What should be considered for beginners in the mining


What should be considered for beginners in the mining

What is the crypto currency mining in simple words: it is an activity aimed at maintaining the functioning of a certain crypto-currency network, for example, Bitcoin-network. During the calculations, the miners by a simple search perform a search for the hash required to sign all translations (transactions) included in the current block. Read detailed information on how to start mining of crypto currency on the PC.

In order to understand whether there is an economic meaning in mining, it is necessary to perform a preliminary estimate of the approximate amount of profit that will be borne by the planned mining infrastructure plus electricity costs. Further it is necessary to estimate, at what time the full payback of expenses for the purchase of equipment will take place (for example, in half a year), and work “in plus” will start, as well as the amount of crypto-loans produced during this period. The end of the period may turn out to be rather remote, for example, after 1 year, and the offensive will occur when the profit is approximately equal to the cost of providing it with electricity.

After completing the assessment of the profitability of the selected type of mining, you can compare it with the planned profit associated with the growth rate , which can be obtained if you just buy the same crypto currency. Just remember that the course may not go up. In other words, under certain conditions on the market, the economic stability of the mining process has significant advantages.

There are many rumors about the development of crypto currency, while its profitability is highly ambiguous. On the one hand, on the Internet, you can find calculations for which a competent organization of home mining for a year or earlier is able to fully cover the initial investment. On the other – negative feedback from those who entered the business without understanding the technical side, or invested without any preliminary efficiency calculations, and faced an unexpectedly low level of profitability.

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Those who have negative experience often express the opinion that in the current realities of the house, unprofitable. Naturally, this is not the ultimate truth. Obviously, with a reasonable approach, mining can be both a way of earning and an alternative to those who directly invest in bitcoins.

Features of different types of mining

Bitcoin and some other crypto-currencies are scrambled by ASIC devices, which are a form of powerful highly specialized PCs. Always in work use the same cryptographic algorithm (as a rule – SHA-256). For the production of other crypto-currencies, “farms” are used, consisting of motherboards with a large number of video cards.

The myth of cloud mining

“Cloud mining” is when investing in an Internet service that allegedly leases the mining capacity . It should be particularly cautious in cases where a fantastic payback is promised (up to several months). Organizers of many such services do not actually buy up mining capacities, and payments to new investors are made by them at the expense of “old people.”

Bitcoin Mining

Today, many people are attracted to it because of serious prerequisites for the growth of the course or, according to at least, the retention of price positions.

Features:

– just install and configure the asics
– compared with the altcoying mining less unpredictable increase in complexity;
– the cost of one asik can start from several thousand dollars;
– Become unnecessary quickly obsolete ashki difficult to sell for a decent price;
– the expansion of the scale of production requires the lease of specialized premises with the established power supply and cooling;
– buying an ashik is not an easy task, because of the high likelihood of financial losses associated with direct deception or other difficulties;
– narrowly specialized asics greatly limits the choice of crypto currency for mining.

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Altcoin-Mining with Video Cards: Advantages and Disadvantages

– It’s much easier to purchase video cards compared to Asics
– low cost of a farm consisting of a single but powerful graphics processor (for the organization of a full farm it is desirable to purchase separate power supplies, RAM, and other components);
– with disappointment in the video card mining it will not be too difficult to sell at a decent price;
– Farms with video cards consume a little less electricity and also produce less noise;
– it is impossible to self-assemble the farm with subsequent configuration without certain knowledge in the mining and significant technical skills;
– With good market conditions and a successful choice of crypto currency, your farms can pay off considerably before the 12-month period (and sometimes for several months);
– One of the most serious problems in the miners’ environment is the factor of unpredictability of the growth of the mathematical complexity of mining, and complexity jumps are more likely in the production of many altcoins.

In general, the miner on video cards of one technical awareness is not enough to succeed, it is also desirable to analyze the market. It is also superfluous to have the skill of an elementary retrospective analysis of the graphical representation of the growth of complexity in recent months, sometimes it turns out more accurately to predict the future surge in complexity by such an analysis.

 

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