Crypto mining computers
The process of mining Bitcoin and many other cryptocurrencies is called mining. This is one of the cornerstones of crypto-currencies, distinguishing them from phiatic and other electronic currencies. Mining can not be compared with the usual print of money, because it has certain functions. And most importantly – almost everyone can do the mining.
What crypto mining equipment do you need?
The farm for mining cryptocurrency for $ 6-7 thousand per month is able to earn “clean” $ 600-700, completely repels costs for 10 months and further brings profit to the owner.
The device for bitcoin mining Antminer s9 brings in $ 25 per day and pays for 3-4 months, even despite the recent collapse of the Bitcoin exchange rate.
Crypto currency is extracted in two ways: using video cards and processors. At the dawn of the block for mining, a relatively powerful home computer was approaching, today more effective equipment is needed for effective operation.
Several devices, combined in one system, are called a farm. In fact, the farms are a crypto mining computers in disassembled form, which is equipped with additional video cards. All parts are mounted on a rack with shelves and connected to a powerful power supply.
Then on the “hardware” install special drivers and software for mining and begin production. In the summer, the manufacturer of video cards AMD even released a special version of the drivers for this. You can cope with both Windows and Linux.
The advantages of farms on video cards – in their universality. They produce different cryptocurrencies, the miner can monitor the market situation and decide which currency to mine. In addition, they easily scale, replace or add a couple of new devices takes a couple of minutes.
One of the most popular mid-range models is NVIDIA GTX 1060 and AMD RADEON RX470. When selected, the miner takes into account the card’s core frequency, memory capacity, power consumption, switching and cooling system. Their cost is about $ 500. More powerful models cost a thousand dollars or more.
Farms from video cards consume a lot of electricity, they are noisy, bulky and in the process of work they allocate a lot of heat. The heat transfer of some video cards at peak activity reaches 120 degrees Celsius. Therefore, the miners install additional cooling on the farm.
The weight of farms can reach 15-20 kg. The average equipment consumes at a minimum power of about 50 watts per hour. Together with processors and other elements of the farm, the computer will use 1 kW per hour.
Can you mine without your own crypto mining machine?
Some of the miners complain: because of the high demand for equipment, the delivery time exceeds the payback period. An alternative is cloud-based mining.
The user rents equipment in a large data center and gets rid of all the hassles associated with buying and installing hardware. They called crypto mining pools.
But during a cloud-level mining, the entrepreneur does not control the process, the data center can be a trap for scammers. They offer instant 100% earnings, lure with a grace period of mining, do not require detailed authorization.
Most of the proposals for cloud mining are fraud, so be in touch with crypto mining news.
Some data centers allow only to place equipment on their territory, but this is not cloud technology. This option is suitable for miners with small capitals. On rented equipment, crypto-entrepreneurs lose 30-50% of the possible earnings.
Risks and difficulties of mining
The main task of mining is to understand which currency is most profitable. The process can be compared with the food industry. Your farm produces chicken, pork and veal. Today the most popular product in supermarkets is veal sausage. Accordingly, the owner of the farm produces raw materials under high demand until the chicken sausage again becomes a more attractive commodity.
The yield of the miner depends on the demand for the produced currency. For example, there is a new cheap currency with a high cost. It attracts more and more miners, and, over time, resources for its extraction will equal the cost of mining another currency.
The more entrepreneurs mine a particular currency, the harder it is for a crypto mining setup to carry out a task.
For example, today Ethereum mining is discouraging starting costs for 8-12 months.
The cost of a crypto currency is approximately the same. The extraction of one coin costs the miner about 30% of its market value without reference to a specific cryptocurrency.
The longer the cryptographic task needs to be calculated, the more electricity the device consumes. The optimal tariff for mining is 0.05 $/kW. The most profitable electricity tariffs are in Canada, major miners advice is moving equipment to North America.
The market is a speculative currency. It is difficult to forecast the yield of specific currencies. There are many non-professional investors in the market who are prone to speculation. In this and the main risk of mining – high yield supplements the exchange rate instability.
To increase profitability, the miners are engaged not only in raw material production of coins, but also in the game on the exchange – they produce one currency, and then they buy more attractive on the exchange.
Experienced miners extract several crypto-currencies, form an investment portfolio, which reduces the risks of exchange rate jumps. Conservative miners continue to mine only Bitcoin.