Review
2021-04-08 14:21:00
People are in constant search for a stable income. Those people who are thoroughly interested in crypto currency Bitcoin often hear about a method of earning known as digitalcoin mining. Just like an underground mine worker extracts minerals and mining crypto currencies is the process of creating a virtual crypto currency. There are a lot of disputes about Bitcoin mining farms among the Internet users.
In simple terms, a mining farm is a set of components that are interconnected to produce virtual currency. Crypto currency farms can consist of completely different components: video cards, processors, hard drives, special equipment created exclusively for mining. Originally, the concept of farm did not exist as such; especially at the time when you could only use a home PC to mine bitcoins. But over time, the complexity of mining started increasing, the algorithms improved and became more complicated and, therefore, it became simply unprofitable to mine on a home PC. Then people began to look for accessories and the correct combination of them. Initially, these were processors, then hard drives were added and then video cards.
However, now most miners understand several video cards, combined with each other by the term "farm". Such a design can perform only one task - to obtain a crypto currency using its computing power. Farms with video cards have become popular thanks to the Ethereum, which has not such a sophisticated extraction algorithm as Bitcoin but has already gained great popularity. That is why many recalled that earlier, several years ago, some gamers used their video cards and became digital coin miner, which turned out quite successful.
Nowadays, in order to get bitcoins video cards farms will not be enough. You need special equipment - ASIC processors, which cost a lot of money (from $5,000) but they have enormous processing power perfectly suited for mining. The first crypto-currency production farms have come a long way from home PCs to full-scale installations. In this article we consider video cards farms because:
If you want to buy a ready-made mining farm, now you have multiple options - but be prepared to pay 40% more than a farm that you would collect on your own. In addition, equipment in the purchased model might not necessarily be new and well-functioning; if you are going to use the farm actively, it can fail at some moment. Therefore, it is better to buy everything individually. So, you will need:
If you want to be an inexpensive farm, you can start mining Etherium - you will need four video cards (for example, ZOTAC GeForce GTX1060), motherboard, power supply, processor, RAM, hard disk or USB flash drive, monitor emulator and four adapters that allow connecting video cards. You can manage the farm remotely using the TeamViewer program. Claymore program is suitable for Etherium mining. In addition, you need to choose a pool - a site where miners unite in order to work more efficiently.
Technically, bitcoin mining is a numerical compilation of a new block. The system issues a hash function to perform calculations. Such a hash function consists of dozens of numbers and a new block - of tens of thousands of numbers. The fee for one block is 12.5 BTC. But it is divided by the number of pool members that were involved in this calculation. The equipment for Bitcoin mining uses the SHA-256 algorithm
But there are other crypto-currencies. Therefore, this method can be used for mining other crypto currencies: Steemit, DigiByte, Peercoin, Namecoin, Zetacoin, Ocoin, Tekcoin, etc. The farms they are already adjusted to a certain algorithm so they can be used to produce a limited amount of crypto currency, which is a weak point. These days even if you have a powerful mining farm, there is not a lot of profit from working alone. Therefore, many miners are pooled; after all, the possibility of calculating a block drastically increases.
There is no clear-cut about crypto mining profitability because, firstly, farms are different and secondly, crypto currency rates have been actively changing over the last few years and it will not be possible to talk about exact figures. The only reliable figures that can be obtained are the payback of video cards. If we consider a very popular model - NVIDIA GTX 1060, then the payback period varies from 140 days to 200, depending on the crypto currency price and electricity plans. Other video cards take a little longer.
Before you achieve the maximum power output, you need to keep in mind that period significantly reduces farm's payback time (about 20-40 days). Truly speaking, such a farm will warm up, consume more electricity and require a better cooling system. Therefore, miners are forced to balance between current income and the prospect of stable earnings for several years. But since the future is vague, despite the increasing interest in crypto currency, the specialists advise to accelerate video cards, if, of course, you know how to do it.
That said, judging by numerous online articles, investing in a digitalcoin mining farm starts bringing income in 100-110 days. But if you explore the topic a little deeper and look at reliable forums, the figure will increase to 140-150 days at best. If we compare prices with profitability and payback period, then we see that the more expensive the video card, the greater will be the profit and payback period. That is, nominal income from one farm at 1080 TI will be higher but for the same money that was spent on four TI video cards, you can buy three farms with 1060. Now it is difficult to find real data on how much money farms bring in a day. And it is even harder to predict its revenues because of mining algorithms and price changes.
Three main points for beginner investors and businessmen:
If we combine all these factors, we get a very negative scenario: an investor can purchase expensive professional equipment, select Bitcoins as an object for mining, get enough coins on the wallet but they can still lose all the invested capital because of a drop in demand.
The general advice is that you need to strive to minimize energy costs while maximizing the performance of your computer (farm). This is achieved by combining several video cards on one computer and an overall cooling system. If you are going to mine crypto alone or make a small home farm, then forget about mining bitcoin – it is not cost-effective. Concentrate on the mining a more simple crypto currency, which is not too complicated to mine. For example: Litecoin, Namecoin, Darkcoin, Etherium.
If you are engaged in mining a little-known crypto currency, it is necessary to constantly monitor its rate and mine only those that are becoming more expensive (i.e. they have prospects to go up). And in any case, try to exchange them for Bitcoins or dollars since there are risks of freshly mined coins depreciation.
When drafting a business plan, you need to consider the possibility to buy the most advanced video cards for mining at wholesale prices and the ability to sell them when their capacity will not be enough. Be careful if someone offers you cloud based mining. These are projects that supposedly have huge and powerful farms rented on the Internet. But these services frequently turn out to be frauds. At one point you will pay them and realize that you cannot withdraw money or coins. Beware of the of cloud mining offers. But not all cloud based mining services are scammers; sometimes they help in forecasting the amount of crypto currency mined during a certain period of time.
To know whether it is worthwhile to start mining, work with equipment suppliers - cloud mining. It will allow you to understand whether there is money to be made in crypto currency, whether it is profitable to invest in it and generally have a go in this business. While you are testing cloud mining, you need to study the training materials for:
Summarizing, we can say that a mining farm is the only way to adequately invest in crypto currency earning. If, for some reason, renting a farm is unsuitable for you, then it is not difficult to assemble your own mining equipment in your apartment. It has certain advantages due to the fact that you will only be required to make initial investments and spend a little time to sort it out. Do not expect that your investments will immediately pay off. The majority of people who keep claiming that 2-2.5 months are enough know too little about crypto currency and modern crypto mining profitability. As time goes by, algorithms get complicated, prices grow and the payback period still remains at around 120+ days (at best). If you want to start mining, you might have joined the trend a little late but you still have a chance
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