People who are in cryptocurrency trading might be interested to mine their own currencies with getting bitcoin mining equipment and start mining.
In order to do your own bitcoin mining business, you should buy the right equipment.
The first step to establish any business is to have a business plan, budget, equipment and manpower.
Bitcoin mining is nothing other than a very fast network transaction calculations for financial and banks institutions via the internet.
It’s basically, the calculation that your computer solves and sends the answer to the server that calls pool.
When the answer to the calculation of data been transferred, then if the answers are correct and approved by the server(pool), you will get paid.
You will get paid only for the accepted right answers.
Any types of cryptocurrency mining uses the fastest GPU units and in some situations they use the computer’s CPU as well.
Since bitcoins mining equipment are part of the information technology system we need…
- Bank account
- Energy costs
To start your bitcoin business we should ask ourselves the following questions.
Is it worth it to own a bitcoin mining farm as a business and wasting lots of energy power in order to make one bitcoin?
Do I get enough profit from what I invested in my bitcoin mining equipment?
This document describes the whole process in detail.
Hardware To Use For Bitcoin Mining
There are many new cryptocurrency making devices in the market and you should choose one with the most electricity efficiency.
High speed graphic cards are the main concern when you get your bitcoin mining equipment.
A desktop computer with GTX 1060 and up or AMD equivalent.
Mac computers are not designed to do bitcoin mining.
You cannot use laptop as a bitcoin mining equipment since laptop’s graphic cards are not strong enough to do the mining.
That graphic processing unit can be on your own computer if it is fast enough to do the job.
Also, you can buy special devices that are in the market these days to produces bitcoin or other cryptocurrency.
Application specific integrated circuit (ASIC) is what nowadays miners are using as a bitcoin mining equipment.
ASIC mining machine mines at the anomalous speed with much less usage of electricity power by processing the blocks of bitcoins faster.
The units that the GPU has to process call Mega-hashes.
The best GPU is the one that can process the maximum amount of mega-hashes per second.
Speed of the graphic processing unit is very important in case of choosing the right bitcoin mining equipment.
Mega hash per second mh/s should be high enough to cover the electricity charges in order to profit from mining bitcoin.
If you have a high speed computer graphic cards you can make more profits out of bitcoin mining from home.
Two important elements to choose your right bitcoin mining equipment are:
- Energy efficiency
- The amount of mega hash per second
-Price Of The Bitcoin Mining Equipment
As the demand for bitcoin cryptocurrency goes up, the demand for the hardware is going up automatically.
Here is a list of some hardware equipment for bitcoin mining:
Cooling technology is a very important part of equipment in bitcoin mining.
Some of the hardware equipment have built in cooling system already.
There are separate cooling devices that should be used since the GPUs are heating up very quickly.
You have to make sure the temperature of the room where your bitcoin mining equipment are is at the right degree.
The top 5 mining equipment so far are
- Avalon miner 741
- Antminer S7
- Antminer S9
- Avalon 6
- Antminer D3
Canada manufactures high quality bitcoin mining equipment.
Software for Bitcoin Mining
Main software equipment to setup your mining business or farm are
- Bitcoin wallet
- Software to control the bitcoin processing
- Calculator specifically designed to count bitcoin profits
1. Bitcoin Wallet
In order to exchange your bitcoins to the currency of the area where you live, you need a bitcoin wallet.
A wallet is use for when you receive your pay, want to cash your bitcoins and do other transactions.
You can link your bank account or credit card to it as well.
There are many existing bitcoin wallet providers that you can choose one from.
Any bitcoin mining set of equipment requires a bitcoin wallet in order to transform the digital currency into a traditional currency.
Considering the security of the bitcoin wallets, it is your responsibility to choose the right wallet for your bitcoin mining business.
Seeing that bitcoin is a very new way of using digital currency and it is all on the network, the security is always at risk.
Your responsible to secure your own wallet.
Make sure you don’t keep your bitcoins in your wallet without cashing them right away.
There is no refund system in bitcoin wallet and you should trust the receiver when you transfer any money to the others.
Bitcoin transactions are not secret and they can remain permanently on the network.
Transactions confirmation usually takes between 15 sec to 80 minutes depends on the service provider and if it’s your first time it might takes longer.
Linking your wallet to the pool (server) is very important part of your bitcoin mining wallet.
2. Software to Control the Bitcoin Processing
Program should be installed on your computer as part of bitcoin mining equipments .
Hash-rate is what that program should be controlling for your bitcoin mining.
Miner program is responsible to create a profile for the bitcoin mining business and workers as well.
GUI miner or Nichhash are examples of miner programs that can be reliable when you are setting up your bitcoin mining equipment as a beginner.
Must link your bitcoin wallet to the mining program in order to calculate your hash-rates and get pay.
You have to setup the worker of user account as well for that software and the currency setup for exchanging bitcoins to.
3. Mining Pool (Server)
Bitcoin mining pool is a collective pool of network computer that are all working together to solve information in order to receive bitcoins.
When you select your preferred pool then you should link it to your wallet.
Copy the link provided by the mining wallet for receiving your rewards and toss it into your bitcoin pool.
Next step is to create a worker with credentials.
Then copy and past the user name and password into the miner software.
Select the device on the mining software settings, usually you should select the graphic card and it is much much faster than the CPU device.
In addition to device selection in the mining software settings you have a choice of selecting the computer’s CPU for little speed boost.
Choosing the right mining pool is very important and you can change them if you are not satisfy with their results.
4. Bitcoin Calculator
In order to calculate the profit of the bitcoin mining we need a bitcoin calculator as part of bitcoin mining equipment.
The calculator will do the math for you if you are losing money by mining or you can gain some profits.
Main consideration to be focused on for calculating the mining profits are:
- Hash rate per second
- Power supply or watts usage
- Cost per KW/h for electricity
- Price of hardware such as GPU
- Miner software cost
- Time frame
- Value per bitcoin
- Bitcoin shared
- Net revenue.
The amount of hash-rate per second is very important when the hash-rate is high with usage of minimum power in order to gain profit.
High speed graphic cards can produce more and more bitcoins in your mining system.
Graphic cards, computer or bitcoin machines are what you paid for and should be included in the bitcoin calculator.
More speed means more electricity usage.
Power supply of the computer using separate amount of energy usage and it is usually written on the power supply.
On top of the power supply you should add the price of electricity per kilowatt as well.
Depending on the area where you live, the price of electricity per kilowatt is different.
Should get the right electricity rate information in order to do the calculation.
Mining software also should be included in the calculator inputs.
Now you should check if the cost of electricity is not more that the amount of bitcoins you accumulated in the certain period of time.
Speed of hash-rate should be very high in order to be able to make more within less time.
Asthmatically, when hash-rate is high, you make more bitcoins within less amount of time and that means less electricity usage.
If the speed of mega hashes per second goes higher, the power supply electricity usage remains the same.
In order to get higher mega hash per second, we need a much faster graphic cards.
After the amount of shared coins (approved bitcoins) barrels then you can calculate your income.
Net Revenue of Bitcoin Mining Farm
If you decided to mine bitcoins then you should get the right equipment as well.
The cost of mining devices are getting more and more expensive and you should make sure if it is worth having that type of business.
Following images are showing how cheap bitcoin mining equipment can make you lose profit.
The profit lost of using this machine per year is as follow.
You can see the yearly profit of bitcoin mining with this type of equipment is in negative level.
For the reason that the cost of power cost is very high and the Hash rate (GH/s) is low.
So, the BTC Coins are not enough to cover the expenses.
Using the right bitcoin mining equipment is very important.
Now, I am going to show you the latest bitcoin mining equipment calculation result.
With hash rate (GH/s) = 13500 and the same power cost ($/kWh), although the cost of hardware is much more expensive.
Here is the yearly profit of this much more expensive bitcoin mining hardware.
Despite the fact that the cost of the bitcoin mining hardware is much more expensive, but the yearly profit is showing significant amount comparing to the other one.
Bitcoin Mining Equipment Power Usage
Any cryptocurrency equipment uses lots of power and energies.
The amount of power usage means damage to the nature and usage of natural resources.
We already facing the global warming because of the damages that human being done into the nature.
To run a bitcoin mining farm, you need more than 10 devices in order to make an annual profit for a medium class living income.
Imagine 10 devices running 24 hours per day and using electricity power to produce nothing other than a bubble.
Our natural environment is in danger if the cryptocurrency mining equipment manufacturers do not come out with better energy efficient products.
Is It Profitable Having a Bitcoin Mine?
We always say, money bring more money.
That means if you invest more in bitcoin mining equipment you will get more profit.
With just using one computer and install multiple graphic cards, you can not make a huge profit out of bitcoin mining system.
You might lose money instead.
There are many other ways of making money online without investing a lot or no investment at all.
Many people prefer to work from home and bitcoin mining is one kind of home base business.
Making money online from the comfort of your own home can make you rich within a very short period of time if you invest in the right program.
For sure bitcoin mining business is not profitable as much as the other online businesses.
Unless, you establish a bitcoin mining farm full of high end equipment, which doesn’t count as a home based business.
Analysis of Bitcoin Mining Equipment in Details
There are many people who makes lots of money via bitcoin mining.
Bitcoin mining farms with using lots of equipment are able to make a good profit.
However, if anyone invests as much as purchasing and establishing mining business in any other business, they might make more profit.
The high speed graphic cards working 24 hours per week all year to make only one bitcoin.
Who is behind this virtual processing system?
What is the standard base of bitcoin hash rate values came from?
In reality, bitcoin is just a service charge to process some data transactions over the network.
Our daily banking transactions are all electronic nowadays without realizing.
E-transfer, Online Payments, Pay Pal, Money transfer, Money wiring and so on are all electronic currency’s transfer.
The bank transactions processes without any physical currency moving anywhere.
All we see is the online reports and the numbers showing in the bank statements.
As a result the online electronic currency already exists with a real value.
Therefore, why do we need a cryptocurrency that has no real values?
Anyhow, bitcoin mining equipment should be well design in the future to use much less energy power and environment friendly.