The rapidly growing popularity and rising cost of cryptocurrency have led to the emergence of a large number of people who want to earn on the extraction of digital gold. The most common method was mining through a farm on video cards.
Mining and mining farm – in simple terms
Mining is a method of generating income based on the creation of new blocks in a distributed platform. The remuneration is paid in the form of a cryptocurrency – a virtual counting unit. The amount of income is set by the developer of the program code.
Mining is carried out using the farm, which is a collection of devices connected to the blockchain network. Technically, a mining farm consists of cascades of video cards connected to a computer with several powerful power supplies. The main focus of the assembly of this device is on the performance of video cards. The unit of measurement of information processing capacity of such a farm is called hashrate . 25-28 Mh / s (mega-hash per second) per each video card is considered good power .Interesting fact! In 2013, the first digital currency ATM appeared in Canada. Bitcoin can be cashed in the device.
How does mining farm work? What does mining farm think?
The essence of the farm for mining is to track and process new blocks of transactions in a specialized blockchain network. The detected block will generate income in the form of Bitcoin or another cryptocurrency. It can take from several minutes to several days to find each block.
It depends on 2 factors:
- The performance of the equipment. The more powerful the farm, the faster the production of cryptocurrencies.
- Network complexity. An increase in the number of miners (which is rapidly occurring at the moment) in the network will reduce the cost of the detected block and increase the time for its location.
Currently used mining farms can be divided into 3 types:
- Devices in which the main computing element is a video card. In the first years after Bitcoin was created, AMD graphics processors showed good performance in cryptocurrency mining. Now this method for mining Bitcoin is used less and less. The reason for this was the emergence of large-scale industrial farmers who use enormous power for the extraction of digital gold and the latest expensive equipment. This greatly increased the complexity of the network and made the extraction of Bitcoin on video cards unprofitable. Today, the method is applied on alternative cryptocurrencies.
- Devices based on FPGA modules. This equipment is not inferior in performance to the graphics card mining, but it does not need an expensive cooling system. This makes such devices more cost-effective and compact.
- Systems on ASIC processors. These devices were made specifically for mining Bitcoin. Now such systems are recognized as the best in terms of performance and price. The downside is that these devices are not suitable for the extraction of other cryptocurrencies, except for Bitcoin.
Interesting fact! The Bitcoin algorithm contains one very important circumstance: the total number of coins should not exceed 21 million. Upon reaching this mark, their emissions will be stopped. In connection with this fact, many analysts predict the imminent collapse of the digital currency.
Ways of mining through the farm
You can get digital coins in 2 ways:
- Solo. In this case, the development of the unit is carried out alone and all profits remain with the owner of the farm. The downside of this method is the need for powerful equipment and a large amount of time for profit.
- With the help of pools – special services, which are a network to which digital gold miners connect their mining farm. Profit in this case is divided between all participants in the pool in proportion to the capacity.
In order to decide on the method of mining, it is recommended that some time be remembered in the pool and solo. So you can choose the most profitable way for your farm.
Which is better: buy a ready-made mining farm or build it yourself?
To answer this question, first of all you need to understand whether there is real knowledge and experience in assembling computer equipment. If there is such an experience, then an independently assembled mining farm out of 6 video cards will cost about $ 1,500 on average . Buying a finished farm of similar performance will require $ 2500-3000 . The benefit of self-assembly is more than substantial.
Required components for mining farms
For self-assembly mining farm requires the following equipment:
- CPU. Not necessarily high performance.
- Motherboard with multiple PCI-E slots.
- HDD. A volume of at least 40, and better than 80 GB.
- At least 4 GB of RAM — any will do; the main thing is to fit the slot to the motherboard.
- Videocards. Main part of the system. The minimum requirement is 4 GB. A good budget option is the ZOTAC GeForce GTX1060, which costs about $ 250. for one card. For self-assembly mining farms often use video cards: AMD Radeon RX 470, AMD Radeon RX 480, Nvidia Geforce GTX 1060, Nvidia Geforce GTX 1070 and AMD Fury X.
- Power Supply. If we assume that the farm will be built from 6 video cards, then the power supply should be 1500 V. To save, you can use 2 blocks of 750 V.
- Adapters Razer, for connecting video cards.
- Start button and 4 coolers for cooling.
- The frame for the convenience of cooling unit.
How to build a farm for mining – step by step instructions
- The frame for the farm can be inexpensively purchased on the Internet or make the most of the metal corners. When self-fabricated, the main thing is to accurately fit all sizes to graphic processors and other mining farms.
- The motherboard should be placed in the center of the bottom shelf of the frame. This is necessary to create an airbag, which is necessary for better cooling.
- On the motherboard, we install a processor with a cooler.
- It is better to fasten the power supply unit with screws to the aluminum corner. Next, connect the power button and the hard drive.
- Fans for cooling video cards are mounted on the side panels of the rack. For 6 cards 4 fans will suffice (2 on each side).
- Video cards are suspended on the upper crossbars of the rack using cable ties and connected to the motherboard using risers.
- The farm is assembled by hand and almost ready for mining. It remains to install the software.
Interesting fact! The largest mining farm in Russia
The largest mining farm in Russia unites about 3000 ANTMINER S9 systems with a total capacity of 38 PH / S. The farm brings developers about 600 bitcoins per month. The farm consumes 4.5 MW of energy per hour, or 3.24 GW per month. Electricity is spent on 6.5 million rubles. The location of this farm, as well as its owners are classified.
How much can you earn on mining through the farm?
The level of profitability of a mining farm is easiest to calculate with the help of calculator services. To do this, you must enter there data on video cards and the cost of electricity. The service will calculate the profit from mining for each cryptocurrency.
For clarity, we can consider the profitability of mining at the Ethereum cryptocurrency farm, assembled from 5 GPU Radeon RX 480 8 GB (operating at 8 GHz). At standard settings, the RX 480 provides about 25 MH / s. Multiply by 5, we get a hashrate of 125 MH / s, which brings about $ 5 per day. This is $ 150 per month.
How much energy does a mining farm consume?
Now you need to calculate the cost of electricity. One video card consumes about 150W . In a month it turns 1250Vt * 24 hours * 30 days = = 900000Vt 900kVt .
Multiply 900 kW on the cost of electricity (5 rubles. Per 1 kW). We get 4500 rubles . or $ 78 .
Total, net profit for the month is: 150-78 = $ 72 .
The location of the farm for mining is greatly affected by its location, because The cost of electricity in different countries may vary significantly.
How much does a mining farm pay off?
Farm payback is very easy to calculate. A good example can be viewed on the same farm of 5 GPU Radeon RX 480 8 GB :
The cost of one video card (about 300 US dollars ) is multiplied by their number in the system (5) and we add the cost of the rest of the equipment (motherboard, hard drive, fans, etc.). We get: 300 * 5 + 250 = $ 1750 . Further, the cost of the farm is divided by its yield and we get: 1750: 78 = 22.4 . Total, the payback period of this farm for Ethereum mining is 22.4 months .
Miners periodically hang, they need to be configured for maximum speed. This requires for the owner of a homemade farm regular maintenance. It consists of setting up software, maintaining continuous operation, and controlling ventilation.
It is much easier for owners of purchased farms – all maintenance work on the system is performed by the service department of the manufacturer’s company under warranty.
As can be seen in the example above, the profitability of a mining farm today is very low. As network complexity increases, profitability will decrease. It is very difficult to predict whether the rise in cryptocurrency prices will offset the decline in profitability caused by the complexity of the network. Bitcoins are not profitable to mine on home farms now. It is a fact. Whether such a fate awaits Ethereum and other cryptocurrencies time will tell.
Now, who does not want to invest in risky topics, but wants to test himself in a new business, can take up cloud mining . This technology uses the power of network storage and does not require investments in equipment. The main thing in cloud mining is to find a proven and reliable platform.