Cloud mining of Bitcoins 2022. Profitability and payback.

For the past decade, the words “mining” and “bitcoin” have been inextricably linked. The term mining comes from English and is translated as “extraction of natural resources.” For example, coal. Today, miners are called not only miners, but also cryptocurrency miners.

A digital coin is paid as a reward for performing a hash calculation with certain properties. This is a long-term job, since the search for the only correct option is carried out by selecting values. Algorithms have been created for calculations. Each cryptocurrency is based on different methods, but the general principles are similar.

For a cryptocurrency platform to function, it needs people who are ready to support the operation of the system using their own computing power. The reward received is an incentive to participate in the process. For creating the next block in the blockchain, a person or group of people is awarded a reward in the form of cryptocurrency.

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The history of cryptocurrency mining

The first miner was the creator of the first digital currency Bitcoin himself - the mysterious Mr. Nakamoto. On a regular processor, the hash was calculated using the well-known SHA256 algorithm. Standard computers have been used to mine Bitcoin for several years and have brought benefits to their owners. The number of miners quickly increased, and within a year hundreds, and then thousands of users were involved in the system.

The buzz around the cryptocurrency and active measures to popularize it led to the real monetization of Bitcoin, which attracted a huge number of new people to mining. The project quickly became commercial, generated competition and became an incentive for technical renewal of the industry.

In modern mining, three technologies are used with varying degrees of efficiency:

on processors - CPU;
on video cards - GPU;
on cars - ASIC.

What is cloud mining and how does it work?

Cloud mining is an extremely convenient and most profitable way to obtain digital coins. You are freed from purchasing your own equipment, from complex truss assembly, software configuration, as well as monitoring stable and correct operation, repair and maintenance. With the help of cloud mining services, you can quickly and easily invest; you just need to register on the site, select a suitable contract and hashrate, and then monitor your daily income in the panel, recouping your investment.

The service charges a small commission for its work, but even taking it into account, cloud mining is much more profitable than the process of assembling and launching your own farm at home. Data centers are usually located in places with cheap electricity and a cool climate such as Canada, Iceland and northern Russia.

Most often, such companies engage in cloud mining of Bitcoin (BTC) and Litecoin (LTC), using so-called ASIC equipment designed specifically for cryptocurrency mining (each algorithm has its own) to mine cryptocurrency.

The profitability of cloud contracts is due to the fact that the companies themselves providing the service are usually manufacturers of mining equipment (ASIC) or purchase equipment directly from factories such as Bitmain with significant discounts and in priority order (before a massive increase in network complexity). This significantly reduces mining costs and costs, and the consolidation of ASIC data into large data centers reduces maintenance costs.

This model of work is beneficial to both parties, both the service and investors, since it allows you to make a profit and increase income.

ASIC miner device

Simply put, a company buys or manufactures mining equipment itself, and then sells its computing power to customers, while the costs of electricity bills and farm maintenance fall on the company's shoulders.

Clients receive cryptocurrency as they are mined. The only thing they can worry about now is the course. For cryptocurrencies, it is characterized by high volatility; movements of more than 30% are possible within one day. When the exchange rate declines, many sell digital coins to avoid potentially large losses. You can sell cryptocurrency in the Matbi exchanger. To do this, you need to register there using your phone number or email, and then transfer coins to the provided personal wallet.

After the sale, the proceeds of rubles, dollars or euros will go to the user’s account in “Matbi”, from where they can be easily withdrawn using one of the many offered methods, including VISA and Mastercard cards.

Purchasing digital assets from the same exchanger is an alternative to mining. This way you can quickly get a lot of cryptocurrency into your wallet, without waiting for it to be mined. If the user has any questions, the Matbi team has prepared detailed video instructions.

Mining or direct purchase? Which cryptocurrency should you bet on? You should have at least a basic understanding of the cryptocurrency industry in order to choose the direction of making money in it.

Everything about mining, cryptocurrencies, blockchains, farms... read here.

Cloud mining services are gaining momentum again in 2022, as in 2022, this is due to the fact that inexpensive video cards and ASICs have disappeared from the market. At the end of autumn last year, when the Bitcoin rate reached $20,000, cloud mining companies began to introduce new capacities because demand increased, and in January 2022, when Bitcoin reached $40,000 per coin, most of the capacities had already been bought up by clients.

Bitcoin flew to the moon

What problems does the cloud mining service solve?

Connecting, setting up and maintaining farms in working order (paid power is fixed and constant);
There is no idle equipment (avoiding power and Internet outages);
High level of noise and heat (no need to cool and ventilate the room at home);
Taxation and legal issues (from 2022).

Evolution of hashrate in cryptocurrency mining

Hashrate is the speed at which a computer device is able to decrypt a specific code (hash). The unit of measurement for this rate is called HashRate and is abbreviated as H/s or hash per second.

Computers, video cards and computers involved in cryptocurrency mining have their own hash rate indicators. Based on these characteristics, one can evaluate the possibility of using a particular technical unit to solve problems in the blockchain.

The processor has speed characteristics in the range from 10,000 to 750,000 H/s, depending on the calculation algorithm. Or 10-750 kH/s. This was enough to create the first batches of crypto coins. But after a year it became clear that new ideas were needed. The number of users in the system has increased dramatically, and the tasks have become more complex.

The solution was found in the use of video cards. These devices are capable of performing calculations tens of times faster and are easily assembled into kits. Miners created designs from several cards, and computing power reached millions and began to be measured in megahashes - mH/s. Manufacturers have brought powerful video cards to the market that cost thousands of dollars. At the same time, issues of energy consumption of equipment were addressed, because the increase in electricity consumption became obvious. The next breakthrough in the fight for hashing speed came with highly specialized ASIC computer machines. The creators developed the device only for mining, and the hash rate received the prefix “giga” - gH/s. Further more.

In modern cryptocurrency mining, they operate in units:

1 kH/s – 10 3 hash/sec (thousand);
1 mH/s – 10 6 (million);
1 gH/s – 10 9 (billion);
1 tH/s – 10 12 (trillion);
1 pH/s – 10 15 (quadrillion);
1 eH/s – 10 18 (quintillion).

What do cryptocurrency miners get paid for?

A cryptocurrency platform cannot exist without mining. The process of generating new blocks and confirming transfers must be ongoing. This is the essence of a decentralized payment system. To ensure sustainability, miners are attracted and paid a reward.

The miner receives payments when he creates the next link in the blockchain or confirms a transaction. The main condition is to do it first. This is where the question arises with the speed of calculations.

Bitcoin is an industry leader and a game changer.

The company has established a payment procedure according to which the amount of reward for each new block is reduced according to a certain principle. At the same time, the degree of complexity of calculating blocks increases. In practice, it has been established that every four years the amount of remuneration for one created cell is reduced by 2 times. At the same time, the required power of computer equipment is growing from year to year. Otherwise you won't be the first.

Reduced payments and increased generation costs force users to constantly monitor the profitability of their activities. The exchange rate of cryptocurrencies is showing instability, and high quotes today do not mean unambiguous success tomorrow.

To protect yourself from losses, you should objectively assess expenses and income:

the cost of equipment and its full maintenance;
electricity costs;
the amount of earnings taking into account all possible commissions;
exchange value of a currency unit and trends;
liquidity of the received currency, exchange prospects.

The miner bears expenses in real money, but receives virtual money in order to exchange it for real money again. Cryptocurrency mining is profitable as long as the cost of obtaining one digital coin is lower than its market value.

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Is it possible to make money by mining on your home computer?

At home, today a single earner cannot get far on a regular PC. This is how the first cryptocurrency enthusiasts earned money in the early years of the market’s formation. However, opportunities exist.

The computing power of a standard computer allows you to work with newly emerging types of electronic money. They are not yet widely known and convert poorly, but in the future the situation may change. Why not accumulate a certain number of “weak” currency units in order to exchange them for “stronger” ones at the exchange rate?

An ordinary user can rent someone else's power by joining cloud mining. In 2022, this is a common service offered by crypto exchanges and more. They rent a ready-made farm with a server and settings, or part of it, as well as computing power. The hashrate rental option is the most popular.

Cloud mining eliminates the initial investment and hassle of purchasing and setting up equipment. In addition, there is no question about the location of your own farm, electricity, noise and heat removal from the operating system. And it’s easy to stop working. The cloud service provides access to earnings on all popular cryptocurrencies.

A large mining center can be physically located anywhere in the world near a source of inexpensive electricity. Users connect remotely and do not directly participate in the mining process. Cloud mining is a financial instrument with its own opportunities and inevitable risks.

Basic conditions:

the contract is for 1 year;
rent is charged based on computing power;
a commission is charged on earnings;
The preliminary profitability forecast is determined using a calculator.

Is it possible to make money from mining this year?

Reliable cloud mining in 2022.

For several years, the most popular and reliable cloud mining service has been Shamining. The company began operating in 2022, the founders planned to create a unique product in the field of cryptocurrency mining. At the beginning, the developers of this platform offered to rent farms for mining cryptocurrencies to companies, but at the end of 2022 they decided to create a product specifically for individuals.

Physical hangars with mining equipment (data centers) are located in the following locations: San Jose (USA, California), London (UK) and Cape Town (Western Cape, South Africa) will provide you with safe and stable service. The company is constantly expanding, increasing its computing power - purchasing equipment en masse. Mining farms are located only in the sunniest regions and mostly use only green energy obtained from wind and solar power plants.

The official website of the cloud mining service Shamining is shamining.com.

The so-called Cloud Mining has become the optimal way to purchase cryptocurrency assets in 2021. Mining cryptocurrency using rented computing power without using your own farms is a profitable investment, given the current shortage of video cards and ASICs.

The power of ASICs or video cards is usually rented for a certain period of one year.

How a beginner can make money on cryptocurrency in 2022 (part 2/2)

In the first 12 years since the founding of Bitcoin, its rate has increased

almost
102.3 million times
.
At the first exchange trading, you could buy 1578 BTC for $1. In April 2022, this coin was already selling for $64,863. The growth in quotations convinced millions of users that anyone
can quickly make money on cryptocurrency from scratch.
Of course, this is a stereotype: not everyone can get rich in one trade, and novice investors often lose
money. But cryptoassets really allow you to make money in 2021, even for those beginners who do not have significant starting capital. The article describes methods of generating income that do not require much effort. In the last part, I will tell you about other ways to make money on crypto.

Masternodes

In some blockchains, not all participants are involved in confirming transactions, but only special ones

devices.
Typically, the right to create such a server can be purchased by paying a deposit
. The operation of a masternode resembles a mining farm: the computer verifies transactions and adds new blocks to the chain. This method of investing has an important advantage - a stable level of income.

In networks that have masternodes, the number of such servers usually does not change. This means that the investor does not have the risk of losing money due to competition with other miners.

Funds and trust management

difficult for beginners

independently trade crypto assets.
Beginner users are hampered by the fear
of opening a bad deal, a sense of excitement, faith in intuition and luck. Investment funds and trust companies allow you to invest money, for which managers buy tokens and coins. In return, the investor receives a portion of the profit.

Affiliate and referral programs

Trading, mining and investing are often not suitable for beginners

due to lack of start-up capital.
A newbie on the Internet can earn money on cryptocurrency without investment using affiliate and referral programs. After registering for the service, the client receives a link or code that needs to be sent to other users. If a referral (invitee) performs a targeted action (replenishes an account, starts trading, orders a service), the partner is awarded a reward
.

Business or work with payment in cryptocurrency

The scope of digital money is actively expanding

.
Cryptocurrency is used to buy
clothes, shoes, equipment, and online services. Freelancers and store owners can create wallets and accept tokens and coins. Since BTC and altcoin prices have risen in previous years, paying with digital money may be more profitable than fiat transactions.

How to make money on cryptocurrency without investment

Beginners are not always ready to invest

real
money
in the digital currency market. But people make money on cryptocurrency even without initial capital. Some services distribute tokens and coins to attract new clients, others pay rewards for completing tasks.

These methods of earning money are suitable for beginners because they do not require you to risk your own savings.

Cranes

Many sites give away crypto assets for completing simple tasks.

tasks. The visitor is offered:

Solve captcha.
View web pages or emails.
Combine pictures (anti-spam protection option).

Freebitco cryptocurrency faucet

Typically, the reward for an action does not exceed several satoshis

(share of Bitcoin). However, faucets sometimes hold similar lotteries for active participants or offer to join a referral program.

Cryptocurrency games

Distribution of tokens and coins can be carried out in different forms:

Gambling (with the opportunity to make the first bet for free)
Lotteries
Completing tasks in a game form for cryptocurrencies
In general, this direction is reminiscent of Bitcoin faucets and does not provide for large earnings.

Airdrop and bounty

The success of new decentralized projects depends on the activity of the community. The more subscribers and visitors the service has, the higher the chance

for a blockchain or platform to reach the top of the ranking. To attract new customers, some startups conduct airdrops - free distribution of tokens or coins. These assets can be exchanged for fiat or stored in a wallet in hopes of increasing the popularity of the project.

A similar way to attract visitors is a bounty

-
campaigns
. Money is paid for assistance in the development of the project. Participants are asked to do the following:

Find vulnerabilities in the source code.
Write a review about a product or service.
Share company posts on social networks.
Translate a section of the site into another language.
Unlike free giveaways, participating in a bounty campaign requires work to be done, but the reward for it can be quite impressive.

Creating your own token

The whole truth about making money without investments is that no one will

giving away a lot of money just like that. To make a serious profit, you need to propose an interesting idea or project. Using their own token, they attract investors and also create communities in which a unique currency circulates.

Thanks to the Ethereum project and similar blockchain technologies, any user or company can issue a separate

payment
unit
and place it on exchanges. To do this, platforms often contain a menu for creating a new asset, which contains step-by-step instructions for beginners. However, serious traders will not buy virtual coins that have no prospects. Therefore, before creating a coin, you need to come up with an idea that will be useful to others.

Blogging

Smart and creative users have an additional

way to make a profit: writing an author's column. Running your own blog is beneficial for the following reasons:

Participation in affiliate and referral programs.
Using articles and notes about crypto trading, it is convenient to advertise trading platforms, exchangers and training services.
Payments for blogging.
Some sites offer rewards for publishing new texts. The resource increases traffic, and the author receives a small fee.

Tips for beginners on making money

Novice market participants are afraid

independently
engage in investing
in cryptocurrencies due to the risk of losing savings. To avoid this situation, just follow simple recommendations:

It is better to invest money
in a direction with which the participant is well acquainted. It’s easier for an economist to engage in speculative trading, for a system administrator to select and configure mining equipment, and for a copywriter to connect a new blog to an affiliate program.
It is impossible to make money by buying and selling cryptocurrency
by opening transactions at random. Any investor action must be based on a thorough market analysis.
Beginners often try to make more money with altcoins
. This is due to the high volatility of crypto assets. But the more the quotes change, the higher the risk of losing your investment. It is advisable for traders without experience to start trading stable and calm assets (BTC, ETH, BCH).
Greed leads to loss of capital.
Making money with digital currencies is a long process. Patient and persistent investors have the advantage.

Summary

Demand for cryptocurrencies is growing rapidly

.
In the first 12 years since the coin’s appearance, the BTC rate increased almost 102.3 million times. Individual altcoins can rise in price by hundreds of percent in a month. In such conditions, users are looking for ways to make money
on digital assets. Among all types of activities, the following areas for investment are popular:

Passive investing (storing tokens and coins).
Crypto trading (speculative trading).
Mining.
Other types of investment (staking, landing).

You can earn income without initial capital.

Cryptocurrency faucets, lotteries and airdrops are usually used for this. But the potential profit from work without investment is much lower than the income from investment. The exception is the fees of specialists: programmers, marketers, designers, copywriters.

Originally published at https://crypto.ru/kak-zarabotat-na-kriptovalyute

Cloud mining profitability.

On the main page of the Shamining service you can calculate your earnings using an interactive calculator.

If we take the average price tag of the RTX 3080 video card, which is $2300, which we still have to try to find on the shelves, then we can compare the daily profitability of the video card with the rented power in the Shamining cloud mining service.

An RTX 3080 per day for Ethereum mining will produce approximately $6, for the same money you can get $13.65 per day for Bitcoin mining, renting power under a contract.

You may notice that contracts are only for one year. But I dare to assure you that this is enough, and if you manage your finances correctly, cloud mining will turn into a very convenient tool for making money.

You just need to constantly buy a little power after certain periods. Both the constant growth of the Bitcoin exchange rate and the good daily profitability in itself will play into your hands. Naturally, part of the cryptocurrency will need to be withdrawn from the service to an exchange, like Binance, and invested in various altcoins, which also have a habit of increasing in exchange rate from time to time.

Cloud cryptocurrency mining where to start?

Having become familiar with the operating principle of cloud mining, let’s move on directly to the investment process.

What you may need before you start mining cryptocurrency yourself in cloud mining:

Choose one of the best cloud mining services in 2021 ;
Register on the service website;
Top up your account balance using a bank card or digital assets;
Select your desired hashrate for renting SHA-256 BTC power.

There are three ways to pay for leased capacity contracts:

Bank card,
Exchange – purchasing Bitcoin through partner exchangers,
Payment with cryptocurrency – Bitcoin

History of cryptocurrency mining

The first miner was the creator of Bitcoin, Satoshi Nakamoto. There is information spread on the Internet that before the launch, he secretly managed to mine a large fortune. However, these are just rumors. According to official information, Satoshi was able to mine only 750 coins. The pioneers mined "crypto" using a computer's central processor. This method turned out to be ineffective, since it required large amounts of power. Thus began the era of video cards and ASIC boards. As for the latter, entire companies have been opened in the USA that specialize in the production of this equipment. In particular, we are talking about ASICminer, Avalon and Butterfly Labs.

Every year they update their lineup to keep up with technology developments. Mining equipment has come a long way and continues to develop and improve to this day. Today, most professional miners invest large sums in farms of video cards and ASIC boards, as well as in the conditions associated with mining, a cooling system and uninterruptible power supply. Technology does not stand still and history is written every day.

Withdrawing funds from cloud mining Shamining.

You can withdraw funds in three ways:

Transfer – transfer to a bank account. The payment will be made in the currency of your bank account at the current Bitcoin rate.
Card – transfer to a bank card. The payment will be made in the currency of your credit card at the current Bitcoin rate. This option is only available to credit cards that support direct payments.
Cryptocurrency – withdrawal in Bitcoin cryptocurrency to your wallet.

What are the criteria for choosing a cloud mining service?

Publicity and openness - the company must indicate on the website real data, information about the location of the company, photographs and videos of functioning farms.

Duration of operation - the most important argument in terms of reliability at the time of the formation of the cryptocurrency market is the total operating time of the service. Most projects work for several months, collect money fraudulently and close.

Number of users and power - the number of users and concluded contracts is directly proportional to the total amount of computing power.

Multicurrency - due to the constant change in the exchange rate of cryptocurrencies, the opportunity to mine coins using different algorithms that are most profitable at a given period is relevant. As a rule, it is safest to invest in mining the main cryptocurrency Bitcoin (SHA-256).

Pay attention to the reputation of the cloud mining service; it is important that it has been in this market segment for quite a long time.

Payback of cloud mining 2022.

The payback period for cloud mining is on average half a year. If we take into account the constant growth of the Bitcoin exchange rate, the payback period will decrease over time. Moreover, “halving” is just around the corner - a cyclical procedure for burning BTC, which is always followed by a pump.

To buy ASICs yourself, you need to accurately guess the price, model, power and, most importantly, relevance. Some models are already living out their last months, after which they will turn into heaters, others (new) have an extremely high price tag, and besides, you are taking big risks if you buy them with an advance payment or not through a trusted seller who carries equipment from China.

Video cards pay for themselves in about a little over a year, they are difficult to get, you have to pay for electricity, and it won’t be cheap everywhere.

I hasten to note that we completely forgot about the fact that you need several video cards, at least six of them for one farm (riga). Additionally, you need to buy good power supplies, a motherboard, RAM, data storage, risers, make a case from a profile, connect everything, configure it correctly and monitor stable operation.

And it is very difficult to achieve stable work without experience and certain knowledge, there are pitfalls, so to speak.

In order for your farm to work correctly, without failures and constantly generate income, you need:

Assemble a farm;
Choose the right operating system for mining;
Flash video cards;
Perform downvolting (reducing the energy consumption of components);
Set up the miner and cooler speed for cooling;
Choose high-quality, powerful and, accordingly, expensive power supplies, otherwise the video cards will glitch and the farm will freeze;
Once every six months, maintain the farm, change the thermal paste of video cards, which can damage it if you have no experience.

Replacing thermal paste on a video card
This is why it will be more convenient for an unprepared person to invest their money in cloud mining.

Bitcoin mining in 2022: is it possible to make money on it now?

How to start mining your first cryptocurrency, taking into account all the costs of electricity, equipment maintenance, premises rental and security. Why the BTC halving had virtually no impact on the business of miners, and is it worth getting involved in altcoin mining?

Income from mining is practically impossible to predict - it depends on too many variables: the price of cryptocurrency, reward per block, block time, hashrate (power) of the network, its complexity, cost of electricity, cost and power of mining equipment, costs of maintaining the farm, etc.

The cheaper the electricity, the higher the profit. The cost of electricity depends on the region and equipment. For example, in Russia - from 1 to 8 rubles per 1 kWh ($0.01–0.1), on average 3.5 rubles/kWh, in the world - from $0.02 to $0.30. An average farm with 8 video cards costs about $100 per month. In addition to electricity costs, large farms also incur set-up, rental, staffing, cooling and maintenance costs.

According to BitCluster calculations, electricity takes up at least 85% of all miner expenses, maintenance, depreciation, rent, etc. - 15%. At the same time, there are economies of scale - per 100 devices and per 1,000 comparable costs for security and rental premises. For example, according to BitCluster calculations, renting, security and maintenance of a farm with 3 containers with 192 devices each will cost approximately 320,000 rubles. Costs for a farm twice as large may remain the same or slightly exceed RUB 400,000.

You can calculate the profitability of a specific farm using special calculators. For example, WhatToMine, NiceHash, ASIC Trade, CryptoCompare. To calculate, you must indicate the equipment, its cost and the price of electricity. Calculator data can vary by 30-40%, often the profitability is higher than the actual one.

Today it is cheaper to assemble a farm than in 2017-2018. At that time, video cards were in short supply and sold at inflated prices. Today the hype around them has passed. Assembling a farm is no longer a problem. But will it be profitable?

How has VTS mining changed since the halving?

On May 11, the planned halving took place on the Bitcoin network - the reward for the mined block was halved, and new coins began to appear twice as slow. Halving occurs every four years. After previous halvings in 2012 and 2016, Bitcoin grew 120-fold and 130-fold, respectively, within a year. This time, some analysts also predicted a sharp increase in the price of military-technical cooperation. For example, Canaccord Genuity analysts hoped for Bitcoin to rise to $20,000 after the halving, Pantera Capital CEO Dan Morehead expected $42,000, Morgan Creek Digital founder Anthony Pompliano - $100,000, and anonymous Twitter analyst PlanB - up to $425,000.

However, panic in the market due to the coronavirus interfered with the plans - prices collapsed in March. The recovery was very fast - it helped the miners pay their expenses and not work in the red, but the “native moon” did not happen. After the halving, the BTC rate continued to grow, which provided profits even for small miners with outdated equipment. The fall of the ruble has played into the hands of Russian industrial mining - they bear expenses in rubles and sell cryptocurrency for dollars. As a result, according to Dmitry Shuvaev, director of development at BitCluster, the drop in revenue was no more than 10-15% and did not last long.

The BTC exchange rate reacted poorly to the halving - it has grown by 25% since May. Hashrate behaved differently. Immediately after the halving, it fell by 25% - some miners turned off their equipment due to a decrease in profitability. When BTC began to rise in price, they began to connect back and the hashrate began to grow. From the end of May to September it increased from 90 to 125 EH/s. The complexity of the network also increased: from 16.1 T in May to 17.55 T. The decrease in the block reward was partially offset by an increase in commissions: from $0.5 in April to $2.5-$6 in the summer.

Bitcoin network hashrate chart for the last year according to Blockchain.com. Over the year, network capacity increased by 55%. The difficulty of mining BTC today is at an all-time high between 120 and 130 EH/s. This suggests that a lot of new mining capacity has been added to the network. Jumps of 20−40 EH/s show inflows and outflows of miners switching to other currencies.

Miners were fortunate that despite the recession and uncertainty caused by the pandemic, cryptocurrencies quickly recovered from their March lows. Thus, from the March minimum of $5,000, BTC rose to $11,000 and retains hope for an upward trend. ETH has risen in price by 330% over the year, most altcoins also show excellent growth rates. Rising prices have a positive effect on the profitability of mining and the payback of farms.

How much can you earn now from mining BTC in Russia?

According to BitCluster calculations, at the current hashrate level, the break-even point for mining VTS in Russia is about $6,000 with the price of electricity up to 3 rubles, on average in the world - $5,000-$6,000. If the price of an asset drops below, mining it will become unprofitable. At current prices, BTC miners still have a fair margin of safety.

According to Dmitry Shuvaev’s calculations, the profitability of devices for mining VTS S17 - 73Th/s is about 8,000 rubles/month, and the payback period is 15 months. Old devices, like Antminer S9, are now operating at a loss. For them to be profitable, the price of military-technical cooperation must rise to $15,000.

How will Ethereum mining change after the update?

Since the beginning of the year, ETN has grown three times, and commissions have increased 20 times. Therefore, mining Ether is still profitable. Since the beginning of the year, the hashrate has increased from 141 TH/s to 241 TH/s, which means new miners are connecting to the network. Philip Modnov, CEO of LAZM, noted that due to the upcoming transition to Ethereum 2.0, which should take place before the end of the year, interest in Ethereum has grown and become much higher than in equipment for Bitcoin mining - “everyone urgently needs machines for Ethereum mining.” Marat Mynbaev, crypto investor, founder of Amir Capital, said that the rise in the ETH rate led to a sharp rise in prices for video cards, and on many cloud mining platforms contracts for ETH mining were completely sold out.

Ethereum network hashrate according to Coinwarz.

In Ethereum 2.0 there will be no mining - it will be replaced by staking. Payment processing will go to validators. They delegate their coins to masternodes (freeze them for a certain period), for which they will receive part of the reward. The more coins are frozen, the higher the income. Staking does not require ASICs or powerful video cards—a laptop is enough. For the network, this is less energy-intensive than mining, and for validators it is an opportunity to receive passive income for generating coins (From 21 to 5 percent in the first year before deducting the costs of equipment and energy, which will be 5-20%. Considering the price hikes for ETH , staking will not necessarily be consistently profitable).

After the update, Ether miners will be forced to become ETH stackers or start mining other altcoins. It is likely that the majority of existing ETH miners will choose the second option, and new players - those who have not invested in energy infrastructure or mining equipment - will take up staking. One of the major altcoins that could benefit from the departure of PoW miners from Ethereum is Ethereum Classic (ETC). It also runs on the Ethash algorithm and the developers of the coin have no plans to switch it to PoS.

It is assumed that at first both networks - ETH 1.0 and ETH 2.0 - will work in parallel, but in the future the existing ETH network will be integrated into ETH 2.0 as one of the shards (parts of the network). Therefore, Ether mining will not disappear overnight. The transition may take years. During this time, miners can manage to pay for more than one generation of devices.

What altcoins to mine

Dmitry Shuvaev believes that in the long term, mining BTC is more profitable than mining any altcoins. The latter have too much volatility - the rate can skyrocket and also rapidly fall in a short period of time, and it is easier to carry out a 51% attack on them, which is impossible with Bitcoin. But if you want to try to make money on another coin, the most universal advice is to mine only the first 20 coins by capitalization. As a rule, these are time-tested and relatively reliable projects. And many altcoins that look promising today may fall tomorrow, preventing the equipment from being repaid.

Marat Mynbaev noted that some of the most profitable altcoins now are Ethereum, Ethereum Classic, Monero and Litecoin. For example, the profitability of mining on an Nvidia GeForce 2080Ti video card is now about $150 per month when its cost is $500. ZCash, DASH, GRIN, RavenСoin, Bitcoin Gold, Dogecoin are also popular among miners now. When choosing an altcoin for mining, consider not only profitability, but also the possibility of withdrawing funds to fiat, as well as liquidity on exchanges.

Is it time to upgrade your equipment?

Mining BTC is profitable only on new generation equipment. Dmitry Shuvaev recommended buying devices of the new generations S17 or S19 for mining BTS - with a power of 75 TH/s and a consumption of no more than 2.5 kW. Their break-even point under current conditions is about $6,000. If the market situation is favorable, this safety margin may be enough until the next halving. If at some time the new equipment starts to operate at a loss, then after recalculating the complexity it will again become a profit. If your equipment does not meet these specifications and you cannot afford to mine in the long term, you will have to either turn off the miners or update the devices. Dmitry Shuvaev does not recommend using old-type devices, such as Antminer S9 - they are not profitable now.

However, you shouldn’t throw away old devices either. Philip Modnov noted that Bitfury B8 and Bitmain S9 still feel confident on the LAZM site, not to mention the new servers. The expert believes that it is still possible to breathe life into outdated equipment in the medium term (up to a year), but if you want to make money from mining in the future, it’s time to actively update your fleet for long-term operation.

“Industrial miners with a total cost per kWh of less than $0.032, such as our site, continue to work with previous generations of computing equipment without throwing it away. But the rest are forced to turn off power, unable to upgrade equipment to more modern ones due to unavailability based on price/term criteria. As a result, we see the migration of equipment between sites in search of better conditions,” said Philipp Modnov.

He noted that the high price level set by manufacturers does not provide a good return on investment at the moment and is holding back development. According to Philip Modnov, a fundamental shutdown of outdated equipment will occur by the end of the year and the beginning of the next if new modern computers are included in the network.

Tatyana Maksimenko, a representative of the Garantex crypto exchange, also noted that having old mining machines, including such popular ones as the Bitmain S9, is no longer so profitable. She expects that previous generations of computing machines will migrate from more energy-expensive sites to less expensive ones. This has already happened after previous halvings - mining farms in some European countries stopped working or moved to more profitable locations.

Legislative uncertainty with mining in Russia

One of the main problems of mining in Russia is the lack of legislative regulation of the industry. In July, the bill “On Digital Financial Assets” was adopted, coming into force on January 1, 2022. The law defines the concepts of digital financial assets and digital currencies, recognizes cryptocurrencies as property, and allows the issuance of tokens and their trading.

But the document did not determine how the turnover of cryptocurrencies by individuals, their taxation and the mining industry will be regulated. It is expected that these issues will be reflected in separate bills, most likely in the bill “On Digital Currency,” which is scheduled for consideration in the fall. It is not yet clear how much will be allocated to mining.

Until then, Russian miners are in a gray zone; they formally do not break the law, but it is unclear how to pay taxes, and banks do not want to get involved with cryptocurrencies. As a result, they leave Russia or use exchangers, taking cryptocurrency out of the country.

To solve this problem, back in November 2022, RACIB proposed to the Bank of Russia to launch a regulatory crypto sandbox - the National Mining Pool (NMP) project. He had to bring mining out of the gray zone and create conditions for taxes from it to flow into the Russian budget.

But at the end of August, the central bank refused to allow RACIB to launch the NMP. The regulator believes that such a project carries a high risk of laundering criminal funds and is generally at odds with the government’s approach to regulating digital assets. RACIB asked the Central Bank to justify its position, but has not yet received a response.

In 2022, mining can no longer be viewed as an easy and quick way to make money. These are medium-term investments with a payback period of 2-3 years. Home mining of BTC is already practically dead. Now this is an industry for those who are not chasing immediate returns and are committed to long-term work. Such players can hope for their small but stable profits, because Bitcoin mining will remain profitable in the long term.

— Dollar problems, crisis and halving. 7 reasons to buy Bitcoin right now

— Miners began to transfer bitcoins to exchanges. This is a bad signal for BTC

— Conditions for starting: how much money do you need to have to mine Bitcoin?

You will find more news about cryptocurrencies in our telegram channel RBC-Crypto.

Cloud mining doesn't work without investment!

Many people mistakenly believe that cloud mining can be done for free. This is impossible, since the user rents the capacity of cryptocurrency centers, and no one provides them for free, it is obvious that cloud mining of cryptocurrencies is impossible without investing one’s own funds.

Although the Internet is full of various sites about cryptocurrency mining without initial investment. Do you want to know how realistic this option is? Go to any cryptocurrency faucet, there you can get cryptocurrency pennies, and only for watching some kind of advertisement. Well, it's not serious. Read more about mining...

How does cryptocurrency mining work?

The process of mining cryptocurrency is quite entertaining. The equipment of the participants in the “digital race” searches for a specific number from a huge amount of information. These are not some abstract tasks, but in particular confirmation of transactions (transfers) of funds within the system. These tasks are formed into blocks. Decryption of information in a block is carried out using the selection method - this is why the system needs such gigantic computing power. The miner himself, even if he has great hardware capacity, cannot find such a number.

This is why single systems are combined into pools (mining pool), which is a server that distributes the tasks of finding a number among all participants. Everything in this system is very transparent and understandable. Absolutely any transaction can be tracked. The only information that remains hidden from prying eyes is the data of wallet owners.

Cryptocurrency mining farm. Photo: pixabay.com

Answers to questions about cloud mining.

We will try to give the most accurate answers to frequently asked questions related to cloud mining services.

Is it safe to invest in cloud mining services?

Yes, if you choose the right company that has proven itself and has a reliable reputation.

Why don’t cloud mining services mine cryptocurrency for themselves?

The fact is that the payback on mining equipment takes a long time, approximately from 6 months to six months. Therefore, the company is forced to enter into capacity rental contracts with users in order to quickly recoup part of its investments, and in addition to increase additional capacity. This is just one of the earning models in which it is convenient for each of the parties, as discussed earlier in this article.

What is more profitable: cloud mining or your own small farm?

With the help of cloud mining, you can mine cryptocurrency without unnecessary movements, sitting at a computer or tablet. You don’t have to look for a room, design wiring and ventilation, purchase equipment and configure it. Moreover, the initial contribution to contracts is much lower.

Mining cryptocurrencies on video cards. Is it possible to make money like this?

Using GPUs to earn Bitcoin is no longer relevant, since this currency has long been the subject of industrial mining. It’s better to go for more affordable digital coins: Ravencoin, Ethereum, Litecoin or any other from the TOP 10.

The mining farm is assembled on the basis of AMD and NVidia video cards - the most popular in 2022. You will need to invest money in the purchase of equipment, assembly and configuration. If there is a high-quality power supply and a stable Internet, the system works reliably and brings a stable income. It is the owner's job to ensure performance and maintenance.

There is no point in assembling a system consisting of a computer and one GPU. The minimum number of video cards is four, but sometimes twenty. A separate room will be required to accommodate the equipment. The operation of the system is accompanied by round-the-clock noise and heat generation. You need good ventilation and possibly air conditioning. Dry basements and garages are best suited if the issue of power supply and communications is resolved.

For mining at home, you need a stable Internet - interruptions and a weak signal reduce earnings. The problem is solved by wired Internet, 4G modem with antenna, fiber optic connection.

GPU farm elements:

frame;
Power supplies;
CPU;
motherboard;
video cards;
RAM;
drives;
coolers;
extension cords

It is worth noting that the components of mining farms are subject to higher requirements than standard components of a regular PC. Accordingly, the price of products is higher. The farm owner can work independently or join his own computing power to a “pool” of other farms and receive a share in the jointly earned profits. Mining on video cards remains profitable for now.

Earning cryptocurrency coins on ASIC computer machines

The fundamental difference between a special device for receiving cryptocurrencies from a farm is that a computer machine is created to mine one type of digital money. No other functions are provided. By limiting the functionality, developers were able to increase the speed of calculations millions of times, leaving video cards far behind.

Application Specific Integrated Circui (ASIC) - introduced in 2012 and is still leading the mining segment. The machine is assembled on microcircuits and consumes relatively little electricity. From the point of view of operating costs, it is a profitable solution in terms of the ratio of productivity and the number of kilowatts spent.

ASIC is not connected to the farm along with video cards. These are two different systems. A cryptocurrency miner must choose a mining method based on his goals and capabilities. You can control the device remotely if the selected model supports this function.

An ASIC user may face the problem of quickly acquiring spare parts and the lack of interchangeability of components. It wouldn’t hurt to find out in advance whether the parts you need are sold in the country and at what prices. Most of the machines are made in China, a popular manufacturer is Bitmain.

The dimensions of the ASIC depend on the performance, and the device itself consists of several parts:

frame;
circuit boards;
memory block;
fan.

One machine consumes from 0.75 to 1.5 kW/hour depending on the model. With continuous operation, 18-36 kW is generated per day, which should be taken into account when calculating the potential benefits from mining.

The computing power of the devices is measured in terahashes - 1012 H/s, and the price ranges from several tens of thousands of rubles for a used product to millions for a new one. The equipment is considered to pay for itself quickly.