Mining hotels are a relatively new, but already very popular phenomenon in the cryptocurrency market. The owners of such hotels assure that their customers can get top coins as quickly, profitably and safely as possible. Is this really the case and what are mining hotels in general? How much do their services cost and does it make sense to order them? Is it better to open your own hotel and make money on other miners? We will describe in this article!
The first mining hotels appeared in 2017. Then the cryptocurrency market experienced a real boom and many users rushed hard to mine top coins. This led to higher prices for mining equipment very soon.
In addition, due to the sharp increase in the number of miners, the complexity of mining of top cryptocurrencies has also increased significantly. Behind it began to grow electricity bills, which for the extraction of coins had to spend more and more. In sum, rise in price of equipment led to the fact that mining at home cryptocurrency became less and less profitable.
And by itself, home mining cannot be called a pleasant and safe process. Farms and ASIC miners work noisily, heat up a lot, and still tend to knock out traffic jams and provoke fires.
Many miners began to move to basements and garages in such conditions, and some even rented separate rooms for mining. However, soon a more successful alternative appeared – mining hotels.
Mining hotels open in many regions with an active cryptocurrency community and high interest in coin mining. The cost of their services in different countries is different.
Considering that the mining hotel is a physical place where you need to take your equipment, in this article we focus on hotels in the CIS countries. We consider the main price trends on the example of Russia.
From the beginning of the year, mining hotels in the Russian Federation began to enjoy wide popularity. They open in all regions and the number of search queries associated with them in Runet has increased 6 times (compared to 2017).
The average cost of a monthly lease of space for a piece of equipment in Moscow and St. Petersburg is 7000 8000 rubles at the moment, in Chelyabinsk and Nizhny Novgorod – 3000 4500 rubles, in Ufa, Samara and other cities “simpler” – 1000 1500 rubles.
By the way, at the end of autumn the price was much higher. For example, renting a place cost about 15,000 rubles in Moscow. According to analysts, the fall in prices is due to the sharply increased number of applications. There are more hotels and their owners have to compete for the consumer.
An important point is the final price of the “bed” in the mining hotel depends on the characteristics of the equipment. The higher is its power, the more electricity it consumes. So, the owner of the hotel pays for his service more money.
For example, for 7,000 rubles in Moscow, you can “rent a room” for equipment with a capacity of up to 1 kW. Already 8,000 9,000 rubles will have to be paid for 1.5 kW, and 10,000 rubles or more for 2 kW.
The price in Ukraine is about the same as in Chelyabinsk and Nizhny Novgorod (3500-4000 rubles per month). True, most of the local hotels are small private premises, the owners of which offer rent through marketplaces like OLX or self-made sites.
However, soon the situation may change. The Association of Miners of Ukraine announced plans to create a legal and well-developed infrastructure for mining hotels.
In the near future, such hotels will appear in Belarus. A month ago, a law came into force in the country allowing for the use of cryptocurrency and coin mining. In response, a local entrepreneur has already started building a mining hotel in the Belarusian city of Lida.
According to experts, gradually mining hotels will open in other CIS countries. After all, the demand for them is still growing. As the number of people who began to think about creating their own hotel is growing.
If you are planning not only to take equipment from customers, but also to lease mining farms and asiki to them, you will have to spend money on them too.
For example, on the lease and arrangement of premises in Moscow, an area of 400 square meters immediately have to spend 400-500 thousand rubles. This is without buying mining equipment. With it – 1-1.5 million rubles. The payback period is from 8 months to a year.
If you buy a room with an area of about 100m2, do major repairs and install mining equipment, the starting costs increase to 2-3 million rubles. Such a project pays off in about six months.
Experts say that owners of small mining hotels should not rely on long-term business development. They call the maximum period of existence of such projects – 2-3 years (of which one year can go on just to go to zero on costs).
According to experts, mining hotels will gain more and more popularity in the coming years, and competition in this market segment will grow even more. In addition, it is already clear that it is impossible to receive a stable income from mining without upgrading equipment.
After all, more and more people connect to the mining of top coins and the complexity of mining is constantly growing. You need to increase computing power to stay afloat. That is, switching to equipment that gives more hashrate, consumes more electricity and costs much more.
A natural question arises – will the owner of the mining hotel be able to keep an acceptable level of income for him and not raise prices for customers if the hotel consumes more and more electricity?
It will be able, if it finds the opportunity to get cheap electricity. According to specialists, it makes sense to open a large mining hotel only at a tariff of about 0.05-0.08 dollars per 1 kW. At regular rates, a huge part of the profit simply goes to pay bills.
The fact is that at any CHP there is always a supply of so-called residual electricity. These are the “remnants” of electricity that are preserved in substations, generators and other station equipment. The states of many countries do not prohibit stations to sell this electricity at a price below the market price.
This will have to get permission from the state, pay tax and conclude an agreement with the power plant. Yes, for the use of the station premises will have to pay much more than for the rental of a conventional warehouse or workshop.
This option is only suitable for registered entrepreneurs (legal entities) who are willing to invest in the project a few tens of millions of rubles.
However, speaking of active development, specialists are referring to large enterprises that have concluded contracts with CHP plants and have equipped full-fledged data centers for mining equipment. Some are seriously convinced that the future of the mining industry is behind them.
As for small private hotels, many experts call them a temporary phenomenon of dubious quality. Experts advise you to be extremely careful if you decide to take your equipment to such a hotel.
By adhering to these simple recommendations, you will protect yourself from fraudsters who have already intensified due to the increased demand for mining hotels. Then you can actually get cryptocurrency much more efficient and safer than at home.