Still profitable? How much does a mining farm cost right now?

Bitcoin and Ethereum rates are growing every day, attracting more and more attention. Hundreds of blockchain wallets are registered every day in the world. People want to have time to become participants in a rapidly growing market. A large number of people today are thinking about how to become owners of cryptocurrency and many choose mining to achieve their goal. Of course, in 2022 it is much more difficult to mine cryptocurrency than it was several years ago, but mining is still relevant.

Today, many people are interested in how to assemble a mining farm and how much it will cost.

What is the best way to mine cryptocurrency?

There are three types of mining (extraction) of cryptocurrencies. These are CPU mining, ASIC mining, and video card mining. The first type, mining on a processor, is currently outdated, since the power of standard processors is significantly inferior to the power of graphics processors. Mining on ASICs is cost-effective, but it is designed for mining giants, not private crypto enthusiasts. The best option is mining on video cards.

In order to start mining on video cards, you need to assemble a “farm” - a special computer for mining. Harvesting a farm costs approximately 100,000 – 150,000 rubles.

In this article we will look at how to assemble a mining farm for 100,000 rubles.

What is cryptocurrency mining

The essence of mining (from the word mining - extraction) is the creation of cryptocoins using a special algorithm.
A unique set of data (or block) is generated on the computer, which confirms the authenticity of payment transactions. A block consists of a hash of the previous block's header, a hash of transactions, and a random number. The chain containing all transactions is called a blockchain. For each block found there is a reward. It is different for different currencies. For example, the oldest and most expensive cryptocurrency - Bitcoin (Bitcoin, BTC) - it decreases by half every four years. Since 2016, the reward has been 12.5 BTC (about 32 thousand dollars), and in 2020 the next reduction will occur.

The reward for a block of Ethereum (ETH) is 5 ETH (approximately $1,540).

The success of mining depends on the computing power of the computer that the miner has. The more, the higher the likelihood of receiving a reward.

What does the farm consist of?

In order to assemble a mining farm, you need to purchase the following components for it:

• Video cards;
• Power supplies;
• Motherboard;
• CPU;
• RAM;
• HDD.

So, let's look at each component separately. Let's start with the video card. You must immediately understand that a video card is ¾ of all costs for a farm and a guarantee of its payback, so the choice of this component must be approached as seriously as possible. You need to take a video card with a performance of at least 1 M/Hash, otherwise there will be no point in mining. The more serious your intentions, the more powerful your video card should be. Then it will not become outdated for a long time, and cryptocurrency mining will bring you a stable income.

One of the best options for mining today is the AMD Radeon RX 580. The cost of such a video card ranges from $500-700. If you don't have that amount of money, you can buy a video card cheaper.

Cryptocurrency mining methods

Mining can be classified according to different criteria. For example, if we take the equipment used as a basis, then coins are mined by: processors (CPU), video cards (GPU) or ASIC integrated circuits.

It’s still not worth attaching serious importance to cryptocurrency mining on smartphones. The effectiveness of the equipment used will vary depending on the network hashing (encryption) algorithm. They are different.

Another popular classification of cryptocurrency mining methods is based on the capacity used. In accordance with this criterion, it is customary to distinguish:

• Cloud mining is the most profitable format in recent years, when the user rents computing power from a large service. With this format, the user does not buy his own equipment and does not maintain equipment, but only pays for electricity. The service deducts a certain commission from clients.
• Solo mining - the user solves cryptographic problems to find a block, using exclusively the computing power of his computer or farm - from two or more processors, video cards or ASIC circuits. The method has been practically not relevant for several years.
• Collective mining – work in so-called pools. Miners unite to increase the total hashrate, which increases the chances of finding a block. The most popular cryptocurrencies are mined exclusively in pools.

The choice of cryptocurrency mining method should be made based on what kind of coin you plan to mine and what budget you have.

How to choose a power supply?

Second in importance is the power supply unit, because the farm consumes a lot of electricity. Pinout plays a big role when choosing a power supply. Unfortunately, most power supplies only come with 2 cables. But for mining you need a power supply with at least 6-pin cables. Future miners need to take this point into account. Also, it is necessary that it can provide energy to several video cards, that is, take 1-2 kilowatt blocks.

The most popular types of cryptocurrencies

In fact, there are hundreds of types of crypto coins.

But first, it’s worth studying the 5-10 most valuable and promising cryptocurrencies.

1) Bitcoin

The first cryptocurrency on the planet. Bitcoins are accepted as a means of payment by more and more online stores and sites that sell their services via the Internet. Even a plane can be bought for BTK if you have enough of this money.

But far-sighted people do not buy with bitcoins, but sell. In 2022 alone, the value of this currency increased almost 5 times.

2) Litecoin

Litecoin was launched in 2011, and since then the currency has been steadily growing in price. This is a fork of Bitcoin, i.e. cryptocurrency created on the basis of BTC program code. Among the advantages of LTC are increased emission and a higher speed of block formation.

3) Ethereum

The concept of this currency and its source code were developed by Russian-born Vitalik Buterin, who now lives abroad. The first ETH was released in 2015.

In a short time, ether entered the TOP of cryptocurrencies in terms of capitalization - the volume of real funds invested in digital coins. Experts call Ethereum the only worthy alternative to Bitcoin at the moment.

4) Dash

Year of creation: 2014, other names: Darkcoin, XCoin, in miner slang - “dashka”. Compared to bitcoins, mining “dashka” is easier - it requires less energy costs. However, for encryption, not one cryptographic algorithm is used, but several.

5) Zcash

A unique open source cryptocurrency. It is similar to Bitcoin with a fixed number of coins (21 million) and a similar name for the minimum value - “zatoshi”. It is distinguished by the transparency of transactions with complete anonymity of users (senders and recipients).

How to choose a motherboard and other hardware?

The requirements for the motherboard and other equipment are not as critical as for the power supply and video cards. The motherboard must meet only one characteristic: it must have PCI-ex connectors. There should be enough of them to connect video cards. Today there are motherboards on sale that have connectors for 6 video cards, which is what you need.

There are not many requirements for the remaining components:

• The central processor can even be single-core;
• 4 GB of RAM is sufficient;
• There are no special requirements for the hard drive, the main thing is that it works stably.

Where to begin?

First, visit the NonStopMining website and meet people who have been doing this successfully for a long time.

NonStopMining is a dedicated team of miners that specializes in cryptocurrency mining.

Why is it beneficial to be our partner?

From a financial and ease of participation point of view:

• Around the clock, continuously and indefinitely, you receive absolutely passive income from cryptocurrency mining.
• You do not need to have special knowledge and skills regarding mining and cryptocurrency in general.
• You don’t fool your head about where and what is the best way to buy mining equipment.
• By purchasing any of the pools, you do not need to think about the premises for installing the farm.
• You don't pay for electricity, rent, etc. Everything is already included in the price of the pools.
• You save yourself from mandatory duty/monitoring 24/7 near the equipment.

From a development perspective:

• You become a full-fledged and equal partner, with the opportunity to develop the direction together, anywhere in the world.
• You will 100% receive useful knowledge and experience regarding cryptocurrency, mining and smart investments in general.
• By collaborating with a trending direction that actually has real activities with an actual basis for making a profit - you can forget about various dubious pyramid projects, HYIPs, pseudo-Forex, etc...
• You have in your hands an excellent and promising business direction that you can safely offer to your loved ones and friends.

Do you need reliable passive income WITHOUT the risk of HYIPs? You've come to the right place. Just watch the video below and you will understand everything for yourself.

NonStopMining - join us!

How does the Bitcoin network work and why are miners needed?

Today, the number of cryptocurrencies in the world amounts to thousands, but the most popular of them is Bitcoin , which is trusted by the majority of cryptocurrency market participants. But due to the fact that it was created quite a long time ago - in 2008, the algorithms for working with this cryptocurrency are far from being as advanced as with new variants of cryptocurrencies. Let's try to figure out how Bitcoin mining a miner , and why the Bitcoin network cannot exist without miners.

First of all, you need to understand that working with Bitcoin is carried out on the basis of blockchain - it is also called distributed ledger technology . Its essence is very simple: all information about transactions with bitcoins is generated and stored in separate information blocks. In this case, each new block is added to the previous one, the old block cannot be changed, and since information about all transactions is stored on computers united in one network, it turns out that information about all transactions with bitcoins is stored on a huge number of computers distributed throughout the world . Even if some of them fail, the information will not go anywhere and will not be lost. The vacuum, that is, the loss of information due to the failure of individual computers, will be closed by other computers that are necessarily working at this time.

In order for this entire system to function, such functionality as mining . What do miners do? They store copies of the blockchain , that is, all information about transactions, and thereby protect information from loss and forgery. The second thing miners do is confirm transactions , that is, transactions that occur with cryptocurrency. And the third thing miners do is they check transactions that other miners have registered. Thus, we see that without the participation of miners, the functioning of the Bitcoin network is in principle impossible.

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How much does a video card cost?

Since we are considering budget video cards for mining, we will focus on the Nvidia GeForce GTX 1050 Ti and the more expensive Radeon RX 470 Sapphire.

The first model will cost you $130, and products from Radeon will cost you $300. Why are we considering Radeon video cards if their price is so much higher? They are the best devices for mining. Nowadays, video cards are more optimized for gaming rather than mining, so it’s difficult to find specialized models. In the market, buy devices only from Nvidia or Radeon.

What cryptocurrency to mine on your farm

The most attractive cryptocurrency is Bitcoin. But due to high demand, Bitcoin is now much more difficult and expensive to mine than it was a few years ago. Other popular currencies include Litecoin, Ethereum, Dash and others.

I recommend reading the article Types of cryptocurrencies

The profitability of cryptocurrencies depends on many variables, ranging from the cost of equipment to market conditions. All source data can be analyzed automatically on calculator sites specially created for this purpose.

How much can you earn from one mining farm?

Many Internet entrepreneurs are interested in the question: how much can you earn from one mining farm. To clarify the overall profitability of organized mining, you can perform the following steps:

• Initially, you need to find out the selected adapter;
• Examine the readings in kHash/sec;
• You need to go to whattomine.com or dustcoin.com. Here you can find a list that includes cryptocurrency;
• The power of the device used can be found on the unit. For typical home devices, it ranges from 350 to 750 volts. In the “period” section you will need to indicate 1 day, and the price of 1 kW is indicated in monthly receipts.

As a result of such manipulations, you can find out which currency and how it will be more profitable to mine. Many professionals now agree that to get $100 from the farm every day, you will need to assemble 3 very powerful computers equipped with 4-6 cards.

In 2022 you can make money from mining!

To summarize, we will highlight 3 most important principles, adhering to which you will launch an effective mining business in 2022:

A sound, professional approach is the key to success. Every step you take, every purchase needs to be considered, taking into account all the advantages and disadvantages of the selected equipment in order to reduce the payback period.

The location is no less important, since it is necessary not only to maintain ventilation and temperature conditions in the room, but also to provide round-the-clock stable access to the Internet and the electrical network.

Choose the right cryptocurrency. You can also mine several currencies at the same time if you have 2 or more farms. This will allow you to personally assess the profitability and choose the best option.

The relevance of mining remains at a high level and will only grow over time. The future lies with cryptocurrencies, even if many do not want to admit it.

Calculation of mining profitability

A thorough approach to the matter requires that you carefully calculate how much the “mine” can bring. Carrying out calculations can be entrusted to specialized online calculators. They produce results after entering many parameters, which are difficult to operate on your own. Detailed information can be obtained from the article “Mining Calculators” (link to).

Basic terms and definitions used in calculations

When you have to make calculations on the profitability of investing in production, you need to clearly understand what basic concepts you will have to operate with. For calculations you will need data regarding:

• power farm, Riga;
• the amount the equipment cost;
• hashrate;
• drilling complexity (this parameter will be entered by a computer program);
• electricity costs;
• block reward size;
• market value of the coin.

How halving will affect prices and mining profitability

Did they reduce the level of remuneration by half and the miners' profits decreased similarly? It was assumed that after the May halving 2020, fewer people would mine Bitcoin, and the coin’s exchange rate would decrease slightly. It didn't turn out quite like that. The pullback was minimal and did not last long. Then the rate stabilized at 10-11 thousand dollars. After which he took off.

The halving did not influence this; there were other reasons. However, the “mines” became more profitable, the demand for equipment increased, and more productive models of video cards and ASICs appeared.

How does the assembly work?

Let's consider step by step what is being collected and why:

1. We assemble the frame. It resembles a server rack. This is where the equipment will be installed;
2. The components are assembled like an ordinary PC. We place the motherboard in the frame. We install it in the lower shelf, but on an elevation so that it does not touch the surface;
3. We install the cooler and processor on the motherboard;
4. When assembling it yourself, attach the power supply to the corner with self-tapping screws. Fasten it securely. This is the basis of security. Otherwise, there will be a risk of a spark forming in the contact;
5. Install indicators with a power button;
6. Connect the hard drive;
7. We connect the video card through raisers. Use Molex.

The budget mining rig is almost ready. Next, install the operating system. Use Windows10. Next, download special software for mining.

Is mining not profitable?

Every year, some people predict the end of mining, but now it is more than obvious that this field of activity is actively developing, experiencing both ups and downs.

In 2022, starting mining is not as profitable as it was 3-4 years ago, when prices for graphic cards were much lower and exchange rates were higher, due to which the payback period was from 3 to 5 months. However, it is still very profitable. An investment of $7,000 with a reasonable approach will pay off in 7-8 months. This means that after the specified period you will earn just under $1000, with minimal effort. Sounds good, right?

Like any other business, a mining farm requires development. If you actively invest the funds you receive into your business by purchasing new equipment, within 1.5-2 years you can significantly expand, and at the same time increase your own income.

89% of Bitcoins have been mined. What's next?

The number of bitcoins is limited to 21 million . This was included in the original cryptocurrency prospectus. But, naturally, when all the bitcoins included in the algorithm are generated, this will not lead to the termination of the existence of the Bitcoin network. It’s just that if miners now receive remuneration from the network for their work, along with remuneration in the form of a commission for carrying out certain transactions that take place on the network, then after all the bitcoins are generated, the miners will only have commissions as income. But when new bitcoins are not generated, this will most likely affect the increase in the price of bitcoin: demand for it will increase, which means the price will also increase. Miners will continue to receive their remuneration as a commission from the transactions they carry out.

So far, we see that the demand for cryptocurrency as an alternative financial instrument is only growing. And the number of mining farms is not decreasing, but, on the contrary, increasing. The main trend that we can note is the consolidation of this type of farms . Private small and medium-sized farms are being integrated both in software and at the hardware level into larger ones, and are gravitating towards cheaper sources of electricity. Simply put, large hangars or containers are built as close as possible to power plants - where there is an excess of electricity and it can be bought most cheaply.

The consensus mechanism that is incorporated into mining to maintain the operation of the Bitcoin blockchain (proof-of-work) is one of the most energy-consuming and oldest algorithms. Much more efficient consensus algorithms have now been developed that do not require such huge energy costs and such computing power, but a significant migration of users from Bitcoin to other cryptocurrencies has not yet occurred. Confidence in Bitcoin is now at its highest.

Let’s hope that the Russian authorities will be able to assess the potential of using this cryptocurrency not as an alternative to cash, but as a source of possible foreign exchange earnings for the country. Russia has a large excess of unclaimed electricity that can be used, including to support the Bitcoin blockchain network. This foreign exchange earnings would definitely not be superfluous for the country. The total volume and capitalization of the crypto market is estimated from $1.5 to $2 trillion.

Why is mathematics needed?

From art to science: 10 facts from the history of cryptography

What is the break-even point for Bitcoin mining?

The break-even point depends primarily on 2 factors: the efficiency of the equipment and the price of electricity or hosting. That is, each player has his own break-even point. However, some estimates can still be made, said Vadim Krutov, executive director of Bitfury Group:

• The average efficiency of equipment is about 40-45 J/TH, the average price of electricity is about 4 US cents per kWh, Krutov explained. For such an average player, the cost of production will now be about $7 thousand per 1 bitcoin;
• For the strongest players with 30J/TH equipment and an electricity price of about 2.5 US cents per kWh - about $3 thousand for 1 bitcoin;
• For players with equipment of about 60 J/TH and the price of electricity of about 6 cents per 1 kWh - about $13 thousand per 1 bitcoin;
• The weakest players who have now turned on equipment from the 2016-2017 generation have an even higher production cost - up to $25 thousand per 1 bitcoin.

“Based on these estimates, mining will remain operationally profitable up to approximately $25 thousand per bitcoin, below this price the least efficient players will begin to suffer losses and drop out. Most of the players will be forced to leave the market at a price of about $4-5 thousand; the strongest players will not get their turn under any reasonable market development scenarios,” says the specialist.

Mining farm – pros and cons

Let's look at the positive and negative aspects of both the farm as a whole and using the example of ASIC. Pros:

1. Video cards are always on sale, despite the queues;
2. They will be in demand in the next 2-3 years;
3. Then they can be sold to gamers;
4. A new video card always has a warranty, a used one only from the seller (the warranty will be less than for newly purchased equipment);
5. If possible, you can install the farm at home, but do not forget, the device heats up and does not make much noise - create optimal conditions and then there will be no problems in operation;
6. Using one video card, you can mine several cryptocurrencies (most tokens are adapted to certain types of video cards).

Minuses:

1. It is unlikely that you will be able to assemble such a mini-factory on your own; you need the help of specialists in this industry;
2. Don’t forget that if you don’t know all the intricacies of installation, then burning out a microprocessor and video card is a matter of minutes;
3. We install the OS exclusively for cryptocurrency mining, there is no need to download top programs, you don’t need them. You can install programs for crypto wallets, crypto exchangers and crypto exchanges, everything else will be superfluous;
4. The entire structure of the farm will be too bulky - therefore, you need free space in the house (for a one-room apartment - this is definitely not an option, unless you will not be living at home);
5. Some farms take a very long time to pay for themselves compared to the same ASIC.

Setting up a mining farm

There are several required steps that must be taken to set up Windows and the pool:

• First, update all drivers for the selected equipment;
• Install a 20 GB swap file on your computer and download a program designed for overclocking video cards, for example, “MSI Afterburner”;
• The instructions on how to make a mining farm indicate the need to install a program so that you can remotely control the computer, for example, “TeamVeaver”;
• To operate the mining farm, you need to install a miner. For clarity, let’s choose the nanopool.org pool. After that, select the currency and in the example presented it is Zcash;
• In the zec.nanopool.org section, go to “Help” and download the miner. Don't forget to disable your antivirus. After this, in the “Start” file you will need to enter the wallet address, farm name and email.