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More fluctuations ahead for cryptocurrency?

More fluctuations ahead for cryptocurrency?

The increasing volatility of the virtual currency market means that cryptocurrency miners should protect their organisations by moving operations to a highly-resilient, purpose-built colocation data centre.

In the week of January 15th, notoriously volatile virtual currencies plunged in the wake of an announcement by the South Korean government that it was preparing to ban cryptocurrency trading as part of a wider crackdown – this follows the near daily all-time highs achieved by certain tokens.

Yet, while the value of cryptocurrencies has suffered its ups and downs, the challenges associated with mining them have only increased. Solving the complex computational algorithms to verify transactions consume vast amounts of power, which increases as the time required to mine more tokens extends. Cryptocurrency mining now uses more power than 159 countries. While the typical hardware used for mining has a small physical footprint (unless you’re a full server farm dedicated to cryptocurrency mining), when the additional cost to power and cool the racks has been considered, it can cut deep into potential profits.

“The wild fluctuations of the cryptocurrency market show that cryptocurrency miners need to keep their operations under control and as power efficient as possible. A key concern from potential miners, is how to get the energy and compute resources required to power cryptocurrency mining software.

By working with a highly-resilient, purpose-built data centre, they can rest assured in the knowledge that the data centre can handle the massive energy requirements, required for mining in the most efficient way possible. Data centres also provide stability in a volatile market and are capable of scaling up and down as requirements demand but also back up power generators to ensure that your racks are kept running whatever the happens. Third-party provides also offer a myriad of security measures ranging from CCTV, secure man traps, gates and fences to security guards. All these precautions seek to minimise power outages and data centre downtime which can further hit investor confidence, and so exacerbate market fluctuations.

Resilient, reliable data centres can provide cryptocurrency miners with to help they need to reduce the risks and costs associated with virtual mining and maximise the amount of profit that can be made.”

— Greg McCulloch, CEO, Aegis Data
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