If you seriously want to do the mining of cryptocurrencies, you need to figure out what equipment you need and what you should spend money on. This article will help you figure out what is needed for effective mining.
Most money is needed to purchase an ASIC device. If you already have it, then apparently, you understand how the process works. However, if your budget does not allow large expenses, you may be interested in the GPU miner for currencies on the Scrypt algorithm or a small ASIC device that is suitable for mining Bitcoins (Bitcoin) and other currencies on SHA 256. In this case, this text is for you.
The mining process involves solving complex cryptographic tasks so that the miners can provide Proof of Work. This is a distribution algorithm that provides the active role of the participants in the mining of data. The more a participant “works” and the higher his computing power, the larger the amount of remuneration.
The SHA 256 algorithm requires pure computational power. At the dawn of Bitcoin, it was possible to efficiently use GPU and CPU processors on a regular home computer. However, this time has passed.
Now the level of complexity of Bitcoin has grown so much that mining requires specialized processors – “integrated circuits for special purposes,” or ASIC. The use of such powerful processors and the rapid increase in the level of complexity of bitcoins created a technological arms race, which means that even the most recently developed chips can quickly become outdated.
This algorithm requires large amounts of RAM and the possibility of parallel processing, so the GPU mining here is quite relevant. In addition, the ASIC for the script has not yet been created, so the level of complexity here is not growing so rapidly.
It can be created on the basis of a PC and such a number of graphics cards (i.e. GPU processors) that you can afford. Some use non-standard enclosures instead of PCs, for example, beer crates, where the air circulation inside is higher. Home installations allow you to simultaneously engage in CPU and GPU mining.
ASICs are standalone devices with a USB or Ethernet port that can be purchased from the manufacturer. Miners of ASIC are usually more expensive than DIY installations, and they are mainly produced in the USA, which means that residents of other countries will also have to spend money on delivery.
For mining, you need electricity – a lot of electricity. If you build a home farm, you will need an ATX power supply, so invest in the most efficient power source you can afford.
For example, consider the two cases of the power supply, which is guaranteed to provide 860 W and is 93% efficient, in fact, it will require 925 W (860 W / 0.93). On the contrary, a 750 W power supply, which is only 80% efficient, will actually require 937.5 W (750/0.8) – so it uses more energy and gives less.
When creating a farm for mining, you will need to take into account the power requirements of all the components that you use, especially all video cards. In addition, it would be nice to provide a small reserve in case of unforeseen events and to disperse the system.
On the other hand, due to their narrow specialization, ASICs can produce much more computations with less power consumption. They are supplied with the appropriate power adapter and you do not have to calculate what kind of adapter you need.
To calculate the current profitability, you need to consider not only the initial equipment costs but also the cost of electricity. Just look at the latest receipts. If you spend on electricity more than you earn, obviously, this business model does not work.
Pool members receive a portion of the reward if the difficulty level of the blocks they decide is higher than the level that is set by the pool operator. This indicator is always somewhere between 1 and the level of difficulty of the currency.
Your long-term profitability is also influenced by the volatility of the currency being mined. If the price suddenly drops, you will have the choice to either sell at a low price or hold the coins until their value rises. In the first case, you will have to continue mining to cover the costs of equipment and electricity.
Whatever mining method you choose, intensive computational processes create a lot of excess heat. Production efficiency is reduced at high temperatures, so ensure adequate ventilation and cooling of your farm.
As mentioned above, this is why some use beer boxes instead of PC cases — to increase air access. You can also purchase a standalone tabletop fan.
When you create a farm for mining it makes no sense to save money by buying a cheap power supply. Any instability in power supply can affect performance or even lead to system failure and downtime, so invest in a high-quality product.
There are several web sites that provide profitability calculators to help with calculations. You just need to enter parameters such as equipment cost, hash rate, power consumption and the current bitcoin price to find out how long it will take to return your investment.
Mining profitability calculators for different cryptocurrencies are offered by sites such as ASIC Trade, BitsMedia, BitcoinWisdom, CoinWarz, BTCInvest, LiteCoinPool. In addition, there is a Telegram bot WhatToMineBot, which allows you to calculate how much money will bring the production of different currencies under different initial conditions.