Although the Bitcoin price is far from its ATH, the popularity of BTC mining keeps growing. Anyone who has a desire can mine Bitcoin, unlike fiat currencies, which only governments can print. Bitcoin, in turn, is more like gold, due to its deficiency, but the mining process has nothing to do with the extraction of precious metal.
Bitcoin mining is a process through which network participants (miners) perform mathematical calculations using special software. Mining not only provides a reasonable way to issue cryptocurrencies but also stimulates people who mine coins with rewards. Without mining, Bitcoin could not function correctly, as miners help maintain the network in a safe environment by checking transactions and confirming them.
Bitcoin mining is an important thing because the participants involved in this process protect the BTC blockchain. Without mining, transactions would remain unconfirmed, and the cryptocurrency would be unstable and unusable. Blockchain, in its essence, represents the history of Bitcoin, which consists entirely of blocks. In turn, blocks consist of a set of transactions. On average, it takes about 10 minutes to create each new block, but this period in certain cases can be delayed for several hours.
During mining, the Bitcoin blockchain is replenished with new records of completed transactions. So, upon solving the problem, transactions are combined into a block. A hash is taken from the very last block and inserted into a new block.
The mining process is implemented based on Proof of Work. That is, upon finding a solution, this new block is added to the local blockchain and becomes part of the network. The miner gives a reward in Bitcoin as a result, which encourages network participants to work to ensure the safety of Bitcoin.
The bitcoin mining farm is a construction of two or more hardware installed in one place. A mining farm is a much more powerful version of an ASIC – a machine aimed at mining Bitcoin. Using multiple pieces of hardware gives a more effective result than using one ASIC.
As for mining on GPUs and CPUs, in this case, both methods are inefficient since the capacity is not enough to realize profitable mining using the SHA-256 algorithm, which runs Bitcoin mining directly.
However, given the rate of change in the cryptocurrency ecosystem in general, as ASIC farms are operated for too long, they also often become unprofitable. To keep up with the development, network participants have to regularly improve hardware. But, despite these risks, the number of mining farms continues to grow, as evidenced by the growth of the Bitcoin network hashrate.
Because the total reward will be halved as early as May of this year, miners are trying to get more coins while it is still possible.
The user will need specialized hardware, – ASIC, for profitable mining of Bitcoin. These machines are designed specifically for mining coins on a single algorithm, in this case, SHA256. They perform only one action but do it well.
Today, the leading manufacturers of mining hardware are Bitmain, Hut8, WhatsMiner, and others. Note that buying ASIC on manufacturers’ websites will be the least expensive option. However, the delivery time for hardware to the recipient can reach two months or more. Therefore, if mining is necessary to run “here and now”, then it is recommended to contact intermediaries, of which there are a huge number on the Internet.
The most budget, but still effective option is the Antminer S9 (17Th / s). The model is discontinued, so most likely the purchase will have to be carried out “on hand” in the secondary market.
However, to create a more profitable mining farm, it is recommended to use the latest models. In the case of Bitmain, this is Antminer S17 + (67Th / s). The hardware is available for order both on the official website of the supplier, and on the websites of dealers.
Also, recently ASIC from the manufacturer WhatsMiner is gaining special popularity.
To decide on the choice of ASIC, you should pay attention not only to its price. Other important components include hash power as well as energy. It is recommended to use a calculator to calculate the profitability of mining to calculate the approximate profit. WhatToMine and CryptoCompare services are just some of them.
Note, if electricity costs of more than $ 0.1o per kWh, mining will be disadvantageous. Otherwise, the hardware is not something that will not pay off but will drag its owner into debt.
To compete with data centers, network members can join the mining pool. This will help miners to increase the speed and reduce the complexity of mining, and, consequently, will positively affect the mining profitability in general.