Mining crypto-currency, the essence of which we have already told, is the activity to maintain the network's operational capacity of a certain crypto currency, for example, bitcoin-network. In the course of calculations, the miners look for a simple hash, which is necessary for signing all the transactions (transfers) that should be included in the current block (we also wrote about block and block computer here).
In order to understand whether there is an economic sense in mining, you need to estimate how much the profit will be generated by the work of the mining devices that you want to buy, taking into account the cost of electricity.
Next, you need to evaluate when the cost of purchasing the equipment is fully paid off (for example, one year after the purchase), and the period of "plus" starts, and how much you will receive in the period.
The end of the period may turn out to be very remote, for example, in a year or more, but it will come when profitability of production will equal the expenses for its provision with electricity.
Evaluating the profitability of the chosen type of mining, you can compare it with the expected profit from the growth of the rate, which you get with a simple purchase of the same crypto currency. Remember only that the growth rate may not occur. In other words, under certain market conditions, mining has significant advantages in terms of the economic reliability of the process.
Mining crypto-currency is surrounded by a multitude of contradictory rumors, and its profitability is highly ambiguous. On the one hand, in open access it is possible to find calculations for which competently organized home mining can fully pay back the initial costs for a year or even earlier.
On the other - negative feedback from those who came into this business without sufficient technical knowledge or invested in capacity without a preliminary calculation of efficiency, and faced unexpectedly low incomes.
Owners of negative experience often argue that home mining today can not be profitable in principle. Of course, this is not entirely true. Obviously, with a competent approach, home mining still has a right to exist - both as a way of earning, and as an alternative for those who originally intended to buy bitcoins on the exchange.
Features of different types of mining
Mining Bitcoin and some other crypto-currencies is carried out with the help of ASIC devices (in common parlance "asik"), which are powerful computers with chips, very narrowly specialized for crypto currency mining.
They always work on the same cryptographic algorithm, usually SHA-256. Other crypto-currencies are extracted with the help of "farms", which are based on up to 7 powerful video cards on one motherboard.
Separately, it should be said about the "cloud mining", in which the client invests money in an Internet service, which seems to be renting out to those wishing to lease the mining capacity. It should be very cautious approach to such proposals, especially if you are promised a fantastic payback (within a few months).
Many cloud-based services are "financial pyramids"; their organizers do not buy the mining-capacity in fact and pay new investors out of the contributions of those who came to the "pyramid" before.
Simply, it is possible to divide the real mining into bitcoin mining using asiks and extraction of other crypto-currencies (altcoyins) using video cards. Consider the advantages and disadvantages of both methods of mining.
Mining bitcoin
Bitcoin Mining today attracts many thanks to a significant return, which has grown significantly in 2017. At the same time, for the period from April to November, the mathematical complexity of mining grew only threefold. In addition, there are serious prerequisites for further growth of the bitcoin rate, or, at least, keeping its price positions. Most investors today prefer to buy bitcoin.
Features of Bitcoin mining
- Bitcoin-ASIC are pretty easy to install and configure. This is an undoubted advantage of Bitcoin mining.
- In Bitcoin-Mining, the increase in complexity is not as unpredictable as in the altcoy mining.
- Buying asik for bitcoin mining requires very serious capital investments (one asik can cost from several thousand dollars).
By the way, it's not so easy to sell an unnecessary ashik for a decent price: the asics quickly become obsolete.
With a more or less significant scale of production, specialized premises with established power supply and cooling systems are needed (asik consume more electricity than video cards and produce more heat, in addition, many people think that the ash is very noisy).
From the previous paragraph it follows that the absence of a "cheap outlet" is especially critical for bitcoin-miners. Use the mining calculators to make sure that the mining of bitcoins will not be unprofitable for you. It happens that when electricity is too expensive, instead of buying asiks, people start to think about how to buy bitcoin.
"The purchase of bitcoin-asiks is not an easy task." Buying them from untested vendors almost in most cases ends in financial losses due to direct deception or other difficulties. We recommend that you, when choosing a supplier of similar devices, review the reviews left by previous customers on authoritative websites.
- Asik are highly specialized. Video cards, regardless of the type, can be converted to the production of almost any altcoin, but if you stop interested in mining bitcoin on an ashi, then you will have to choose a different crypto currency from the limited list.
Obviously, newcomers will not be precluded with greater caution in approaching the prospect of home bitcoin mining.
Mining altkoinov using video cards
Now let's describe the advantages and disadvantages of producing altcoyins using video cards:
- Buying video cards is much easier than buying an aspire.
- A farm from just one powerful video card (quite an option "on trial" for a beginner) can be relatively inexpensive, especially if you place the video card in your regular computer.
For a full-fledged farm, it is recommended to purchase a separate periphery (associated devices that ensure the smooth operation of video cards, such as a power supply or RAM).
Video cards will be quite easy to sell for a decent price, if you are suddenly disappointed in the mining.
Farms on video cards are less noisy and consume less power. Nevertheless, it is recommended to calculate your mining in advance using special calculators.
Miner often has to collect his own "farm" on his own. Proper assembly and configuration of the farm requires considerable technical skills and certain knowledge in the field of mining - greater than when using asics. In large cities, you can find experienced miners, ready for a fee to collect and set up other people's farms.
With a successful choice of currency and good market conditions, the payback period of your farms can be significantly less than a year (sometimes only a few months).
Unpredictability of growth of mathematical complexity of mining is considered among miners one of the most serious problems. With the mining of many altcoyins, an unexpectedly high increase in complexity is more likely than with BTC mining.
Such an increase in complexity may in theory in theory push back the payback period of the equipment for years, but in practice, miners and video card makers are quite capable of avoiding such trouble due to the "migration" to the mining of another crypto currency.
In general, it is desirable for a mini-graphics card maker to achieve success with only one technical competence, it is also desirable to have some market analysis skills useful for searching for a crypto currency that is optimal in terms of the "price-complexity of mining" correlation.
Also, it will be superfluous to simply retrospectively analyze the graph with increasing complexity in recent months; sometimes it is possible to predict more or less acceptable future growth of complexity on the basis of such an analysis, although the probability of changing the dynamics can not, of course, be excluded.
Which bitcoin-exchanges are chosen by experienced miners?
Regardless of the method of mining, the extracted crypto-currencies need somewhere to be safely stored and somehow exchanged for ordinary money. Miners use crypto-currency to solve these problems. Especially good for these purposes is the EXMO exchange.
This crypto-currency platform is a convenient and reliable platform for which both miners come and those who once thought about the question "Where to buy bitcoin?".
After a simple registration, you can unlimited time and volume to accumulate the extracted currencies and easily sell them at auctions or directly in your wallet directly to those who want to buy crypto currency.
The range of ways to withdraw money from your account on EXMO is varied: you can withdraw funds in dollars, euros, rubles and hryvnias to various electronic purses and payment systems. Rubles and hryvnia can be withdrawn from EXMO directly to the bank card even without verification of the account, and in the presence of verification, withdrawal of funds in dollars and euros is available.
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