How to mine bitcoin: Before

Mining bitcoin…

This is certainly the first surprise you had when you discovered bitcoin. Anyway, for me it was: “What? Can you create money just with a computer? Of course, now it's more mining devices and machines than bitcoin. But, at the time, you could still mine with your computer and a few graphics cards.

In short, I wrote this article to tell you about bitcoin mining. We will see the most important points of this work.

I am aimed at novice people who want to know more about precedent in general. I would write articles as a small series to make it easier to understand. You can read the series how to mine cryptocurrencies where I saw the steps explained in detail. So here is the first rather theoretical article on bitcoin mining.

Here I tell you about the essential sites that will help you choose the best bitcoin mining machine. Besides, you can mine other cryptocurrencies, too.

The Evolution of Bitcoin Mining Hardware

Bitcoin mining consists of using a machine (similar to a computer) which will calculate the algorithms to create bitcoin. Basically, every time your machine/computer solves a mathematical equation, it creates a portion of bitcoin. This is, in summary, how we could explain bitcoin mining. However, to get more bitcoin, you need to have the most powerful machines. Likewise, bitcoin mining is becoming increasingly difficult to mine, given the ever-increasing number of people mining at the same time.

Imagine, initially, miners used their simple PC and laptop via their CPU (graphics card) to mine bitcoin. No need to remind you how weak computers back then were compared to today. Then, miners began creating computers, towers with multiple CPUs to increase their computing power.

Soon, it was no longer possible to mine with your own computer due to the slow speed of calculations.

By 2011, GPUs were being overtaken by FPGA (Field Arrayable Gate Array) processors attached to PCs via a USB connection. An FPGA was much better than its predecessors in terms of power consumption. In addition, these devices led to the creation of concentrated mining farms. This is where large mining farms like MinerGate, for example, appeared.

Currently, BTC miners use circuits ASIC (application specific integrated circuit), as they are the most efficient and powerful bitcoin miner hardware available today.

Can you mine bitcoin without hardware?

Of course, technically you can mine bitcoin without buying hardware. But, even if you run your computer 7 days a week, 7 hours a day, you will earn at most the equivalent of 24 euro per year.

Not crazy, right? In this case, you might as well go to the bitcoin faucets. Additionally, it will most likely damage your computer. So it’s of no use, really no use. On the other hand, you can try with an old computer simply to familiarize yourself with bitcoin mining. Yes, this will teach you a better understanding of different software and mining pools, for example.

But, apart from that, very clearly, if you want to mine bitcoins, you will need to buy suitable mining hardware. Likewise, it will be necessary to be part of a “pool“, which we explain to you further down in this article.

How to choose a Bitcoin miner?

When purchasing a Bitcoin Asic miner, there are three major elements to watch out for:

Hash rate: Hash rate represents the number of calculations a miner can perform in one second. Therefore, the higher the hash rate, the more chances you have to solve complex algorithms and earn more bitcoins.
Price: Often, the lower the price, the lower the hash rate will be. It's logic. If you want fast and efficient equipment, you will have to invest a relatively large amount of money.
Energy consumption: It is important that you check the electricity consumption in watts and determine if the mining income would cover your electricity costs. Obviously, the more powerful hardware you buy, the higher your energy costs. However, there are cost-effective solutions.

How do I calculate the profitability of my bitcoin mining?

There are two main sites that will help you calculate (automatically) the profitability of your mining.

whattomine as the name suggests, shows you the best cryptocurrencies to mine.
AsicMinerValue shows you the profitability of all cryptocurrency mining machines.

The first site that you will have to consult very often remains https://whattomine.com. It’s the bible, in a way, of cryptocurrency mining in general.

bitcoin mining profitability calculation

This site allows you to calculate your profitability according to the hash rate of your device, your electricity price and the machine's wattage consumption.

Also, depending on the cryptocurrency you want to mine, the site indicates the mining “pools” such as those of MinerGate adapted to this or that machine or to this or that cryptocurrency. You will directly see the participation fees for the pool represented.

Another fabulous and very useful site is the site Asic Miner Value.

Calculating profitability will depend on your electricity cost

You can enter a machine and the site will tell you its profitability rate for you. All calculations will be done automatically so you can make a better choice.

Don't forget to scroll to the bottom of the page to adjust your own figures such as your electricity cost (in France, on average, this costs 0,14 euros) and to set the currency to euros, if you want.

For example in this example with the Antminer S7 from Bitmain, we see that you can earn (according to the current price of bitcoin) 313 euros per year (the equivalent of 0.08 BTC). You see that it's not crazy, in itself. But, if bitcoin rises or if you take several machines, you can even generate passive income.

Likewise, on the site, you have a ranking of the profitability of all mining devices for all cryptocurrencies. The table is updated in real time and every minute all the machine algorithms are taken into account and re-evaluated. You even see the noise made by each machine.

So, you have the exact list of the best mining machines and you can choose them according to their profitability.

For example, today, as I write this article, Monday February 18, I see this table:

For example, I see that I could earn $40 per day, or 1200 euros per month withObelisk SC1 Immersion. I could also earn $10 per day, or $300 per month if I buy the ASIC MINER Zeon 180 or the Innosilicon A9+ Z master.

To see where I can get the machine, simply click on the name of the machine and arrive on a summary page. You will see the price of the machine and where you can get it.

Thus, we see that the most profitable machines currently are the Obelisk. Certainly, they can bring in big profits and a simple machine can earn you a real salary per month. That said, you will have to pay the price. A powerful mining machine from the brand Obelisk costs around $4000. But, in 6 months, you will have paid off your machine and you will already be enjoying your passive income.

Note: It is assumed that the current price of cryptocurrencies will not change.

Discover the MiningWholeSale store

–> The shops to buy mining equipment

Conclusion on mining bitcoin

In fact, you have understood, to earn bitcoins only with mining, it is a little difficult today. It even gets more difficult as we move forward in time. Even if we consider the profitability tables of the AsicMinerValue site, we realize that other cryptocurrencies are even more profitable than bitcoin.

This is also the subject of a future article which will list the best cryptocurrencies to mine in 2019 based on Whatttomine calculations.

To help you in your choices, I have written several articles on the subject that might interest you:

If you have other suggestions, once again, don't hesitate to tell us!

Note: No financial advice is given in this or any other article on zonebitcoin. This is information of which you are the sole judge and master. Be responsible with your investments and only invest as much as you are willing to lose.

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