Bitcoin is something that, unless you’ve been living in a bunker somewhere, you will have heard much about. It’s a cryptocurrency, one of the first, and the most well-known example. A cryptocurrency is a non-physical, digital currency that is not regulated by a central bank. It is a currency where balances are kept on a public ledger transparent and accessible to all and are verified by a massive amount of computing power. Sounds complicated? Well, it is. The currency is secured by a technology known as a blockchain, these are simply a record of transactions that a.
For this reason, it is advantageous to have the hardware to get as much as possible out of your mining operation. This is where a bitcoin mining rig comes into its own, you can get more done and, most importantly, make a bigger profit.
What is a Bitcoin Mining Rig?
Put simply a Bitcoin mining rig is a dedicated computer system designed to be solely used to solve the mathematical puzzles that unlock new Bitcoin. These problems are designed into the Bitcoin system to provide security for every transaction that passes through, and by rewarding users with Bitcoin for processing such transactions, a completely user-regulated platform exists. The more computing power you dedicate to this, the more Bitcoin you can mine, and so having a dedicated machine allows maximum returns.
Why does it This Way?
It is a matter of simple cost-benefit analyses. If you consider Bitcoin mining as a money-making exercise, then it should be planned as such, and that means business planning. Yes, you could set this up a lot cheaper, but would that give you the maximum return on your investment? Consider the cost of building this rig as a start-up cost of a small business. Look at how much you can make mining using bitcoin mining rig, and it’s clear to see it’s a much more crowded market than in the early days, as new Bitcoins are released on the network every 10 minutes, and the more of a share you can get the better.
Is Bitcoin Mining Rig Expensive?
A big and important question. How expensive a bitcoin mining rig is going to be is a bit like a how long is a piece of string type of question. Of course, you will not want to be under-resourced, but there will also be a point of diminishing returns if you continue to throw endless resources at it. You could spend thousands of dollars or even some for under a thousand. You can decide to have it mining Bitcoins some of the time and other uses as well, even different cryptocurrencies, to split your risk. The machine itself will be powerful and will have a decent sell-on value, or can be re-assigned as a gaming PC or other use later on.
What is Inside?
Lots of hardware is the short answer, but choosing how to set it up can be a skilled task that is hard to master and can be done in many different configurations. As with building any PC project, you can find endless debate on the best way to achieve this and, of course, there are no right answers, but there are some wrong ones. One accepted norm is that even though no graphics are being used a bank of graphics cards is often the best way to achieve phenomenal processing power.
The graphic card choice is not an area you want to be cutting corners on, consider something like the Nvidia’s GTX 1000 series GPUs, they are extremely powerful and are very small so that you can even use them in laptops these days (not that we’d advise building a bitcoin mining rig in a laptop case). The argument is that with GPUs you can access increased power at a lower cost than building the rig another way, and keeping on top of cost is key, as we know.
How Much Money Will Bitcoin Mining Rig Make?
How much money will it make is perhaps not the question in it’s fullest form? How much money will it make for the number of hours you have to put in is a more relevant question? It’s probably not likely that in the current climate you are going to make a full-time living by mining Bitcoin, but it can be a good side-earner.
Mining is not the only way to make money from cryptocurrency, if we look at our guide on how to make money in college, we can see that you can buy and sell Bitcoin or offer an exchange service on your website. The excellent thing about mining though is you can let the machine sit and do it’s a thing while you get on with other tasks if you have other ways of making money, then the mining can be a free, second income.
Potential Problems with Mining
There are issues with Bitcoin mining. It is becoming more difficult to yield high results in terms of monetary value as more people have got into the game as the years have gone by. This means you need to invest more time or more computing power into mining a single coin, clearly making it a less profitable business than in the past. If you are using a bitcoin mining rig, the value of the PC components you have installed will decline over time, making the resell value less as well.
Is This Legal?
Often it is asked about the legality of cryptocurrencies such as Bitcoin? If you are looking for a short answer, then basically, they are legal in most places. You will not get into any trouble with the law, end up in court or risk prison time by mining, using, or trading in Bitcoin.
The complication comes in that Bitcoin, although not illegal to trade in, is not considered legal tender, meaning it is classed as a possession rather than as a currency. Does this make any real difference? Probably not, but it is prudent to remember this as it will mean that the law will apply differently to instances where national currencies are involved.
Advantages of a Ready-Made Rig
Rather than build a bitcoin mining rig, you could opt to buy a ready-made one. There are advantages of this, if you are not as technically minded, then someone else does all the electronics for you. You also have the peace of mind that you can complain and get redress if it doesn’t work. The downside is cost, as getting someone else to put this together will have a cost attached to it.
As we have stressed through this whole article, you should assess the benefit of this extra expense with the impact it will have on the profitability of your venture. You may also find that a professionally built rig might attract a higher resale value if you choose to cease operations.
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Head in the Clouds
There is one alternative to buying or building a Bitcoin mining rig we can borrow processing power on a cloud platform. The advantages of this approach are considerable, there is no investment in overheads, and we need no space to operate. You only pay for the resources you are using, and this makes the operation more easily scalable if you need to increase operations or scale them back. Providing you choose a good operator, you should have uninterrupted run-time and access to technical support in the event of problems.