the government to sell excess electricity for a profit that can be invested back into the expansion of Bitcoin mining. Interest in the region is being cemented as the international mining community continues to uncover the multitude of attractions offered, including metropolitan hubs and diverse wildlife which come together to challenge Kazakhstan’s famous depiction in the entertainment industry. As our own industry has faced its fair share of backlash in the eyes of entertainment, overcoming those boundaries and creating innovative solutions for success are the common practices that make crypto mining and Kazakhstan a compatible force that has yet to demonstrate its full potential.

Wattum has developed strong ties within the country and has fostered a mutually beneficial relationship with the government as we work closely with Enegix to realize the goal of building a new venture that will see Wattum as a 50% equity holder. Enegix’s mining farm is one of the largest in Kazakhstan and utilizes land leased from the government, fueling Wattum’s ongoing interest and investments in this region and confidence in its suitability for Bitcoin mining. Wattum’s trusted partners at the Enegix facility ensure that customers have access to highly affordable repairs whenever their equipment needs it.

How Government Support is Fuelling International Interest

With the Kazakhstani government’s outspoken support for Bitcoin mining in the region come a number of plans for reducing regulations and implementing digital currency in ways that will establish Kazakhstan within the global crypto market. While there are currently no goals for entirely replacing cash and other forms of payment with Bitcoin, Kazakhstan’s central bank has issued an official report on a potential central bank digital currency (CBDC), as well as made suggestions for the ways that crypto exchanges can begin to interact with local banks. A prototype of a digital tenge is currently in its first stages within the private sector of the financial industry, with the potential for an official launch enthusiastically backed by the National Bank’s eagerness to conduct further research into its benefits and implications for financial stability.

Support for cryptocurrency from the Kazakhstani government is no recent development. Plans for doubling the country’s investment in crypto mining commenced during the summer of 2020, with May 2020 seeing commentary from the Kazakh president’s advisor Mu Xin, proposing the introduction of blockchain technology and the digital Tenge; such developments would pose significant advantages for Kazakhstan, with efforts to mitigate corruption and increase transparency of state fund allocation supported, further fuelling the country’s interest and support in expanding their Bitcoin mining operations and reducing regulations that will continue to enable international interest.

Partnering with a Trusted Host

When you choose Wattum to host your mining operations, you can be confident that you are investing in facilities optimized for efficient Bitcoin mining through a trusted management firm. Wattum customers hosting more than 1 MW with us are welcome to visit our facility at any time to see their investment firsthand and learn about the mining process.

Building upon the inherent security of mining cryptocurrency in Kazakhstan, we at Wattum offer each of our customers the opportunity to add advanced protection to their investment by subscribing to Wattum Care, Wattum Care Plus or Wattum Care Ultimate, an innovative program that will be launching soon. Additional protection measures include theft coverage, machine repair, power supply replacement, and water and fire damage coverage based on the level of Care program that you select.

When you purchase mining equipment today, you lock in the cost of equipment at today’s mining prices which are significantly lower than the direct market value of Bitcoin, helping you to save money as Bitcoin prices continue to rise. Reap the benefits of investing in Bitcoin mining today by partnering with Wattum, your dependable crypto mining custodian, and make the most of the opportunity to maximize profits as mining equipment is depreciable on tax returns and ensures not only a safe investment, but further opens doors to new opportunities presented by this growing industry, such as mining pools and colocation expansion.

Here at Wattum, the security of our customers’ investments is our top priority. That’s why we are excited to announce Wattum Care, a 3-tiered protection plan available to all customers who have purchased Bitcoin mining equipment from Wattum or are utilizing our hosting and management services, designed to preserve your hardware and maximize your mining productivity. As Bitcoin prices spike and mining becomes increasingly lucrative, protecting your mining investment is paramount. Our experts estimate that consistently maintaining a high level of care for your mining hardware can increase its useful life to as many as 7 years of good working condition.

So, why subscribe to Wattum Care instead of maintaining your machines yourself? 

In the rare event that an ASIC chip breaks or malfunctions, repairs are relatively easy to perform when done by qualified experts. In most cases, the parts from a single broken machine can repair 3-10 other slightly broken machines to consolidate the chips. Power supplies are more prone to breaking, but they are inexpensive and Wattum is well-versed in their management and replacement. Our advanced firmware practices can be applied to turn on chips to improve mining, allowing us to lower and overclock chips when the need arises, in addition to the ability to replace the entire board should this option be more optimal in ensuring you can always make the most of your machines. 

The Wattum Care Program will feature three tiers to appeal to customers with varying levels of risk tolerance: Wattum Care, Wattum Care Plus, and Wattum Care Ultimate.

Protect your Investment

By investing in the maintenance and security of your machines, you can effectively extend their lifetime and maximize the long-term profitability of your initial investment. Providing industry-recognized equipment and globally competitive rates, Wattum is looking forward to pioneering the provision of the same quality security in the form of post-purchase care. For more information on the upcoming program, please do not hesitate to contact us.

Chip manufacturing giant Nvidia has increased measures to ensure GPU cards get into the hands of gamers, rather than cryptocurrency miners. It’s a change that is expected to bring further price increases for GPU rigs, even beyond those brought on by the global chip shortage. In this article, we’ll explain Nvidia’s hashrate restrictions, consider older GPU models, and discuss our recommended alternative: the Nvidia CMP HX Series.

Significant spikes in the price of Bitcoin in 2021 have increased demand for crypto mining equipment, leading miners to buy out entire supply chains of Nvidia GeForce cards, depriving gamers of essential tools for their trade. To level the playing field between their two major customer segments, Nvidia is drawing clearer lines between gaming and crypto mining equipment.

New Releases to Limit Hashrate

Nvidia has implemented anti-mining hardware flags in their stock that will halve the hashrate for Ethereum mining on several leading models. Products released after May 2021 from the GeForce RTX 3080, 3070 and 3060 Ti graphics card lines will feature a “Low Hash Rate” (LHR) sticker, indicating their unsuitability for crypto mining.

This is Nvidia’s second successive deterrent attempt, following a failed one in February with their RTX 3060. The GPU was meant to halve the effectiveness of Ethereum mining rates, a move claimed by the company to be “unhackable”. However, a developer-specific beta firmware driver released soon after easily unlocked the GPUs full mining capabilities, making the item a hot option for mining once again.

This past misfire breeds doubt on the upcoming limiter’s ability to withstand hackers. This will remain unknown until the products’ release; in the meantime, miners can utilize the limited mining-specific cards offered by Nvidia.

The company’s dedicated line for crypto mining, Nvidia CMP HX, offers GPUs. The spot prices on in-stock cards will likely cost 25-75% more than the pre-order price due to a limited available quantity. If the going rate today is $28-$30/MHz, expect these cards to sell for $35-$38/MHz when they arrive in August.

What About Older Models?

Graphics cards released before the introduction of the hashrate limiter are currently out of stock everywhere. Any online retailers with availability that are selling these cards are likely referring to old batches from 2020, still left in a warehouse. Wattum still maintains an inventory of the Nvidia 2070 cards, which remain profitable in addition to being cheaper per MHz.

Both new and old generation card models are of high quality; their functionality in this case is dependent upon your specific needs or preferences. As neither generation is still in production, their resale value holds steady and will only continue to go up as Ethereum (ETH) prices rise, whether they are new or used.

Savvy miners want to purchase hardware that can be resold for the same price or more than you bought it. In the next 3-5 years, if Ethereum (ETH) is trading at $10,000 as projected, mining hardware bought today may appreciate in value, adding to the mining profits earned during those years.

The Best Nvidia Card for Crypto Mining

Should you prefer to purchase cards that will outlast 2 years, alternative models such as Nvidia’s CMP 90HX rig are a notable contender. While they do carry a higher retail price than those designed for gaming, they hold 10GB of memory which will remain functional for your next 3-5 years of GPU mining. Specifically designed for crypto mining, the 90HX uses 25% more power than the 50HX, yet they yield double the cryptocurrency. A slightly higher investment now projects to earn a significantly higher profit throughout the lifetime of the machine.

Since its launch earlier this year, the CMP series has already gained immense popularity. In March, one buyer alone submitted an order worth $30 million, with the units intended primarily for mining on “alternative blockchain networks”.

The 90HX, which is comparable to the 3070 – 3080 RTX GPU mining rig, is our top choice for GPU mining and is currently available in limited quantities. Purchasing now gives you maximum time to profit from rising ETH prices and an increased coin yield before prices increase as demand rises.

Announcements, Partnership

Wattum and ViaBTC Announce Global Strategic Partnership

June 3, 2021

Wattum is pleased to announce a strategic partnership with ViaBTC Group, which consistently ranks within the top 10 for total Bitcoin hash power among mining pools.

ViaBTC is a globally recognized Bitcoin mining pool and cloud mining contract provider specializing in blockchain technology. Within the year preceding this writing, they have accounted for 7.14% of global hashrate. Their partnership with Wattum brings together a shared dedication to providing clients with reliable and efficient digital asset management services.

ViaBTC CEO Haipo Yang remarked, “It’s always such a pleasure to work with the Wattum team. Their professional standards and commitment to providing high quality work puts them a step above the rest.”

In Q1 of 2021 alone, Wattum has transformed $1.5 million in funding into $58 million, a 3800% return. With over 720 existing mining pool customers, Wattum is well-established as a trusted, lucrative pool generating significant returns for their customers.

In light of this partnership, Wattum will be offering a new customer rate, reducing Pool Fees to just 1% if the customer purchases equipment and/or management services as well. Wattum also conducts profit testing through monthly pool audits and provides mining pool services to a vast range of clients, from individual miners to large-scale data hosting centers.

With a diverse set of offerings including equipment, hosting, management and mining pools within the cryptocurrency market, Wattum’s comprehensive value proposition is strengthened by this deal. Our company profile anticipates a rise within the cryptocurrency industry in the U.S. and internationally, amid the most significant cryptocurrency mining boom as historic regulatory barriers are being broken down.

U.S.-based crypto mining management company Wattum has recently partnered with data center operator Enegix to expand hosting availability at their Kazakhstan Bitcoin mining facility by 8MW. 

Enegix’s Facility

Based in Kazakhstan, a nation that is home to a whopping 4,000 MW electricity surplus, Enegix’s data center is already one of the largest in the world, with plans to increase its capacity by an additional 500 MW in 2021. Based in an ideal shipping location, the country also presents a low 12% import value added tax (VAT) alongside import options as low as 0%. The fully compliant facility is optimized for safe mining operations thanks to an ideal climate for air cooling, on-site ASIC repair availability, and on-site personnel accommodation. Giving equipment owners peace of mind, the high-voltage infrastructure is protected by video surveillance and armed security. This facility was built to provide premier hosting opportunities for miners, which Wattum customers can now take advantage of.

Wattum’s Hosting Growth

As one of the leading providers of mining equipment hosting and maintenance services, Wattum offers the lowest prices for facilities within the U.S., Canada, Russia, and now Kazakhstan. Boasting a minimum of 99% equipment uptime, uninterrupted network operation, and uninterrupted power supply, Wattum is synonymous with reliability. Monitoring is provided by on-site technicians with 24/7 customer support. To ensure you get the maximum lifetime out of your mining equipment, Wattum’s specialists carry out routine maintenance and diagnostics of mining equipment. They also monitor mining equipment control of current conductors using a thermal imaging device, alongside routine visual inspections by certified technicians.

Declining Global Hosting Availability

With tightening regulations leading to a precarious Bitcoin mining climate in China, the global leader in hashrate production, many miners have looked to other regions with lower risk to host their mining hardware. This has resulted in an increased demand for credible hosting facilities around the world, particularly those headquartered in the U.S. Through this partnership with Enegix to increase available hosting space, Wattum is an American-based company taking proactive steps to ensure that its customers have ongoing access to secure, reliable hosting at competitive prices, even in an ever-changing global regulatory landscape. Wattum offers a variety of services such as new and used equipment sales, hosting, management, firmware, and mining pool opportunities.

An Investment Opportunity that Pays for Itself

With these shifts in the global playground of crypto mining gaining widespread recognition, developments have already been seen in the demand for mining equipment as participants from all over the world recognize the lucrative investment. While the current market price of Bitcoin sits at nearly $40,000 at the time of writing, purchasing a rig for under $10,000 and mining Bitcoin allows you to invest smaller increments every month whilst getting a significant return on your investment. Mining equipment is fully depreciable on your tax returns, and since it’s typically priced at a 12-month payoff from the current Bitcoin price, the period of time that it takes to pay off your equipment will decrease should Bitcoin prices increase, as they are now.

Bitcoin’s recent boom and widespread adoption has many curious about how they can capitalize on the rise of the world’s new form of currency. If your familiarity with Bitcoin is more-or-less limited to what you’ve read in Elon Musk’s tweets, fear not: Wattum has you covered. This guide is your crash course on Bitcoin mining: the what, the why, and the how.

What exactly is Bitcoin?

Bitcoin is the world’s first decentralized cryptocurrency, first introduced in 2009. Free from the control of any central bank or entity, highly secure, and virtually impossible to forge, Bitcoin addresses many of the problems we face with traditional fiat currency. To mitigate against inflation, the total supply of this digital asset is limited to 21 million coins, which can never be increased. Each coin can be divided into a hundred million pieces, named “Satoshis,” after the creator of Bitcoin. Individual Bitcoins are created through a complex yet relatively accessible process called mining, which has evolved into a major industry as Bitcoin’s price has risen sharply in recent years.

Bitcoin is decentralized, meaning there is no intermediary between holders during transactions. Our existing financial systems are centralized, with central banks controlling the flow of capital.

One of Bitcoin’s main value propositions is its decentralization, meaning that there is no intermediary between owners of the currency. This allows individuals to send currency without going through a bank or a central authority, empowering crypto owners. This utilizes Blockchain technology, which is the process of using the same general ledger to track all transactions. Each block of the chain has corresponding signatures that create the chain, irreversibly putting the information in a specific order that cannot be tampered.

Bitcoin utilizes Blockchain technology, which records all transactions onto the same general ledger, meaning people cannot change previous entries. This keeps Bitcoin secure and virtually unhackable.

How does Bitcoin mining work?

Like gold, part of what makes Bitcoin scarce is that it needs to be ‘mined’. In fact, the process of mining cryptocurrency actually bears similarity to mining gold: to mine Bitcoin, people dedicate computing power to ‘chip away’ at complex cryptographic equations, which serve to verify blocks of transactions. These transactions are then documented on a virtually unchangeable distributed ledger. This means past transactions cannot be altered and forgery is impossible. In exchange for their computing power, miners are compensated with a small amount of new Bitcoin. This is the only way to introduce new Bitcoin into circulation.

Bitcoin miners help secure the cryptocurrency through lending their computing power to verify transactions. They are rewarded by earning small increments of Bitcoin.

Where’s the money in Bitcoin mining?

Miners collectively earned more than $1.1 billion worth of Bitcoin in January 2021 alone. The value of Bitcoin is determined by the markets on which it is traded, typically dedicated cryptocurrency exchanges. Like any scarce asset, Bitcoin’s value increases with demand. With Bitcoin’s remarkable ascent to $50,000 from mere pennies, many investors have made fortunes. As Bitcoin continues to breach the mainstream, experts predict that hitting its new milestone of $100,000 is not too far off.

How can you mine Bitcoin?

  1. Purchase a Bitcoin mining rig. To begin mining, you first need the right computing equipment. Purpose-built ASIC mining rigs are special hardware used to mine Bitcoin at an incredible speed. Due to their significant electricity, cooling and maintenance needs, these mining rigs are typically hosted at dedicated hosting facilities.
  2. Get a Bitcoin wallet. Bitcoin wallets allow you to receive your Bitcoin and do with it as you please. Software wallets are optimal for beginners because they are relatively secure, but still easy to manage. For more serious miners, hardware wallets can offer enhanced security, although they generally come with a higher price tag.
  3. Install mining firmware on your mining rig. These mining programs allow you to stay connected to the blockchain and Bitcoin network. This allows you to monitor your miner from a distance and also receive complete information about your mining work.
  4. Start mining. Following these three steps, you are now ready to mine!

ALTERNATIVE: Join a mining pool. With huge mining farms around the world, it can be hard for a single miner to compete to mine Bitcoin. This is mitigated by the use of mining pools, which combine the computing power of numerous miners and then divide the mined Bitcoin amongst the members according to their power contribution. Typically charging a nominal 0-2% of the gained reward as a pool fee, mining pools typically deliver lower, but more consistent profits. There is also a small 0-2% of the gained reward that is paid to the pool as a fee.
Want to make the mining process even easier and lower maintenance needs? Consider Wattum’s professional hosting and management services. With Bitcoin mining operations in the United States, Canada, Russia and Kazakhstan, Wattum is an established player in the industry that will make sure your mining hardware is running at peak performance.