How has cryptocurrency mining changed in 2021?

For miners, 2020 was full of different events: both good and not so good. The cryptocurrency has increased in price, butThe size of the ETH DAG file has also increased. In addition, BTC halving occurred in 2020, and Ethereum was planned to switch to PoS in December.

Yes, 2020 has been a busy year, but what can you expect from 2021? What problems can it bring to miners? The answers can be found in this article.

Switching ETH to PoS

The Ethereum network has planned a transitionon Proof-of-Stake for December 2020, but it did not happen. What does Proof-of-Stake mean? Transformation of the usual mining process into the so-called staking, which does not require special equipment.

Of course, this has its advantages, since youYou will be able to forget about the need to buy and maintain devices, monitor their temperature and condition, and so on. But on the other hand, your equipment will become unsuitable for ETH mining. This is especially frustrating if your farm consists of several dozen or even hundreds of devices - you simply won’t need them (at least in order to participate in ETH staking).

However, it is too early to worry about this.In December 2020, the final transition to PoS did not take place, and this will not happen in the near future. This means that in 2021 you can still mine Ethereum in your usual way. But don't forget about EIP-1559. This innovation will improve the security of Ethereum and will bring many improvements in general. For example, the waiting time for transaction confirmations will be reduced. But at the same time, EIP-1559 will "burn" BASEFEE, and this will affect the income of miners. Alas, this, too, cannot be influenced in any way - all that remains is to wait for the launch of EIP-1559 and follow the news.

Ethereum DAG file size

Now even video cards with 4 GB memoryare no longer suitable for mining ETH, all due to the size of its DAG file. At the end of 2020, it has grown to the point where 4GB cards simply cannot mine. What to do about this problem? Option one is to buy new video cards with more memory. But will they have time to pay off? Of course, the transition to PoS will not happen tomorrow, but it should still be considered. Having bought new cards, you may simply not have time to “beat off” their cost.

So it’s better to pay attention to option numbertwo - it does not require investment in new cards. Instead, you can start mining another coin. The mining can then be sold on exchanges in exchange for ETH. For example, you can switch to Beam (this coin, like some others, simply does not have a DAG file) or Ethereum Classic (the DAG file size of this coin should reach 3 GB by August 2022, and 4 GB only by September 2025 ).

When choosing a coin, you need to pay attention notonly for its cost and the size of the DAG file (if any). It is also worth considering how much the price of the coin fluctuates and whether it will be easy to sell it. Another important point is the load on video cards. It is also a good idea to find out if the coin project is actively being updated. By answering all these questions, you can make the right decision.

High power consumption — how to reduce?

Scary electricity bills have always beenan urgent problem for miners, and 2020 was no exception. Don't expect this from 2021 either. Fortunately, there is a reliable way to reduce your electricity consumption.

Using the Hive management and monitoring systemOS, you can track energy consumption and always be aware of how much energy your devices need. Moreover, thanks to the undervolting function, your GPU rigs will consume less electricity. Another useful feature is the Scheduler. They come in handy if your electricity costs a little less at night than during the day. Given this fact, during the day you can run the equipment in undervolting mode, and at night in overvolting mode. And with the help of Scheduler, you can create a schedule for your devices, and they will switch between modes automatically.

Secondly, install on your ASICsHiveon ASIC firmware. It allows for an overall reduction in energy consumption. In addition, it has an auto-tune function that adjusts the frequencies of worn-out chips. Thanks to auto-tuning, such chips begin to consume less electricity, and at the same time their performance increases.

The long-awaited release of Hive OS 2 has recently been released.0, which means it's time to take a closer look at the new, user-friendly interface of the system. Everything has changed, not just visually, but also the functional part has undergone great changes. Many useful features have been added to simplify the work of ordinary users with the system.

Hive OS official website: https://hiveos.farm
Promo code for crediting 10 USD to the balance of Hive OS: MINING-CRYPTO (specify during registration)

Overheating devices

Possible overheating will also always be a pressing problem for miners. To avoid it, follow these recommendations:

Track the temperature of your devices so you can take action in time if something happens.
Ensure optimal room temperature and heat dissipation.
Keep your graphics cards as dust-free as possible.
Consider more effective thermal protection options (paste/gaskets/fans). But remember thatself-replacement will void your warranty!

Hashrate theft

When your farm has technicians and administrators, it is worth taking additional security measures. Otherwise, you may face the problem of hashrate theft.

VNC access must be disabled.
The creation of flight sheets and wallets for the entire account must be done by you and can only be changed by the farm owner.
Your network should be protected from unauthorized external access (remember open ports, port forwarding, etc.).
The equipment must be protected with a strong password.
All old / obsolete authentication tokens should be removed.
Two-factor authentication must be enabled for both you and everyone else who has access to your farm.

New equipment

2021 also promises new equipment. As for ASICs, Bitmain plans to release new 19-series devices, and they should be even more efficient. Another ASIC manufacturer,Canaan creative, also announced a new model. Expected thatAvalon Miner 1246will be about 30% more efficient than the previous model.

Those miners who prefer GPU rigs can also expect new products. AMD announced a new series with architectureRDNA3release is expected in late 2021. The performance should increase by about 50%. Most likely Nvidia is also planning something new, but no details yet.

Cloud mining — the best cryptocurrency mining option for 2021

Cloud mining is a model of earningcryptocurrency, which creates groups (mining pools), with one goal: to generate more income, in comparison with conventional distributed mining, due to the management of equipment by a contractor who solves all issues related to technical and software components.

Cloud mining setup does not requirea productive computer or knowledge in the field of blockchain and cryptocurrencies in general. Setting up in this case consists in going through the standard registration procedure on the pool, depositing money (usually ordinary money or bitcoins) and choosing a tariff plan. Then the user specifies the address (personal wallet) where the mined cryptocurrency will be withdrawn.

Rating of TOP-5 cloud mining services (with actual estimates for January 2021):

Service	Rating	Detailed overview
IQ Mining (Editor's Choice!)	9.5	Read the review
ECOS	7.2	Read the review
YoBit VMining	6.5	Read the review
BitDeer	6.4	Read the review
HashFlare	6.3	Read the review

The criteria by which the score is given in our rating:

Profitability and profitability– we calculate the payback period, clarify the reality of mining.
Prices and commissions– we take into account the validity of tariff plans and compare them with competitors.
Deposit / withdrawal, discounts, reliability– we analyze reviews, test the correctness of accruals and withdrawals.
Convenience of the platform and site– we evaluate the functionality, errors and failures when working with the service.
Features of the company– unique services and useful services, period of work on the market.
final grade– the average number of points for all indicators determines the place in the ranking.

To summarize

At the moment, mining in 2021 looks promising. Markets are rising and the price of Bitcoin (BTC) is still over $ 30,000. Ethereum (ETH) also continues to confidently hold above the $ 1,000 mark.

To take advantage of the current market conditions andmake money steadily, follow the recommendations above. For most users, cloud mining is the best option. When mining with your own equipment, keep an eye on your devices, keep your farm safe, reduce energy consumption and remember that the field of cryptomining is constantly changing - be careful and choose new equipment wisely.