March 28, 2024

Bitcoin mining on your home computer – home mining

Mining bitcoins on home computer - home mining

Mining bitcoins means burning megawatts of electricity by running computing around the clockequipment. It would seem, why not switch to the POS consensus algorithm and live in peace and quiet. Not everything is so simple, because it is Proof-of-Work (PoW) that ensures the decentralization of the network.

And since, it largely depends on bitcointhe state of the entire market, BTC mining is an important component of the crypto industry and it will continue to develop. In this review, we will tell you whether it is still possible to mine bitcoins yourself and how much you can earn on this.

What is bitcoin mining?

Mining bitcoins at home is quite high investment, the need to create special conditions for the operation of equipment and a lot of hassle.However, digital gold, which is so often referred to as BTC, is still the most expensive virtual asset.And it's probably going to be like this, or at least for a very long time.

Mining bitcoins on home computer - home mining

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And, at the dawn of the crypto industry, the first coinsBitcoins did not cost a penny, then they gave 1 cent for them, and at the end of 2017 the price of 1 BTC increased to $20,000 and this is not the limit. Imagine the rise of crypto enthusiasts who started mining Bitcoins on their own in 2010. Of course, it is impossible to determine the exact amount of earnings of everyone who believed in Satoshi Nakamoto’s project 10 years ago. But, most of them made a fortune for themselves. Despite its unpredictability, the digital money industry is very promising. What will it take to start mining bitcoins at home?

Mining is the calculation of encrypted and limited in quantity cryptographic program code on special equipment. The task is performed by enumerating numerical combinations.

In the process, a new cryptographic block is being formed.in itself all the data on translations of coins between users for a certain period, a link to the previous block and the final hash-amount.It is necessary to find to complete the creation of the block and start a new one.When the miner is signed, the rest of the network checksblock on validity and after that it becomes an integral part of the blockchain, and the owner of the equipment receivesreward with digital coins.

Copies of the data are stored on many computers connected by the network and each of them is regularly updated, adding information about new blocks.The cryptographic network represents a chain of many nodes in different parts of the world.It includes all the owners of the crypto-market, but only some of them are engaged in its maintenance.In order to generate revenue by participating in the search for new blocks of the bitcoin ecosystem, a specialized computing device (ASIC) is needed.

In the process of forming a block minersprocess transactions, protecting the system from a Double Spending attack. Since mining bitcoin is profitable, a huge number of people are engaged in this business.

POW Consensus Algorithm (Proof of Work)provides decentralization better than alternative network protection methods. But decentralization is one of the main guarantees that people who want to invest in this blockchain project will not become a victim of intruders.

Digital Gold Issue Limited to 21a million coins. The blockchain ecosystem is not regulated by the state and anyone can mine Bitcoins at home at the moment, in principle. However, not everyone will be able to configure the equipment and start the extraction process on their own.

Bitcoin mining process

Mining bitcoins on home computer - home mining

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The creator of the first cryptocurrency, Satoshi Nakamoto, compiled the program code in such a way that digital money was protected from inflation. For this purpose it is provided:

  • Limit on the number of coins (21,000,000 BTC).
  • Correlation of computational complexity.
  • Reducing rewards to miners after every 210,000 blocks mined.

Payments are halved every 4 years, but thisis only beneficial, because due to the shortage, bitcoin is constantly growing in price. To mine bitcoins, one himself needs not only special knowledge, but also start-up capital, for the acquisition of computer technology and payment of electricity costs.

You can immediately exchange earned coins for fiat.But, in the period when the rate of bitcoin is significantly below the historical maximum to spend cryptocurrency is impractical.Read the materials on the Internet, look at the prices and decide for yourself whether you are profitable for such a business.After all, crypto mining is a business, not a hobby.for profit.

Equipment selection

Once it was possible to mine bitcoins on a home computer or even on a laptop.With the growing popularity of digital currencies, mining equipment has also improved.In principle, this was the original concept of the inventor of the first cryptocurrency Satoshi Nakamoto: "One processorHe must have imagined a bitcoin network as a community of equal owners of ordinary PCs.Although some experts believe that Satoshi foresaw the possibility of mining on GPUs, and therefore the launch of mining farms.

But progress has gone even further and, for the mining of bitcoin is no longer suitableThe more miners dig up digital gold, the faster it growscomplexity of calculations and equipment of weak power ceases to cope with the task.There was a need for miners who are able to sort through long cryptographic chains at high speed.Therefore, special computing devices were released on integrated circuits (ASICs).

Mining bitcoins on home computer - home mining

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ASIC is a highly specialized computer that performs only one cryptocurrency mining operation on a specific algorithm.Asic is very simple.

In a rectangular metal case iscontrol board and one or more hash boards with chips. Cooling system fans are installed at the end, and the power supply can either go bundled with the device or be sold separately. When choosing an ASIC miner, you need to pay attention to the following parameters:

  • Hashrate
  • Power consumption;
  • Price.

The higher the hash rate, the faster you will get money. But if you can buy a model with a lower hashrate, but more energy-efficient and cheaper, then the choice is obvious. ASICs for mining bitcoin can also mine its forks, working on the SHA-256 algorithm. But, digging with their help a lightcoin or ethereum is impossible.

  • Using the instructions, you can set up the equipment yourself, but it is unlikely that you will be able to operate it at home. ASIC is very noisy and is intended for non-residential premises.
  • In addition, in the room where the ASIC miner operatesIt is necessary to comply with the temperature and air humidity required in the instructions. Do not allow a lot of dust to settle on the device, this will lead to overheating and premature failure.
  • If you do not have non-residential, detached,a clean building with good ventilation, which is connected to the mains and the Internet, after the purchase, immediately bring ASIC to a mining hotel, but in this case it is more profitable and easier to use a cloud mining service.

Wallets and software

Ok, you bought iron for mining, but howreceive earned money if you do not have a bitcoin address. You can easily create a personal cryptocurrency wallet yourself by downloading the corresponding application to your home computer or smartphone. There are a lot of cryptocurrency web wallets online, registering for one of them, for example, you will get a personal page with an address and a set of tools for performing transactions.

There are also physical (hardware) wallets for storing cryptocurrency offline. These devices guarantee maximum safety of your funds, but they cost from $ 50.

Mining bitcoins on home computer - home mining

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In addition to a crypto wallet, to prepare an ASIC, you need a personal computer. To get started, download the appIP Reporter, and further settings are made through the browser.

When bitcoin was mined on cpu and then onvideo cards, required the installation of special programs. Some of them, for example, BFGMiner, are still available for download. Such software can be used to configure production on ASICs in solo mode. But, it’s better to join the pool for collective mining.

The choice of mining pool

The pool, on the miner slang “mine” or “mountain pool”, is a server to which many miners working in a common boiler are connected.

Miners receive a task and send possibleresolving the hash of the block to the server. When the block is signed, the award is divided among all participants, in proportion to the share of the ball sent. The pool organizer makes a profit by charging a commission fee from each participant.

We recommend using Binance pool serviceIt has been working for several months but has already proven itself well and shows good profitability, see instructions for setting it up here. The more miners working on a pool, the higher the chances of finding a block faster than competitors. However, you should pay attention to the stock accounting system, the size of the commission and the reputation of the site.

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Leading pools are already clogged in the ASIC firmwarefor example, the same manufacturer of mining machines Bitmain has its own Antminer pool. But if something does not suit you, you can work with another server by changing the hardware settings.

Starting and monitoring equipment

The settings depend on the specific ASIC model. There are instructions on how to launch and connect to the server many popular ASIC models for mining bitcoin on our website.

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You can give some general recommendations regarding any device on integrated circuits.

  • After they send you a new minerCarefully inspect the packaging and the device itself for external damage. Then, holding it suspended, carefully turn the device over several times. If something rattles inside, it means that one or more chips have fallen off andyou cannot start the device.
  • The power supply must match the power consumption of the device. Before starting, carefully check all connections.
  • ASIC can only be connected to the Internet via cable.
  • Optimal room temperaturefrom +5 to + 25C. If it is hot, the device will overheat and fail. You cannot use miners in high humidity conditions.
  • Noise level of ASIC operating75 db. Sleeping with him in the same room or even in the next is almost impossible. Some craftsmen equip sound-absorbing boxes, but it is better to put in a garage or rent to a mining hotel.
  • ASIC configuration is done via PC, just likerouter setup. You need to determine the miner’s IP and type it into the top line of the browser. Then enter the interface, complete and save the settings, restart the miner and mining will begin.

Monitoring of work on the pool occurs through a computer or a special application for a smartphone. For the device to serve as long as possible, you need to regularly clean it from accumulating dust.

How much can you earn on home mining?

You can calculate current income on specialonline calculators, one of the most popular Whattomine. He has data on the profitability of mining the majority of crypto components on popular ASIC and GPU models. Please note that in a day the price of bitcoin and other altcoins can skyrocket.

Mining bitcoins on home computer - home mining

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Which device should you buy? If you want to mine bitcoins, then definitely ASIC. The new miner for mining Bitmain Antminer S19 Pro +110 Th is available on the manufacturer’s official website$ 2407. But at the same time, the entire batch of devices has already been bought up by pre-order.

Mining bitcoins on home computer - home mining

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At an electricity price of $0.06/kWh, the ASIC will pay for itselfin about 22 months. Such a long period is due to the fact that the Bitcoin network has already undergone halving (halving the reward for miners), and for now, the exchange rate of digital gold is marking time. During the 11 years of existence of the Bitcoin blockchain ecosystem, the block reward has already been reduced three times. After the first two halvings, the price of the coin skyrocketed within a few months. Now the entire crypto community is looking forward to a new breakthrough, so hurry up and jump on the rocket.

But what to do if there are no conditions for accommodationASIC? How to mine bitcoin on pc? Directly there is no way to get alternative coins and change them to digital gold. Consider the ways of home mining.

Video cards

Mining bitcoins on home computer - home mining

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One video card, taking into account the power of other components for crypto miningunprofitable. First, you can work in test mode on a regular PC, and then you need to collect a mining farm. It will cost you about the same as ASIC, the payback period is about 2 years.

Video cards work with several algorithms andafter the upgrade they can be implemented. The payback period of mining farms on video cards is approximately 18-20 months, but for this, the prices for cryptocurrency can grow and the profitability will improve significantly.

Processors

Mining bitcoins on home computer - home mining

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Cpu mining has almost stopped, but afterafter the Monero cryptocurrency switched to the RandomX algorithm, the processors outperformed the gpu device by the hash rate. The Intel core i7 delivers 6.3kH / s, but to compare in terms of profitability with ACIC, the XMR coin should cost about $ 200.

However, you can use partcpu computing resource for mining while using a computer for other purposes. But such an activity is more of a hobby than professional mining, and you won’t earn serious money like that.

Alternative solutions

Mining bitcoins on home computer - home mining

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You can earn bitcoins using video cards on the NiceHash platform. You will get the customer the cryptocurrency he needs and receive payments in BTC.

Formerly the administration of the Nayshash platformcalculated with the owners of computing equipment exclusively digital gold. Now you can get rewarded with alternative coins and fiat money, but if desired, the reward will be transferred to bitcoins.

Cloud mining

Mining bitcoins on home computer - home mining

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This is the best option for mining Bitcoin for 2020year. There are enough cloud mining services on the network that offer to rent a hashrate or physical piece of equipment in a remote data center.

Cloud mining is the most profitable andA convenient option for most users, but be careful in this sector of the crypto industry there are a lot of scammers. Use only reliable services that have been proven over the years. In our opinion, the best cloud service at the moment is IQMining.

A full rating of the most reliable and profitable cloud mining services can be found here.

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