Mining hotels offering comfortable and secure placement of equipment for miners, gaining popularity in Russia, they number close to two dozen. For the «home» miner, having from several to two or three dozen pieces of equipment, it is often more comfortable in the long term more profitable to place their farm or «asik» in a specially prepared room for them, than to tolerate them at home or to find the room and carry out all the work. Of course, the main criteria for choosing this «hotel» is the reliability of service providers and qualified staff.
The Russian company BitCluster one of the first in Russia and in the world has created an innovative mining centers offering placement of equipment for mining cryptocurrency in professional mobile modules. The company’s specialists have already managed to solve organizational and technical issues, collecting along the way all possible «rake», and is ready to provide customers high-quality services.
In March Bitcluster became part of the Russian Association of cryptocurrency and blockchain (RAKIB).
Why the cryptocurrency market needs of the mining property, what are the prospects of their development in Russia and abroad, and that prevents fruitful cooperation between Russian miners with the Chinese, the correspondent Bits.media said co-founder Sergey BitCluster Arrests.
Sergey, how did you get the idea to do the mining?
A year ago a friend of mine told me that it is possible to produce cryptocurrency on the cards and offered to invest 200 000 in a test rig with 6 AMD Radeon RX470. However, he promised me an incredible return in just 4 months. I agreed to try. Buy video cards was difficult because suppliers and distributors imported them exclusively for gamers, they didn’t expect the shelves it will disperse the miners the pioneers.
However, we harvested our first rig and installed it in the office, nothing has delighted local residents, as it constantly hummed and warmed himself. After observing the process for some time and calculate on the calculator the economy, I got excited and told this to my friend and business partner, Vitaly MC. We purchased 50 cards and components, put technicians on the Assembly. We are constantly watching the cryptocurrency market have monitored sea of information, studied equipment manufacturers. Soon to our project was joined by another of our friend Dmitry Kikin.
What brought you to China?
We didn’t know where to take us to this path, but then we realized that to hesitate in this market is impossible! Vitaliy flew away to look for suppliers in China. There he gathered information about them, bought samples of the cards and components and returned to Moscow. We felt that at that time the most effective solution to collect farm on a special graphics card for mining P106-100. After 2 weeks in China we flew with Dima. Remember, we practically lived a week on a Chinese SEG electronics market, watching for us to collect 37 farms for 8 GPU in a server chassis.
In parallel with the purchase of the equipment we were looking for and found a room, engaged in its design and repair.
The first deliveries from China, we carried out the delivery of cargo. This sort of delivery, when the shipment from China goes on the car for about two weeks, with overload up to 12 times, eventually arriving in Moscow for the market in South gate or Gardener. I call it cryptocontext.
And here is the equipment arrived, we installed it on the shelves, and it worked.
When you feel that the cryptocurrency market needs in mining-hotels?
First, we are faced with failures in our equipment, due to insufficient ventilation or lack of power. So we started thinking where we can place their devices and haven’t found the right place. Thus, we found a niche and began to explore the market. We found out that many people first buy mining hardware, and only after that think about where to place it. Often a person buys one or more devices and perceives them as a toy. Curious to know how this equipment works, check the firmware program. Few weeks farm starts to cause discomfort, and he begins to look for a place outside of his apartment to accommodate the equipment.
Second, we brought equipment from China, and we began to contact friends, friends of friends and their friends asking to buy them too «something.» We understood that to place the equipment in an unprepared place is impossible. Therefore, those who now buy asik and Riga tomorrow to look for a place where to incorporate them into the socket. So we decided to create infrastructure-mining project, in particular colocation or, as has been the custom in the people, «mining hotel».
Therefore, we never doubted the relevance of mining in the town.
The history of your project?
At the first stage we found a room with summing up the power to 250 kW, the prepared shelf, held structured cable system (SCS), included the first 50 devices, but soon the main problem was overheating.
In the second stage we had to disable and to equip the room with air conditioning. However, this method proved ineffective. For example, a farm on the graphics card consumes 1 kW of electricity generates heat, the withdrawal of which you need to spend 1 kWh of electricity. That is spent in 2 times of more energy, and that the major costs for mining.
In the third stage, we realized that the most effective way to avoid overheating is teplootdelenie. The premises must be equipped with powerful ventilation. We have placed equipment for mining in special shipping containers. This was our last conversion. Their length — 40 feet (~12 meters), the power consumption is 300 kW. Each container has 204 type device Antminer S9. We have installed containers at a minimum distance of 5 meters from each other, so as not to interfere with ventilation.
You opened his first mining property in the Leningrad region. Why you had to close this site and earning at full capacity?
The fact that the conclusion of the electrotechnical laboratory of our landlord was positive, but in fact power cables and transformers was faulty. Equipment switched off and rebooted. Due to fluctuations and power surges burned four ASIC miner. We decided to turn off the equipment and take it to another place.
We called our clients and told them honestly about the situation, we also asked them to pick up the equipment, as we understand that the new venue will be no earlier than a month. Yes, it was our failure! However, I believe this experience is the most important and useful in this project. Now we come to the choice of venues and electrostructure with large bias: carefully hold the tester and elektroaudit, and also check the legitimacy of consumption.
Where now are your mining hotels?
Now we have two sites, one of them is located in the Ivanovo region, the other in Saransk. We held more than 40 meetings with landlords, went to negotiate with the TPP, considered buying the mothballed plant in Khakassia. In the end, we realized two things.
First, in the Central region impossible to find a legal electricity cheaper 3.5 rubles per kW. However, there is always dubious choices. For example, installing a mining-farm on the territory of the power plant by agreement with management. They sell the energy at the rate for their own needs TPP. The price of this energy to 1.5 rubles. But TPP may not engage in mining for their own needs. This option is very close to vorovannogo electricity, and at any time can begin raids on such facilities.
Secondly, a very important location and logistics. Incredibly difficult to transport equipment to Siberia and back, so we decided to stay in the Central region. Clients psychologically difficult when their device is thousands of miles away.
How does your mining hotel?
We start with a client consultation: we learn in what services he needs, what device and where they are. Even telling the customer about the conditions of equipment in our mining hotel. Generally we arrange complete solutions for mining — from the purchase of equipment to its maintenance.
After the client brings to us your device and we sign a formal contract. Finally, our experts place the equipment in the container and turn it on. At the client’s request, we switched the equipment on the desired pool. Since the end of April, the switching pools will be automatically directly from your account.
Regarding cryptocurrency, it comes to the wallet client, that is, we do not have access to his funds.
Who and how to protect equipment?
Our sites are located in a closed area, but the client may come to us, previously having issued a pass.
The territory of the mining area is closed, because he was to sensitive objects. The hotel has round-the-clock security posts, it is equipped with video monitoring, the contract for the security was the police. The equipment falls into the container according to the list, so accredited security carry for him liable. Additionally, we establish round-the-clock guard posts directly outside the containers. On all platforms work — IT posts.
What are the advantages of mining-the hotel gives its customers?
First, placing equipment in mining-the hotel, the customer saves on electricity. For example, in Moscow one kilowatt*hour costs six rubles, and in BitCluster four.
Second, the client is not disturbed by the noise of the miner. Because the equipment runs very loud and gets very hot.
Thirdly, for the normal functioning of mining devices need high power. If a person keeps his equipment in his apartment, he is unlikely to be able to place more than 3-5 devices.
Fourth, the client does not need to waste time and money on the creation of favorable conditions for storage and operation of equipment. Suitable conditions have already been created in mining-hotel, equipped with ventilation cooling system, video surveillance.
Finally, the customer can get technical support around the clock in any day of the week. We invested heavily in infrastructure to achieve the most favorable conditions for servicing of a device.
In General, our business is very similar to the classic data centers. After all, companies are much more profitable to place the server in the data center, where it will serve 24 hours a day, provide security and much more than, for example, keep it in the office. Also asik is better to place in a professionally prepared environment.
Cryptocurrency market is not regulated by law. Complicated if the business is a lack of legal norms?
No. Now equipment you can buy and import into the country officially. Device for mining has received notification of the FSB, they also made the lists of customs authorities. This is great progress. When we started mine in the customs Declaration was not the appropriate classification, so we did not understand how legal this activity and acted blindly.
What is the development of legislation will be most comfortable for your business?
Our country has always had and will have energy resources: oil, gas, electricity, nuclear energy. Moreover, the Soviet Union has left us with a colossal power grid: in the country there are dozens of hydroelectric and other energy projects. Now there is a huge surplus of the power — hundreds or even thousands of megawatts. By giving this power to the miners, the government understandably will get a budget of billions of rubles. In addition, weather conditions in Russia are ideal for mining.
However, the Government should not allow the conduct of the crypto operations only in one region of the country. In this case, the blockchain will lose its essence, which consists in decentralization. The state does not need to try to centralize something that should be decentralized.
I also think it is wrong to impose additional taxes on mining, because the miner uses electricity and thus pays the state. Of course, there will always be someone who will think about the income tax. But understand, if we want to make our country strong and prosperous, we should ensure the inflow of investments. Investment will come — there will be jobs, people will begin to pay wages, then the budget will begin taxes. As a result, the state will benefit from this. If to introduce a tax on cryptocurrency, I do not understand how to charge. If the country even with taxi drivers the issue is not resolved, then the miners will be even harder.
What is the situation in Russia is emerging against the mining-hotels?
In Russia and in the world as a whole, yet the major players, so mining hotels open «pioneers-enthusiasts». We also reckon among them, although the development of our project is moving exponentially. Unfortunately, in this area there are too many makeshift solutions. For example, people renting a garage down the power through the wires, not the relevant cable cross section and open mining hotel, and later they begin to experience power outages and overheating.
Only in the Central region of the country there are 18 mining-hotels, about five relatively large. For example, the total loaded power of our platforms — 7 MW ready to download — 38 MW.
What are the prospects of hosting miners in Russia, you see?
The number of mining-hotels in Russia and worldwide will increase. They are in demand because mining equipment is now in high demand.
First, the country imported a lot of equipment from China. Second, device manufacturers for mining uploaded. For example, the company Bitfury orders booked for several months ahead. Is TSMC is a Taiwanese company engaged in custom manufacturing of semiconductor products, it produces the lion’s share of chips in the world. Now the company has uploaded all 10 factories. Thirdly, the company Samsung has entered the market of mining. They have invested $ 700 000 000 in the production line of miners on chips 7-nm.
These facts suggest that our direction in the near future will develop.
How is the development of mining accommodation in the West?
Russia is ahead of European countries in the development of mining in the town. Development in Europe inhibits the high price of electricity. But sometimes our Western colleagues have come to us, so we sold them the containers, brought them in and put on power. We are now undergoing European certification for shipments of containers to Germany.
Is it possible to attract the business investment from China?
Of course. We have a huge electric power is concentrated in the Irkutsk region and Khakassia Republic, so the excess energy we now sell to China at bargain prices. Since we constantly buying equipment in China, communicate with the local players. Now we are negotiating with our Chinese colleagues, who are willing to invest in the grid for mining, as well as to place its equipment in Russia.
However, they need assurances that they will not lose their money in our country. Already there have been cases where the fraudsters from Irkutsk promised Chinese colleagues cheap energy, and after bringing them the equipment they took it. Such things, to put it mildly, have a negative impact on the investment climate.