Bitcoin Mining Rig: In-Depth Analysis from an Expert
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Bitcoin, since its inception, has stood as the most valuable cryptocurrency by value. Over the last decade, Bitcoin, listed as BTC in cryptocurrencies’ online trade lists, triggered a colossal trajectory across many spheres: users, developers, eCommerce merchants, and consumers, among many others.
Also, for insights, we’ll draw from the expertise of Ezekiel Chew, a Lead trainer from Asia Forex Mentor. His expertise is dearly sought by retail traders making it in life through trading. You can find his insightful analysis across various global forex events as well as panels focusing on market analysis.
At this point, it’s worth mentioning that Ezekiel Chew has over twenty years of trading the markets. And Bitcoin happens to be slightly half as old as his expertise. As a lead trainer and analyst, his strategies and analysis apply in Crypto. Traders should find a host of resources that he has developed specifically for Crypto.
Table of Contents
- Bitcoin Mining Rig: What is Bitcoin Mining
- How to Mine Bitcoins at Home
- Is There Any Risk
- How to Get Bitcoin Rewards
- Is Bitcoin Mining Profitable
- Do I need Bitcoin Mining Hardware
- Types of Mining Hardware or Rigs
- PROS and CONS of CPU as Bitcoin Mining Hardware
- PROS and CONS of ASICs of Bitcoin Mining
- Best Crypto and Forex Trading Course
- Best Crypto Brokers
- Conclusion: Bitcoin Mining Rig
- BTC Mining Rig FAQs
Bitcoin Mining Rig: What is Bitcoin Mining
In summary, Bitcoin mining is a complex process where advanced computers look for solutions with Bitcoin mining software to long computations. In the form of rewards, the miners get compensation in the form of Bitcoins.
In reality, Bitcoin mining requires consistent and dedication to effort, great care, huge expenses, and rewards only trickle in in irregular and uncertain inflows. However seemingly discouraging, Bitcoin mining, as well as that pertaining to other cryptocurrencies, remains a magnetically attractive investment.
Miners target the rewards in the form of Bitcoin and other valuable tokens as well. The best approach to mining BTC calls for an entrepreneurial mindset. It’s not a venture where you get returns like you would from a get-rich-quick scheme.
How to Mine Bitcoins at Home
Miners of Bitcoin work with a model that takes on Decentralized Organizations or DAOs. And with DAOs, no single entity can make decisions single without a consensus of the majority.
After verifications of transaction blocks by many miners or nodes, the records adoption updates across the entire network or mining pool, the rewards go to the initial verifier, but record updates circulate to all miners concurrently.
In typical markets, Fiat currency users may not spend the same Dollar or whatever unit currency to pay for goods or services twice. Not unless there’s some foul play in between involving typical theft.
Is There Any Risk
The Investopedia dictionary points out that there is a risk with bitcoin users creating a copy and sending one to a merchant or other parties – and all through retaining the one copy.
It’s the critical reason Bitcoin mining exists. Mining helps to check transactions to ensure transactions have no malice of spending BTC twice. After mining a block or an MB of BTC transactions, they get the reward amounting to a certain number of Bitcoins.
There’s a section of miners who argue for an increment of the size of a block to carry more data. At the tail end, the Bitcoin networks will carry on faster processes and clear transactions much faster.
How to Get Bitcoin Rewards
As you are aware, at this point, the rewards for miners are in the form of Bitcoin. Bitcoin Miners require to fulfill sets of conditions to qualify for the rewards. First, it’s purely the effort they’ve put in the form of mining with specialized mining hardware.
And the second one is pure luck in the game. And it happens that miners can fulfill each or a combination of the two conditions to earn the rewards. The easiest one is verifying an MB worth of Bitcoin transactions.
And the hardest condition is being the first miner to get a solution or get an answer nearest to the solution for a complex mathematical problem.
Is Bitcoin Mining Profitable
The profitability of mining BTC decreases over time. To be specific, rewards to Bitcoin miners are reduced by half after every cycle of four years.
It means that since BTC’s initial mining runs from 2009, the miner earning was 50Bitcoins per block. Fast forward to 2013, the amount for miners halved and therefore reduced to 25 BTC. Also, in that order, one block as of May 2020 trickles down to 6.25BTC.
Given that Bitcoin’s price as of November 2020 hit $17,900 per BTC. It means miners’ earnings amount to 6.25 x $17,900 for each time a solution is attained for a complex math problem.
Do I need Bitcoin Mining Hardware
At the inception of Bitcoin, regular PCs at home would very well work as mining rigs for BTC. With the changes in time, it’s not the case. The networks and data keep increasing with time, as well as the mining difficulty.
The network produced a block at every interval of 10 minutes. And the network itself evaluates the difficulty with mining every 14 days. Also, block production gets harder when miners use more than one computer pulling in the energy to meet the stability of the entire network.
In reality, it, therefore, requires miners to have access to potent computing hardware. Examples are the GPUs of application-specific integrated circuits (ASICs). Only then can a miner compete fairly with others in the process of mining BTC.
Types of Mining Hardware or Rigs
Among the countless ways to make money is the most recent one: mining cryptocurrencies. Apart from being intriguing, it’s a lucrative venture if things work out well.
Over and above, working with strong Bitcoin miners and mining software, miners need a cryptocurrency wallet. Next, for this post, we’ll go over the types of mining rigs miners can use for the purpose of Bitcoin mining. They are as follows:
CPUs For Mining Rigs
The CPUs or Central Processing Units comprise the hardware components that act as the brain of a computer by executing the instructions or mining software. CPU mining rigs are simple, just as they sound.
It generates the required hashes. CPUs were the main model when crypto miners first launched into the markets – since less effort or energy was needed in mining.
However, as crypto-mining became famous with time, the increasing difficulty set in. And more powerful hardware requirements came into the limelight. Therefore, Bitcoin mining witnessed the entry of the ASIC plus the GPU miners.
#1. AMZ Ryzen ThreadRipper 3970X Mining Hardware
The AMZ Ryzen ThreadRipper 3970X CPU processor (Bitcoin miner) hit markets in 2019. AMD’s promise was highly improved efficiency plus performance. When you first deploy the AMD Ryzen Threadripper, your first notice of change will point you towards the significantly improved core counts, the efficiency, as well as the per-core performance.
The reason why it brings in higher core counts arises from the component – 32-core processor and 7nm. The duo brings in the higher core counts, higher clock speeds, and lastly, a combination of low power requirements with the higher cache.
There’s no doubt you have a significant advantage with a 64-thread processor. It brings in a dump truck size of 144MB cache, which falls among the best mining CPU applicable for most digital assets.
#2. AMD Ryzen 9 3950X Mining Hardware
The AMD Ryzen 9 3950X falls among the competitive CPUs (Bitcoin miner) you’ll get in the market for mining. It comprises a 16-core plus 32-thread processor that has a cache of 64MB. It scores a hash rate hitting 13.4 kh/s.
It’s counted as relatively satisfactory in speed and accuracy at getting the most accurate hash. The new architecture of Ryzen 9’s plus new enhanced support for the PCle 4.0 standards on X570 chipsets makes it a more reliable miner.
Finally, the Ryzen 9’s are built on single-cores with multiple-threads workload capability, ranking them among the powerful performing miners.
#3. AMD RYZEN 5 3600X Mining Hardware
The AMD series offers good CPU processors (Bitcoin miner) among the Ryzen 5 3600X. If you make comparisons among processors, AMD gives the best for miners looking for Core vis a vis the less money it requires to get one.
AMD RYZEN 5 3600X falls among the CPU processors that count as both economical yet bringing in the value in terms of the quality work they perform.
Technically, Ryzen 5’s consists 6 -core and 12-thread processors. They are relatively fast processors with the ability to hold processes at single thread capability. It’s a CPU that helps boost mining performance while at the same time offering lower inputs, especially for power consumption.
#4. Intel Pentium Gold G-6400 Mining Hardware
Earlier in the post, there’s a mention of AMD CPU processors, which are an excellent fit for miners. However, for miners who are keen on running CPU mining and at a combination of low capital and power consumption, Intel Pentium Gold G-6400 falls in an excellent fit.
Lastly, we’ll share two drawbacks with Pentium Gold CPU miners. First, they are not very powerful CPUs that you can get out there. Secondly is the limitation with core and threads it can handle at any one point.
#5. Intel Core I9 Mining Hardware
Mining via an Intel Core i9 presents unlocked, yet overclockable deca-cores. It, therefore, falls among all-around CPUs for both mining among other uses as well.
Truthfully, an Intel Core i9 isn’t as high in capabilities as you’ll find from many other threadrippers (Bitcoin miner) in use today. All in all, it’s a strong processor to act as a crypto-mining rig.
However, critically analyzing the market requirements, mining rigs at minimum require a hash rate of 5.48 kh/s at the lowest. Therefore, the better you can get, the better will be your chances. But the markets rank it among the excellent motherboards you’ll get for mining tasks.
#6. AMD Ryzen ThreadRipper 3960X Mining Hardware
Threadrippers 3960X are as good at mining as their counterparts – the 3970X versions for the Ryzen brands. Both brands have one unique feature – the L3 caches. The L3 cache provides for smooth mining activities at relatively low power intakes.
Miners may underlook the fact that AMD Ryzen Threadripper 3960X comprises less in terms of cores and threads. However, it provides reasonable hash rates at mining.
#7. Intel Celeron G5905 Mining Hardware
Miners looking to get onboard with stringy budgets can work with Intel Celerons, especially those looking for relatively quicker returns on investments for the hardware input.
It’s worth mentioning here that your mining stakes increase if you have in place the best CPU processors your money can get you out there. Powerful CPU processors improve your odds of being able to crack the correct hashes for complex mining tasks.
One key pro with the Intel Celeron G5905 arises from very low power intake rates. Their purchase prices are relatively affordable. The Intel Celeron G5905 has one huge disadvantage in mining activities – it lacks the hyperthreading features.
PROS and CONS of CPU as Bitcoin Mining Hardware
First, you do not require huge investments to take on mining. It means your investments towards mining via CPUs are not limited to the acquisition of special components in terms of hardware. If fact, with the progress of things, it’s possible to mine some cryptocurrencies with PCs or laptops.
Since many users are conversant with CPUs, mining is not a complex task as it only requires little or no instructions at all. Though, at times may require a little input from a professional. Overall, you do not require years of expertise in mining to take on CPU mining.
CPU mining involves little costs for the hardware, and the only concern arises with powering costs. Nevertheless, CPUs are not exorbitant power consumers and will most probably not hike your bills to unseen levels. Under most circumstances, CPU mining will take in as it would cost you for an ordinary PC, but that is not so for other complex mining hardware.
Under some circumstances, CPU mining may get exorbitantly costly. For one, you may find yourself there if your hardware or the CPUs you put into mining comes at very high costs.
The truth is, some brands that perform best out there are also the most expensive. It means there’s a limitation, and only rich miners can acquire them. Also, the expensive CPUs consume more in terms of power, and that only comes in to add to the costs you put into mining.
GPU Mining Pool
One of the most common mining approaches involves the use of GPUs or the Graphics Processing Units. The uniqueness of GPUs arises with one key complex element. Unlike in CPU mining, to increase the power of mining, several GPUs link to a single motherboard. And as a result of the increase in mining power, miners are able to increase their profit potential. However, it’s hard to make choices of the perfect GPUs for mining.
Out there in the markets, you’ll find different types of GPUs on sale. And on a specific note, some are built for video rendering, others for gaming, and key ones for mining. The preference for GPUs arises from the fact that they are better at guessing the correct strings for the characters to block hashes. Next, we’ll cover some of the common GPUs in the market.
#1. NVIDIA GEFORCE GTX 1070
The NVIDIA GeForce GTX 1070 graphics card falls in as an excellent choice among video gamers and cryptocurrency miners. NVIDIA GeForce GTX 1070 provides hash rates amounting to 30 mh/s, plus it’s suitable for miners looking to lower their power consumption levels while mining.
In terms of energy inputs, it requires a minimum of 150 W per unit. The NVIDIA GeForce GTX 1070 GPU comes in as one of the cheap cards you can run on as a miner. Though NVIDIA GeForce GTX 1070 is among the most common GPUs miners like and run, it has one tremendous downside – it’s too costly to acquire one.
#2. AMD RADEON RX580
AMD earns a great reputation for the creation of unique graphics cards – like NVIDIA, and they are handy for cryptocurrency miners. Miners claim that the AMD Radeon RX580 is as best a product of a trusted firm at the manufacturing of high-quality graphics cards users that miners can trust for great service. An AMD Radeon RX580 outputs a hash rate hitting 29mh/s – to which miners appreciate whilst considering the low price it comes at.
One key user advantage with AMD Radeon RX580 arises without the need to incur the costs of removing hot air outflows that arise from many mining units.
The model runs at very low temperatures, and miners can therefore run several rigs in small spaces. Due to the affordably low prices, you’ll rarely find an AMD Radeon RX580 – and that is the biggest drawback with the model – often sold out!
#3. NVIDIA GEFORCE GTX1060
Miners looking to onboard with Bitcoin mining hardware that consumes less power have the NVIDIA GeForce GTX1060 is a great choice. Miners can cheaply acquire the NVIDIA GeForce GTX1060 miners at low prices yet live with quality service at mining. The model has a real base clock of 1607 MHz plus a real boost clock of 1835 MHz. And also, its memory detail of 3072 MB helps deliver excellent performance.
Miners do not require any additional software to achieve the listed clock speeds – NVIDIA GeForce GTX1060 is already enough. Unfortunately, the low price, combined with high-quality services, the NVIDIA GeForce GTX1060 is often out of stock. However, miners who’ve access to the NVIDIA GeForce GTX1060 testify that it’s a graphics card that befits well with GPU mining.
#4. AMD RADEON RX VEGA 56
The AMD Radeon RX Vega 56 fall among the fastest GPUs your money can buy you. It’s best for miners living in very cold areas around the globe. The reason it suits cold regions arises from the heat it generates after running for long periods.
The other aspect to consider for the AMD Radeon RX Vega 56 comes in with the power consumption rates. It’s a high-power consumer, so it best fits miners whose locations have cheap power. Of course, it’s a really expensive set, and you’ll dig extremely deep into your coffers to purchase one for your mining ventures.
#5. NVIDIA GEFORCE GTX 1080 TI
NVIDIA GEFORCE GTX 1080 TI is among the most expensive GPU miners (bitcoin mining hardware) you’ll find on the market. And, as such, you’ll only find real established miners who’ve already made massive incomes mining.
NVIDIA GeForce GTX 1080 Ti comes with powerful GPU capabilities. You can apply several mining rigs running concurrently.
NVIDIA GEFORCE GTX 1080 TI, with a few tweaks and modifications, scores an amazing hash rate of 32.1mh/s. It’s costly to acquire; it’s a high performer. It’s also worth to mention NVIDIA GEFORCE GTX 1080 TI is among the heaviest power-consuming GPUs. Its power intake hits 250W while actively at mining tasks.
ASIC Mining Hardware for Mining Bitcoin
ASIC is in long the Application Specific Integrated Circuit, which comprises among the most powerful options miners have for rigs. ASICs are small makes yet mightily powerful computing systems whose sole purpose of manufacture is mining cryptocurrencies.
ASICs, aside from being powerful, offers the best hash rates miners can get out of the hardware. One drawback with ASICs comes with the high costs of acquisitions, plus the models get obsolete rather fast as newer models hit the markets.
Miners have to thrive with the reality that ASICs are extremely powerful and actually able to transform the landscapes of the crypto-assets you deploy to mine. First, the reason for that arises from the very high Hash rates, which enables faster solutions at record short periods of time.
#1. WhatsMiner M32-70 Mining Hardware
Whatsminer M32-70 is an ASIC miner whose manufacturer is the respectable -Whatsminer. Whatsminer is on records for small sizes products. The most effective and efficient Whatsminer is the M32-70s, and you’ll find many miners deploying them.
Aside from ASIC miners being so expensive, they are power guzzlers, requiring you to plug in 220V power. In terms of features, the Whatsminer M32-70 consists of a fan for cooling the device to help it put in the best hash rates it can make. Records show that M32-70 can offer hash rates of 0 TH/s.
Also, the M32-70s are easier to deploy since configuring via Ethernet tags each mining rig to an IP address. And this makes management easier for the rigs since miners can l use GUI – graphical user interfaces to manage them.
#2. AntMiner S7 Mining Hardware
AntMiner S7 are a product from Bitmain. The release of the S7 before the S9 models hit the market. There’s an interesting fact about AntMiner S7; they lowered prices as a result of the hype which was attached to the S9 models. And that side, the S7 scores a hash rate that’s a third that of an S9 device.
However, AntMiner S7 remains a powerful ASIC miner at affordably low prices. The AntMiner S7 comparatively generates less heat and noise while at the peak of mining, plus it takes less power than the S9 version. ASIC miner AntMiner S7 gives a sash rate of 4.73 TH/s, while the power consumption hits 1293 W.
#3. AvalonMiner 1246 Mining Hardware
AvalonMiner 1246 is an ASIC miner from a Chinese-based firm – Canaan Creative. They are the first-ever company to assemble the ASIC miners, and they hold the record as the second-best producers of quality hardware for Bitcoin mining in the entire globe.
An AvalonMiner 1246 gives a hash rate of 90 TH/s while the power consumption hits 3420W. It’s among the fastest ASICs for mining in the market. It’s built up for the easy installation and simple maintenance requirements from the built-in Al Chip. The model comprises 4 coolant fans, and that’s why it’s a noisy ASIC miner.
#4. FAL. WhatsMiner M32-62T Mining Hardware
Miners also deploy the Whatsminer M32-62T, preferring it for reliability. The ASIC miner gives a hash rate of 62 TH/s, while the power usage stands at 3348W. It counts as a relatively good ASIC at its price.
To counter the heat menace, a FAL. WhatsMiner M32-62T consists of several fans for cooling to keep it from overheating and ensure it keeps running at optimal speeds.
PROS and CONS of ASICs of Bitcoin Mining
For one, ASIC miners are a very powerful and efficient category, way above the CPUs and GPUs. Miners have more guarantee of higher profitability arising from more accurate guesses of the hashes to mine Bitcoin.
In addition, ASICs are faster when put in comparison with others, and they extend the same at their rates of finding the solutions (hash rates).
One explicit downside for the ASIC miners comes from the high cost of operations: both acquisition and power consumption. ASICs are exorbitant power consumers, plus they generate lots of heat and noise. Aside from the costs, you may not always find them in stock.
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Conclusion: Bitcoin Mining Rig
Bitcoin mining rigs help verify transactions and keep the Blockchain up to date. The rigs play an important role – mining, which by default also ensures that the inflation remains in check.
Miners of Bitcoin get rewards every time when a rig is able to verify transactions up to a specific amount of data. Also, miners get rewards when a rig is able to correctly guess the correct hash character for a block and add it to the public ledgers.
One key aspect is the increase in the mining difficulty of mining algorithms over time. And the same arises from the concept of halving. Halving ensures that mining pools with best bitcoin mining software get a specific amount- which decreases by half after every duration of 4 years.
BTC Mining Rig FAQs
Is Bitcoin Mining Profitable?
Bitcoin mining is profitable for a venture. A mining enthusiast will best approach the mining process as an entrepreneurial venture – no business so surely guarantees profitability infinitely.
Of course, the key aspects are putting in the best hardware to get the highest hash rates. And as well, run the hardware being aware that the power costs can be high depending on the best bitcoin mining software and mining equipment hardware in the picture.
How to get Bitcoin Rewards From Mining Operations?
Miners get rewards for verifying a specific chunk of transaction data. The rewards go to a miner who first guesses the correct hash for a block. Therefore, cryptocurrency mining is purely a game of luck at it.
Therefore, miners compete with high inputs regarding expensive equipment, maintenance, and power to keep the mining rigs running. As the mining progresses, the nature and complexity keep getting harder, especially for Bitcoin, whose protocol implements the halving concept every four years.
Is there any Risk with Mining Bitcoin?
Yes, and this applies to any business venture out there. Mining Bitcoin carries many risks. A prospective miner can purchase all the expensive equipment yet miss the profits they’ve been calculating in the projections.
Various instances limit the continuous flow of mining. It starts with power outages and bearing in mind that some miners like the ASICs are huge power consumers. So the high payments for power reduce the potential revenues, resulting in lower profits.
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Author: Wilbert S
Wilbert is an avid researcher and is deeply passionate about finance and health. When he's not working, he writes research and review articles by doing a thorough analysis on the products based on personal experience, user reviews and feedbacks from forums, quora, reddit, trustpilot amongst others.