Mining Bitcoins on a home computer: step-by-step instructions, profitability and useful tips

Equipment for mining
As cryptocurrencies become more popular, more and more people in the world are learning about the opportunity to make money from mining. And every year it becomes more and more difficult for newcomers in this field, as the amount and complexity of information that needs to be learned in order to start mining coins grows.

But, in addition to the fact that it is necessary to understand hashing algorithms and other theory, an equally important aspect is the technical component. After all, the choice of mining equipment will determine its profitability.

• What equipment is needed for mining? Mining on a processor
• Mining cryptocurrencies on video cards
• Mining on ASICs - mining machines

How to use your home computer to mine Bitcoins

Let's start with selecting the equipment that we will use for mining. But first, a little about Bitcoin itself and why it is “mine.”

What is this Bitcoin of yours?

This is the world's first cryptocurrency. The name “Cryptocurrency” was taken because it is based on strict cryptography, and not the opinion of a bank, state or individual.

Bitcoin is based on ordinary mathematics.

Bitcoin is based on a formula called "SHA-256". This is a special version of the formula from the SHA-2 family of algorithms, which was published by the NSA in 2001. Since then, it has been used as the default standard for data encryption.

Correct Bitcoin contains many zeros.

The formula that is used in Bitcoin serves as the matrix in the printing press. But “printed” Bitcoins must pass verification. The solution to the formula is called "Hash". To pass verification, a hash must meet a unique requirement: contain a string of zeros at the very beginning. In 2015, a correct “hash” required 17 zeros in a row. In 2022, a valid hash must contain as many as 19 zeros.

Video cards and processors are designed to solve formulas.

The fact that Bitcoin is based on a mathematical formula makes it “digital”. Thus, computer technology can be used to issue Bitcoins. But not all of it. There are different ways to mine Bitcoin. For example, manually.

Automation is man's best friend, so let's look at what equipment you can use to mine Bitcoin in 2022.

They believe in Bitcoin.

As of January 2022, Bitka’s capitalization level is $585,323,060,169 or $585 billion. Its rate regularly rises, breaking new price records. Those who started mining Bitcoin in 2010 can now afford a separate island in the Pacific Ocean.

The rate will, if not grow, then continue to fluctuate at a fairly high level.

Bitcoin has built-in inflation protection.

Satoshi Nakamoto set a limit on the total number of Bitcoins - 21 million. You can't create more. Every 210,000 blocks mined, the reward decreases, which corresponds to a drop in reward every 4 years.

Bitcoin has a mining "difficulty".

Exaggerating, this is the depth of the mines with the resource. The deeper the mine, the more complex equipment needs to be used. We are talking about the number of decisions that will fall under the rule of “beauty”. For example, in 2022, solving mining formulas must have 19 zeros at the beginning to be considered “beautiful.” This increases the number of solutions that need to be tried before a “beautiful” answer is obtained.

Shall we say goodbye?

Don't rush to the store to buy a solid-state drive. Sales of SSD drives are estimated at millions of units annually, so no shortage is expected in the next couple of years. Unless there will be another crypto boom.

But it is important to understand that such disks help save money on electricity and stabilize the operation of the farm. And for those who want to be completely anonymous, they need them to set up their full nodes. And there are more and more cryptocurrencies, the size of synchronization files is calculated... You also see a trend, right?

As for RAM, we see a clear need for it when mining on a CPU. Such farms do not mine popular currencies, but are concentrated on a narrow range of coins: Cranepay, Binarium, Yenten, Monero.

For more information about Kingston Technology products, please visit the company's official website.

Bitcoin mining equipment: history of evolution

Until 2014, Bitcoin was mined on video cards - complexity allowed.

Graph of distribution of Bitcoin mining difficulty and devices used for mining. After 2014, BTC is not mined on video cards.

In the period from 2009 to 2010, Bitcoin was mined on ordinary processors. That’s right, the old “grandmother’s book” could bring in money, and ancient video cards produced real crypt. Golden time.

Later, from 2011 to mid-2013, the reward for one mined block decreased, and as a result, the difficulty of mining increased. Miners switched to video cards and highly targeted microcircuits. Old gaming video cards, for example HD 6500 and HD 7500, were suitable for Bitcoin mining. “Grannybooks” had to be disconnected from the network and replaced with something more productive.

However, at the turn of 2013 and 2014, a jump in difficulty was repeated, which was associated with a decrease in the mining reward by exactly half. To compensate for lost profits, miners had to switch to more productive devices.

For example, in 2013 they created the first model of a USB miner - this is a “flash drive” for solving a single formula. The world's first model was called "Block Erupter USB". The extraction speed of such flash drives was 300 MN/s.

The photo shows USB farms with 10 USB miners each, which were photographed by the creators of the first BTC USB miners.

The chip used in USB farms was called an FPGA, or field programmable gate array. These arrays consist of "configurable logic blocks" (CLBs) or general-purpose microprocessors. FPGA chips are found in TV remote controls, routers, or on the computer motherboard as part of a chipset.

The principle is that FPGA chips can be manually “taught” to solve individual equations. For example, mining cryptocurrency.

Intel Strarix 10 FPGA chip with AI optimization, which is used to accelerate data processing in data centers, cloud computing and network infrastructure.

Between 2014 and 2015, Bitcoin mining on video cards died out as a species, and USB miners evolved and turned into ASICs. After 2015, Bitcoin is mined only on ASICs.

The destroyer of any cryptocurrency is ASIC.

But the opportunity to mine Bitcoin on a home computer did not disappear - the first mining pools appeared. The first pool for Bitcoin mining appeared in 2010, then it was called “ Bitcoin

Pooled Mining Server", and a little later renamed it to "Slush". Later, mining pools completed the evolutionary cycle of Bitcoin mining tools - they turned into cloud farms

Dependence of technology on the extraction method

The miner's job is to monitor the equipment that performs the necessary calculations to create new blocks of the network. In the process of work, new units appear that form the profit of the miner. Various cryptocurrencies are used as objects for mining, including Bitcoin, Ethereum, Litecoin and others.

The choice of mining equipment depends on the mining method:

1. Solo mining. The peculiarity is the independent creation of blocks, without the involvement of other participants. Mining will require new, expensive and powerful equipment. In the first years since the advent of cryptocurrencies, this method had high profitability, and the return on costs was 1-2 months. With the growing complexity of cryptocurrency mining, there is a need to find other methods.
2. Mining in pools. This method brings together groups of people for the purpose of jointly mining cryptocurrency. The received reward is divided among all pool participants in proportion to the provided computing power. The more power the equipment has, the higher the income.
3. Cloud mining. The principle of cryptocurrency mining is to rent equipment (in fact, purchase computing power) in special services for a certain time. Rented equipment is used to mine cryptocurrency, and the reward received is distributed among users.

Mining can be done using the following devices:

1. Video cards. The more there are, the more active the cryptocurrency mining is.
2. ASIC miners. These are special chips that have great computing power, but they are unlikely to be suitable for creating a home farm due to their high cost.
3. FPGAs are special modules that are more efficient than video cards, but are used less frequently due to poor synchronization with each other, malfunctions and high prices.

How much does cryptocurrency mining equipment cost? Previously, purchase costs ranged from $1,000 or more. Today, such a budget is not enough, and large sums are required to purchase powerful equipment. For example, a good processor costs from $350, an ASIC miner from $1000, and a video card from $200. If there is a shortage of funds, it is possible to purchase used equipment.

How much can you earn from home mining?

Bitcoin mining ceased to be “home” in 2015. Then, the farms turned into huge, humming port boxes that were parked in remote regions and lined with solar panels. Well, in 2022 they do the same.

For example, the HAIRF company offers its customers special containers. They are equipped with air conditioning and racks for storing ASICs that will mine Bitcoin. Hairf themselves call them “Bitcoin Containers”.

Is it profitable to mine Bitcoin on your home PC?

No. On your own

on a home computer in 2022, no one is mining Bitcoin. There are two reasons for this.

Electricity is not free.

Electricity costs when using conventional video cards will be higher than any profit.

Life is not eternal.

To mine 1 Bitcoin, Nvidia's RTX 3090 will take 47 thousand years. Why?

One RT3090 card, the most powerful in the world as of 2022, will mine 9 Gigahash of SHA-256 per second.

At this speed, one RTX 3090 will mine 1 BTC in... 47 thousand years.

3090 produces 9.6 GH/s in BTC mining, that's 0.00002121 BTC per year

To mine 1 Bitcoin at this speed, it would take 47 thousand years

Hashrate 3090 for ETH - 120 MH/s, or 0.2 ETH per month.

At this speed, she will mine one ETH coin for 5 months

ETH rate in January 2022 – 1410 USD

Roughly, one 3090 will bring in $266 on Ethereum per month, minus electricity.

The best programs for mining Bitcoin

Home computers are allowed to mine SHA-256, but not Bitcoin. Why is that? Well, 47 thousand years for one Bitcoin is a lot. It is not advisable to mine it on your home computer. But there are other coins.

In total, there are
72 documented coins .
It’s quite possible to mine them on your home computer. For example, a direct alternative to Bitcoin would be Bitcoin Cash, or BCH.

True, BCH is mined on ASICs; it is not suitable for video cards.

Previously it was, but by 2022 the main mining has passed to the owners of ASIC farms. It's called "51 percent attack", but only in iron version. One day, any cryptocurrency switches to ASIC mining due to two factors - growing difficulty and falling rewards. Thus, video cards do not have enough power for mining and owners of GPU farms are leaving the niche.

Mining coins using SHA-256 is not feasible in 2022.

Perhaps this will change in the future. Therefore, here is a list of miners that support SHA-256.

• Hive OS is not exactly a mining client, more of an operating system for cryptocurrency mining. Supports working with SHA-256. Previously, we wrote how to set up Hive OS on your PC.
• CGminer is a Do-It-Yourself mining client. It's like an exam on computer technology. Supports SHA-256 tokens. [Project page on GitHub], downloading in other places is dangerous - they can slip a virus.
• BFGMiner is an ancient miner, originally from the BTT forum. Created 7 years ago, in 2014. Supports working with SHA-256. [Original miner thread on the BTT forum].

Software and Setup

Setting up a computer for cryptocurrency mining begins with installing the operating system. Mining applications only work under 64-bit Linux (Ubuntu) or Windows.

After installing the PC system, you need to take care of the mining software:

• Cryptocurrency wallet. Here you can use both offline thin and thick wallets, as well as online wallets and accounts on cryptocurrency exchanges,
• Mining program. The application must be compatible with your video card model and the cryptocurrency pool through which you are going to mine coins. Therefore, it is better to download it from the link in the Download section of the pool website where you registered.

Setting up computer software for mining consists of specifying the address and port of the pool server. In some cases, you need to register the address of the cryptocurrency wallet to which earnings will be withdrawn. To fine-tune the mining program, you need to read the documentation for the specific application.

The best Bitcoin wallets for Bitcoin mining

Suppose we are not talking about home mining, where any

wallet

Let's say we are talking about a more realistic scenario - a Bitcoin mining rig is assembled on ASICs and located inside a shipping container. Such a farm can be called “industrial”

.

In industrial

farms require a wallet with an increased level of security. For example, a cold wallet. This is when Bitcoins are stored separately from the Internet, on paper or a flash drive.

A cold wallet stores the most important part - the private key. It is used to transfer Bitcoins, i.e. pay for something with them

.

Which Bitcoin wallets are best for a mining rig?

Let's start in descending order of "security"

and
"reliability"
.

1) Conduct a self-hypnosis session and “sew” a private key into your memory.

Advantages

: During interrogation or torture, you can bluff that you are using a flash drive or keeping the key on paper. If you suspect ill-wishers in your environment, then it will be easier to identify them - just pretend that you store Bitcoins on a flash drive and install a GPS tracker on it.

Flaws

: Human memory erases unnecessary data over time. You will need to regularly pronounce the entire key out loud or “to yourself.” Then the brain will consider this important data and will not overwrite it with something more relevant, like the name of the neighbor’s new dog.

2) Every six months, take one third of the mined Bitcoins and put it in a cold wallet.

Print the private key on paper on a laser printer without a network connection, laminate it, roll it up, put it in a tube and bury it at random coordinates. Destroy the printer or write down the key legibly with a ballpoint pen.

Advantages

: The chance of Bitcoin theft has been reduced to close to zero. When you capture a farm using a raider method, you will know the location of the main burial places of digital gold. If the location of the wallets is unknown, attackers will not be able to obtain them intentionally.

Flaws:

the beginning of spontaneous development in the region of coordinates may complicate access to the wallet.
Additionally, you will need personal transport for quick access to wallets. Storage near the house is excluded - it is too suspicious. As an alternative, you can use point 2.1
- print out the private key on paper and store the note in a safe place. “Safety” depends on the context: the toilet cistern, the mezzanine and the book, places known from films and movies, are essentially clichés.

3) Use a flash drive to store the private key along with a portable version of the Kleopatra program.

Protect the private key file itself and learn the password by heart.

Advantages

: Essentially, the flash drive will have a "password key". If the flash drive falls into the hands of anyone other than yourself, it will be difficult to use the wallet. Of course, if we are talking about untrained users.

Flaws

: If the weak point of security is you, then it is useless. They will extract your password using social engineering or thermorectal cryptanalysis. Flash drive, physical object. It's nice to keep it with you, but easy to steal.

4) Buy a hardware wallet for cryptocurrency, such as Trezor, Opendime, Ledger, or Keepkey.

Advantages

: debatable.

Flaws

: Similar to point 3. Using any other wallet other than one you created yourself, for example Ledger or similar, should occur after answering the question “How much do I trust this company?”
Selecting a USB wallet is an exclusively personal approach; you cannot give advice or recommendations in this area. The reason is simple - the wallet was created by someone else,
you cannot vouch for a stranger in the company or for the company itself. Like all people, they pursue their own interests.

5) Store Bitcoins in online wallets.

Advantages:

well, convenient, fast. Nothing else.

Flaws:

if in previous methods the main weak point was the owner of the wallet, then in the online wallet there are six of them: the owner of the wallet, the website, the website servers, the browser, the computer and the provider. Use exclusively for storing small amounts, for buying coffee or paying for services, for example.

Energy consumption

The main thing you should pay attention to before buying the number of video cards you need is how much electricity you have at your disposal.

Also, do not forget that if you plan to install farms at home, then you need to calculate the electricity available for mining by subtracting your needs (refrigerator, microwave, light, computer, etc.).

It turns out that if the apartment receives approximately 11 kW from the meter, then no more than 5-6 kW should be allocated to the farm.

Be sure to find out which wires come from the meter: aluminum or copper!

If copper wires are laid in your room/apartment, then this is very good, as they can withstand high voltage better.

However, if your room has aluminum wires, then you should not overload them, as the wiring simply may not withstand it.

It is best to run a separate copper wire from the panel to the trusses. But even in this case, you should not overload the wiring, especially if it is an old house, and there is old wiring throughout the house, as it may not withstand and knock out plugs.

Therefore, if you have old wiring, then it is best to test how a small number of video cards consuming up to 2 kW from the entire farm will behave, and then gradually increase power consumption.

When you have figured out the placement and electricity, you need to move on to the most important thing, namely assembling the farm.

Cloud mining Bitcoin

There is such a method of mining Bitcoins - when you buy power and mining takes place on it. Essentially, you are renting hardware. Nothing illegal, normal procedure.

The method is simple. The main thing is having money. This is how it happens: you deposit funds into your account or negotiate with the manager, you are allocated equipment and it produces cryptocurrency.

The mined cryptocurrency goes to your wallet. If the mined cryptocurrency goes somewhere other than your wallet, this is a problem, it shouldn’t be that way.

We even [compiled the top services that offer cloud mining services].

Dive into Blockchain

If you understand nodes, mining and other nuances, then why are you reading this?
Skip this modest block of text, as here we will dive into the basics of how the cryptocurrency system works. There won't be any deep complications. The whole process is based on the Hash function. This is a thing that allows you to get a mess of numbers, letters and symbols of a certain length from a small or huge block of data. Let's get straight to the examples:

I love Kingston → fkgkd240ckro3 I love Habr → gkfs40sfvmggr I love Kingston and Habr → fscm2clg5c0r5

Do you see? Well, why not? Mom said it right: “teaching is not your thing.” No matter what we apply to the input, the output is a 13-character-long crap. If two symbols match, it means that they were obtained by hashing the same data. It is believed that it is impossible to understand from the krakozyabre what happened before hashing.

So it turns out that every transaction in the blockchain goes through a hash. For a new transaction, the hash value of the previous operation is taken and hashed in conjunction with the new one. And all this becomes part of the next transaction.

If you are a villain who wants to say that there was no second transaction, then you need to recalculate the hash from the 2nd transaction, which will change the result of the 3rd, which also needs to be recalculated, and so on. But this is not moving bags... You'll have to stock up on enormous computing power, and even that won't help you.

Blockchain is decentralized, meaning records of transactions are not stored in one place. No one can change something and impose on others that it was so. Similar logs with transactions are located in hundreds/tens/thousands. Do you feel it? It smelled like memory...