Cryptocurrency is becoming more and more popular every day and attracts a large number of people in this area. The most famous cryptocurrency is bitcoin, which also has the highest value. It is for him and hunts just an incredible number of people. But what about mining this coin, is it profitable? Of course it is, they can even use large-scale bitcoin hardware hosting for this. But what about mining this cryptocurrency at home?
Today, we are going to look into the issue of solo mining cryptocurrency. Let’s see the types of equipment that can be used for this. Let’s also not forget the additional needs that will be required for mining. And, of course, we will answer your question, is it profitable to mine at home?
What is Bitcoin Mining
Let’s pay a little attention to this topic because it is beginners who start with solo mining and are very often confused about the concepts. Blockchain is a chain of transactions, where each successive link contains information about all the previous ones. It is precisely such chains that have been called bitcoins. The process of creating and mining such virtual connections is called mining, which requires good computer equipment and special programs.
That said, bitcoin mining is the support of an entire infrastructure designed to keep the entire network running. The essence of this process is to solve complex mathematical problems with the help of special software installed on users’ PCs. The process of getting bitcoins is not controlled by a center but is distributed to everyone who wants it. Mining performs some important tasks:
- supporting transactions;
- protection of the network from the addition of invalid information;
- preservation of bitcoins from various attacks;
- supporting decentralization.
What Equipment You Need
Let’s look at the two main types of equipment that you can choose to mine bitcoins. Let’s say right away that we discard the option of working on a home computer processor because it is long outdated. Unfortunately, a lot of time has passed since then, when it was possible to mine in that way. Now for this case, we need a good enough computing power.
To mine on video cards, you will need the most powerful models, and the more the better. Daily-earnings on video cards with low performance at the current rate will be 10 – 15 cents, and the cost of electricity will make the venture unprofitable. First of all, you need to pay attention to the type of processor, the size, and the frequency of RAM. Another important indicator is the hash rate of the video card.
An important factor is power consumption. Good cards, especially after overclocking, consume more electricity. For mining to be profitable, you need your income to more than cover the cost of utility bills.
Video card mining has become quite popular due to several advantages:
- Earnings do not require any effort from the user, you need to set up the system once, and then receive a stable passive income;
- The system is not vulnerable to virus attacks;
- There are affiliate programs that increase income;
- It is possible to withdraw any, even a small amount.
But unfortunately, this way of mining is not as profitable as the use of specialized equipment, which we will talk about next.
If you need equipment that has been created exclusively for mining cryptocurrency, it is of course ASIC. Because it focuses on only one task, it is much more powerful than conventional processors or video cards for mining. Therefore, an ASIC is capable of mining more coins. Each type of ashik is only capable of mining certain types of cryptocurrencies.
They are determined by the hashing method. As you have already guessed this is the best solution for mining. Most hosting companies also sell or recommend using this equipment. With its help, you can earn many times more than on video cards. They also have their advantages, namely:
- Energy Saving
- Give relatively high profits compared to other miners.
- Have a high hash rate
- They are easy to set up.
First of all, you must have cheap and uninterrupted electricity. This is one of the most important components of solo mining. After all, you simply will not have a normal profit if you spend a lot of money to pay for electricity.
You will also need a stable Internet connection with a low ping. The speed is enough for you at 25 Mb/sec, 1 Mb/sec is also not a problem, but be prepared for the fact that from time to time there will be problems when mining.
Of course the place and stable cooling. The fact is that the equipment gets extremely hot, and if the room is not properly cooled, there can be problems. There have even been cases where fires have occurred because of overheating and equipment failure, so it is worth taking care of this.
Is Home Mining Profitable?
In general, home mining is still effective, even though it is now much more profitable to use cloud mining or to use the services of hosting companies. Throughout the history of cryptocurrencies, mining has been “buried” several times. But, as you can see, it is still alive and making profits for the miners. Yes, the entry threshold into this business has grown a lot compared to what it was just 5 years ago. There is a shift from small miners to large investors who can finance the launch of industrial farms worth millions of dollars.
Now that you are familiar with the basic concepts, you are generally up to speed. As you can see, this business is now costly, so if you decide to go into solo mining, you will have to invest a lot of money. But in the end, we can say that this kind of cryptocurrency mining has a place and in some cases can bring very good profits.