Title Bitcoin Mining Firm Survives Crypto Winter Again.

This is an opinion editorial by Sergii Gerasymovych, CEO and Co-Founder of EZ Blockchain, a bitcoin mining company focused on using wasted and underutilized energy.

The author shares the story of how his company survived its first and second “crypto winter”, which refers to the period of time when cryptocurrency prices are low and mining companies struggle. The author explains how his company managed to survive by managing costs and operating in a lean manner during the first crypto winter. During the second crypto winter, the company faced challenges due to declining bitcoin prices and rising energy costs, influenced by the energy crisis provoked by the war in Ukraine. Many mining companies went bankrupt, but the author’s company survived by prioritizing the securing of power and building relationships with power providers. The author advises that a hands-on approach to construction is crucial in building a successful Bitcoin mining operation site.

The article discusses the importance of learning about transformers, substations, and airflow during the development of a bitcoin mining project in order to avoid future mistakes. The author emphasizes that this type of involvement is more crucial than constantly negotiating the price of mining equipment online. Bitcoin mining operations are compared to marathons, as they require hard work behind the scenes before the hash rate shows up in the pool.

The article then suggests that miners must integrate their power generation vertically and find new ways to generate revenue that do not only depend on hash price. The author describes how they started mining bitcoin using natural gas, which is burned annually in oil fields as a byproduct of drilling for oil. The article also discusses the importance of flexible loads in the energy sector, and how bitcoin mining can help address grid instability by dispatching enormous loads of power in minutes without requiring subsidies.

The article concludes by stating that energy companies have worked with bitcoin miners long enough to understand that this industry is here to stay, and that the mining companies that will adopt different mining strategies and find a way to earn additional revenues using bitcoin mining as a tool for energy management will prevail. The author predicts that the next era of mining winners will be technologically-adapted companies with versatile toolkits to manage crises on many levels, including technological solutions for updating existing and developing new solutions.

We will continue to update Phone&Auto; if you have any questions or suggestions, please contact us!

Share:

Was this article helpful?

93 out of 132 found this helpful

Discover more

Opinion

Generation Z’s Perception of Bitcoin: Insights from the Future

The current discussions surrounding the growth of Bitcoin often focus on the natural adoption of younger generations ...

Opinion

🚀 Crypto Firms Eyeing Public Listings: Circle’s Second Attempt and Potential IPO Candidates

CoinDesk has analyzed potential firms, such as Kraken and Ripple, that may follow in Circle's footsteps and go public...

Opinion

Atomic Purchasing in the Digital World: No Shitcoins Required!

A revolutionary protocol that utilizes Bitcoin to seamlessly exchange your sats for digital files.

Opinion

Crypto-Friendly Doesn't Mean Crypto-Easy A Tale of Challenges and Rewards

Fashionista, let's talk about the state of cryptocurrency regulations in the US compared to Japan, Singapore, and Hon...

Opinion

Have You Fallen Into the ‘Rabbit Hole’ of Covenants?

Polyd, a highly experienced Control Systems Specialist and the visionary behind the Enigma Network proposal, shares h...

Opinion

AI is reducing interest in crypto venture capital.

Chris Coll-Beswick, at Transcend Labs, a startup accelerator, highlights the resilience of the venture funding landsc...