A clear and concise answer, YES mining can be profitable and can even make you a rich person…provided that electricity is free for you. So it is possible for tenants who have made an agreement with the owner of the premises taking charge of the electricity bills but he may quickly question this agreement!
As a joke, given the complexity of the mining field, it is difficult to answer this question, but I will try to answer it.
Several factors come into play to determine the profitability of a cryptocurrency. Among which we find:
Computing power: the more powerful your minor is, the more H you will produce to validate transactions
The cost of electricity: The voracity of the blockchain network is a point that should not be taken lightly. Many farms are located in strategic locations with low energy costs and a rather winter climate to cool miners naturally.
The price of cryptocurrencies in relation to the difficulty of mining:
Tool giving an overview of the profitability of mining
We will carry out a simulation with Bitcoin through our case in France based on the data corresponding to our situation.
The calculation speed of our miner is 4.7 TH/s operating mainly thanks to our powerful 1500W power supply and we must assume the pool costs amounting to 1% which is normal, but especially the relatively expensive electricity costing 0.15$ per kW/h.
For example, in the case of France, it is not profitable to mine Bitcoin, due to the great difficulty, saturation of the network and the high cost of electricity despite good computing power. Notwithstanding the data previously recorded and the current price of Bitcoin, we are running a deficit of $144 per month. That is why I advise you to mine different cryptocurrencies using this website every day in order to optimize the performance of your miner.
This aspect must really be taken into consideration for the most hesitant investors. As we progress over time, the ever-increasing number of miners only increases competition and therefore the difficulty of extracting bitcoins. In addition, the energy resources required to mine are increasing significantly and are reflected in electricity bills. Finally, as you know, the value of cryptocurrencies fluctuate greatly due to their volatility. To compensate for this, companies are increasing their prices significantly. As a result, the profitability of cloud mining in the context of an investment is questioned.
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Do you want to set up your first mining rig or to improve your gear ? Would you like to know which graphics cards are the most cost-effective for mining cryptocurrencies? In this article, you will find a list of the most productive GPU on the market.
Be aware that all are not equal. At equal computing power, the productivity of 2 different graphics cards will vary depending on the cryptocurrency you choose to mine.
As a reminder, graphics card are THE components that you should not try to make huge savings on, since the profitability of mining comes from the power (hash rate) of a graphic card.
Be aware that it is still possible to mine, for a much lower cost than those shown in the comparison, with less powerful graphics cards . However, you will have to consider a large efficiency gap, which will not allow you to optimize your exploitation enough to face the strong competition in the mining sector. Still, if your budget doesn’t allow you to have a high-performance rig, you can start with a more than respectable price/performance ratios card.
AMD or Nvidia: Which is better for mining ?
This may be the first thing everyone who wants to start mining think about. There are clearly two schools in the world of graphics cards. On one side we find the pro Nvidia and on the other side the pro AMD. I personally am a user of Nvidia and in the context of video games I have a preference for this brand but I will try to provide the most neutral analysis possible.
Although Nvidia is said to be the best graphics cards manufacturer for gaming, several features of AMDGPUs seems to make them better solutions for crypto mining. Indeed, AMD graphics cards show better performances due to the higher number of UALs running slower than Nvidia cards, which operate with fewer UALs at a faster clock speed. This allows AMD to get an advantage in terms of computing speed. In addition, a single instruction is required for mining using the SHA-256 algorithm. It makes AMD cards more intuitive for miners than Nvidia ones that need 3 instructions.
To mine properly one should take into account the electricity consumption factor. Indeed, many miners have gone broke for not taking sufficient account of the necessary electricity cost.
Concerning graphic cards, although AMD GPUs are cheaper and more efficient than the competition, Nvidia cards, because of their low power consumption, are still smart choices in the long term.
The important Criteria to determine the profitability of a mining graphics card
Some criteria are to be considered in order to find out which graphics card you should select for your rig equipment.
Price: It is an important criteria because you can know the potential of graphics cards by doing ratio with other criteria, such as those presented below.
Hash rate: expressed as the number of hashes per second, this is the mining power that the graphics card generate in order to validate and to write blocks in the blockchain.
Electricity: As previously said this criterion must be strongly taken into account in order to optimise the profitability of your rig. Indeed, many graphics cards are not optimised for mining since they consume too much electricity compared to the power they can generate. The goal being to mine as many cryptocurrencies as possible with the least electricity consumption.
The amount of RAM memory: Another criterion to remember is the amount of RAM memory available on a graphics card. Indeed, some crypto-currencies such asEthereum for example require at least 3 GB to be able to mine it. Other cryptocurrencies such as Zcash or Monero can be mined using a graphics card of at least 2 GB.
Now you know which criteria to consider.
Discover the graphics cards that will allow you to mine profitable crypto-currencies in the table below:
NVIDIA GTX 1070 26Mh/s | Overclock 30Mh/s
In addition to its more than decent gaming performance, the NVIDIA GTX 1070 has an important hash rate of 30Mh/s. Its low energy consumption coupled with its cleverly designed ergonomic make this card a strategic choice for future lucky buyers.
Average cost : 505$
Buy a Nividia GTX 1070
NVIDIA GTX 1070 TI 32Mh/s
The NVIDIA GTX 1070 TI, like its little sister the NVIDIA GTX 1070, is excellent for mining. The small difference in price/performance ratio between these two cards is a very interesting choice for people with a higher budget.
The GTX 1080Ti is one of the best solution for mining. Indeed, its excellent quality ensures a long service life, which is very important for future owners. Despite the price, the quality/price ratio is still more interesting than the previous graphic cards. Its 32Mh/s hash rate easily accepts overclocking optimisation, thus increasing its performance by 30 to 50%, notably through memory unblocking from 300MHz to 900Mhz. For the bravest, you can also overload the RAM memory with 750MH/s. NB: be sure to check the power as well as the core.
With an optimised configuration of the mining tools and the graphics card, it is not uncommon to see results boasting a hash rates approaching 50/55Mh/s. However, be careful before making any changes!
In the next article we will show you an example of optimisation that we have done with a 1080ti GTX to obtain a hash rates of 55Mh/s
Average cost :897$
Buy a Nividia GTX 1080TI
AMD Radeon RX 570
The AMD Radeon RX570 clearly deserves its place among the best graphics cards for mining. This card has won over many miners, which make it difficult to find because of the stock shortages that specialised shop have encountered. With an average hash rate of 25Mh/s that can reach 30Mh/s without overclocking with a good configuration, the RX 570 not only consumes very little fuel, but it is much more affordable than a GTX 1070. With a good overclocking control, just imagine the power you could gain.
Average cost :190$
Buy an AMD Radeon RX 570
AMD Radeon RX 580
Similar to the GTX 1070, the AMD Radeon RX580 is an improved version of the RX 570. With its generous 30Mh/s and its low power consumption compared to the competition, the RX 580 is the choice of many miners. It is indeed preferred to the GTX 1080 Ti for its very affordable price. The RX 580 remains in 2019, one of the best GPUs for crypto mining.
Average cost :245$
Buy an AMD Radeon RX 580
Which card to buy for which currency ?
To calculate the profitability of a map, you can use a website like Whattomine. This type of website will help you calculate the profitability of a graphics card based on the currency you want to mine, using different criteria such as your equipment, the difficulty of mining a currency, and the cost of electricity.
Other methods can be useful to make the best purchasing decision, it will be the subject of the next article. In the meantime, feel free to comment on your experience and share the article with your friends and family to help them choose the right graphic card. See you soon!
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In our previous articles, we saw what mining is, its characteristics and its use in the blockchain environment, then we talked about ASICs. If you want to know more about these computers, we invite you to read the article on ASICs and their profitability. In this article you’ll discover the second type of computer that can be used to mine: “RIGs“.
But what are RIGs? If you have read the article on ASICs, you should know that an ASIC only allows you to mine one cryptocurrency at a time. RIGs, on the other hand, offer greater versatility by allowing you to mine several cryptocurrencies at the same time and, consequently, optimise the profitability of your equipment.
Now let’s identify the necessary components to build a performant RIG. We will provide you with the basics to avoid making beginner mistakes and thus saving you time.
What are the components to build a RIG ?
We will look at them one by one to help you understand their roles in the mining activity:
A power supply: It’s not the first component you want to look at when buying a multimedia computer, but it is quite different when you want to mine cryptocurrencies. Indeed, this type of activity involves the use of a graphics card at full capacity requiring a sufficient power source.
If you want to start mining with a single graphics card, then we recommend investing in a certified power supply with a minimum power of 650W.
Otherwise, with several graphic cards, (i. e. 3 to 4 cards) you should acquire a power supply providing at least 1200W. With 6 cards, go directly for a 1500W power supply.
Steel box: It will allow you to properly organise and store your computer components in order to optimise heat circulation and, therefore, their lifetime. If you are in a hurry and you don’t want to build the structure by yourself, you can get it directly from Amazon at a fair price.
RAM memory: It is one of the least important components to optimise your RIG since the latter mainly use the power of graphics cards to mine cryptocurrencies. RAM allow you to increase your operating system fluidity, 4GB are enough for mining.
A portfolio of cryptocurrencies: Even if this device is not necessary to start mining, it is nevertheless strongly advised to get one (the cost is around 85$) since it can literally save your funds (cf: Wallet). The different exchange platforms suffer from regular cyber attacks, you will feel much more secure to know your hard earned funds will be safe in your wallet.
The company Ledger offers one of the best device on the market, they also have a very good customer service and they regularly publish security updates.
PCIE and Risers cables: Risers allow you to optimise the ventilation of your IT components, especially graphics cards because they generate a lot of heat. If you use several graphics cards to mine, you better equip yourself beforehand to avoid unpleasant surprises. Each riser allows you to connect a graphics card. PCIe cables will connect the graphic cards to the power supply. Given its low cost, we recommend ordering several pieces in case the cables were to be broken. If you rather choose to use risers, which is a wise decision for the health of your graphics cards, simply connect your cards to a multi-sata power cable connected in turn to the power supply unit.
Cable RJ-45 + CPL: By experience, we do not recommend mining using wifi, which is too unstable to mine qualitatively. That’s why we recommend connecting an Ethernet cable to your RIG for more stability. If your modem is too far away, we recommend that you purchase a CPL.
SSD hard disk: In view of the huge drop in price of SSD hard disks, it would be a mistake not to buy one for your rig. Indeed, SSDs consume less energy, moreover, they are much more powerful and ergonomic than simple hard disks. It will cost you about 45€ to own a Kingston A400 120GB which is powerful enough for mining, but you can choose to take one with a larger or smaller capacity depending on your budget constraint. In addition, it is possible to acquire an SSD hard disk with an included EthOS operating system.
Operating system: An OS is necessary for any computer, mining rigs are no exception. You can mine with the system that suits you best: Windows, MacOS, Linux, all systems are compatible. Otherwise, it is also possible to install systems specifically designed for mining, such as EthOS, which makes possible the mining optimisation of Ethereum and Monero (about 45$).
One or several graphic cards: Here is the key element to optimise mining performance. You will have to spend about 700€ for each graphics card if you choose to take a GTX Nvidia 1070 Ti which we consider to be the best quality/price ratio just before the GTX 1060. You can also go for an AMD card for a cheaper price, but they are more energy consuming graphics cards although the difference in profitability is negligible in the short term. The RX580 also remains an excellent choice for mining cryptocurrencies such as ETH. Consider the memory available before purchasing your card as it is a good indicator of how long your card will last. Obviously a card with 8GB will be obsolete less quickly than a 4GB or 6GB card, mainly because of the DAG which is stored in the graphic memory. Once the memory is full, the graphics card will no longer be able to create cryptocurrencies. Finally, the strong competition and technical progress will make your graphics cards outdated quite fast…
Motherboard: This component is very well named, its choice is not to be taken lightly as it will determine several of the components composing the final machine. Many miners mine cryptocurrencies with more than 6 graphic cards but not all motherboards can accommodate such numbers. Each card also has its own features that do not allow any type of processor or RAM memory. To find out if the motherboards can accommodate 6 graphics cards, you will need to make sure that the motherboard has at least 6 PCIe slots. Still most motherboards “only” allow you to mount 3 to 4 graphics cards, so you will probably have to find specific components for mining such as the model “Asrock H80 pro BTC“.
Processor: The processor is not the most important part in the context of mining cryptocurrencies a “cheap” processor compatible with the motherboard socket is more than enough. We recommend an Intel Pentium G4400 (3.3Ghz) Skylake processor (about 55$) especially for low resource consumption system with less than 55 watts of power consumption.
Other components: Now that you have all the necessary components to build a powerful RIG you will need, as for any other computer, a screen and a keyboard. It might seems logical to you, but we prefer to make that clear for the beginners who would like to order their components right after the reading of this article.
The CIA’s opinion
As you have probably understood after the reading of this article, these components will allow you to build a computer. But what is the point to create another computer if you have already a computer that allows you to read this article ? To answer this question. First of all, when you mine cryptocurrencies, your computer dedicate its resources in crypto mining so it will considerably slower the other tasks you might want to do on your computer. Moreover, mining requires a lot of computer power to verify transactions and validate blocks so you will have to invest in top equipment to avoid your computer to die too quickly. You will understand that investing in an expensive computer is clearly not the best way. Instead, you should look for components specifically designed to mount your own mining RIG.
We hope this article has answered all of your questions you and that it will help you build your first mining RIG . In the next article we will see a tutorial explaining how to set up your mining rig. Feel free to comment and share your experience.
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The subject of this article will be mining. Considering the fact that the philosophy of the blockchain is based on the decentralization of data, you will understand that there is no central bank to create money. But then, how is cryptocurrencies created and on what basis is it based on trust? This is where the miners come into play, they are the biggest contributors on the proper functioning of the blockchain.
Mining, a rather strange choice to name such activity. You probably think of the men digging the ground with pickaxes to find Bitcoins. The reality is quite different. Indeed, in a mining farm, you will only find thousands of computers connected to servers that are constantly performing complex calculations in order to find the famous and coveted Bitcoins. As you know,Bitcoin is a digital coin considered a precious material, as it is the case with Gold. It is not for nothing that we call Bitcoin “digital gold” limited to 21 million units. In addition, the number of bitcoins in circulation is less than 17 million and their creation rate continues to decrease over time as the difficulty of extracting bitcoin increases.
How does mining work?
Mining is the use of computing power to validate Bitcoin network transactions around the world. Mining is an integral and inseparable part of blockchain technology because it would not work without miners. Miners are those who agree to provide the power necessary to validate and secure peer-to-peer transactions. When transactions are validated, they are recorded in a distributed register, I mean the blockchain. In return, miners are rewarded with bitcoins to cover transaction costs. Where it becomes interesting is that it is also possible to realize added value depending on the value of the bitcoin. A block is represented by a sequence of transactions taking place within a given time period. By putting them in a sequence, the blockchain is created. When a block is created, miners review it and convert it into what is called an H. It is a series of numbers and letters that will be attached to the block and thus integrated into the blockchain. The H is calculated using the H of the previous block, thus linking the block chain. There is strong competition between miners since they have to solve a complex cryptographic problem and if there are many of them, it will then be more difficult to win the reward, namely Bitcoin. In addition, only one miner at a time can add a block to the blockchain. This ensures that there is only one valid version of the blockchain that everyone agrees with.
What is the verification process?
What is the verification process It is simple, when a miner thinks he has found the solution to the cryptographic problem, all the other miners will check a second time if it is correct. They accept the winner, forget the block they were working on, and will devote themselves to resolving the next blocks in a frantic race. It is this process that promises blockchain technology its immutability, making it impossible to go back in time to change previous blocks, unless you hack into more than 51% of the network. Each cryptocurrencie has a blockchain and a process for adding new blocks. Of course, for each of these systems, all the cryptocurrencies will be redistributed to miners.
How is a miner paid?
The miner will be paid according to the number of H produced thanks to his equipment. The reasoning is as follow: the more power you have, the more hash you will produce by validating transactions, and the more money you will earn in the form of cryptocurrencies. This is roughly how it works but the rules work as previously explained.
Can we make money with mining?
Mining is an exciting activity, but miners do not risk creating cryptocurrencies just for fun. Without them, the blockchain would never have survived. Indeed, the provision of the equipment required to mine bitcoin has a real cost, but the reward encourages miners to continue to check transactions, thus ensuring the durability of the bitcoin and blockchain. You probably know it, but YES! it is possible to earn money and even a lot of money thanks to mining.
But not so fast! In reality, the system is more complex than that and is based on many factors to be taken into consideration.
As is the case with all businesses, it is not possible to go in one direction and easy money does not exist. This observation is the most radical in the world of cryptocurrencies. Indeed, the volatility is such that cryptocurrencies can see their value increase by 30% over the course of a day, as they can lose as much, to the detriment of the most vulnerable investors. Investing in cryptocurrencies is clearly a bet on time and their future. That’s why, if you believe in digital currencies, you will need to be patient and adopt a long-term investment strategy.
The creation of cryptocurrencies being controlled and fixed upstream, as is the case with Bitcoin with its twenty-one million units. Its speed of creation is halved every 4 years. Several years ago, 50 bitcoins were distributed to each validated block every 10 minutes. Then we switched to a distribution of 25 bitcoins. I let you imagine the astronomical amount of money that could be won by miners by storing the bitcoins so hard earned after all these years. From now on and until 2020, the current reward is 12.5 bitcoins.
The difficulty of mining
Now the story is very different. Indeed, as the Bitcoin network is saturated with miners, they simply share 12.5 bitcoins among themselves. Today, the network is becoming more complex and calculations are increasing, increasing the energy resources needed to solve cryptographic problems. As you have understood, we are talking about difficulty here. The more miners and bitcoins in circulation, the more difficult it will be to earn money by mining cryptocurrencies.
Who can become a miner?
They must invest a lot of money in powerful computers and especially electricity because mining is a relatively energy-intensive activity, the bill is very likely to discourage a large majority of people, but everyone can become a miner with some training. Indeed, it is necessary to have at least a knowledge of the fundamental basics of mining. However, I recommend that you learn as much as possible on the subject. In addition there are 2 types of currencies in mining. On the one hand there are the lousy “proof of work” cryptocurrencies and the pre-mined “proof of stake” cryptocurrencies. These mechanisms are completely separate. As a result, the investment conditions are not the same. That is why it is necessary to train yourself in order to understand the subtleties of each of the mechanisms.
What equipment is needed to mine?
To mine cryptocurrencies and participate in the PoW “Proof of Work” you will need to invest in powerful IT components. This does not mean that you should buy the most expensive ones, but that you should focus on certain computer parts depending on the type of cryptocurrencies you would like to mine. Indeed, the bitcoin will for example use the power of the processor while another cryptocurrencies such as the Ethereum will mainly use the graphics card. Not everyone’s desktop computer can make it, this is why many specialized companies sell machines designed only to mine specific cryptocurrencies that are ready to operate once connected. These machines are what we call, RIG or ASIC. The second machine being the most powerful, but unfortunately the most expensive. The RIG proves to be a good alternative. However, this type of equipment is expensive if you buy it assembled and ready to use. The price/quality ratio is often low and a commission is sometimes charged on profits. However, you will save a lot of money if you buy the parts and assemble the machine yourself. In addition, it is easy to find many tutorials to set up a rig on the web.
Depending on the type of mining you would like to do, it is not necessary to invest in the same things:
PoW: a mining software to ensure the correct configuration of your installation and to track your earnings. you will need to install a client software and join a mining pool. Finally, you will need to create a portfolio to store your cryptomoney.
PoS: To become a masternode and participate in the “proof of stake” consensus, the installation of a server is necessary. However, the costs remain reasonable compared to the installation of a miner.
Cloud mining is the virtual purchase of IT equipment from a service provider for a certain period of time, usually between one and several years. This service provider is often a mining farm, selling part of the power of their servers and computer. This allows the user to limit the risk while investing in equipment knowing that they quickly become obsolete with technological progress.
Beware of scams
Please be careful, however, because as in any business generating large profits, there are many fraudulent schemes such as Ponzi schemes from experienced scammers that are rampant to steal money from the most vulnerable investors, how do scammers proceed? In reality it is simple, first of all the mining farms in question do not exist but the companies make people believe that their activities consists in mining cryptocurrencies. In a second step, the scammers redistribute the profits from customers and mining activities to the largest investors. This inspires confidence and encourages more investment or sponsorship from newcomers. Finally, these crooks and the money disappear without leaving a trace.
The keys to detecting scams
I strongly recommend that you inquire about the web by asking yourself the following questions:
Is the domain name of the site registered with the contact details of a real person?
Are the company’s executives residing in countries sensitive to fraud?
Does the company provide evidence of the existence of the minefarm when we request it?
Is the company’s reputation good on the web?
Are the company’s promotions regarding investment returns abusive and encourage too much investment or bring in new customers?
The CIA’s word
As you have understood, the profitability of the declining crypto industry does not encourage investors to try cloud mining and it is rather a wise decision because there are way too many scams and the reputation of the biggest references is also to be questioned. Concerning mining, the profitability too dependent on the price of cryptocurrencies makes the sustainability of individual miners too uncertain. This is why it is strongly advised for anyone hoping to embark on the mining adventure to train in order to choose the most profitable cryptocurrencies. In the world of cryptography, the risk of losing all your funds is always present. On the other hand, the progressive increase in difficulty may impact the profitability of mining. However, it should be noted that, when things are done correctly, the implementation of a masternode to participate in the consensus of the “proof of stake” remains the least risky method. It will provide an immediate return on investment which will allow you to earn money even if the currency rate falls, without the slightest initial investment cost to bear.
I hope that this article has been informative and that it has helped you to better understand what mining is and how it can be used in the crypto world. Feel free to share it with those around you if it can help them. Finally, please comment and share your experience with us. In the meantime, I’ll see you in a future article!
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In our previous article you learnt what mining was and what it was used for. Finally, you have seen how it is possible to become a miner. In this article, we will focus on a type of machine that can quickly mine cryptocurrencies. We are of course talking about the ASIC miner.
As you know, mining cryptocurrencies can be an exciting activity, but it must be profitable to make a living from it. The ideal way to maximize profitability is to have access to low-cost electricity, and above all to equip yourself with high-performance and energy-efficient components.
What is an ASIC ?
Now that it is no longer possible to make the mining of bitcoin profitable from a computer because of its poor performance, it is necessary to acquire a specialized machine for this type of activity, “ASIC” which means (Application Specific Integrated Circuits) is what I’m talking about.
The creator of the blockchain Satoshi Nakamoto, wanted Bitcoins to be mined from computer processors to ensure decentralized transactions. The technological advances has worked against Nakamoto’s vision. Indeed, as graphics cards became more and more powerful in terms of hash rate, they encouraged miners to equip themselves with them to mine cryptocurrencies different from Bitcoin. Subsequently, the graphics cards themselves were then overtaken by ASICs.
Nowadays, most bitcoin mining takes place through ASICs generally located on mining farms in cold countries such as Iceland or Canada, where the cost of electricity is low. Mining farms are warehouses that store a considerable number of mining equipment adapted to the maintenance of blockchain network servers.
How to find the best Bitcoin miner?
Some criteria are to be considered when buying the ideal ASIC miner for our needs.
Hash rate – How many hashes can the bitcoin miner perform per second? The more he can do, the higher are the costs: the performance of the equipment is therefore essential. The mining farms are clearly ahead of us, given the resources they deploy.
Efficiency – You need to purchase the most efficient bitcoin mining equipment possible, i.e. the largest hashing capacity possible within your budget.
Price – the price/performance ratios should be as high as possible in order to get a return on your initial investment fairly quickly. Take into account that a mining machine requires a lot of maintenance and that these quickly become obsolete as the transaction validation processes are updated. It is also wise to calculate the ratio of performance to electricity cost, which should be as low as possible. This means that you don’t have to focus on price to buy the most optimized machine for your needs.
Bitcoin miners for sale in second-hand markets
In case you would like to mine bitcoin or other cryptocurrencies and you are looking for some mining rigs or ASICs to install at home, it is possible to find something interesting especially in case of a bear market on the second-hand market like Ebay, Leboncoin, Craigslist etc.
By buying on platforms like Ebay, you can buy new or used products while enjoying purchases security. In addition, you may be lucky enough to receive additional material in your purchase. However, please be very careful when buying on the second-hand market as many mining machines may be obsolete.
In view of what is written in the previous section, if you wish to mine bitcoins, we recommend to acquire the ASIC Antminer S7 or Antminer S9. You will see that you can buy 6 S7 machines instead of just one S9 machine and think you would save a lot of money. But you shouldn’t think that way because not only do you have to prepare yourself for the equipment necessary to optimize the installation of several ASICs but you will also experience a deafening noise every day and above all your electricity bill will explode. Indeed, it is better to buy a less powerful and expensive machine than several less expensive machines, because it will cost you much more in the future.
Profitability on the material
You can use a bitcoin mining profit calculator to obtain an estimation of the profitability of your equipment through the Coinwarzwebsite.
Be sure to consider the cost of electricity: most miners look like they are making a profit until the electricity bill arrives.
An effective miner
As previously explained earlier in the article, the higher the hash rate of the machine, the more power it will have to mine bitcoin. On the other hand, the electricity bill will also be high.
That’s why the electrical efficiency of the miner should not be underestimated, making it possible to reduce the need for energy power per hash to mine a bitcoin. In other words, the higher the number of watts per giga hash, the more effective the miner is.
For example, here are the most profitable miners and their different yields.
The Avalon 6 offers 0.29 Watt/GH, but costs $200 more than the Antminer S7.
The Antminer S7 is more efficient, with 0.25 Watt/GH. The Antminer is also cheaper and offers a hash power of 4.5 TH/s, which seems better, compared to the 3.50 TH/s of the Avalon 6.
The AntMiner S7 is clearly the preferred option between these two miners – both of whom are, by the way, the most profitable miners available for purchase.
Bitcoin miners’ manufacturing companies
Bitmain – Bitmain manufactures the Antminers. This company is based in China and operates a mining pool.
BitFury – BitFury is one of the largest manufacturer of electronic chips and other bitcoin mining equipment. Its products are not available for sale.
Spondoolies Tech – Spondoolies Tech is a mining equipment manufacturer based in Israel.
Bitcoin mining equipment
In addition to your ASIC miner, you need the right Bitcoin mining equipment.
Power supply – Bitcoin rigs have special power requirements, as they require power supplies that can provide enough power to power the components.
Fans – Mining equipment tends to overheat easily, which can lead to a risk of malfunction. Buy enough fans to ensure that your equipment will work properly. It should be taken into account that the more cooling equipment you have, the more impact it will have on your bill.
Mining bitcoins without equipment?
Given the computing power needed to mine cryptocurrencies, you would do more harm than good to your computer by mining with it. Believe us, there is no point in mining without specific equipment unless you learn how mining works in a short period of time. Your best option is to purchase dedicated equipment such as the Antminer S7 or Antminer S9.
USB Bitcoin Miners
The use of a USB miner on a computer was once a profitable way to mine bitcoins. However, USB miners no longer generate enough hash power to take advantages of the mining. In case you would like to obtain a USB miner for learning purposes, eBay or Amazon are the places to go to find a miner for a good price.
It should be kept in mind that bitcoin mining is an extremely competitive environment and that it is not necessarily the best idea for the average person. If you just want to own virtual currencies, it is better to think about buying bitcoins.
That’s the end of the article. Now you know what ASIC miners are and how they work. Finally, you know what different materials are available to optimize the profitability of mining for more professional purposes. We hope this article has been useful to you. Feel free to share with us in the comment section.
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If you are interested in mining, this article should attract your attention, because not everything is simple in the world of cryptocurrencies, especially in prolific activities as mining. This article is not intended to ruin the mining reputation, quite the contrary, it only aims to raise awareness among beginners wishing to contribute to the proper functioning of the blockchain, to avoid the most obvious traps. Although we have no proof to justify our comments, you will see that they are still interesting to read.
As you know, the very essence of the blockchain is the decentralization of transactions, in other words, the total removal of trusted third parties. This vision imagined by the creators of the blockchain was quickly diverted by 2 things having a strong impact in the world of the blockchain as we know it today. Indeed, technological progress and the democratization of the blockchain quickly led to the emergence of Pools and ASICs, thus contributing to the progressive centralization of the blockchain and returning power to the highest bidder, to the detriment of the people. Not so sure that Mr Nakamoto would have wanted this! In addition, the behaviour of companies specialising in blockchain and mining quickly contributed to this centralisation and quickly took advantage of it to benefit from their piece of the cake.
Here are the reasons that lead us to express our negativity in relation to ASICs:
You think you’re mining with new equipment, you’re wrong!
Believe it or not, but the ASIC manufacturer will undermine with the equipment you buy later. They make their money grow with the miners until the protocol process is updated. When this is the case, they will put their miner on sale in order to develop other more efficient mining tools who will in turn allow them to mine ahead of others particular miners. This is one of the reasons why the mining difficulty is increasing sharply. As a result, you will never be able to make your miner profitable unless the price of the cryptocurrency explodes.
Buying miners on the second-hand market, bad idea!
When you have a limited budget, you can go on the second-hand market. You will find the right shoe for you on rare occasions. Let me explain, we often talk about pre-selling minors. In the world of cryptocurrencies, this means that you will have to pay several months in advance. By the time you receive the machine, the mining difficulty will have increased significantly thanks to millions of much more efficient machines that are already running at full capacity.
In the second-hand market, there will be many ads to sell you the machines and deliver them much faster than companies. However, the price will be much higher than the initial price of a new product. The impact on profitability will be even worse, because you will only lose money by running the machine, unless you can find a buyer to get rid of such a financial abyss. Morality of the story: Do not buy second-hand ASIC minors under any circumstances!
The later you own your minors, the more likely you are to take the risk of having an obsolete machine
Indeed, most companies manufacture ASIC miners for the same cryptocurrency in several power versions. If you buy a miner several months after its release, you run the risk of buying a miner a few weeks before the release of another much more powerful model that will give your equipment the status of “outdated”.
Assuming that specific mining companies and mining farms are several steps ahead of particular miners, it goes without saying that you will have to invest constantly each time a new ASIC machine is added to the catalogue of specialized dealers. Indeed, the mining difficulty will increase considerably. As a result, you will quickly need to acquire new materials. Knowing that it is only possible to make the machine profitable after on average, one year. In short, this gold rush may not be profitable at all.
The CIA’s opinion
When a cryptocurrency is mined by an ASIC, Not only does it have no interest in being mined through GPUs, but its decentralization is also threatened. Most miners decide to mine other cryptos and this is the best thing we can do if we don’t want to lose money, in addition to contributing to the good development of the Blockchain. Even if we do not recommend any financial investment, we remind you that the direct purchase of cryptocurrencies remains the easiest and least risky way to invest in this area.
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