April 11, 2021 / Interesting

Is It Worth To Mine Cryptocurrency In 2021


Bitcoin keeps skyrocketing. And miners are clearly ready to mine digital money. We will tell you how mining farms are arranged and why millions are spent on them.

How Does Mining Work

The cryptocurrency is based on blockchain technology: all operations in the system are publicly available, and the base itself consists of separate blocks of transactions. Each of the blocks is encrypted with numbers and letters – that is called a hash.

A mining farm operates with a hash, picking it up for transactions in the cryptosystem. There are millions of combinations, and the process requires high-performance equipment. Hash rate is the speed at which an issue is solved. It is measured in hashes per second, and the higher the indicator, the more income from a particular coin.

The first cryptocurrencies were mined using a computer’s central processor. Then, for mining, it took a lot of computing power. At that moment, the era of video cards came. However, for Bitcoin, since 2013, only ASIC boards have been profitable – specialized processors that produce a much higher hash rate than video cards. Such hardware is very expensive and practically inaccessible to individuals.

However, there are other promising coins as well. For example, Ethereum is the second most expensive cryptocurrency. Its rate has grown from 300 to 2,100 thousand dollars in a few months.

“Miner’s farm”

The simplest option looks like this: video card (the more powerful, the better), motherboard, processor, cooling system and power supply. And the most expensive component in the conditions of the next mining boom will be the video card – the Nvidia GeForce RTX 3060 will cost at least $ 1200, and for that amount, you still have to look for it. But there are also much more powerful and much more desirable miners 3070, 3080, and 3090. We do not recommend buying used video cards – prices on the secondary market are far from adequate, the reliability of the product is questionable.

Also, you will not be able to save on the power supply and cooling system. Power is especially critical for a mining farm under constant load.
Even a small farm with several video cards will cause a lot of trouble. Firstly, it is quite noisy – the hum from the coolers of video accelerators and the cooling system is very noticeable. Secondly, mining requires an electrical network designed for a continuous heavy load, otherwise there will be problems not only with wiring but also with expensive hardware.

How Much Does Mining Cost?

Mining costs are quite high. You can save money here only on software – software for the mining rig is usually publicly available.

It is noted that Bitcoin mining is very expensive, so “cloud mining” is developing. Investors are increasingly turning to cloud mining, renting computing power from providers with data centers in countries with cheap electricity.

Prospects For Bitcoin and Ethereum

Despite the attractiveness of mining, there is a likelihood of a repeat of the situation in 2018, when, due to the decline in quotations, there were fewer miners, and the equipment had to be sold at a large discount. But you can earn extra money on the same video cards and at a high rate.

It is definitely worth entering into mining now. This is confirmed by the actions of the community – the equipment is bought, the sites are filled. Calling it a bubble is unreasonable, but there are many risks, they must be taken into account and legally minimized. Selling equipment at its peak is ok if the operation is profitable and you can thus renew your fleet. Of course, mining in reserve is possible – if you are willing to take risks and are able to cover the costs of the website.

The rate of the crypto is unpredictable – in the midst of last year’s pandemic, no one could have imagined that the main digital coin of the world would go to the native in a few months.

Ethereum cannot yet be called a safe haven for miners, because for July its developers have planned large-scale changes in the system, which are expected to lead to a decrease in profitability.

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