The Advantages of Ice Rock Mining Over Established Chinese Bitcoin Mining Farms

Ice Rock Mining is a new cryptocurrency mining venture that will locate its server farm inside of a mountain. By the end of February 2018 Ice Rock Mining had installed its first 100 bitcoin miners in one of their caves. The bunker consists of 7 caves with a lot of space for future expansion and Ice Rock Mining has plans to eventually fill all 7 of its caves with mining rigs. If they accomplish this CEO, Malik Murzashev states that this will be close to 5,000 mining rigs.

The team and CEO are planning to buy “the best new technology” in mining rigs that are available – regardless of brand – to ensure the mining efficiency is as good as possible.

How does a new cryptomining company like Ice Rock Mining compare to an established cryptomining business already operating at full capacity? Briefly, I review an example of bitcoin mining occurring at an established site in China and also at Ice Rock Mining in Kazakhstan. I then provide advantages of joining a new cryptomining initial coin offering (ICO).

Bitcoin Mining in China

There are a number of bitcoin mining farms in China including: Antpool, BTC.top, F2pool, BTCC Pool, Bixin, ViaBTC, BW.com, 1Hash, and Batpool. According to a research study last year by the University of Cambridge about 60% of all cryptocurrency mining takes place in China.

Chandler Guo is the co-founder of Bitbank, that runs one of the established mining operations in the world, BW. On average, BW.com accounts for approximately 10% of the total global Bitcoin hashrate. It is estimated that it earns up to $8m in digital currency from mining annually by solving complicated mathematical algorithms with computers.

Undisclosed location of one of China’s Bitbank bitcoin mining sites in a high altitude location situated on a mountain.

Note: The mining site uses dozens of large cooling fans to draw air in to the warehouse for rig cooling. Besides the mining rigs themselves the cooling fans require a significant amount of energy derived entirely from coal sources.

A worker inspects a failed mining rig at the Bitbank Chinese mining site.

(Chinese Bitbank Photos from BBC)

Bitcoin Mining by Ice Rock Mining in Kazakhstan

Ice Rock’s Mining facility is owned by the CEO, Malik Murzashev. The property has no rent or mortgage payments. Also, the site uses passive cooling as the bunker maintains a constant cool temperature of 12 degrees Celsius, there are no power costs for cooling. They pay just 3 cents per Kilowatt hour for green electricity (one of the lowest rates for electricity worldwide). Ice Rock Mining’s set up and operational costs are considerably lower than other established bitcoin mining farms.

Manager Dias Kurmanov inside a naturally cooled mountain cavern overseeing the set up of the first 100 Ice Rock Mining rigs.

(IRM photo from Youtube)

Advantages of Ice Rock Mining

While Ice Rock Mining is at the beginning of creating its cryptomining site they have a huge advantage over older established Chinese bitcoin farming operations.

First, Ice Rock Mining is starting by buying newer mining rigs with greater computational hashing power. As Ice Rock Mining adds newer rigs to its inventory it will increase its ability to mine more effectively than Chinese farms relying on older machines.

Second, the mining inside the mountain for Ice Rock Mining means no dirt, particulate matter or humidity. The Chinese mining, although located at high altitude, uses large fans that draws in dust and humidity in the air which will over time impact the longevity and performance of their mining rigs.

Third, the electricity needed by the Chinese mining farms with air cooled is costly both to the environment (supplied from coal sources) and as a high operational cost. Another large Chinese miner similar to Bitbank in size is Bitmain Technologies that runs eight, 100-meter-long metal warehouses in northern China (a server farm in Erdors, Inner Mongolia) with about 25,000 computers. These operations run on electricity produced with coal (as do the other cryptocurrency mines) in China. With continued urbanization and growth throughout China the reliability of electricity could be a problem for Chinese mining sites. Compare this to the natural, green hydroelectric sources of Ice Rock Mining which incurs much lower electricity operational costs and uses a sustainable natural electrical power source.

Fourth, Chinese bitcoin miners are subject to centralized state control over cryptocurrency and bitcoin mining. The Chinese government has recently announced its interest in developing an official digital currency. Ongoing news stories continue to surface of the Chinese government attempting to exert control over bitcoin, blockchain technologies, and cryptocurrencies. The government seems poised to move to a centralized cryptocurrency and ban unauthorized, decentralized activity.

Fifth, the Chinese mining operation is run as a private enterprise business. The co-owners of Bitbank mine bitcoins and pay for their operations and keep the profits. Ice Rock Mining uses a collectively mining approach re-distributing 50% of its mined bitcoins as a dividend to its token holders.

Summary

The primary benefit is that bitcoin mining is no longer feasible for individuals, small groups, or those with older mining rigs. Ice Rock Mining’s dividend redistribution of 50% of mined profits allows even small investors holding ROCK tokens the chance to collectively participate and obtain some profits from bitcoin mining. Ice Rock Mining enters bitcoin mining this July with a very efficient set up inside a cool, dry, low humidity mountain bunker in Kazakhstan. It has already set up its first 100 mining rigs and plans to acquire the most modern computer mining rigs as it expands. Larger bitcoin mining farms with up to 25,000 machines will be five times the size of Ice Rock Mining’s planned expansion to 5,000 machines; however, there are many advantages to Ice Rock Mining over older established mining farms that see a large amount of their profits paying for electricity and warehouse cooling with remaining profits going to individual, private business owners.

If you found my review of Ice Rock Mining helpful and you might buy some ROCK2 during the ICO that runs until May 25th – please use my referral to sign up here: https://icerockmining.io?stcref=02cc5735-10dc-43f0-8eb7-e5b06283ab7f

(Yes, this is a shameless attempt to get a small bonus from my blogging efforts as I get a 5% bonus for a referral)

For more information:

Ice Rock Mining website: https://icerockmining.io/en.html

Ice Rock Mining whitepaper (available in several languages): https://drive.google.com/drive/mobile/folders/1wgCA7H7Ob1QfZG5Z3c-8bND43ansH7t5

Social Media Links

Telegram: https://t.me/joinchat/Emenog0u3kyNRusZjFbFWA

Facebook: https://www.facebook.com/IceRockMiningICO/

Medium: https://medium.com/@dias.kurmanov

Bitcoin talk forum: https://bitcointalk.org/index.php?topic=2781356.new#new