Placing crypto mining equipment

Started by Bukvarix, Aug 19, 2022, 02:57 AM

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BukvarixTopic starter

Everybody rushes to mine at the peak

Guys, you need to sell at the peak! And you need to mine when everything has fallen. We see these waves with our own eyes. As bitcoin explodes - the client runs to us, do not stop. As the crypt falls, so the clients run away and sell all. And they cut their poor in a circle. At the peak, they buy video cards, which, as they are now, disappear from store shelves, which gamers suffer from. Then, as everything fell, they sell it for nothing, although it was then that it was a good time to buy video cards and ASICs.



You need to have strategic thinking. Mining is a long game, just like the stock market. That is for retirement or 10-20 years. On average, most likely, it will grow and save and increase savings. But you will run after the news waves locally - most likely you will lose, because when the news reached you, it had already been worked out 10 times on the exchanges.


The price of electricity is not paramount

It is essential not where electricity is cheaper, but where it is more reliable. The cost of electricity can double. But these two times are about nothing if you are not thinking about momentary profit, but thinking strategically for several years ahead.

Find out how many years the company has been in existence. Has it survived the past peak and trough?! We have customer cases of how they were thrown on equipment, there is a case of our competitors that have closed. For example, we were contacted by a client who has been trying to return his equipment from a one-day mining hotel for almost a year and returned only half of what was taken out (everything was sold in parts). The client shared that they took all out in one night. Our competitors with the same cost for electricity at the time of the start did not raise prices for their customers following the increase in tariffs and eventually closed, deeply passing the break-even point, as their contract was drawn up in this way. We have already discussed the importance of a simple and clear contract in the article A good contract is a short contract.
What is unimportant for a mining hotel

In the article "Renting a rack in a data center or how to choose a data center", we listed a huge number of parameters that a data center should have.

Some data centers host mining hardware in their empty racks. And it turns out, as it were, hammering a shoe nail with a sledgehammer or a staple with a shoe hammer.

At the premises for mining, the requirements for temperature conditions are weaker. Since the equipment generates a lot of heat, the proximity of ASICs to ordinary servers is harmful for servers. Of course, this is not a miner's problem. It is more correct to think about this for the owners of conventional servers.

Raised floor, racks, 100% uptime, redundant power supply via UPS and DGU are not needed for mining. This only leads to higher prices. However, the quality of the connection remains essential. Mining hotels on cheap home routers with 3G modems will not be able to provide acceptable communication quality, low ping, low jitter, zero packet loss, and therefore not all decisions will be made by pools precisely because of communication problems, simply because someone that will have time to transfer the solution faster.
What is important for hosting mining equipment

    Fixed cost, independent of the exchange rate. The mining hotel should not take any commission from the amount mined or tie the cost to the cryptocurrency rate

    Excellent ping and channel redundancy.

    No "own pools" and no commission from the mined.

    Legal electricity. It will be very frustrating to know that all the equipment is seized by the police due to the fact that the mining hotel was stealing electricity.

    stable temperature.

    Professional technical support engineers.

    It is necessary to collect farms in unit buildings, and not a collective farm on sticks.

    It's good if the company has licenses.

Cooling of mining equipment

In winter, it is cooled by forced ventilation. It is unreasonable to drive industrial air conditioners. Air conditioners are needed in summer. And you need to make sure they are there.  Cooling equipment in containers also presents a number of challenges. Firstly, the high density of equipment with a small volume. Secondly, the metal container is quickly heated not only by equipment, but also by direct sunlight. There were cases when powerful fans sucked in rain or snow along with outside air, which led to the failure of expensive equipment.
How to choose where to place mining equipment

Let's try to give you a list of parameters by which you can build a comparison table to decide where to place your mining equipment. It makes sense to divide the collection and analysis of information about various mining hotels into the following areas:

    company data;

    technical parameters of the mining platform;

    licenses;

    the completeness of the services provided;

    price.

All collected data should be summarized in a Google Sheets table, qualitative data should be brought to quantitative through peer review, for example. Enter significance weights. Specify a formula for calculating the final grade, which will allow you to get an objective comparison. Be sure to visit the data center with an introductory tour beforehand.
Supplier company details

The data listed below can be collected when choosing any provider of services or goods, whether it be at least stationery or food.

By TIN, enter the company on various services, you can simply insert the TIN into the search bar. Gather the following information:

    Company age. Year of foundation according to the extract from the Unified State Register of Legal Entities.

    Whether the legal address of registration matches the actual address.

    Average number.

    Turnovers for previous years.

    Taxes and payroll contributions.

    Court cases.

    Executive productions.

It is very convenient to compare the listed data, because they are already numerical. More difficult with the courts. The complete absence of court cases is as bad as a large number of them. Share courts with customers and suppliers. Next are the quality options that you have to evaluate individually.


Management contacts

Systems don't work without feedback! The guarantee of high-quality services and maintenance are the contacts of the management in the public domain, if you do not want to listen to any nonsense from ordinary employees like "unfortunately, everything is arranged differently with us, but we will take into account your wishes."
Any employee should know that if he does not serve a client well, then the client can complain directly to the head of the company. Otherwise, communication with such companies as with the wall. This is how banks, Yandex, Google and many others communicate with us. Over the years, we have never been able to get any major organization to improve its business processes and quality of service.

Reviews and reactions to them

Look at the reviews about the organization and the reaction to the reviews. If there are a lot of positive reviews, then perhaps they are custom-made.
history of the company

On the site nalog.ru, an extract from the Unified State Register of Legal Entities will say a lot. How long has the company existed, how often has its management and owners changed.
Server room location

We advise you to place the equipment for maning geographically in the region where you are close to go. If you place the equipment several thousand kilometers away from you, then if something happens, it will be a whole problem for you to get there.
Technical parameters of the machine room
Accidents, downtime, uptime

The server has such a thing as uptime - the time of uninterrupted operation from the moment of launch. Server uptime can also be measured in relative units - percentages. How is server uptime calculated as a percentage? From 100% we subtract the downtime of the server room, divided by the entire time of operation of the mining hotel. What determines the downtime of the machine room:

    server software failures;

    mining equipment failures (asics, GPU farms may fail and require repair);

    interruptions in the operation of the mining hotel:

        failures or accidents in the cooling system;

        accidents in the power supply system;

        failures on routers and communication channels, DDOS attacks;

Absolute 100% uptime is rare. But for mining, 99.5% is quite a sufficient level. You can talk about local uptime over a given period of time and as shown above, you need to at least distinguish between three different types of uninterrupted operation. Accidents were, are and will be everywhere and always. Some cases can be minimized, somewhere it is possible to reduce the time of their elimination, but it is completely impossible to get rid of them. It is possible to minimize the human factor, but it is impossible to get rid of the failure of the terminal equipment.


Communication licenses

Check availability of telematics and data transmission licenses. It is desirable that they be.
About technical support and access to equipment

Find out if there is a round-the-clock support and whether access to the equipment is possible at any time - the ability to bring and collect. What problems will they help you with, and what will they not help you with.
Channels

At least two fiber optic links from different providers and different routes must be suitable. If there is only one channel and an excavator cuts it, then it will take a long time to restore it.

The minimum ping is critical. To analyze the quality of communication channels, pay attention to:

    ping value;

    average connection time;

    average response time of a DNS server to obtain an IP address by domain;

    uptime and accidents over the past few years;

    actual download speed.

Who is the manufacturer of electrical equipment?

The power structure must be assembled using reliable components from the world's leading manufacturers, such as Schneider Electric. Cheap parts are more likely to cause a fire.
In what room should and should not be a mining hotel

The mining hotel should not be in the basement, bunker, bomb shelter, because there is a threat of flooding!

The mining hotel should not be in a bomb shelter, because the bomb shelter can be asked to be vacated in 24 hours!

It also shouldn't be in an office building, because the nasty hum from the operation of the equipment spreads throughout the building!

When placing equipment above the first floor, consider the load on the floor.

In the workshops of the plant with high ceilings in the summer there will be a problem with heat dissipation.

Mining in containers is a bad idea, since you don't even need to dismantle and take out the equipment, they drove up, picked it up with a crane and stole it. But you can't just pull it out of the server room in 5 minutes.


Safety

Access control must be organized on the territory of the mining hotel. The possibility of unauthorized persons entering the territory or technical premises of the data center should be excluded. There must be a change of guards, consisting of at least two people, and regular rounds should be carried out. An agreement must be signed for the departure of armed guards. Staff on duty must have a panic button.

Access directly to the machine room must be carried out in the presence of an engineer.

In case the machine room of the mining hotel is located above the ground floor, it should be possible to use an elevator and trolleys to move the equipment.

A mining hotel should have at least a fire alarm, but in general, a full-fledged fire extinguishing structure is needed.

The mining hotel should have cameras that fully view all approaches and passages to the mining hotel and inside it. The archive storage depth must be at least 30 days.
Completeness of services provided

Pay attention to the list of basic and additional services. Familiarize yourself with the text of the contract and the possibilities of the contractor. You may need:

    Possibility of payment by cards, electronic money and other payment methods.

    Receipt of acts, invoices through the channels of the electronic turnover document (EDI).

    Receipt of a cash receipt in accordance with 54-FZ.

    Possibility of round-the-clock access and technical support including holidays and weekends.

    Support by phone, mail, personal account requests, chat on the site and in Telegram.

    Client room - a separate room for working with equipment.

    The kitchen is an opportunity to drink tea, coffee and have a snack.

    Warehouse and storage rooms.

    Monitoring and administration of client resources.

Price

It makes almost no sense to compare prices for the services of a mining hotel. This item comes last in importance. On the horizon of 2-4 years, it is essential not to save a penny on electricity, but to find a reliable service provider that will not disappear.
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parven

People with money are always interested in cryptocurrencies.
 any case, they will support that idea with their turnovers. Not necessarily a specific currency, but in principle.
Well, under the guise, there will always be miners.
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nesterland

On example : block generation time ~ 13 sec.
When mining through the pool, share is used.

In fact, the work of finding a solution to the block is divided into "subtasks", for the number of solutions found for which miners are already competing to receive a payout.
Several that solutions can be found within one block.
This means communication with the pool:
1. Getting a "task".
2. Sending the found solution
3. Checking the solution by the pool and sending a response
- can occur several times within the framework of the search for solutions to one block.

From the instance below, about 100ms, this is already a minimum of k * 0.098 * 3 / 13 = k * 0.023, where k = the number of balls within one block. Which for k=1 gives a difference of 2.3%.

In the real world, taking into account other delays (for instance, for issuing a "task", checking a solution, etc.), the denominator decreases, because the effective time for "work" becomes less than 13 seconds - the time for publishing a block solution.
The impact of latency on income can be measured in percentages and even tens of percent.
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