On the one hand side, “Cryptocurrency miner for everyone” sounds like a social democratic manifesto. Moreover, whatever angle we think about it, we can conclude that decentralization has something of this ideology in itself. The focus is changing. We start from a highly specialized organization, bringing together selected units, maintaining a service on technologically closed hardware and software.
Our goal is to end up at a decentralized, based on an open source environment, in which everyone, even on a home computer, can participate in maintaining a distributed ecosystem. Is that good? In theory, yes, which we find confirmation in the world’s reaction to Bitcoin and it’s younger siblings. Let’s check the possibilities of joining the digital revolution, in which the “Blockchain” is a competition for banks, insurance companies, analysts, lawyers, bringing a trustworthy, worldwide system based on cryptography. Can you simply join it by connecting your cryptocurrency miner to the network? Let’s find out.
What is mining cryptocurrency?
It’s simply confirming transactions in a distributed database, in cryptocurrency case it is transaction ledger. Let’s consider Bitcoin as an example: every second, new transactions flow into the Bitcoin network computers. Every once in a while all the correct transactions are enclosed in the so-called block and attached to the book of transactions.
For this operation, the Bitcoin miner receives the newly created Bitcoins. Is it necessary to maintain the node to mine cryptocurrencies? Not necessarily, you can join an automated group that joins forces in transaction confirmation operations, so-called pool.
My own, private cryptocurrency mining rig
What can you do to join cryptocurrency mining operations? There are several options. Is it easy? It depends on how much do you want to devote to the effort. Mining cryptocurrency has been around for almost 10 years. Thanks to other people investments, there are solutions available for people who do not want to have much in common with algorithms and servicing expensive equipment. The easiest options for mining cryptocurrencies are:
- Mining cryptocurrency on a desktop computer using a graphics card
- Mining cryptocurrency through a browser on a computer, laptop or smartphone
- Mining cryptocurrency on dedicated equipment
Mining cryptocurrency on a desktop computer using a graphics card
This is one of the most popular ways to make cryptocurrencies. However, most of the computing power is used for mining altcoins: Ethereum, Ethereum Classic, Pascal, Electroneum or Monero. The potential profit depends heavily on the decreasing prices of graphic cards. The cheaper you can buy a functional GPU, the sooner you will get a positive return on investment in equipment and electricity.
How does the configuration of the cryptocurrency mining computer and the mining script look like? You can check the instructions step by step: Cryptocurrency mining guide.
Mining cryptocurrency on dedicatd equipment
Investors who are looking for higher profits and are determined to invest more, are faced with a responsible decision. Focusing on one type of cryptocurrency mining equipment has many benefits related to purchase price, operation and servicing the mining rig.
If they invest in Bitcoin mining, they have to buy ASIC equipment, preferably directly from Chinese manufacturers. The largest companies that produce dedicated excavators are Bitmain or Avalon. There were times when the demand for these devices was huge and the difficulty changed at a rate that made it impossible to determine the rate of return on investment. The good news is that these times has already passed. You can safely assume that the Bitcoin mining rig you have purchased will pay itself back in a few years.
If, however, an investor wants to invest in mining cryptocurrencies other than Bitcoin, the solution would be to buy a cryptocurrency mining rig based on graphics cards. The GPU miners are supplied by Nvidia or AMD and investors place them on racks to provide additional cooling. The most popular solution is to cluster mining GPUs in sets of 6 or more cards, so the power supply in addition to cooling could be optimized.
Mining Bitcoin via internet browser on a computer, laptop or smartphone
In the case of mining through the browser things were even simpler. There is no need to buy computer equipment, the script configures cryptocurrency mining for us, adjusting usage of the computing power of the processor.
To be more detailed, they are altcoins with mining algorithms for the CPU, such as Monero, Electroneum or Bytecoin. The value of mined cryptocurrency depends on the number of connected devices and additional activities described in our browser mining manual.
For today, the most popular solution is Honey Miner. You can mine cryptocurrencies via simple interface, without any technical knowledge.
Summary of cryptocurrency mining: profitability and effort
Is it worth to mine cryptocurrencies? It depends on what aspect we are considering.
Technological. Definitely yes. We are taking part in a revolution that will change many industries. It is not known where and when in the future it can be useful to already have experience in configuring and maintaining a node in blockchain technology.
Financial. To get the answer, the potential profit for risk taken needs to be calculated. The difficulty of mining the most profitable cryptocurrency and it’s expected difficulty increase should be taken into account. Downtime resulting from the failures or incidents needs to be taken into account, as well as the equipment amortization. On the other hand, benefits related to the fact that mining cryptocurrencies produce assets in an anonymous fashion need to be taken into account as well.
The first step of your cryptocurrency mining venture has already been made. You already know where to start your own Bitcoin or cryptocurrency mining rig and contribute to blockchain progress.
Where can you sell cryptocurrencies you have mined, with the lowest commission? Create an account at Binance: the most popular cryptocurrency exchange without verification and lowest fees.