Bitcoin is constantly in the news today, and more and more people are expressing interested in getting started in this new and exciting venture. However, for those who are new to Bitcoin, it can be confusing, as there is a lot of information and terms that might not be familiar, including colocation ASIC miner hosting. The best way to understand what this means is to break the term down into several parts and then put it all back together again.
What Is Colocation?
First, you need to know what colocation is. With this type of hosting, it means that the business or individual will provide their own servers and have them placed within the data center. The data center is a space that serves as the “home base” of operations for the servers. It is essentially where they “live” while they are in use. Many people like the idea of having their servers for ASIC mining of Bitcoins in these data centers because of the convenience it offers, and because they may not have the space or capabilities of having them on their own property.
The data center is made up of many racks and cabinets, each of which can hold servers. There tend to be many people and businesses who have their servers housed in a single data center. The cabinets have connections to the Internet, as well as power connections and cooling to keep the temperatures down so the servers can operate properly.
In addition, the top-quality colocation centers provide security for the premises to make sure nothing happens to the servers that are onsite.
What Is ASIC?
ASIC stands for application specific integrated circuit. This purpose of this device is to mine Bitcoin on the decentralized network. It mines cryptocurrency that is based on the SHA-256 algorithm, providing a powerful platform for mining Bitcoin. In addition to the power these types of devices offer, it is far more efficient than the mining hardware of the past, which can mean bigger gains to those who choose to use it.
These devices will perform the audits and calculations needed for you to earn pieces of a Bitcoin, which is then your profit. If you are serious about making a profit on Bitcoin mining, and you are not merely doing it to see what mining is all about, you need to have an ASIC device. The other options available, whether it is a CPU, GPU, FPGA, or a USB device simply don’t have the power or sophistication needed to make a profit with the current state of the Bitcoin market.
Because these devices use a lot of power and are working hard, they tend to make quite a bit of noise. They also give off a substantial amount of heat, so they need to be kept cool. This means that you will either need to have a separate room in your home for the device, or you will need to work with a colocation data center, as detailed above. Most people find that it is more hassle than it is worth to keep the ASIC device at home, so they find a colocation center.
What Does Hosting Mean?
Hosting simply means that the data colocation center acts as the host of your ASIC Bitcoin miner. They will ensure that everything is set up properly and running properly, so you do not have to worry about a thing. This is one of the biggest benefits to working with a host. You will have them taking care of the hard work, so all you need to do is reap the profits. Of course, you must find a colocation ASIC miner hosting facility that is worth your time and money
What Should You Look for in Colocation ASIC Miner Hosting?
The increase in Bitcoin mining popularity has brought with it an increase in the number of companies supposedly offering hosting and colocation services for miners. However, with all these companies offering their services, it can sometimes be difficult to know exactly which one you should be choosing. We’ve helped to make things easier on you by providing you with some of the most important elements you will need to consider when you are choosing a hosting company.
First, you want to make sure that they are clear and upfront when it comes to what they can offer. They need to have a high-quality, modern facility that is capable of keeping your device safe, not only from intruders, but also safe from overheating. These machines tend to get very hot, and when there are many machines operating in the same room, the temperatures can get very high. They need to have a method of keeping the temperatures under control.
The company should also be very upfront about their fees, and you need to make sure that there are no hidden expenses or upcharges to the nearest kilowatt. You should only pay for the energy that your miners are using. What are the contract lengths? With most of the options on the market, you are not going to be using the services on a month-to-month basis. Instead, you will be signing a 12 or 24-month contract. Always make sure you know the terms of the contract and that they are agreeable to you.
In addition, you need to consider the uptime of the facility. If the facility is down for some reason, it means that your miners are not working. If they are not working, they are not making you any profit. Always try to find a colocation host that can promise you uptime of 99.9%. Since they are going to be housing the devices, you also want to make sure that they can take care up of the setup and the monitoring of the miners.
Some of the hosts can even provide the equipment you need to mine. Always take the time to consider just what the company offers, how much they are charging and whether they have the capacity to meet your needs or not.