Best requirement for mining crypto currencies with your own hardware
In another category of our blog we reported about cryptocurrency cloud mining. This post is about mining cryptocurrency with your own hardware.
When mining in the cloud, you rent computer capacity to produce cryptocurrency. In contrast, with hardware mining you use your own computer or hardware power.
It is crucial which crypto currency you want to mine. For example, if you want to produce Bitcoin, you need very powerful hardware. The investment for this hardware is very high and the power consumption is enormous.
Mining bitcoins with your own software is only worthwhile if you use the latest hardware and pay a low price for electricity. Most of the cryo-currency farms are in China because electricity is still very cheap there.
With this calculator you can calculate how much cryptocurrency you can produce with your hardware: Mining Retability Calculator
As already described, the production of bitcoins is very expensive. You need a lot of money for your own hardware setup. But there are also ways to produce Bitcoin or other crypto currencies with conventional hardware in a roundabout way. I will tell you more about this at another point.
How does cryptocurrency hardware mining work?
Mining (producing) enables the production of cryptocurrencies by performing arithmetic operations with hardware. If you use your hardware for cryptocurrency mining, you will receive a payment for performing these arithmetic operations.
The so-called Blockcain is a sequence of calculation confirmations that are confirmed by many different individual hardware components. One of these hardware components can be your hardware.
If you want to know exactly how the blockchain works, please inform yourself here: Blockchain https://en.wikipedia.org/wiki/Blockchain
Mine cryptocurrency in the blockchain with a pool
Various communities have formed to produce crypto currencies, all of which work together on the creation of one or more crypto currencies. It increases the chances of success to work together in a so-called pool. The winnings will then be shared among the participants.
Finding the right mining pool depends on a few variables. On the one hand, the mining pools charge different commissions, on the other hand, it is not unimportant how many participants a pool has and how successful the pool is.
It is difficult to make a recommendation on this. But you can use the following website to compare the different mining pools:
Comparison of mining pools
Mine cryptocurrency in the blockchain without a pool
Cryptocurrency miners with particularly high computing power usually mine without a pool. It takes longer to get the confirmation of the arithmetic creation, but you don’t have to share the profit with other people. The confirmations are made in blocks. a block is then a bitcoin, for example. That means, if you confirm a block, you will receive a Bitcoin. With the appropriate hardware performance, this can be worthwhile.
How I mine cryptocurrency with hardware today
When I started mining cryptocurrency, it was still quite easy to mine Bitcoins with simple computers.
I got my first bitcoin when the bitcoin was around $ 180 and at that time I mined without a pool. It had taken a few months to see success and $ 180 wasn’t a huge hit.
When I think of how Bitcoin is doing today, it has definitely paid off.
I have always invested most of the profit from mining in modern hardware. It was a permanent arms race.
A few years ago the first cloud mining services came up and I was able to rent a lot more computing capacity pretty easily. At that time, the cloud providers asked very little commission.
For 4 years I have only been using Ethereum with my own hardware and that is hardly worth it anymore. Graphics cards are used for hardware mining of Ethereum. Graphics card prices have skyrocketed in the past 12 months. Graphics cards that normally cost $ 300- $ 500 are now over $ 1500.
Little by little, I am selling all hardware for mining crytocurrency and continuing to focus on cloud mining.
New ways to mine crypto currency with hardware
But there are new cryptocurrencies that are still worth mining with your own harware: Chia Coins and Helium Coins
In Chia Mining, the power is not in the computer computing power but in the storage space. The storage space is much cheaper and more energy-saving to make available than computing power.
With helium mining, a hotspot is made available for IOT devices. The prices for these special miners are also relatively low at $ 300- $ 400 and with only 12 watts of power consumption, the running costs are negligible.
Unfortunately, the mining equipment for the helium network is currently sold out by all providers.
In further blog posts I will report on these two crytocurrencies and mining.