There is one arena where crypto miners at home or home-based miners have an advantage over full-scale companies that mine cryptocurrency. Home miners can move rapidly to a place with lower maintenance and cost, while it might be challenging for full-blown companies.
The current nature of cryptocurrency is highly volatile and subject to constant change, even more so than before. What is even more dynamic is the estimated difficulty of mining new bitcoin. For instance, network difficulty in China saw a depreciation of about 30% in the middle of 2021, making it considerably more convenient for the prevailing miners to find out about fresh blocks.
However, what's in focus here is the consistent fall in the price of cryptocurrencies and how small-time home miners deal with it.
The energy resource responsible for the most significant chunk of any U.S citizen's bills is electricity bills. Somehow, hobbyist miners have found a way to slash the prices of their electricity bills. Before delving into how they have saved up on their energy bills, it is crucial to understand why or how they can easily find their way around this massive tanking market and the economic inflation that has had a global impact.
Expert miners think that home miners, due to their relatively smaller scale of business, are more likely to be able to adapt and move about than established companies that are not likely to be easily portable. The way well-established companies have had to deal with the economic crises is to sell off their bitcoins to reinforce the strength of liquidity in the markets whose prospects of a profit margin are shrinking rapidly.
Home Miners have to deal with the same economic crises by simply packing up their impediments and relocating to a new place, usually where the supply of energy resources is abundant. A steady supply automatically results in lower prices of energy resources, thus leading to considerably subsidized bills.
Now, it is pretty simple for home miners to assess the situation and relocate accordingly quickly. However, the same cannot be said about miners on a larger scale. This is because, for such miners, the relocation process does not encompass simply packing up shop and opening up elsewhere. For them, relocation would also point to a change in the procedure of logistical conduction and financial structure.
Large-scale miners generally engage in prevailing contracts with energy resource providers and are bound to use the electricity from the provider they have signed an agreement with. Small miners, however, are relatively flexible in nature and can quickly get their job done using the residential supply of electricity. This is quite visible in the way Idan Abada used the free electricity provided by Starbucks to run his mining rig for bitcoin.
Thus, small-scale miners assess where the resources are either renewable or abundant and relocate accordingly. This has been very effective in helping lower the electricity costs they have to bear. Although, even such rigorous consideration might not be fruitful, which has led some small-scale miners to sell their cryptocurrency mining rigs. However, this is a rare and undesired option.