Bitcoin Mining in a Soviet Bunker
In this episode join me Cahill (sounds like K-Hill) as I chat with Dias Kurmanov from Ice Rock Mining – a bitcoin mining based project based in Eastern Europe.
Their idea – shared mining project – where you earn income/revenue based on how many miners they have running. They say it’s run in an older Soviet Military bunker in a mountain, where the average temperature remains at 10-degrees Celsius or about 50-degrees Fahrenheit. Maintaining stable temperatures (and electricity costs) when building out large mining facilities is extremely important – as the more bitcoin or GPU (Graphics Processing Unit) mining rigs you have – the larger your costs are going to be in cooling and power.
As someone who mines with GPU’s (yes, I have a number of miners running, and am working on the ideation phase of an AI/GPU/Bitcoin mining idea) this discussion was interesting to me, and we do dive into the weeds a little more in Part 2 of the interview.
If you want to hear Part 2 of this episode and all the others I do – you can become a member here.
Note this interview is a little shaky as Dias was recording from his phone just outside the mining facility.
In Part 1 – we cover the standard questions. Dias covers some of the challenges associated with building mining, network difficulty growth, and how they plan to overcome these challenges.
In Part 2 – I get into the weeds. There are lots of things that affect profitability of cryptocurrency mining – hash rate, electricity costs, cooling costs, technology, network difficulty and on and on. I’ve read the whitepaper, and I run my own mining rigs/farm – so we dive into a number of interesting questions such as:
- How do you stay competitive – as technology keeps on advancing quickly?
- Do you have Ethereum (GPU) mining?
- What is the LTV (Life Time Value) of each miner – what is their calculation on this?
- How does the network difficulty increase affect their business?
- How do they maintain profitability with network difficulty increases?
- What equipment are they currently using to mine bitcoin, ethereum and others?
- What is the hash-rate of the equipment they’re using – how does this compare to newer machines?
- What type of technology are they planning on buying – Antminers? Bitmain? What models? etc.
- and many more…
As I mentioned, we get into the weeds a bit in Part 2…
Hope you enjoy the interview.