What do you need to mine? How are bitcoins made? Is it worth it to mine cryptocurrencies?

Mining is the only mining method, the essence of which is to calculate the cryptographic signature of a block using a special algorithm. For decrypting each block, a reward is awarded (the amount is determined by the type of coins mined). However, to start mining, you will need a lot of effort and investment. Instructions in 5 simple steps will help you figure out how to mine cryptocurrency at home.

Step #1. Assemble equipment (“hardware”)

First of all, it is necessary to prepare a “base” - a high-power computer that will act as a “farm”. Recommended RAM is at least 4 GB. As an optimal operating system, miners prefer the 64-bit version of Windows (10 Pro 64-bit). There are also OSes designed exclusively for mining certain crypto coins. For example, ethOS is provided for.

The basis for successful mining will be GPU graphics processors built into computer video cards (by no means budget ones). These are commonly used when processing 3D graphics for video games. Field programmable gate arrays (FPGAs) or professional application-specific integrated circuits (ASICs) can also be used. The latter are not easy to find, so it is better to assemble a farm from video cards. The stand can be purchased ready-made,

or build it yourself:

The success of cryptocurrency mining will be directly proportional to the computing power of the equipment. The speed of calculating the next block of the blockchain and the likelihood of receiving a reward depend on them. This means that the motherboard must be selected with the maximum number of slots for installing multiple video cards.

Suitable models for cryptocurrency mining:

• ASUS Radeon RX 580 (4/8 GB), Radeon RX 570 (4 GB), GeForce GTX 1070 (8 GB);
• Gigabyte Radeon RX 560 (4 GB), Radeon RX 570 (4 GB), GeForce GTX 1080 (8 GB);
• NVIDIA GeForce GTX 1060, 1070, 1080 Ti (from 8 to 11 GB);
• MSI GeForce GTX 1080 (8 GB).

The main characteristic that you need to pay attention to when choosing a card is the hashing speed.

Special mention should be made of USB miners for bitcoin mining: BPMC Red Fury USB, Avalon Nano 3, GekkoScience, AntMiner U2.

It is important to select an effective cooling system in advance, since the PC will work around the clock. In addition, it is necessary to provide a stable connection to the Internet. A prerequisite is good ping. The power supply must match the power consumption.

Step #2. Selecting a cryptocurrency and registering a wallet

To decide which crypto coins to mine, you need to take into account the power of the equipment, the cost and popularity of the currency. Naturally, I would like to first find out which cryptocurrency is currently profitable to mine. The first thing that comes to mind is . Today it is very difficult to mine them due to the conditions of production of the coins themselves and the high requirements for the power of the equipment. In addition, we must remember that there are a large number of large miners who have been doing this since the first days of BTC. The computing power of their specialized equipment significantly exceeds what the average user can provide. And one more important point: more than 50% of BTC has already been mined, and each subsequent block is becoming more and more difficult to calculate. Even with 5 video cards, the process will be boring, long (about 1 Bitcoin in 130 days, which previously took 40 days), and most likely useless. Whether such a game is worth the candle is up to you to decide.

Ethereum or Ethereum ranks 2nd in value and popularity. These coins are easier to mine because less computing power is required, and you can exchange them for Bitcoin at any time (on exchanges or exchangers). It is also worth paying attention to Monero, Zcash, Ripple, Dash. It's difficult to determine a favorite. You can independently monitor their value on exchanges or entrust the choice to miner programs. They automatically monitor cryptocurrency rates and mine the most profitable ones at the moment, often switching between them every few minutes.

At this stage, you need to register a cryptocurrency wallet on which the mined coins will be stored. It will help to do this.

Step #3. Choosing a mining pool

A pool is a server for joint mining that shares the tasks of calculating a block signature between participants. In the case of collective work, cryptocurrency mining (in simple words) is to combine the technical capabilities of miners in order to generate more blocks in less time. As a result, each pool participant’s chances of earning coins are multiplied, which are then distributed in proportion to their contribution to the common cause.

There are many pools: AntPool (mining relative to all new blocks - 15%), DiscusFish/F2Pool (12%), BitFury Pool (12%), Bitclub.Network (5%), GBMiners (5%). Claimbtc, FreeBitcoin, MoonBitcoin have also proven themselves well. On the forums, miners speak positively about nanopool.org, www2.coinmine.pl, dwarfpool.com.

To make the right choice of pool, you need to consider:

• what cryptocurrency can be mined;
• level of protection (reliability);
• principle of calculation of remuneration;
• power and ping;
• average frequency of finding blocks;
• ease of setting up the miner program;
• monitoring capability;
• fees for mining and withdrawing coins to your wallet.

Those who like to work on their own should choose coins that have recently appeared on the market as they are easier to mine. For single Bitcoin mining, the functional and easy-to-use official BitcoinCore (BitCore) client is optimal. However, it is better for beginners to start mining cryptocurrency from scratch through a pool.

Step #4. Software

Download, install and configure a suitable mining program. Suitable multifunctional software for Windows, Linux and macOS:

• EasyMiner;
• MinePeon;
• MinerGate;
• 50Miner;
• MacMiner;
• CGMiner;
• NiceHashMiner;
• BFGMiner.

The NiceHashMiner miner looks like this:

You can use additional utilities, for example, to overclock a video card.

Step #5. Activation of equipment and principle of its operation

So, the equipment is assembled, connected to the Internet and ready to go. Before you mine cryptocurrency, you need to run the script. After activating the selected software, the mining process will look something like this:

The program activates video cards, “forcing” the graphics processor to produce certain codes. A crypto coin is a long code, the elements of which are calculated by video cards. When all the parts of the code are put together, you get a coin. An ordinary person does not necessarily need to understand how this happens; the main thing is that the program will do everything itself. The process is carried out automatically, but the computer needs to work around the clock.

Farm payback

Miners claim that the payback period for equipment is about 7-8 months. In fact, it is very difficult to calculate over what period the costs of creating your own farm will be reimbursed, as well as to predict profitability. It all depends on the choice of equipment, the type of coins mined, the difficulty of mining, and even the number of miners.

It is convenient to calculate potential profitability using an online calculator - http://profit-mine.com/#!/gpucalc. Another service that will help determine how profitable it is to mine a particular cryptocurrency at the moment is https://whattomine.com/. It analyzes the dynamics of exchange rates and, based on the data obtained, predicts the level of income from mining.

If you look at things from an independent “human” perspective, you can roughly calculate.

Equipment and running costs

The most expensive element of the system is a video card (about 20-30 thousand rubles), and several of them are needed to ensure the efficiency of the farm. ASIC boards are even more expensive - about $1000, but their operating algorithm is limited (only for mining a certain currency). Accordingly, for an ordinary miner who is configured to mine different coins, ASICs are not profitable.

Additionally you will need:

• system unit;
• motherboard;
• CPU;
• RAM;
• power unit;
• a few more little things.

All this will cost about 200,000 rubles in total. To this must be added the cost of electricity, which will be consumed continuously. A farm of 5 video cards will cost about 1.5 rubles/month.

Costs also include air conditioning of the premises, use of the Internet and pools (they will have to pay a commission of 0.5% to 3% + separately for withdrawing cryptocurrency).

Profitability and risks

In a week, a small farm can produce one Ethereum coin (ideally), which is now valued at approximately 27,000 rubles. This means that equipment costing $3,000 will pay for itself in 3-6 months and, after deducting expenses, will generate an income of 50-60 thousand rubles. per month, comparable to the salary of the average office employee in Moscow. If $7-10 thousand is invested in creating a farm, then the potential income can be from $50 per day.

The downside is that regardless of mining activity, no one can guess how many virtual coins will be earned. It will not be possible to mine one cryptocurrency indefinitely - most coins have a limited issue, which is known in advance. In addition, the growing number of miners leads to a decrease in the reward after each completed transaction and an increase in the complexity of the process. For example, the reward for creating a Bitcoin block was initially 50 BTC, at the end of 2012 it was reduced to 25 BTC, and in 2016 to 12.5 BTC. In 2020, this figure will most likely decrease by half again. The reward for finding a block of Ethereum is even lower – about 5 ETH.

Is it worth it to mine cryptocurrencies?

It is possible that prices for mined cryptocurrencies will jump, as a result of which even a couple of mined coins will pay off handsomely. However, the rate can fall at any time and the situation will change dramatically. And if you add to this the statistics of cyber attacks, no one can guarantee that the miner will ultimately make a profit. Whether the extraction is worth all the costs, efforts and risks - everyone decides for themselves.

Experts argue that mining is “collecting gold dust, not the bars themselves.” Therefore, it is better to consider it as an option for receiving additional income, but you cannot count on it as a way of guaranteed enrichment.

Before you start mining, take the “first steps”:

1. Study in detail the information on how to mine cryptocurrency and determine for yourself whether it is worth your effort.
2. Assess your professionalism – level of knowledge in the IT field and understanding of the prospects of the chosen coin. If they are based on publicly available information or are mere guesses, it is better to abandon the idea immediately.
3. Carry out “cold” calculations and competent analytical work. Be sure to take into account the number of competitors with specialized hardware (they will find a hash faster than you) and carefully weigh all the risks that await you.
4. Forget about saving money when choosing equipment - you will need powerful, reliable and durable components.
5. Try to find several suitable video cards.

Do not forget that in order to obtain tangible income, large investments are required - in equipment, room cooling, and system maintenance. The cost of “entry” into the process of mining cryptocurrencies is increasing every day, despite the fact that the equipment itself quickly becomes obsolete “morally” and becomes unusable.

A way out for the lazy/smart: cloud mining

This method involves renting or purchasing equipment for mining cryptocurrencies, which is located on a third-party resource. In this case, setting up, connecting and maintaining the system is performed by a special service, which means that cloud mining is suitable for beginners. The income from it is also proportional to the power of the equipment you choose.

The advantages of this solution:

• you can use any number of farms remotely;
• it is allowed to start with a minimum investment (some services offer contracts starting from $2);
• the power of specialized equipment is usually much higher compared to home equipment;
• This option is ideal for those who do not understand the technical nuances and cannot assemble/configure the equipment themselves;
• the choice is optimal for those who do not want to be tied to the premises where the farm is located, or are not ready to spend a lot of time and money on preparation;
• It is possible to mine both bitcoins and several other types of coins at the same time.

Disadvantages and risks:

• the likelihood of a cyber attack on the server you are using, which could result in you losing everything;
• the risk of falling into the hands of scammers;
• high commissions (they include all costs, including equipment repairs);
• similarity to a financial pyramid - many services offer referral programs and rewards for attracting new clients.

Cloud mining companies that have lasted for several years are Genesis Mining and HashFlare.io. And yet, if you decide to start, then start with a minimal investment.

Mobile mining

Recently, it has become possible for beginners to try mining bitcoins or other coins without large investments. For this purpose, specialized applications for smartphones have been developed. For example:

• ARM Miner Bitcoin 2.9 is one of the first applications for mobile mining (Android 2.2 and higher);

• NeoNeonMiner 1.2.8 – miner for Android 2.3 and higher;

• MinerGate Mobile Miner 2.4 is a specialized pool for iOS, Android 4.1 and higher.

It should be noted that the power and performance of the average smartphone is not enough to make a satisfactory income from mining. In addition, when launching applications, dubious advertisements often appear and anti-virus scanners are triggered.

Conclusion

Only those who have free electricity, the makings of a Great Miner and the willingness to invest substantial funds in a good “farm” can derive significant benefits from mining. Otherwise, it is better to avoid mining. But these are just precautions...

The process of creating Bitcoin (the only one of its kind) is called mining. This unique method is based on the fact that computational problems are solved using computers. This is not controlled by a single issuing center. By watching the video below, you can understand how bitcoins are made and what kind they exist.

How to make Bitcoins yourself

Bitcoin mining began back in 2009, at a time when the cryptocurrency was just introduced into circulation by Satoshi Nakamoto. Bitcoin, being a virtual currency, does not belong to any state. The advantage of this cryptocurrency is that it is characterized by the absolute anonymity of each wallet, as well as reliability (steal your money almost impossible, since the data chain is constantly changing).

Each transaction is recorded in a transaction log, which is accessible to all users. Then they go to miners, whose job is to select only one hash among millions of combinations, which matches absolutely every new transaction, as well as the secret key.

Thanks to the key, the miner will be able to receive a reward of 25 bitcoins at a time (considering that the number of bitcoins in the world is 21 million). At the same time, there is a struggle to be the first to guess the hash of a large number of miners. After the hash is guessed, the block with all transactions is closed, and miners move on to the next one. In other words, when obtaining the hash of the next block of the blockchain cryptocurrency network, the hash function is used. The blockchain (chain of blocks) is a public ledger on which the entire Bitcoin network is based.

Bitcoin mining

The process of mining cryptocurrency becomes possible using a mining farm. A mining farm is an ordinary computer with video cards connected to it. Now there is quite a lot of news in the world about unique Bitcoin farms (the largest of them is located in Hong Kong. It is capable of producing up to 26 Bitcoins per day.

Bitcoin mining on your home computer

Few people know that bitcoins can be mined without leaving home. Then the next question arises: “How to make Bitcoins yourself?” We will tell you how to make bitcoins on your own computer.

• First of all, you need to have a Bitcoin wallet where you can store virtual money.
• It would be a good idea to save a file with your personal data on a flash card; it is advisable to have it on hand in paper form.
• No one is immune from technical failures, and this will save you from losing your accumulated bitcoins.

If you want to really make money, a mining pool (cryptocurrency mining through joint efforts) will be a profitable business. In a pool you will not work alone, but with a group of other miners. When choosing a pool, it is worth remembering that in pools with a small number of miners, it will be more difficult to make bitcoins (in this case, they will be mined more slowly), but in pools with a large number of miners, the payout size is several times smaller. After creating an account in the pool, you should “add an employee”. Thus, you will need to obtain a separate ID for each computer that will be used.

Having earned bitcoins, you will be able to easy to exchange them to any other virtual currency. You also have the opportunity to transfer cryptocurrency to various title units of Yandex.Money, WebMoney and use it for various purposes.

Video: Cloud mining

Let's look at how to mine bitcoins on your home computer and whether it is possible to do it.

All the advantages and disadvantages, as well as more profitable alternatives for mining coins.

Contents:

Mining (from Mining - extraction) is the only way to receive crypto money. Its essence lies in the fact that a computer or network of computers performs mathematical calculations. The result of the calculations is the discovery of new blocks of the cryptocurrency network chain (blockchain). For each block found, a reward in the form of coins is paid.

If you are still a beginner in the field of crypto, but want to start mining and make money from it, you need to study the current realities of this activity. The complexity of the calculations does not allow us to talk about adequate profitability when working with low-performance equipment, for example, a home PC.

The concept of home mining was popular in the early 2010s.

Today, stationary or cloud-based ones are being created, in which dozens or even hundreds of video cards are used simultaneously. However, this will not stop you from starting coin mining on your PC. You should immediately prepare for the fact that your earnings will be very small, but with constant mining it can amount to several hundred dollars a year (subject to the active growth of the exchange rate of Bitcoin).

How to start mining on your home PC

If you are one of those who have heard a huge number of times about cryptocurrency mining, but did not dare to create your own mining system, first you need to decide how you will work and what currency will be the main one.

• Choose one of the cryptocurrencies . Further in the article we will consider mining Bitcoin, the most popular cryptocurrency in the world, whose capitalization is more than $171 billion;
• Open a wallet for the appropriate currency . As a rule, the official website of the creator of crypto coins has all the information for registering a wallet;
• Select which service will be used for mining . This stage should be carefully thought through, since with the increase in demand for cryptocurrency, the number of fraudulent services that use the resource of your PC for mining has also increased, but the earned funds are not sent to your wallet. However, there are a lot of reliable and proven platforms. It is important to choose a pool with maximum performance;
• Download and install the application . After registering in the pool, you will be asked to download the desktop program for mining. Each service has its own program. Typically, there are always basic computer requirements to consider;
• Start mining and earn Bitcoins. When you reach the minimum withdrawal amount (each service has its own threshold), you can withdraw coins by sending them to a pre-created wallet.

It should be remembered that without good hardware characteristics of the processor and video card, mining will be impossible or the number of coins will be minimal (if any). If you have a good enough home PC, you can try to start mining.

Services that provide users with the opportunity to mine from only one computer, at the software level, combine the power connected to the network into a pool - a group of devices.

This unification is necessary so that at the mathematical calculation stage you do not compete with powerful stationary or cloud farms.

If the device pool has completed a successful calculation and a reward has been obtained, it is divided among all group members according to capacity.

Less powerful PCs will receive less money. In any case, participating in a pool is practically the only way to make money.

If you don’t understand much about the principle of mining coins and don’t want to deal with a lot of concepts, work with automatic miners that you can simply run in the background.

List of reliable applications for automatic cryptocurrency mining on your home computer:

Kryptex – here, after each successful calculation of coins, users have two options: send the amount to their crypto wallet or exchange the mined money at the current rate and then transfer it to their electronic money account (, and so on).

Go to the online calculator page and select the currency you want to mine. Then, in a new window, enter the previously calculated hashrate and click on Calculate.

This will allow you to understand whether mining will pay off. The calculator window also displays data on how much energy will be consumed during continuous mining.

Is it profitable to mine on a home PC?

With the growing popularity of Bitcoin mining it on home computers has become unprofitable.

If you hope to receive an income of several hundred dollars already at the initial stage, we advise you to take a closer look at such concepts as cloud mining or.

Working as a miner on a regular PC will bring you up to hundreds of dollars in income per month. We recommend using this method only if you have a PC with a good level of performance and when working with it you do not use even half of the video card’s resource. For example, you have a powerful gaming PC at your disposal, but you rarely run games on it and constantly only use a browser and simple programs. In this case, periodic operation of the miner will not harm the system. Also, you should not mine bitcoins on your home PC around the clock. Limit yourself to 6-8 hours a day.

Types of mining

As mentioned above, mining is the only way to obtain cryptocurrencies, but There are different mining methods:

• - the most effective and profitable method of extraction, but it requires investment. You will have to buy several and make them work simultaneously. This method requires a separate room and will entail significant electricity bills;
• – these are groups of computers that can be located in different parts of the world, but at the time of calculating and mining cryptocurrency they will work together. A home computer is connected to the pool using a mining program. You can independently configure the operation of several of your PCs through a pool;
• – the easiest way to get coins without killing your computer. The essence of this mining method is that a third-party program uses the resource of your video card to calculate mathematical operations. The computer can be or be used by the utility as the only link in the mining network;
• CPU – today, the method of mining coins using the computing power of processors has become a relic of the past. It is much more profitable to work with video cards, since they are able to mine coins faster, and in the event of a breakdown, the computer does not stop working - all computing operations are switched to the video card, which is built into the central processor;
• ASIC-miner- microprocessor equipment created exclusively for the mining of BTC and coins mined using the same algorithm. ASICs provide maximum computing power and are reliable enough for long-term use. The disadvantage is the high cost and the impossibility of using this equipment anywhere except for mining specific cryptocurrencies.

Cryptocurrency mining programs

All mining programs work on the same principle. Only the conditions of the mining site may differ.

Before installing the application, read the terms and conditions on the developer's website.

List of the most popular programs for mining Bitcoins and other cryptocurrencies:

• CGMiner;
• Bfgminer;
• SGminer;
• CCminer;
• Claymore miner.

Is it worth mining on a laptop?

This question comes up very often, so it needs to be answered as part of the review. You should not mine Bitcoin on laptops.

Firstly, the power of even the most powerful model is not enough to mine coins, the cost of which will cover the cost of purchasing a laptop.

Secondly, the laptop cooling system is not ready for constant maximum loads on the GPU.

And finally, replacing a burnt-out video card in a laptop is only possible by replacing the main board, which is equivalent to purchasing a new one.

What is the difference between mining on a PC and a farm - which is more profitable?

Regular mining on a PC can only use one video card. If you use a video card farm, your earnings will increase proportionally.

For beginners, it is more profitable to use a regular PC for mining, since you do not need to invest any money in creating a system.

If you are determined to earn a decent amount and invest money in business, buy several video cards and . As world practice shows, it pays off within 6-9 months after the start of work.

conclusions

You can create your own at home.

Today it is possible to develop a farm for mining cryptocurrency, which will pay for itself in about 5-6 months and begin to generate a stable income

Thematic videos:

Since 2011, countless so-called “experts” have increasingly predicted the death of Bitcoin. There is even a site that counts how many times Bitcoin has survived and continued to evolve when “experts” said it should have disappeared.

Because the Bitcoin, apparently, is not going to retire anytime soon, then you can safely plan to buy an ASIC device to earn a little (or a lot) of BTC.

In this article we have compiled a list the best systems and services for cryptocurrency mining. Here are described 6 Best ASICs for BTC Mining, as well as two cloud resources personally verified by us.

How to mine Bitcoin

If you are not involved in trading and speculation in cryptocurrencies, then you are probably thinking about mining. This process allows you to support the industry and earn good money.

What's good about mining is the opportunity to receive regular passive income. Using ASIC, you will always have money in your wallet and you don’t need to think about successful trades.

Cryptocurrency trading is potentially lucrative, but it requires you to immerse yourself in the world 24/7. The more involved you are, the more likely you are to profit from speculation.

Mining is another matter. Personally, we see it as a way to get a steady flow of Bitcoin into your wallet, rather than a get-rich-quick scheme.

However, there are hundreds of people who have made millions of dollars from Bitcoin. Many users fund their accounts by signing large contracts with Genesis Mining or managing their own mining farms.

Although more than a thousand people have proven that it is possible to make a living from mining cryptocurrencies, we would recommend not setting high expectations for it. The cryptocurrency market is complex and, despite its overall growth trend, quite unpredictable in private terms.

It's also a good idea to start small and only invest an amount that you can potentially lose. Bitcoin mining requires a large investment before it can provide you with a significant monthly income, so some beginners are tempted to invest more than they should into mining.

This situation creates unnecessary expectations and defeats the purpose of mining - it is only passive income, and not a way to earn a million dollars a month.

Based on the above, we have created a list based on the idea that mining is a medium to long term investment. When we looked at the equipment, our main criteria were durability and hashrate/power efficiency.

So how to mine Bitcoin?

There are two ways to mine bitcoins. The first one is with the help mining equipment: in this article we will talk about the best, in our opinion, Bitcoin miner and five other worthy candidates for this title.

Another way - purchasing a contract for cloud mining and transferring mining responsibilities to another company. Some users have a negative attitude towards cloud services, as there have been cases where fraudulent companies involved in this type of mining have defrauded their clients.

We are aware of the risks and will tell you about two organizations that are completely legal and trustworthy.

Best Bitcoin Miner

Here is our list of the best mining devices. Now you know the criteria we used to evaluate the participants in our TOP, so you probably won’t be surprised by the favorite we chose.

The benefit of this list is that if one of the miners is sold out, you can purchase others.

Some are intended for home use, while others are too noisy or too large and need to be purchased only for specialized farms (which should be clean and properly cooled areas such as a garage or basement).

6) ANTMINER S7 – 4.73 TH

AntMiner S7 was released in mid-2015. On that day, when Bitcoin was valued at $225 and its difficulty was several times lower than it is now, AntMiner S7 was considered one of the best miners for coin.

It showed very promising ROI. The device was also one of the game changers in the Bitcoin developer community.

Two years have passed and many believe that AntMiner S7 is no longer suitable for mining. The reason is simple: if we calculate profit based on hashing power, electricity costs and pool fees, this ASIC model often produces either negative or almost zero profit.

Today, with Bitcoin valued at $3,836.95, this ASIC is only generating $1 per day, including all costs.

Then the question arises - why is this device on our list? We answer: if we consider mining as a way to convert fiat currencies into BTC, then Antminer S7 can be considered an excellent option.

Although you probably won't get any additional passive income from this miner with the rate BTC at $3836.95, but you will still be able to use this equipment to convert dollars to BTC safely and stably.

The main advantage of this ASIC is durability. Many S7s have been running for two years now and they continue to hash the same as before. This reliability makes the S7 a good choice for those who are not in a hurry and want a safe “game.”

AntMiner S7 is equipped with a durable metal case and two fans for constant cooling. It can operate in ambient temperatures ranging from 7 to 40 degrees, making it suitable for home mining as long as you don't mind the noise it makes.

The device is really loud, tests show a noise level of about 63 dB.

• Hashrate: 4.73 TH/s ± 5%.
• Chips: 162x BM1385.
• Power consumption: 1293 W ± 10%.
• Energy efficiency: 0.25 W/GH ± 10%.
• Operating temperature: 7°C to 40°C.
• Net weight: – kg.

This model does not have the best energy efficiency; now you can find more powerful ones. But as we already said, the main advantage of the S7 is its durability, and not anything else.

5) AVALONMINER 721 – 6 TH

The next Bitcoin ASIC on our list is Avalon Miner 721, a miner from Canaan released in 2016.

Avalon 721 is smaller and lighter than Bitmain miners, it weighs 2 times less than Antminer S7. However, for some reason the 721 manages to produce a good hashrate, and a year after its release it is still considered a decent device.

Canaan Interactive is a Chinese company focused exclusively on the production of ASICs for Bitcoin. The Avalon 721 is based on 16nm chips, which offer greater power efficiency than the aforementioned Antminer S7.

16-nm technology is still considered cutting-edge, so this ASIC should not be written off.

The return on investment for the AvalonMiner 721 is quite interesting. Now the device pays for itself in 8-12 months depending on the price you pay. In December 2016, when the miner first appeared, its ROI was 24 months.

The 721's energy efficiency and durability allow it to stand the test of time and, in fact, make it more profitable every day.

ASIC currently produces approximately $123.41 per month including costs.

• Hashrate: 6 TH/s.
• 16nm chips: 72x A3212.
• Power consumption: 850 W – 1000 W.
• Energy efficiency:
• Operating temperature: -5°C to 40°C.
• Net weight: 4.3 kg.

4) AVALONMINER 741 – 7.3 TH

If you liked the AvalonMiner 721, you might also like its successor - Avalon Miner 741. This miner is also based on 16-nm chips, however, due to updated software and design optimization, the latest model has an even higher hashrate.

The Avalon 741's efficiency is still the same 0.15 W/Gh, but thanks to optimization, its base price is about 20% lower than its predecessor. The AvalonMiner 741 looks really durable, with an aluminum body and a custom heatsink with air conversion technology.

All this leads us to believe that the miner will not break in the near future. Reliability is also confirmed by the fact that Canaan has a reputation for producing quality products.

Noise. Avalon 741 maybe home miner in the event that you live alone or your neighbors do not mind 50-60 dB. Otherwise, it would be a good idea to store it in a specialized mining rig (be it an office or a properly equipped garage).

If you need a miner designed specifically for home use, you will find one just below.

• Hashrate: 7.3 TH/s.
• 16nm chips: 88 x A3212.
• Power consumption: 1150 W.
• Energy efficiency: 0.16 J/GH.
• Operating temperature: -5 °C to 40 °C.
• Net weight: 4.3 kg.

3) ANTMINER R4 – 8.6 TH

Antminer R4 can be considered the most popular ASIC in the world for Bitcoin mining. Although the device is large and heavy, it noise level is only 51 dB. According to loudness scales, this indicator can be compared to the noise level in a quiet office or in a refrigerator.

Today, ASIC miners bring in Ƀ 0.07031/month or about 0.85554 per year. Given the growth trend of Bitcoin, it is possible profit of $208 USD/month. This is why few people want to sell their R4.

New miners are also not available for purchase. Last time we checked, the cheapest R4 was around $3,200 apiece. Even then, it had an 18-month ROI, which is actually not bad for a Bitcoin ASIC.

• Hashrate: 8.6 TH/s.
• 16nm chips: 126 x BM1387.
• Power consumption: 845 W.
• Energy efficiency: 0.1 J/GH.
• Operating temperature: 10°C to 40°C.
• Net weight: 9 kg.

2) ANTMINER T9 – 11.5 TH

AntMiner T9 still remains one of the most popular ASICs for Bitcoin. It has high energy efficiency, a durable metal shell and a good cooling system.

The T9 is one of Bitmain's newest additions to the ASIC market. It contains 171 16-nm chips that output 11.5TH/s-12.5TH/s depending on the batch.

The main feature of this Bitcoin miner is its availability in the market. Although the demand for ASICs changes overnight and the situation may be different tomorrow, AntMiner T9 is currently being sold at a reasonable price on several sites. With an average cost of $1,600, the T9 pays for itself in 7 months.

• Hashrate: 11.5 TH/s – 12.5 TH/s.
• 16nm chips: 171 x BM1387.
• Power consumption: 1450 W – 1576 W.
• Energy efficiency: 0.126J/GH.
• Net weight: -

1) ANTMINER S9 – 13.5 TH

Now AntMiner S9 recognized the best bitcoin miner. We fully share the general opinion about this model.

The S9 has better energy efficiency than the T9, making it an even better choice for long-term bitcoin mining. But we are still looking for models with greater energy efficiency than the Antminer S9.

This ASIC is easy to operate and only takes a couple of minutes to set up. You don't have to be a mining guru to profit from the device.

• Hashrate: 13.5 TH/s – 14 TH/s.
• 16nm chips: 189 x BM1387.
• Power consumption: 1323 W ± 7% W.
• Energy efficiency: 0.098 J/GH ± 7%.
• Operating temperature: 0°C to 40°C.
• Net weight: -

Cloud mining Bitcoin

We agree that few people can afford their own ASIC at home for various reasons.

For example, your roommates are against it because the constant noise from the device bothers them. Or there is no room in your apartment for a miner. Maybe, depending on where you live, electricity is too expensive, making mining unprofitable.

There are many reasons why not everyone can start a farm outside their home. Luckily, there is a way to enjoy the benefits of mining without having to buy your own rig.

We mean cloud mining bitcoin. There are companies that rent hashrate. Investing in cloud mining contracts can be compared to investing in a company - you pay a fixed amount upfront, and your income depends on how the value of the organization changes (in our case, the cryptocurrency rate).

There are two main factors that influence the profit from a Bitcoin mining contract:

1. Bitcoin price.
2. Bitcoin mining difficulty.

Electricity and maintenance charges are usually included in the price if the contract period is limited.

Typically, cloud mining contracts require ROI in 18 months. Depending on fluctuations in the price/difficulty of bitcoin mining, the payback may increase or decrease. Here we mean legal companies.

Fraudsters often attract unsuspecting victims by offering them contracts with a ROI of 5-7 months. These are truly unrealistic numbers that can only attract beginners.

Both of the companies we are about to talk about have stood the test of time. But there will always be a person who will lower the rating of good and honest organizations. So don't take our word for it and do your own research.

GENESIS MINING – Bitcoin cloud mining

Genesis Mining owns farms in Bosnia, China, and now in Iceland. The company was founded at the end of 2013 and has since proven its effectiveness. It faces some technical difficulties from time to time which results in delays in payouts, but at the end of the day people still get their money.

Beginners sometimes start to panic when they do not receive bitcoins for the first month after purchasing a contract. Most negative reviews about Genesis Mining are based on this.

So it’s worth mentioning this company’s rule: the service always keeps the bitcoins you earn in the first 30 days after purchasing the contract. You will receive BTC 31 days after purchase.

The reason is simple: credit cards have a 30-day return policy, so anyone can use this loophole to get free hashrate on GM. So Genesis Mining freezes your first month's income, thus avoiding being scammed by customers.

People who buy contracts using Bitcoin start making profits on the same day. However, the minimum payout amount is 150,000 sat. Funds will accumulate until your balance exceeds SAT 150,000. Therefore, users who purchased small contracts will not receive a daily payout.

Bitcoin contracts from Genesis Mining are currently unavailable, but you will soon be able to get even more hashrate as the company improves its farm.

HASHFLARE – Bitcoin cloud mining

The next company on the list is HashFlare. This organization is younger than Genesis Mining, but it managed to quickly gain popularity due to its low prices.

For this reason, some users initially considered the service to be a “scam”. Luckily for those who purchased contracts from HashFlare, the company never stopped paying customers.

Initially, the service offered unlimited contracts for Bitcoin mining. However, a few days ago, Hashflare unexpectedly announced that no longer provides such services. Clients who have paid for a lifetime contract will be able to receive profits within a year from the date the news was announced.

The society did not like this innovation. So now you will find a lot of angry reviews that Hashflare is still a scam.

Although what the company did could not be called an ethical act, it was still not fraud. If only because the User Agreement stated that the validity period of the service will be changed in the future.

Therefore, SHA-256 contracts now have a validity period of 1 year, and according to mining calculators, the return on investment is about a year. This means that those who invest in HashFlare contracts are signing up for a slow conversion of dollars into Bitcoin, rather than passive income.

The cryptocurrency market is developing quickly, so do not think that our HashFlare review is the ultimate truth. Today may not be the best day to invest in this cloud company, but they are sure to have something interesting to offer in the future.

Now the cost for 10 GH/s for a year is $2.40. You will also have to pay service fees - plus $1.27. With the current difficulty and prices of Bitcoin, you can expect an income of $3.55 per 10 GH/s, excluding fees. If we include the fee, we would have a gain of $2.28 per year or a loss of $0.12 per year based on the price of the plan.

Finally

We will end by answering the question: Is it worth investing in Bitcoin mining??

And the answer depends on you. Depending on your ambitions, expectations and risk tolerance, Bitcoin mining may or may not become your main business.

Based on our experience, buying an ASIC always pays off if you get a model that is not too old and cannot cover the energy costs. Cloud mining is Plan B for us since we can mine at home. However, we know several people who have been using Genesis Mining for many years and have no complaints about it.

Content

The only way to issue the cryptocurrency bitcoin (btc) is bitcoin mining, which is the creation of new blocks by performing a certain mathematical task using a specialized program installed on a computer. There are several ways to obtain popular digital currency, each of which has its own advantages and disadvantages.

What is mining

The process of creating virtual coins got its name because of its labor intensity, comparable to mining. The essence of mining is to perform mathematical calculations in order to find a certain value. The purpose of such operations is to obtain a hash - a bit string of a fixed length. After the code is decrypted, the next block of Bitcoin appears, including a cryptographic signature. This signature is formed based on the hashes of previous blocks.

The sequence of bitcoin blocks appearing one after another forms a block chain. The selection of numbers that form the basis of the hash is carried out automatically. Bitcoin mining involves a reward in the form of btc coins, which go to the first miner to guess the hash. The amount of virtual rewards is halved every four years. At the time the system launched in 2009, miners could count on 50 btc for a decrypted hash; now the reward is already 12.5 bitcoins.

Basic principles

The Bitcoin mining process must follow certain principles to maintain the validity of the cryptocurrency and the security of the network. The main principles of production are:

• the difficulty of creating a currency;
• the established average time for calculating one block;
• lack of a single inlet center;
• automatic increase in difficulty level as the number of miners grows;
• the amount of remuneration is established by the system and provides for a gradual reduction;
• mandatory confirmation by miners of a transaction between participants in the bitcoin network by including it in a block;
• autonomous self-regulation of the network.

Difficulty of mining cryptocurrency

Due to the constant increase in the number of electronic coin miners and the steady increase in computing power, a mechanism is needed to compensate for this growth. As such a mechanism, a complexity parameter was provided, on which the amount of cryptocurrency mined per unit of time depends. The technical side of the concept of "computational complexity" is described as the number of attempts required to generate a hash.

Types of mining

Earning bitcoins can be done in several ways, which involve using specialized devices or paying for the rental of someone else’s capacity. There are also shareware types of mining. The methods differ from each other in the size of the required investments and the expected income from production. The most popular types of Bitcoin mining are:

• using a personal computer or laptop;
• using GPU;
• using FPGA modules and ASIC chips;
• creation of mining farms;
• cloud mining;
• bitcoin faucets, bitcoin games.

Bitcoin mining on your home computer

Mining cryptocurrencies using a video card

The time when it was profitable to mine bitcoins using a regular video card has already passed, since the mining process has become significantly more complicated and more power is required to carry out calculations. With increasing interest in Bitcoin due to its increasing value, manufacturers of graphics accelerators and processors began developing powerful video cards.

Mining farms

A large number of computers involved in the mining process are the so-called bitcoin mining farms. The principle of their operation is to continuously perform calculations. Hash generation occurs using:

1. A large number of video cards is the most energy-consuming type of farm.
2. FPGA modules - economical in terms of power consumption.
3. ASIC processors - the ASIC device (specialized processors) is the most expensive, but at the same time its operating speed is maximum.

Cloud mining without investment

The principle of obtaining bitcoins using cloud mining is identical to the usual mining of electronic coins, except that they do not use their own capacities, but third-party ones, rented. The amount of cryptocurrency mined depends on the rent charged. There are also free services that offer their mining equipment.

How to start mining

In order to start mining your first coins, you first need to decide on the mining method. The size of the initial investment will depend on the method chosen. The general step-by-step algorithm for mining bitcoins looks like this:

1. Purchase the necessary equipment.
2. Install the selected program for mining bitcoins on your computer.
3. Select a pool site.
4. Register your wallet to withdraw rewards.
5. Launch the software.

What are pools

To increase the chances of receiving btc coins, specialized web services (pools) provide miners with their services, which consist of using maximum parallelization of calculations. This mining method involves pool participants searching for their own solution options without linking them with the decisions of others. Miners provide their computing power to the pool, and the pool acts as a solo miner to find a block. When choosing a pool, you need to know the rules for distributing rewards and the power of the pool.

Cryptocurrency mining programs

You should start mining bitcoins by installing the software. Mining programs are divided into two types: for processors and for video cards. It is necessary to select software based on the parameters of the existing equipment. The most popular programs among users are presented below:

• name: Bitminter;
• characteristics: the application, which is also a pool, runs on video cards, has ASIC support, is compatible with all operating systems;
• pros: suitable for both beginners and experienced miners, easy to install;
• cons: no
• earning opportunities: the cost of coins mined in 24 hours is equivalent to $0.5.

Console client that is easy to use for both beginners and professional miners:

• name: BFGMiner;
• characteristics: console client supporting video cards and FPGA devices, support for scrypt, RPC;
• pros: easy setup of pools, ability to control computer cooling elements;
• cons: high requirements for equipment;
• earning opportunities: an experienced miner receives 18 thousand satoshi per day.

For users who have knowledge of the MS Dos operating system and have equipment with a powerful processor and video card, the DiabloMiner program is suitable:

• name: DiabloMiner;
• characteristics: support for operating systems such as Windows, Linux, Mac, installation of video cards of different series is provided;
• pros: easy to configure pool parameters;
• cons: not suitable for beginner miners;
• earning opportunities: on a powerful computer you can get a reward of 20 thousand satoshi per day.

A console client that easily adapts to user requirements is the Ufasoft Miner program:

• name: Ufasoft Miner;
• characteristics: it is possible to change the pool address, suitable for mining cryptocurrencies such as bitcoin, ether, litecoin;
• pros: several operating modes depending on the user level;
• cons: requires a lot of RAM;
• earning opportunities: experienced miners receive remuneration from 18 thousand satoshi.

The CGminer program is more suitable for users who have extensive experience working in the MS Dos system:

• name: CGminer;
• characteristics: assumes installation on powerful processors; when overclocking the video card, it increases MH/s to the maximum;
• pros: reprogramming is possible, easy to set up;
• cons: not suitable for beginners;
• earning opportunities: from 18 thousand satoshi per day.

50 Miner is a graphical shell for several of the most popular miners, such as Cgminer, Phoenix, Diablo, Poclbm:

• name: 50 Miner;
• characteristic: it is possible to use without installation, while all settings are saved in the configuration file;
• advantages: ease of authorization, compactness;
• cons: unstable operation, requires a lot of RAM;
• earning opportunities: with minimal initial conditions you can earn 15 thousand satoshi per day.

Is bitcoin mining profitable at home?

To understand whether it is profitable to mine Bitcoins at home, you should calculate the size of the required investment and predict how quickly it will pay off. Considering that since the advent of the process, which today is called mining, the situation in the cryptocurrency market has changed significantly, it is worth knowing the main factors influencing the economic feasibility of mining now:

1. The complexity of production contributes to the constant growth of equipment capacity, which affects its cost. At home, it is difficult to achieve a competitive level of mining speed.
2. The growth of btc in relation to official currencies attracts new participants to the network. If the price of bitcoins falls, the profit from their sale may not cover the investment.

How much can you earn from mining?

Bitcoin mining has the goal of making a profit, so before you start mining cryptocurrency and wait for the computer to earn money on its own, without your participation, you should find out what level of earnings you can expect. There is no clear answer to this question, because the amount of income depends on many factors, such as:

• Bitcoin exchange rate fluctuations;
• relevance of the chosen production method;
• costs for purchasing equipment;
• number of miners in the network;
• cost of electricity.

You can calculate the approximate profit from mining using specialized calculators (for example, on the Russian information site btcsec), which take into account a set of parameters entered by the user. However, even in this case, it is worth taking into account that if the Bitcoin exchange rate changes on a cryptocurrency exchange, the calculation results will be irrelevant.

Bitcoin mining costs

In order for Bitcoin mining to be profitable, the income from it must cover all the costs associated with mining. The economic component of expenses includes costs for:

• purchase of special equipment;
• payment of bills for consumed electricity;
• repair and adjustment of capacities;
• payment for rental capacity.

Special equipment

The future Bitcoin miner must take into account that in order to make a profit, it is necessary to have competitive equipment. Given the technological race caused by high demand, the cost of specialized equipment has increased significantly. In addition to the basic elements (video card, chip, module), you will need software for monitoring equipment temperature and a cooling system.

Electricity costs

Bitcoin mining involves operating equipment for a long time, which leads to high energy consumption. The higher the power of the processor and video card, the more impressive the electricity bills will be. In addition, the need to use cooling elements also leads to an increase in power consumption.

Depletion of home PC capacity

If you plan to mine bitcoin on home computers, you should take into account the fact that the load on the main elements of the machine will increase. Constant overheating of the processor and video card leads to a deterioration in their performance and faster failure. The miner will have to frequently repair his computer and buy new parts, which will lead to additional costs, and downtime will negatively affect the profit received.

Pros and cons of mining

Before you mine bitcoins, you should familiarize yourself with the positive and negative aspects that you will encounter during the mining process. The advantages of Bitcoin mining include:

• Stable passive income. Bitcoins are mined without your participation. By installing a special program, you can go about your business.
• To mine btc, it is not necessary to invest funds. If you don’t want to take risks when investing your money, there are free mining methods, but you can’t count on big profits in this case.
• Mined bitcoins can be easily withdrawn from the system (sold, exchanged, paid for purchases).

Miners who mine virtual coins note the following disadvantages of bitcoin mining:

• Equipment failure. Using a home computer for mining leads to rapid heating of the video card.
• High energy consumption. Increasing the level of mining complexity requires increasing the mining speed, which became possible with the advent of new technologies. Powerful devices are energy-consuming, so Bitcoin miners have to pay large bills for the electricity they consume.
• High risk. Investing money and time in Bitcoin mining is a high-risk investment, due to the fact that the price of the cryptocurrency is unstable, and the Bitcoin exchange rate may fall at any time.

Discuss

How to mine bitcoins - the essence of the process and where to start, types and profitability of earnings