Everyone is now interested in how to make money on bitcoins? This is probably the number one question for those people who want to make profit via the Internet remotely. Earning money from mining is a great opportunity to receive cryptocurrency. Its features will be discussed in this article.
Table of Contents
Features of making money from mining
Let’s look at the main way to earn Bitcoin. One of the methods of earning money is mining – this is one of the options for mining cryptocurrency using many video cards. It is currently considered the most promising for the extraction of new information gold.
Miners must look for a hash that includes several factors:
- a hash containing the most recently processed blocks;
- number of transfers in the last 10 minutes;
- a randomly varying number to satisfy different system conditions.
The miner’s task is to maintain the proper functioning of the system. For this purpose, competent translations are carried out, and the agreement on the state of the system is preserved. For their work, miners receive bitcoins, a cryptocurrency that can be easily exchanged for real money.
How difficulty changes
The difficulty of mining various cryptocurrency forks is determined by the conditions described above. The average period of time for finding the 1st hash is within 10 minutes. Complexity storage is done in blocks. During the specified time, one of them closes. For 14 days (2016 closed blocks), the mining difficulty is recalculated. As the rate of mining increases, the difficulty of mining bitcoins also increases. The speed increases when the hash is selected much more often than the required level.
Ways to make money from mining
The following methods of cryptocurrency mining are available to miners:
- independent mining using special equipment – ASIC mining;
- earnings from fluctuations in cryptocurrency rates – purchase/sale;
- group mining – cloud mining.
- sale of equipment – a miner can always sell his own equipment at the price at which he bought it, if it is still under warranty and is assembled. That is, he will be able to sell the purchased equipment and get at least 0% without losing his own money;
- complete minimization of the possibility of speculation – the user will see the power of the equipment used and the real income from it;
- the miner will decide independently which cryptocurrency to hunt and mine;
- it is possible to create fully automatic ways to earn Bitcoin;
- realization of passive income using installed equipment;
- the opportunity to successfully invest free investments in the construction of a Bitcoin farm.
Miners unite into a pool that uses their funds to purchase and maintain equipment for cryptocurrency mining. The advantages of this method are that there is no need to bother purchasing and subsequent maintenance of ASIC. That is, you need to invest a certain amount of money in cloud mining, after which you can receive a profit every day, which is divided among all participants.
What are pools
The word “pool” translated from English means “pool”. Participants join pools and invest in equipment to jointly make a profit. Pools are servers that distribute the calculation task among all miners. As soon as one of them hits the target, a block is created and participants are paid a reward.
Is it profitable to mine on a processor?
A video card and processor are in fact similar equipment, but with different target sharpening, which determines the efficiency of mining. Mining bitcoins and forks on a processor is not efficient due to the increasing complexity of mining. Purchasing a powerful computer, as well as creating a large enough farm, will not pay off due to the high costs of equipment, electricity and the relative meager earnings.
Is it profitable to mine on a video card?
Not every cryptocurrency is profitable to mine on a video card, since the complexity of most blockchain networks is quite high. Thus, the reward for finding a block is very small. If we take into account the costs of electricity, in this case you can generally remain in the minus. So the currency should be chosen not by the ease of extraction, but by the amount of electricity that will be spent during the process. What matters is how much profit will ultimately be made.
Is it profitable to buy ASIC?
In this case, everything will depend on the characteristics of ASIC megahashes per dollar. Using ISP, the user can only mine a finite number of cryptocurrency coins. In recent months, the difficulty of production has been monotonously increasing, increasing in weight by 20% every two weeks.
Other mining methods
Beginners use well-known faucets to mine bitcoins and other cryptocurrencies, which work stably and pay rewards to users. One of such resources can be considered https://rollercoin.com/free-bitcoin, which attracts hundreds of miners.
Mining is not always effective. When deciding to make money like this, you should take into account many nuances.
For example, when equipment operates, an increased level of noise is generated. When a large number of video cards are operating, many coolers are constantly running, which emit a high level of noise. The miner must understand that not just one cooler will work, but 20-30 at the same time. In this situation, the noise level increases 3-5 times. Firstly, in a city apartment such noise will disturb the neighbors. Secondly, you need a good and high-quality cooling system to remove warm air. Therefore, it is necessary to organize an air conditioning system, which naturally increases the cost of maintaining the entire farm and the process as a whole. A regular household air conditioner is simply not enough to cool a cryptocurrency mining system.
All costs of maintaining the farm are borne by the miner. It will have to be serviced during operation. It is necessary to regularly monitor the performance of equipment, the Internet, the supply of electricity and the absence of any types of failures in the stable functioning of the system.
Profitability and profitability
It was possible to earn Bitcoin cryptocurrency and forks using a computer quickly and easily, but such times are already gone. Yes, in 2009, earning Bitcoin was available through a computer. In addition, it was then that with the help of a regular PC it was possible to earn the average salary of an office worker. That is, one powerful computer brought in an amount of bitcoins equal to the cost of an average salary of 15,000 – 20,000 rubles.
The good times are gone and now in 2017 there are many new ways to earn Bitcoin. This is due, first of all, to the fact that Bitcoin has grown very much in price. If in 2009 its cost was below 1 dollar, now it exceeds 10,000 dollars. Growth continues. In other words, Bitcoin has grown more than 10,000 times over the years. Quite a lot, isn’t it? And, naturally, if all these years this cryptocurrency has grown so well in price, it means that it is truly a reliable financial investment and a good investment for the future.
Factors influencing profitability
Just a few years ago, it was quite possible to make money from mining using a pair of video cards. Now, in 2017, this method of earning has practically become obsolete for the simple reason that very large mining farms have already been built for the extraction of Bitcoin, which, in fact, have extremely high capacities. They are the ones who are pushing out all single competitors.
In China, the construction of Bitcoin farms has begun. Thus, they perform billions of operations per second and quickly displace all singleton competitors. In addition, it is in China that a huge amount of equipment for bitcoin mining is produced, and its cost there is significantly lower than our market price. Moreover, even if you buy all the equipment in the land of the rising sun, in any case the price will be significantly higher, therefore the cost of construction in China is lower.
Another feature that distinguishes China is the low cost of labor and the very low price of 1 kilowatt of electricity. That is, it is there that there is everything necessary for the extraction of any cryptocurrency on an industrial scale at the level of huge factories, because of this the level of income of Russian miners drops significantly.
Risks and possible problems
Now it’s worth talking about the disadvantages of creating your own Bitcoin mining farm. One of the disadvantages is the fact that the miner needs to buy powerful, expensive equipment, that is, high initial costs are required. All risks regarding the performance of this equipment rest with the user. At any moment, the equipment can fail or burn out, so the miner is protected only for the duration of the warranty period for the operation of the equipment.
High energy costs – for any Bitcoin farm to operate, large energy costs are required, but not only for the operation of video cards, but also for all equipment, in particular cooling systems.
It is necessary to have free space (room) for equipment and its storage. Simply put, a miner always needs a separate room to store the rig, which will constantly work.