The process of creating Bitcoin, known as "mining," is an industrial-scale operation often situated in remote regions. These mining farms, hidden across rural China and representing a significant portion of the global network’s computational power, rely on partnerships with hydroelectric or thermal power stations to access affordable electricity. It is here, amid the rhythmic hum of machines, that this digital asset is brought to life.
Life at a Mining Farm
In a small village, silence dominates the night—until one approaches the hydropower station. Even from a distance, the roaring sound of mining hardware becomes unmistakable. Inside, thousands of application-specific integrated circuit (ASIC) miners run 24/7, generating both heat and Bitcoin. Massive fans work endlessly to cool the equipment, creating waves of warm air even on cold nights.
These facilities are where Bitcoin is produced. Miners use electricity to power computational efforts that validate transactions and secure the network. In return, they earn Bitcoin rewards. It is a race of processing power, efficiency, and endurance.
Day-to-Day Operations
At 8 a.m., Zhao Jun, a mining farm operator, wakes up in a simple dormitory located behind the station. After checking messages from clients across the country, he starts his daily routine. His task is to maintain and oversee thousands of mining devices.
During the low-water season in winter, only the most efficient machines remain online. When summer arrives, the "wet season" brings cheaper electricity, and more miners are brought online. Each high-performance unit can consume over 2,000 kWh per month—equivalent to a typical household’s half-year usage.
Clients monitor their earnings remotely and often ask Zhao to optimize machine placement or improve cooling. Some even request specific positions for their hardware, treating the equipment almost like children requiring special attention.
The Human Element
Inside the mining halls, the air is thick with noise and heat. There are no windows; light enters only through vents. Technicians sometimes use headlamps to navigate the racks, tangled wires, and endless rows of miners. After hours of work, their hands are covered in dust.
Zhao Jun, a veteran with six years of experience, has worked in mines across Xinjiang, Inner Mongolia, Sichuan, and Yunnan. He thrives in these isolated settings, appreciating the freedom and scent of “opportunity.” To combat loneliness, he brought his Husky, Beibei, along for company.
Not everyone adjusts so easily. Some newcomers, like Li Lei, struggle with the isolation after moving from a bustling city. With limited entertainment options—mostly short-form videos, games, and occasional card games—the lifestyle can be challenging. Still, the prospect of steady income often makes it worthwhile.
Bitcoin’s Market Volatility
Bitcoin is known for its price volatility. Sharp rallies and dramatic corrections are common. In early 2021, its value surged close to $60,000, only to later fall sharply. Yet, for those working at the mines, these swings rarely affect their income. They remain detached, focused only on maintaining uptime and efficiency.
Seasoned operators like Zhao often distinguish between "big players" and "retail miners." The former see market dips as opportunities to accumulate or upgrade equipment. The latter often panic during downturns. As Zhao notes, “Major crashes are just buying opportunities for those with capital.”
A Veteran’s Perspective
Zhao Jun entered the industry after repairing computers and custom-built mining rigs in his hometown. Curiosity led him to accept maintenance jobs in remote mining farms. What began as a technical gig evolved into a career—and eventually, a belief in Bitcoin’s potential.
The concept of "faith" is often discussed among miners. For many, it means trusting Bitcoin’s long-term value despite short-term fluctuations. Zhao adopted this outlook during the 2017 bull market, when prices soared from $1,000 to nearly $20,000.
Still, practical realities sometimes override conviction. During the March 2020 crash, Zhao sold his Bitcoin holdings to renovate his house. Not long after, prices rebounded dramatically. He reflects on this with some regret but admits, “True belief requires financial backing.”
Industry Shifts and Adaptations
Regulatory changes add another layer of uncertainty. When Inner Mongolia announced the shutdown of all crypto mining operations in early 2021, entire farms had to relocate. Equipment was moved south, where hydropower was more accessible and policies more favorable.
Large-scale operators, like Chen Xiaolong, manage thousands of miners and offer hosting services. Despite market cycles, he remains optimistic. “One coin, one villa,” he says half-jokingly, envisioning a future where Bitcoin becomes a store of intergenerational wealth.
The Road Ahead
After years on the move, Zhao Jun now seeks stability. He plans to settle in Sichuan with his partner and focus on long-term mining projects. His repair shop back home remains a fallback option—a tangible business in a world of digital assets.
The mining industry continues to evolve, driven by innovation, regulation, and market demand. Through it all, the individuals behind the machines remain essential to the network’s security and growth.
Frequently Asked Questions
What is Bitcoin mining?
Bitcoin mining is the process by which new coins are created and transactions are validated through computational work. Miners use specialized hardware to solve complex algorithms, and in return, they receive Bitcoin rewards.
Why are mining farms located in remote areas?
Mining operations require large amounts of electricity, often at low cost. Remote locations—especially near hydroelectric or thermal power sources—provide affordable energy and reduce operational overhead.
How does market volatility affect miners?
While price swings influence profitability, miners often focus on operational efficiency and electricity costs. Large-scale operators may use downturns to upgrade equipment or acquire more miners at lower prices.
Is Bitcoin mining regulated?
Yes. Policies vary by country and region. Some areas encourage mining, while others restrict or ban it due to environmental or financial concerns.
What happens during a Bitcoin crash?
Established miners often continue operating, especially if they have low electricity costs. Others may pause or sell equipment. Market downturns can also lead to industry consolidation.
Can individuals still start mining?
While individual mining is less competitive today due to industrial-scale operations, cloud mining and mining pools allow smaller participants to contribute hashing power and earn rewards.
Interested in learning more about how mining adapts to market changes? 👉 Explore mining strategies and insights