ASIC Mining Vs. GPU Mining : Which one is Best Right Now? Бизнес план майнинг asic
Which one is Best Right Now?
So, you want to be a Cryptominer! In that case, you would want to read this article thoroughly to sought out which is best for you ASIC Mining Vs GPU Mining ? As you all know, Crypto-mining or Mining is one of the ways to actually earn Cryptocurrencies, be it Bitcoin or any Altcoin, besides other methods like trading or buying Crypto coins for fiat currency.With the current mining buzz going around and so many crypto millionaires popping around, you may also have wanted to be one among them. So, Mining is a less risky way to go for it as compared to investing in cryptomarket. In this article, we will compare the two best ways of mining that is ASIC Mining or GPU Mining. What should you buy Graphic card or ASIC?
Your graphic card or ASIC Rig will be on their way to finding new blockchain blocks while you will be making money by practically doing nothing.
By mining you can add more amount to your existing coin assets and thus more profit. This also makes you unafraid of the market fluctuations as in a way you will always get more coins if you incur losses.
Best GPU For Mining in 2018?
ASIC Mining Vs GPU Mining
If you don’t have time to read this post in detail then here’s a brief summary of this post. This table explains in short what is the main difference between ASIC Mining Vs GPU Mining.
|Compact Form Factor||Whole rig takes up space|
|Gigantic Hash Power||Incompetent against ASIC|
|Relatively Cheaper Base Price||Costly due to additional components price|
|High ROI||Low per day Earning|
|Easy Setup||Complicated to Configure and Setup|
|No Extra Components Needed(Except PSU)||Cannot Function Alone|
|Poor resale value||Good Resale Value|
|Poor Warranty and Support (180 Days)||Good Warranty and Support (3 Years)|
|Usually Dedicated to one Algorithm||Coin Flexibility|
|Very Limited Availability||Easy to Buy|
|No such option||Can be Tuned for less Electrical Composition|
|Not for Home Use,Very Noisy(70dB)||Relatively Quieter Home Friendly|
|Example - Antminer L3+, Antminer S9||Example -Nvidia GTX 1080 Ti,AMD RX Vega 64 Liquid|
|Coins -SHA-256, Bitcoin(BTC),Scrypt, Litecoin(LTC) etc.||Coins - Ethash, Ethereum(ETH),Equihash, BitcoinGold(BTG)etc.|
What is Crypto Mining in Layman Terms?
So before we start with our main article let’s first understand What is Cryptocurrency Mining?
- Unlike trading or simply buying, Mining is a different process where specialized computers are used to find blocks by solving extremely complex math problems. The work done to solve the difficult math problem is also known as Proof of Work (PoW).
- By solving the problem, the miners receive the right to add a new Block to the existing Block-chain which in turn legitimizes the transactions. This confirmation of a transaction is needed to prevent problems like double spending etc.
- For this work done, you as a miner get the particular coin as a reward or incentive for your effort and hardware used. This way you end up mining/earning the coin for yourself.
- The mining difficulty becomes harder and harder as the number of miners increase. For some coins like Bitcoin, the block reward is halved after fixed intervals. For example – The next halving of Bitcoin block reward will happen in the mid-2020. In short, Mining becomes more difficult and less rewarding with time due to more miners joining and finite amount of coins left for mining, much like mining resources in the real world.
“So basically, Miners are nodes in a large peer to peer network whose sole aim is to solve a PoW Problem so that the transaction is processed effectively. This in turn earns the miner a reward in the form of coins.”
Now that you know about mining Let’s hop on to the very motive of this article and talk about the different types of mining based on Hardware used.
Types of Crypto Mining : A Classification
In the initial years of Bitcoin’s launch, mining could be easily done via any computer component that had processing power and memory. But with time – the need, speed and technology changed, resulting in a competitive race that ousted most of the incompetent mining hardware. As of today, you can still mine using older methods but the fact is there will be non-significant profitability and hence useless effort. You will get your electricity bills hiked but no profits will be there.
There was a time when home desktops were more than enough for Bitcoin Mining. With time people switched to GPU’s for more hashrate and desktop PC’s became obsolete for mining. As of now we have specially designed hardware available for Mining known as ASIC’s. Some coins are ASIC resistant and can be mined using GPU’s only. So, let’s classify the ways you can still mine at present.
According to us, the main types of Crypto Mining Techniques based on Hardware are
There are other two types of Mining that can be done but are not classified based on hardware
So, these were the various ways we can do crypto mining at present and for each type the Algorithm of a coin decides which type of mining is apt for it.
As of this date the two most common and competitive ways of mining are the GPU Mining and ASIC Mining. These both are also the most profitable in terms of prominent coins that support them. So, in this post we will go in detail about ASIC Mining Vs GPU Mining and help you understand Which is the best for you?
Things to Remember
1. Hashrate :
A miner machine’s power is determined by it’s calculation ability also known as Hashrate.
2. Research :
Always Check the Developer Team behind the coins before mining or Trading. Not every coin is there to stay and some are just scams. Hence mine and trade only trust able coins. Also check their volume so that you know it’s popular enough. If you think coin is profitable to mine but doesn’t have a promising future then dump it immediately after mining.
3. Mining Algo :
Coin Mining Algorithms determine what ASIC can mine and what GPU’s can mine.
4. Mining Pool :
You will have to join one or other Mining Pool so that you can collectively act as a very powerful machine. The rewards can be then divided depending on the input you gave in terms of hash power. Solo Mining is only possible if you have a very large mining farm that can own around 10-20% of the total global hashrate. This will enable you to start your own pool.
5. Best Mining Hardware :
The two major factors that actually determine the best mining hardware are:
♦ ROI and ♦ Electricity Efficiency
6. Mining Profitability :
Mining Profitability can be calculated on some popular websites like :
♦ JKCrypto.com – GTX 1080Ti Mining
ASIC Mining : Everything you should know
ASIC stands for Application-Specific Integrated Circuit which is basically a machine specially built for the sole purpose of mining a certain Cryptocoin only. For example – A Bitcoin ASIC machine solves complex algorithms and receives an incentive in the form of a small fraction of bitcoin. Though there are ASIC’s that can mine more than one algorithms but mostly they are specific to one or other coins.Bitcoin Mining Rig using ANTMINER S2
Some popular examples of Crypto Coins/Algorithms that can be mined using ASIC are
Benefits of ASIC Mining:
1. Compact Form Factor :
ASIC miners are designed specifically for mining particular targeted coins and hence they have a smaller and compact form factor as compared to GPU Mining Rigs which takes up space. Instead of a full computer setup, they are compact devices ready to be used out of the box.Gigantic Hash Power : Being an Application Specific Device the ASIC Mining machines have evolved very abruptly in Hash Power and are way faster than GPU’s. Out of the Box they provide around 14 TH (Tera Hash).
2. Easy To Use :
ASIC’s are already pre-built complete setups with no setup hassles. Instead ASIC is the nearest to what we can call Plug and Play. The only component you will need is a Power Supply Unit(PSU) which is an obvious thing.
3. Comparatively Cheaper :
As of today if the relative basic cost of ASIC is compared to GPU mining rigs then ASIC tends to be cheaper as GPU Mining rigs usually need a whole setup with a bunch of GPU’s to perform optimally which in turn makes them costlier. ASIC on the other hand is a single device which is not really cheap but relatively cheaper if you mange to pre-order one.
4. High ROI :
If you buy the latest ASIC available then you will get a High Return of Investment just way better than GPU’s. This is basically due to the fact that ASIC machine are mostly made for major coins that are in the market and the fact they have a significantly high hash power. The machine is simply made keeping in mind one particular coin/algorithm.
5. Bully :
If a coin can be mined using both GPU and ASIC then the ASIC will easily overpower the GPU. In-fact, ASIC destroys the GPU’s profitability completely because of the above mentioned advantages. GPU miners have to resort to ASIC resistant coins as winning in competition with an ASIC on the same ground is impractical.
Note : [ROI depends on the Antminer you choose but the major factor will always be the Market Fluctuations.]
Disadvantages of ASIC Mining
Poor Resale Value :
ASIC’s are coin specific machines and hence once they become obsolete they cannot be used for any other computational purposes. Due to this, they cannot be re-sold or re-used and end up becoming Electronic Junk.
Obsolete with New Iteration :
As the name suggests ASIC miners are specifically built for specific coins or algorithms only. In addition to this whenever an ASIC miner gets an upgrade that is a new version is released the older one becomes obsolete. This is due to the fact that the ASIC miners are dedicated machines and hence an improvement usually increases the hash power to more than 50% of the previous one. This in turn kills the profitability of the old miner.
Difficult to Buy :
ASIC machines are very difficult to get hands on due to their limited availability. The ones that are commercially available are mass produced only in China and due to the high demand and low supply, they are usually on pre-orders. ASIC takes around anywhere from 2-3 months to actually ship back to you! If you want it delivered instantly then you may have to easily pay three times the original amount. This is a big factor to consider while planning on buying ASIC Miners as it effects your ROI planning.
Very Noisy Fans(70dB) :
ASIC works at a very high hashrate and hence the power consumption and thermals also shoot the sky. Better but noisier fans are used to keep the temperature at bay. Moreover miners keep on functioning 24*7 hence the noise problem is something to be considered. In Fact, it is advisable to not set up an ASIC mining Rig at home instead try warehouses or garages etc. where the sound won’t pose a problem for you especially during the silence of the night. In short it’s not Home friendly.
Poor Warranty (180 Days) :
ASIC miners come with an Official Warranty of either 3 or 6 months depending on the model you choose. This in comparison to the 3 or 5 Year warranty of a GPU seems minuscule. Moreover if in case hardware issues occur and you need to use the warranty or change/repair parts then it means you have to make a call to China or ship it to and fro from China.
Should you invest in ASIC Mining?
⇒ Yes, if you get the miner at the actual price. For example – Currently Antminer S9 has the basic price of around $2000 but if you want it instantly you can get it from Amazon.
⇒ If you can have separate dedicated room for mining. You can’t live on the same room due to ASIC heat and noise.
⇒ If you can afford to lose it all(investment) as we already mentioned, no knows about the Bitcoin is the next Bubble or still under valued. If the Bubble pops out then you are left with zero value as it happened in 2013 due to Mt. Gox Hack. Many Bitcoin Mining farms were shutdown that time as Bitcoin Prices plundered by 80 percent.
⇒ ASIC Mining is for a person who wants to run mining like a business as professionally as possible. The reason to act in such a way is due to the fact that you will be running a risk – as there will be a time when the ASIC that you purchased will have zero value. So manage it methodically as there will be a sure shot rapid influx of mining whenever a new ASIC is released. You will have to get your ROI back as soon as possible before this point.
Some popular ASIC’s that you can purchase as of today are
ANTMINER L3+ (LITECOIN)
ANTMINER S9 (BITCOIN)
Hope this detailed info about ASIC Mining helps but before you decide let’s have a look at GPU mining too!
GPU Mining : Everything you should know
GPU stands for Graphics Processing Unit and yes it’s the same thing that gaming enthusiasts crave for. Similar to the above thing, In GPU Mining also, a complex Proof of Work Problem is solved to legitimize a transaction and add a new block to the original Block chain, only this time it’s done using GPU’s. Again similar to ASIC Mining you will get a reward in the form of the current crypto currency that your GPU Rig is mining. A GPU mining Rig consists of a bunch of GPU’s working in a computer setup. More the GPU’s more the hash power!
There are many different types of GPU mining currencies. Some of the popular ones are listed in the below table along with their algorithms.
|LBRY||LBRY Credits (LBC)|
Note : [Some coins are mined better by AMD GPU and some are mined more profitably by the NVIDIA GPU depending on the Algorithm.]Ethereum Mining Rig using AMD GPU’s
Benefits of GPU Mining
Flexible Coin Options :
GPU mining rigs unlike ASIC ones can mine multiple coins and are not dedicated solo miners. It’s flexible to the extent that GPU rigs can even mine several coins at once. So if in case due to market fluctuation if one coin incurs loss then you will always have several options to choose from.
Easy to Buy :
GPU’s are manufactured by mainstream companies like Nvidia and AMD and hence easily available, that too at good reasonable prices. Because you are basically making a super powerful computer hence all the parts needed to make a GPU Mining Rig is easily and widely available. There are no availability hassles.
Good Resale Value :
Once you are done with Mining, the GPU Rig can be easily sold at good prices as it will still be usable for gaming, video editing and other GPU intensive tasks. Each and every component will still have a good resale value and are easy to sell as they are still useful for many other purposes. It’s similar to selling a perfectly fine second hand computer system.
Less Electrical Consumption :
As GPU’s can mine several coins hence the hash rate required to mine different coins is different depending on Miner numbers and amount of coins mined. Hence the mining rig won’t consume full power each time as power required depends on the coin. Also GPU’s usually perform the best at around 80% Power and not at 100% throttling. So, in a way video cards can always be tuned to consume less electricity.
GPU’s were never specifically made for Mining instead they were always an integral part of the computer design and were used for Gaming, Video editing and other heavy processing purposes. This makes them multipurpose machines which along with mining can also be used for several other computational purposes. This makes them useful even if mining industry becomes obsolete.
Good Warranty :
If you buy a new GPU, you know that you are in good hands as the warranty you get is around 3 to 5 Years and that too from a trusted source. You don’t have to ship it into mainland China and can get the repairing done at your very city. GPU companies are generation old companies and cater to the needs of their customers as readily as possible.
Quieter Operating Environment :
One of the goals of the GPU companies is to make a more compact, silent and thermally efficient GPU because it’s a home use device. This results in low noise levels and better thermally optimized GPU Rigs that can be easily setup at home without any worries for the 24*7 operation.
Disadvantages of GPU Mining
Complicated to Configure :
For a Layman, assembling and setting up a GPU Mining Rig is fairly difficult task. You need to be a techie to be able to handle all the assembling and setting up of the rig. Of course, You can hire a techie to solve this problem but later while mining also you need to be able enough to troubleshoot major/minor problems. Hence you will need support in the start until you get trained enough for handling the rig yourself.
SetUp Hassle :
GPU’s cannot function on their own hence you will need to build a fully functional computer with a bunch of GPU’s attached to it. Components like CPU Case, Motherboard, RAM, SSD and PSU along with wiring has to be purchased separately. Only then can you start mining.
Costly Base Price :
The cost of the above mentioned components along with the GPU’s cost adds up to more than what an ASIC comes for. So GPU Mining Rig may be a long term option but one thing is for sure, It’s not cheap at all, even Pricier than ASIC Mining Rig.
Longer ROI Period :
GPU’s have comparatively low hash power and mine coins that are not exactly what we can call prominently mainstream. Due to this reason, the Return of Investment period is way longer than that of ASIC. Of course, as mentioned before this depends majorly on the market fluctuations but it’s practical to not expect the ROI for at-least six months or more. It has Low per day earning as compared to ASIC.
Incompetent to ASIC :
Compared to ASIC, GPU’s are far inferior in the field of mining hence it’s advisable to mine only the ASIC Resistant Coins using a GPU Mining Rig. It would be sheer foolishness to mine a coin that has an ASIC machine available for it using GPU. Profitability will be less hence never compete against ASIC instead choose those coins that cannot be mined using ASIC.
Takes up space :
A GPU itself alone is as compact as an Antminer but unlike Antminer it cannot function itself. You will need a bunch of GPU’s and other computer components to setup the rig. This takes up way more space than what a Antminer would. So it’s not portable or easy going regarding usage of space.
Should you invest in GPU Mining?
⇒ Yes, if you don’t want to get stuck with one single coin.
⇒ If you don’t have a dedicated room for mining as they are less noisy and produce less heat compared to ASIC’s.
⇒ If you don’t want warranty hassles. There are a lot of companies that manufacture the GPU and each of them is reputable and trusted. The multi million dollar business had been thriving since even the advent of Bitcoin itself.
⇒ GPU Mining is for a person who does not want a high risk factor. Of Course, he has to invest more than ASIC Mining but as explained above it is a much safer method. You can always be patient on the ROI as eventually it will come for sure. GPU Mining is for the common man who wants to make some extra bucks without taking a greater risk.
Some examples of the Best GPU Mining Cards from AMD and Nvidia are
NVIDIA GEFORCE GTX 1080 Ti
RADEON RX VEGA 64 LIQUID
Want to know Which is Best GPU For Mining Equihash Algo ? Read Here
Conclusion : Best Way to Go?
So these were the main differences between ASIC Mining and GPU Mining. Choice will always be yours which one to go for. You can choose keeping in mind which one is favorable for you according to circumstance like Electricity Cost. If you are looking for suggestions then here’s a piece of advice.
Don’t Keep all your eggs in one Basket. Start with GPU Mining and eventually when the ROI is done go for ASIC Mining.
Also if you still have any questions regarding ASIC Mining Vs. GPU Mining then do hit us a comment in the comment box down below and we will come up with a reply. For more Posts on Crypto Coin Mining and other Crypto Currency Updates, Don’t forget to Subscribe for Notifications from JKCrypto.com.
Thanks for Reading! Happy Mining to All…..!!!
5 Best Bitcoin Mining Hardware ASICs 2018 (Comparison)
Hobby Bitcoin mining can still be fun and even profitable if you have cheap electricity, an efficient bitcoin mining machine and get the best Bitcoin mining hardware.
It’s important to remember that Bitcoin mining is competitive. Today it is not smart for the average person to mine since China’s cheap electricity has allowed it to dominate the mining market. If you want bitcoins then you are better off buying bitcoins.
Bitcoin Mining Hardware Comparison
What is an ASIC Bitcoin Miner?
Since it’s now impossible to profitably mine Bitcoin with your computer, you’ll need specialized hardware called ASICs.
Originally, Satoshi intended for Bitcoin to be mined on computer CPUs. However, Bitcoin miners discovered they could get more hashing power from graphic cards. Graphic cards were then surpassed by ASICs (Application Specific Integrated Circuits).
Nowadays all serious Bitcoin mining is performed on dedicated Bitcoin mining hardware ASICs, usually in thermally-regulated data-centers with access to low-cost electricity. Think of a Bitcoin ASIC as specialized Bitcoin mining computers, Bitcoin mining machines, or “bitcoin generators”.
Don’t Get Confused
There is Bitcoin mining hardware, which mines bitcoins.
There are also Bitcoin hardware wallets like the Ledger Nano S, which store bitcoins.
How to Find the Best Bitcoin Miner
There are some important factors to look at when determining which Bitcoin mining ASIC to buy:
Hash rate – How many hashes per second can the Bitcoin miner make? More hashes cost more, which is why efficiency is crucial…
Efficiency – You’ll want to buy the most efficient bitcoin mining hardware possible. Since miners use a large amount of electricity, you want to buy one that converts the most amount of electricity into bitcoins.
Price – How much does the bitcoin miner cost? Cheap mining hardware will mine less bitcoins, which is why efficiency and electricity usage are important. The fastest and more efficient mining hardware is going to cost more.
Don’t try to buy a miner based on only price or only hash rate. The best ASIC miner is the most efficient bitcoin miner. Aim for value.
Bitcoin Miners for Sale on eBay or Amazon
If you’re a hobby miner who wants to buy a couple rigs for your house, eBay and Amazon both have some decent deals on mining hardware.
Used Bitcoin Mining Hardware for Sale
Both new and used bitcoin mining rigs and ASICs are available on eBay. One may want to buy used ASIC mining hardware on eBay because you can get better prices.
eBay’s customer protection ensures you’ll get a working product. Other bundled equipment may be included with your purchase depending on the seller.
We recommend purchasing the Antminer S7 or the Antminer S9.
Just Want Bitcoins?
If you just want bitcoins, mining is NOT the best way to obtain coins.
Buying bitcoins is the EASIEST and FASTEST way to purchase bitcoins.
Get $10 worth of free bitcoins when you buy $100 or more at Coinbase.
You can use a bitcoin mining profitability calculator to determine your estimated cost of return on your mining hardware.
Be sure to take electricity costs into account. Most mining hardware appears profitable until electricity costs are accounted for.
Most Efficient Bitcoin Miners
Good Bitcoin mining hardware needs to have a high hash rate. But, efficiency is just as important.
An efficient Bitcoin miner means that you pay less in electricity costs per hash.
The miners in the table below are currently the most efficient Bitcoin miners on the market.
The Avalon6 gets 0.29 Watts/GH, but costs more than $200 more than the Antminer S7.
The Antminer S7 is more efficient, with 0.25 Watts/GH. The Antminer S7 also costs much less, and comes with 4.5 TH/s of hash power compared to the Avalon6’s 3.50 TH/s.
The AntMiner S7 is clearly the better option between these two miners, which are currently the most efficient miners available for purchase.
To improve your efficiency, there are also companies that will let you order hardware to their warehouse and run the miners for you.
You could also cloud mine bitcoins. But both options are a lot less fun than running your hardware!
Bitcoin Mining Hardware Companies
Bitmain – Bitmain makes the Antminer line of Bitcoin miners. Bitmain is based in China and also operates a mining pool.
BitFury – BitFury is one of the largest producers of Bitcoin mining hardware and chips. Its hardware is not available for purchase.
Spondoolies Tech – Spondoolies Tech is an Israeli based mining hardware manufacturer.
Bitcoin Mining Equipment
In addition to a Bitcoin mining ASIC, you’ll need some other Bitcoin mining equipment:
Power Supply – Bitcoin rigs need special power supplies to funnel and use electricity efficiently.
Cooling Fans – Bitcoin hardware can easily overheat and stop working. Buy a sufficient amount of cooling fans to keep your hardware working.
You can find Bitcoin mining equipment for sale on eBay.
Bitcoin Mining Without Hardware?
It’s still technically possible to mine bitcoins without dedicated mining hardware.
However, you’ll earn less than one penny per month. Mining bitcoins on your computer will do more damage to your computer and won’t earn a profit.
So, it’s not worth it unless you’re just interested to see how the mining process works. You’re best bet is to buy dedicated hardware like the Antminer S7 or Antminer S9.
USB Bitcoin Miners
Using a Bitcoin USB miner with your computer was once a profitable way to mine bitcoins. Today, however, USB miners don’t generate enough hashing power to mine profitably. If you just want to get a Bitcoin miner USB to learn, eBay is a good place to buy a cheap Bitcoin miner.
How to Mine Bitcoin - Best Bitcoin Miners Reviewed
Since 2011, countless so-called experts have been predicting the death of Bitcoin over and over again. There is even this website that counts how many times Bitcoin survived and kept thriving when, according to “experts”, it was supposed to die.
Since Bitcoin is apparently not going anywhere anytime soon, you might be thinking of getting your hands on an ASIC miner to get some BTC in your wallet.
In this article, I have compiled a list of what I believe are the best ways to get Bitcoin. This list describes the top 6 ASICs for BTC mining, as well as two cloud mining companies that proved to deliver as promised.
How to Mine Bitcoin
If you are not into cryptocurrency trading and speculation, you might want to mine your Bitcoins instead. By mining you support the cryptocurrency and get some money in the process too.
What is good about mining is that by using an ASIC you get a passive income, rather than profit one time from a lucky trade. Cryptocurrency trading might be potentially lucrative, but it requires you to be immersed in the world of cryptocurrencies 24/7. The more immersed you are, the more chances you’ve got to profit from cryptocurrency speculation.
Mining is different. Personally, I see mining as a way to create a steady flow of Bitcoins into my cryptowallet, rather than a way to get rich quickly. That being said, there are hundreds of people who made millions dollars with Bitcoin. There are many people who pay their bills by owning massive contracts with Genesis Mining or by operating their own mining farms.
While more than one thousand people proved that one can make a living by mining cryptocurrencies, I would recommend you to start with lower expectations. The cryptocurrency market is complex and despite its average rising trend, it is rather unpredictable in the low scale.
It might be also a good idea to start small and invest only the amount you can afford to lose. Bitcoin mining requires quite a solid investment in order to provide you with a noticeable monthly income, which is why some newcomers are tempted to invest into mining more than they should. This creates unnecessary expectations and contradicts to the goal of mining, which is to have a passive income, rather than to make a million bucks in a month.
All of the mentioned means that the following list is based on the idea that mining is meant to be a mid- or long-term investment. When I review mining equipment, my main criteria are longevity and hashrate/power usage ratio.To receive the latest updates follow me on social media! 🙂
So, how to mine Bitcoin?
There are essentially two ways to mine Bitcoin. One is by owning Bitcoin mining hardware: In this article, I will be talking about what I think is the best Bitcoin miner, as well as five others that are close to it.
The other way is by purchasing a cloud mining contract and delegating the job to maintain the mining gear to a third-party company. Some people are reluctant about cloud mining since there used to be some cases of fake cloud mining companies scamming their customers. I am aware of the risks and I will talk about two companies that proved to be legit and trustworthy.
Best Bitcoin Miner
Here is my list of the best Bitcoin miners. Now you know the criteria I’m using to determine which miners should go in the list, so you probably won’t be surprised about my best Bitcoin ASIC miner pick.
The good thing about a list is that if one of the miners is out of stock, you can still consider the others. Some of those are meant for home mining, while others are either too noisy or too big and can only be properly used in a specialized farm (which might be a clean and properly cooled garage or basement).6) Antminer S7 – 4.73 TH
The AntMiner S7 was released in mid-2015. Back in the day, with Bitcoin being priced at $225 USD and the difficulty being a fraction of what it is today, the AntMiner S7 was considered one of the best miners for the coin, as well as it featured a very promising ROI. It also was one of the game changers for the Bitcoin mining community.
Two years have passed by and some think that the AntMiner S7 is no longer viable for mining. The reason is simple: if we calculate the profit based on the hashing power, electricity costs and mining pool fees, the AntMiner S7 ASIC Bitcoin often gives either negative or near zero profit. Today, with Bitcoin being priced at $ 3836.95, this ASIC delivers only about $ 1 USD a day, all fees included.
Your question probably is – why is this ASIC in this list? The reason is simple – if we think of mining as a way to convert fiat currencies into BTC, then the Antminer S7 might be considered a great option. While you probably won’t be expecting any additional passive income from this miner, not with BTC being priced at $3836.95, you can still use this little piece of equipment to safely and steadily convert your dollars into BTC.
The main pro of this ASIC is its durability. Many S7s have been mining for two years now and they keep hashing the way they used to do. This is a good sign and it makes the S7 a good pick for those who are not rushing anywhere and who want to play it safe.
The AntMiner S7 features a strong metallic case and dual fans for stable cooling. It can operate between 7 C and 40 C ambient temperature, which makes it suitable for home mining too, if you don’t take into account the noise it produces. It is indeed quite noisy with tests showing a sound level of about 63 dB.
- Mining Hashrate: 4.73 TH/s ±5%
- Chips: 162x BM1385
- Power Consumption: 1293W ±10%
- Power efficiency: 0.25 W/GH ±10%
- Operating Temperature: 7 °C to 40 °C
- Net weight: – kg
This is not the best power efficiency one can find on the market today, but again, as I’ve already mentioned, the selling point of this miner is its durability, rather than power efficiency.
Price Disclaimer5) AvalonMiner 721 – 6 TH
The next Bitcoin ASIC in our list is the AvalonMiner 721 – a miner by Canaan released in 2016.
The Avalon 721 is smaller and lighter than Bitmain’s miners, being only half of the weight of the Antminer S7. However, by some reason, the 721 manages to output some nice hashrate and one year later it is still considered a solid miner.
Canaan interactive is a China-based company that is focused strictly on manufacturing Bitcoin ASICs. The Avalon 721 is based on 16nm chips, which allows it to be more power efficient than the aforementioned Antminer S7.
In fact, the 16nm technology is still considered close to the cutting edge. This means that the ASIC still got a long life ahead.
ROI-wise, the AvalonMiner 721 is rather an interesting case. As for today, it features ROI of somewhere between 8 and 12 months, depending on the price you pay for it. Back when the miner was released, in December 2016, its ROI was 24 months.
The power efficiency and durability of the 721 allow it to stand the test of time and actually become more profitable by the day.
As for today, the ASIC produces about $123.41 USD monthly, fees included.
- Mining Hashrate: 6 TH/s
- 16nm chips: 72x A3212
- Power Consumption: 850 W – 1000 W
- Power efficiency:
- Operating Temperature: -5 °C to 40°C
- Net weight: 4.3 kg
Price Disclaimer4) AvalonMiner 741 – 7.3 TH
If you like the AvalonMiner 721, you might like its successor too – the AvalonMiner 741. This miner is still based on 16nm chips too, however due to some important software and design optimization, this new model features even higher hashrate.
Efficiency-wise, the Avalon 741 still got the same 0.15 W/Gh, but thanks to the optimizations its base price is about 20% lower than the one of its predecessor. The AvalonMiner 741 looks really solid – it features an aluminum shell and custom heatsink with airforming technology. All of this makes me believe that the miner won’t be breaking anytime soon. This is even more believable since Canaan has a reputation of manufacturing quality products.
Noise-wise, the Avalon 741 can be considered a home miner in the case you live alone or your neighbors don’t mind the 50-60 dB noise. Otherwise, it might be a good idea to keep it in a dedicated mining farm (whether it is a mining office or a properly configured garage). If you want a miner especially designed for home mining, then check the next one in the list.
- Mining Hashrate: 7.3 TH/s
- 16nm chips: 88 x A3212
- Power Consumption: 1150 W
- Power efficiency: 0.16 Joules/GigaHash
- Operating Temperature: -5 °C to 40°C
- Net weight: 4.3 kg
3) AntMiner R4 – 8.6 TH (great for home mining)
The Antminer R4 can be considered the most popular Bitcoin home ASIC miner. While the miner is big and heavy, it produces only 51 dB of noise. According to loudness scales, 51 dB can be compared to the noise level of a quiet office or a refrigerator.
As for today, the ASIC mines Ƀ 0.07031/ month or around Ƀ 0.8554 /year. Considering the upward trend of Bitcoin, this translates to $208 USD/mo profit. This is also why few people are willing to sell their R4. New miners are not available for sale either. Last time I’ve checked, the cheapest R4 for sale was priced $ 3.200 USD per unit, used. Even then, it features 18 months ROI, which is actually not bad for a Bitcoin ASIC.
- Mining Hashrate: 8.6 TH/s
- 16nm chips: 126 x BM1387
- Power Consumption: 845 W
- Power efficiency: 0.1 J/GH
- Operating Temperature: 10°C to 40°C
- Net weight: 9 kg
Price Disclaimer2) AntMiner T9 – 11.5 TH
The AntMiner T9 is still one of the most sought-after Bitcoin ASICS. It features great power efficiency, as well as a solid metallic shell and equally good cooling system.
The T9 is one of the newest Bitmain’s additions to the ASIC market. It features 171 16nm chips that output between 11.5 TH/s and 12.5 TH/s, depending on the batch.
The best thing about this Bitcoin ASIC miner is probably its availability on the market. While ASIC availability changes overnight and tomorrow things might be different, today the AntMiner T9 is on sale at a reasonable price in several sites. By having an average price tag of $1.600 USD, the T9 features 7 months ROI.
- Mining Hashrate: 11.5 TH/s – 12.5 TH/s
- 16nm chips: 171 x BM1387
- Power Consumption: 1450 W – 1576 W
- Power efficiency: 0.126J/GH
- Operating Temperature: 0°C to 40°C
- Net weight: –
Price Disclaimer1) AntMiner S9 – 13.5 TH
As for today, the AntMiner S9 is widely praised as the best Bitcoin miner. I completely agree with the public opinion on this miner.
The S9 features better power efficiency than the T9, which makes it even a better option for long-term Bitcoin mining. In fact, I still got to find a miner that would have better power efficiency than the Antminer S9.
This ASIC is easy to operate and it takes only a couple of minutes to set it up. You don’t have to be a mining guru to be able to profit with this miner.
- Mining Hashrate: 13.5 TH/s – 14 TH/s
- 16nm chips: 189 x BM1387
- Power Consumption: 1323W ±7% W
- Power efficiency: 0.098 J/GH ±7%
- Operating Temperature: 0°C to 40°C
- Net weight: –
Price DisclaimerBitcoin Cloud Mining
I agree that not anyone can afford to have their own ASIC at home for various reasons. In some cases, your roommates might oppose to home mining because they don’t like the constant noise the miner produces. Or there might be no room for a miner in your apartment. Or, depending on where you live, electricity might be really expensive at your place rendering mining unprofitable.
There are several reasons why far from everyone can mine from their homes. Luckily for us, there is a way to enjoy the benefits of mining without the need to have a miner at home.
I am talking about Bitcoin cloud mining. There are companies who rent hashrate. Investing in a cloud mining contracts can be compared to investing in a company – you pay a fixed amount upfront and then your income depends on how the value of the company (in this case, the value of the cryptocurrency) evolves.Before to continue further, please share this 🙂 thanks!
There are two main factors that affect your profit from a Bitcoin cloud mining contract:
- Bitcoin price
- Bitcoin mining difficulty
Electricity and maintenance fees are usually included in the price in the case of a limited time contract.
Usually, cloud mining contracts offer a ROI of 18 months. Depending on Bitcoin price/difficulty fluctuations, this might go up or down. I am talking about legit companies here. Scam ones often attract unsuspecting victims by offering them 3-5 months ROI contracts. Those are indeed unrealistic numbers and anyone who is not new to cryptomining can spot what’s wrong.
The two companies I am going to talk about here have stood the test of time. That being said, there is always that guy who gives negative rating to a functioning and honest company. Also, as always, please take what you read with a grain of salt and make your own research.Genesis Mining – Bitcoin Cloud Mining
Genesis Mining owns farms in Bosnia, China and now Iceland. The company was founded in late 2013 and since then it proved to work as intended. They do face some technical difficulties from time to time that result in payoff delays but at the end of the day people still get their money.
Newcomers sometimes start to panic when they don’t get any BTC the first month after they’ve purchased a contract. Most negative reviews about Genesis Mining are based on this.
I guess it is worth mentioning that the company will hold the Bitcoins you’ve earned the first 30 days after you’ve purchased the contract. You will get your BTC 31 days after you’ve bought the contract. The reason is simple – credit card payments have a 30 day refund policy, so anyone can potentially exploit this to get infinite hashrate from GM for free. This is why Genesis Mining freezes your income for the first 30 days in order to avoid being scammed by its own customers.
People who bought their contracts with Bitcoins start to get their profit the same day. However, the minimum payout amount is 150.000 Sat. Funds will be accumulating until the amount to be paid becomes more than 150.000 Sat. This means that people who got their hands on small Bitcoin contracts will not get paid on a daily basis.
Genesis Mining’s Bitcoin contracts are out of stock now, but they might get more hashrate for sale since they are eventually in the process of amplifying their farm.HashFlare – Bitcoin Cloud Mining
The next company in the list is HashFlare. HashFlare is younger than Genesis Mining, but it managed to achieve popularity rather quickly thanks to its competitive rates.
That was the reason why some people at first labeled it “scam”. Luckily for those who purchased contracts from HashFlare, the company never stopped to pay its customers.
Initially, the company was offering lifetime Bitcoin mining contracts. However, some days ago, Hashflare suddenly announced that they are no longer supporting lifetime contracts. Customers who paid for a lifetime contract will still have their contract expired in one year from the day this news was announced.
The community didn’t like this news at all. You can now find a lot of people on the web labeling Hashflare “scam” once again. While what HashFlare did wasn’t really ethical, it was not straightforward scam either. Mostly because in the Terms and Conditions they wrote that they will probably change the duration of contracts in the future.
Whatever is the case, their SHA-256 contracts now are 1 year long and according to mining calculators, the ROI of such contracts are about 1 year too. This means that those who invest into a HashFlare contract are signing up for a slow USD -> Bitcoin conversion, rather than for a passive income.
Cryptocurrency market is evolving rather quickly, so don’t take this short Hashflare review as the ultimate truth. While today might be not the best day to invest into a Hashflare cloud mining contract, it is worth keeping an eye on their plans, in case they offer something more interesting.
As for today, the cost per 10 GH/s for a year is $ 2,40. They also ask you to pay the maintenance fees, which add another $ 1,27 USD per 10 GH/s per year. With today’s Bitcoin difficulty and prices you can expect an income of $ 3.55 per 10GH/s, excluding fees. If we include fees, we will get a 2,28/year income, or $ 0.12 USD loss per year, taking into account the price tag of the plan.
It is time for me to conclude this list with this question: Is Bitcoin mining worth it?
The answer is up to you. Depending on your ambitions, expectations and willingness to accept risk, Bitcoin mining might or might not be your thing.
In my experience, getting an ASIC always pays off, unless you get a really old one which can not cover electricity costs. Cloud mining is the plan B for me, since I can mine at home. However, I know several people who have been using Genesis Mining services for years now and they have no complains about it.
Thank you for reading. As always, your comments, suggestions and questions are welcome.
Subscribe and stay tuned for further updates!
Found this useful? Buy me a beer 🙂
SHA-256 or Scrypt – A Guide for Miners – gAffiliate & Merchant Network
Crypto Mining: SHA-256 or Scrypt – A Guide for Miners
One of the central pillars of any cryptocurrency is the hashing algorithm it is based upon, but what makes these algorithms important, and what are the differences between each algorithm? If you are looking to start mining a cryptocurrency, these are important questions to consider. You may be asking yourself, who chooses the algorithm for a cryptocurrency? The chosen algorithm is up to the coins development team, not the miner; there are many reasons why the chosen algorithm was implemented, ranging from long term goals, to network security, and even protection from ASIC mining hardware. It is important for miners to consider the algorithm of a coin they are willing to mine for several reasons, including the electricity required to mine, the effectiveness of their existing hardware on the network, and whether or not they wish to mine with GPU, CPU or ASIC based mining equipment.
SHA-256, Scrypt, or X11: Which Mining Algorithm is the Best?
What is so important about the hashing algorithm you may ask, and why is it necessary to have choices? The most popular algorithm was the one which started it all, SHA-256, which originally debuted as Bitcoin’s hashing algorithm. With the introduction of Litecoin, Scrypt entered the scene and came with its own set of pro’s and con’s, but is by far one of the most popular algorithms in existence. Since then, many other algorithms have taken stage on the cryptocurrency scene, including the likes of X11, X12, X13, Scrypt-N, Scrypt-ChaCha, Groestl, Keccak, NIST5 and many others. What makes each hashing algorithm unique is often most important to the coin developer, for instance, SHA-256 based coins have a block time of around 8-10 minutes, whereas Scrypt coins can have block times as low as 30 seconds! Security also comes to mind when choosing an algorithm for a new coin; longer block times can make the network more secure especially with low network hash. Introducing a new coin to an algorithm which has ASIC’s available on the market can wreak havoc if they can’t protect themselves against the dreaded 51% attack. Even strategically choosing an algorithm to attract disenfranchised GPU miners from an ASIC ridden market or integrating developments from other coins with the same algorithm can also influence decision making. A cryptocurrency may even be based on the fact that it is ASIC resistant and may need to change algorithms in order keep that promise. All in large, choices are important when developing a coin and can mean a lot for the purpose and specific mission of that coin.
You may be thinking to yourself, well, developers having choices in which algorithm they choose to implement in a coin is great and all, but how does that affect ME, the miner? That is a valid question, and a very important one to consider as well. Mining a cryptocurrency with a specific algorithm can influence the hardware you use, to your electricity cost, the process it takes to setup your mining equipment and the philosophy you prefer as a part of the mining process. We will be covering the most popular and up and coming algorithms to date, what makes each one unique and what the pro’s and con’s are of mining each algorithm, thus you, the miner can make an informed decision on the algorithm which suits you.
Bitcoin ASCI Miners
The dawn of cryptocurrency began with Bitcoin, and in its wake came SHA-256 integrated for Bitcoin mining. SHA stands for Secure Hashing Algorithm and is a part of the SHA-2 family of hashing algorithms. SHA-2 is the predecessor of SHA-1 which is now considered insecure and obsolete. SHA-256 is considered to be one of the most secure cryptographic algorithms in existence and is the security standard in many intelligence agencies around the world. The algorithm family itself was created by the United States National Security Agency (NSA), and is released royalty free under U.S. patent 6829355, it features several different variations including SHA-256, SHA-384 and SHA-512. The white paper was officially released to the public by the National Institute of Standards and Technology (NIST) and was intended to be used as a Federal Information Processing Standard (FIPS), which means it was released as standard for all non-military government agencies as well government contractors. It is no wonder why Satoshi Nakamoto chose SHA-256 as the algorithm he would implement into Bitcoin.
When Bitcoin was first released, it was possible for Satoshi Nakamoto to mine over 2,000 BTC on his CPU alone, what has changed since then? At one point it was possible to mine Bitcoin on a simple set of hardware, a laptop CPU would be all you needed to mine, and miners were at a logical standstill. Do they continue mining Bitcoin at a loss due to electricity cost with the hopes of Bitcoin’s price increasing in the future, or do they buy off of the open market for roughly the same cost to mine? Looking back you may think your investment would be better off spent on a time machine to convince your past self that your computers spare processing power would be better off spent mining Bitcoin’s than playing solitaire, however, this is a perfect example of the economics and decisions that miner’s make while deciding to mine a coin and a segway into the SHA-256 arm’s race.
The Heat is On for Bitcoin Mining!
At the time, miners were becoming less and less likely to sell their coins at a loss, as demand increased along with the difficulty level of mining, the market took an upwards trend in direction. As more and more miner’s entered the network, Bitcoin’s difficulty automatically increased to keep the block time consistent, this made mining harder. What happened next would change the SHA-256 algorithm forever – ASIC miners were developed. ASIC’s could mine Bitcoin hundreds of times faster than GPU’s and CPU’s, using only a fraction of the electricity at much less of the cost than a competing GPU or CPU rig, with the added benefit of less heat and noise output within a smaller physical footprint, ASIC’s completely took over the market.
As ASIC’s began to flood the market, hobbyists and tinkerers that reaped the benefit of being early adopters were completely pushed out of the market. As ASIC companies competed for the best kilowatt to hash ratio, with smaller footprints, less noise, less heat, and the lowest price, investors poured money into this new, very lucrative industry, and thus the Bitcoin arms race began. To mine a SHA-256 coin, GPU and CPU mining is not advised, the hash power of GPU and CPU rigs is too insignificant to make a profitable impact. SHA-256 is also very power hungry, thus any returns would most likely be close to nothing or even in the red with no foreseeable return on investment. The most profitable, cost-efficient way to mine SHA-256 coins is with ASIC computers, bar none.
Although ASIC’s succeeded in pushing smaller miner’s out of the SHA-256 algorithm, these miner’s do provide a number of advantages to the network of each SHA-256 coin. In one example, ASIC miners do protect the network from attackers by providing sufficient hash rates as to protect coins from GPU and CPU attackers, bot-nets, and even super computers and governments. The sheer amount of decentralized hash power can immensely help a coin grow quickly, securely, and provides what is known as the “network effect”, which entrenches a coins position as an accepted currency even though it may come under competition by other more superior coins. The large amount of hash on the network even protects a coin from governments and institutions or even attackers that wished to take over the network in a 51% attack, this is thanks to the immense amount of hash power being put on the network.
How Serious are you, about Crypto mining?
Mining SHA-256 coins is a great option only if you are interested in investing in ASIC’s, which can range from tens of dollars, to several hundred, to several thousand depending on the profitability desired. SHA-256 ASIC miners come from a large and developed industry, thus finding a reputable manufacturer is very easy to do. With ASIC mining comes the added bonus of manufacturer support, which is not offered to GPU or CPU miners if they need help. Depending on the specific ASIC miner, hardware is constantly becoming more energy efficient with less noise and less heat output than GPU mining SHA-256, however don’t consider putting these miners in your bedroom just yet if you want your significant other to sleep in the same room with you, they are still loud and hot. ASIC’s are also notoriously easy to setup, with minimal technical knowledge required as less configuration and almost no system building is needed. Just remember, if you are in the GPU or CPU game, use your miners elsewhere, SHA-256 is not the algorithm for you!
ASIC Miner: Image courtesy of Antminer
Scrypt was first introduced in cryptocurrency mining with the introduction of Litecoin. Benefits of the Scrypt algorithm included lower block times than Bitcoin, and ASIC resistance. Ironically, Scrypt was implemented as a solution to Bitcoins GPU mining, which was seen as too centralized for Litecoins developers, thus Scrypt was implemented to prevent Litecoin from being mined using GPU’s. For whatever reason, Scrypt never achieved that goal and GPU miners flooded the network in any case. Scrypt was originally invented by Colin Percival for the Tarsnap online backup service, the service touts that Scrypt makes it tremendously expensive for custom hardware attacks to be conducted and is thousands of times more secure than many popular cryptographic algorithms in use today. Scrypt requires attackers to either use more memory to conduct a brute force attack, or use less memory and conduct a slower attack, this trade off is intentional and makes Scrypt very secure. It is no wonder it was first implemented by Litecoin creator Charlie Lee as the coins algorithm.
Litecoin GPU Rig
For miners, Scrypt is GPU friendly and the vast majority of Scrypt miners are GPU miners. Scrypt takes up more memory than SHA-256, however this is offset by the fact that Scrypt mining uses up less electricity than SHA-256 mining. With less electricity comes lower heat output and less noise coming from your miners, however mining Scrypt can still increase your AC bills during the Summer, and lower your gas bills in the Winter. It needs to be noted that ASIC’s for Scrypt mining are on the market, thus if you are a GPU miner mining Scrypt, you may be in for some competition. As more and more Scrypt ASIC’s are expected to hit the market, expect the difficulty to rise on Scrypt coins and your market shares to decrease, along with your profits. Scrypt coins are currently still profitable and can be an excellent investment if you have the equipment, however if you are interested in mining Scrypt you may want to consider investing in an ASIC miner instead. Some ASIC’s can even mine SHA-256 and Scrypt simultaneously, so consider ASIC’s as an option if you are considering mining a Scrypt coin.
ASIC Scrypt Miner, Photo Courtesy by Zeusminer.com
For many miners, you may feel disenfranchised by the inevitable onslaught of ASIC’s, perhaps you have already invested a substantial amount in GPU’s and want to put them to use, perhaps you have ASIC’s but you have a few spare GPU rigs sitting around, or perhaps you don’t want to be involved in the ASIC arms race and would rather not have to upgrade your ASIC’s every few months in order to stay profitable. For whatever the reason you have decided to stay away from ASIC’s, there are developers who have created algorithms which are ASIC resistant. These ASIC resistant algorithms ensure decentralization from ASIC computers, and many philosophize that ASIC resistant algorithms return mining to the “average Joe” that doesn’t have the money to mine using expensive specialized computers. ASIC resistant coins are typically a safe haven from ASIC’s and allow GPU and CPU miners a place to use their hash power. One infamous example of an ASIC resistant coin is Vertcoin, which was built on the philosophy of decentralization and ASIC resistance, this coin was based on the Scrypt-N algorithm, a modification of Scrypt that made it difficult to program ASIC’s for. However, it was only a matter of time before ASIC’s caught up as Scrypt-N ASIC’s are already on their way to the market. However there are a few algorithms that have so far stood the test of time and have yet to be successfully touched by ASIC developers.
The “X” series of algorithms first debuted with Darkcoin and was invented by Darkcoins creator, Evan Duffield. X11 is a hashing algorithm that includes eleven different hashing algorithms bundled up in one package. The original intent of X11 was to protect the network from what its creators called, Single Point Failures, which is a scenario where a hacker could theoretically crack an algorithm, making it vulnerable to attacks. Unlike SHA-256 and Scrypt, which are based on a single hashing algorithm, X11 features eleven different algorithms, all of which would all have to be compromised for an attack to be successful. Critics claim that SHA-256 and Scrypt are still extremely secure algorithms, as no one has been able to crack them, especially with the money behind these algorithms; even with all of the added attention no obvious flaws have been found. The “X” series of algorithms extends beyond X11, and includes X12, X13, X14 all the way up to X17. The simple difference between these algorithms is the amount of hashing algorithms intertwined in the package.
X11 is by far the most popular of the “X” series of hashing algorithms and has a number of attractive features to boot. X11 is best mined using GPU’s, and has a 1:6 efficiency ratio between CPU and GPU’s, thanks to better mining software, the GPU/CPU gap has been widening since the introduction of the algorithm. At this time X11 remains ASIC resistant and there are no publicly announced ASIC’s in development for the algorithm, however its widespread popularity and profitability may make it a target for ASIC developers in the future. X11 is also less power hungry then both SHA-256 and Scrypt, keeping your house cooler and quieter especially in the summertime, and keeping your significant other slightly happier about your mining operation. X11 happens to be the most dependent on the mining software you use compared to any other algorithm; specific mining software can give you huge advantages over others, potentially increasing hash power up to 40% with just the right software and settings. X11 is a great choice if you are a GPU miner who has some time to tinker with your software with the added bonus of saving money on electricity cost. X11 is also a great option if you have multiple GPU rigs and don’t want to overload your outlets, and can keep GPU farms cooler and quieter than SHA-256 and Scrypt.Tags: antminers, asic miners, asic mining, bitcoin, bitcoin mining, data mining, dogecoin, litecoin, S4+, S5, S7, scrypt mining, sha-256, vertcoin, x11, zeus, Zeusminer Volcano, zeusminers.com
How to Setup a Bitcoin ASIC Miner – Bitcoin.com
Read an important announcement about Bitcoin from Bitcoin.com.
In the early days of Bitcoin Core (BTC), mining used to be done using the CPU on your computer. Nowadays though as the amount of people mining has increased the difficulty of Bitcoin Core mining has also increased too. This high difficulty and hash rate has mostly been fueled by the introduction of ASIC mining chips. Bitcoin Core uses SHA-256 cryptographic hash function to secure the blocks and create the hash for each block. This encryption is what protects the transactions in the block from being altered.
(Update: Bitcoin Core is less usable as money due to much higher fees and delayed transaction times. The Core team has also expressed an interest in keeping these fees high since they view BTC as a “store-of-value” and not something to be transacted on a daily basis. In contrast, Bitcoin Cash’s transaction fees cost pennies and payments can be validated even with zero confirmations. These facts make BCH the ideal cryptocurrency for sending and receiving money anywhere in the world.)
Application-Specific Integrated Circuit
ASICs allow miners to use hardware made specifically for Bitcoin Core or other SHA-256 algo coins. An ASIC has benefits over CPU, GPU and FPGAs due to being designed for one specific task. They are able to mine BTC at a higher hash rate (speed of processing transactions) than CPUs, GPUs and FPGAs. Several manufacturers produce their own ASIC chips and miners. For this part of the Bitcoin Core mining guide we will use the current top miner on the market the Bitmain AntMiner S9.
Bitcoin Core mining has gotten so high powered with the race to be the winner to solve a block that it has evolved into pooled mining where a group of miners want to have as much hash power as possible to get a share of the Bitcoin Core block reward. By combining your hash rate with that of many others you have a better chance of solving blocks (creating a block) and getting the block reward. Bitcoin.com has launched it’s own mining pool with competitive pricing, which you can register for and begin pool mining today.
The Bitmain S9 is composed of 189 ASIC chips. The total hash rate (mining speed) of the S9 is roughly 12 to 14 TH/s (terahashes per second). CPUs were only able to do a few MH/s (megahashes per second).
BTC mining setup is simple
As the S9 requires 1275 watts of power depending on your power type available you can either use two 110v PSUs such as a Gold rated 1000 watt PSU and a 650 watt PSU to power the miner. If you are able to use 220v power and have the correct outlets or PDU (Power Distribution Unit) you can use special PSUs that are either made specifically for Bitcoin Core mining or even those made for servers.
Connect the PSU/s to the S9 using PCIe cable connections on your PSU. Once connected you will connect an ethernet cable to the miner itself.
The next step is to turn on your PSU and the miner will power up from there. Next get on a computer or mobile device that is connected to the same network as the miner. You will need to enter in the miner’s IP address. Since most miners now come with DHCP enabled you do not have to manually set the IP address, you just need to look at the IP table on your router or use a scanning tool. A scanning tool like AngryIP allows you to scan every device on your network and see its IP address. When you run the scan you will see AntMiner as one of the devices. From there in your browser window you type in the miners address.
This will take you to the first screen to login to the miner. In the case of the S9 the login box that comes up the username is root and the password is root. Once you have logged in you will see the system overview. We suggest you go to the Admin tab first and change the password to one of your own choosing. Your next step is to go to the Miner Configuration tab. This is where you will add your information for the mining pool you will want to mine on.
You will need to enter in the stratum/IP address of your mining pool, then your worker name followed by password for your worker on the mining pool. Note: not all pools require a password, you can just put “123” if you want.
AntMiner general configuration menu
Once you have saved your setting the miner will start mining on your pool. It can take from a couple minutes to up to an hour for your full hash rate to show up on your pool. Now you can go to the Miner Status page and you will see how your miner is performing and if the connection is live, temps, hash rate, etc. If you also go to your Bitcoin Core mining pool you can see your status. You are now mining BTC.
If you are mining on the Bitcoin.com mining pool and have questions on getting started, fees, or payouts, simply login and head over to the Getting Started page to read some common question and answers. There is also a community forum where users can engage with other miners.
AntMiner miner status menu
Chinese Bitcoin Miner Might Be Trying To Corner ASIC Chip Market
Bitmain, which specializes in custom mining chips and miners, has come under increased scrutiny due to the Chinese firm’s control over the production of so much bitcoin hardware and hashing power. Some bitcoin participants are beginning to fear a negative outcome for bitcoin with so few producers of the digital currency’s mining hardware.
In 2013, companies like Black Arrow Software, Cointerra, Hashfast, Vmc, Kncminer and others offered different hardware miner models. Today, the competition for consumer-grade mining hardware has largely dwindled to two companies: Canaan and Bitmain.
The-Beijing based Bitmain announced Tuesday the launch of its new Antminer T9, which features fewer ASIC chips and increased power consumption over the hardware provider’s prior models, leaving questions as to how they’ve made their overall system more efficient.
Also Read: Why Bitcoin is Close to a Record Breaking 3 Exahashes of Processing Power
ASIC Chips a Threat To Decentralization?
Bitmain’s T9 represents a decrease in the number of hashing chips in the unit over its predecessor, the S9, which had 189 of the company’s BM1387 chips. The new T9 carries just 171. The power draw, 1400 Watts, represents an increase over the S9, as well, which drew about 1350 watts.
ASIC (short for ‘application-specific integrated circuit’) is a microchip designed for special applications.
Due to the nature of bitcoin mining technology, the efficiency of Bitmain’s ASIC chips is considered the most important aspect of the company’s mining ‘rigs’. Bitcoiners on social media have lots of questions about the company’s plans for its ASIC chips.
“Bitmain has emerged as a major threat to the decentralization of Bitcoin,” suggests ‘moral_agent‘ on Reddit. “They control too much of the production of mining hardware. They control too much of the hashpower.” Some wonder if a lack of competition has harmed the quality of machines available. Bitcoin mining insiders have heretofore wondered about Chinese spending on bitcoin mining.
“We have tried to calculate the amount of money that the Chinese have invested in mining, we estimate it to be in the hundreds of millions of dollars,” CEO of now defunct Kncminer, Sam Cole, said. “Even with free electricity we cannot see how they will ever get this money back. Either they don’t know what they are doing, but that is not very likely at this scale, or they have some secret advantage that we don’t know about.”
The technology with which Bitmain works, to be sure, is complicated. “Producing the latest BM1387 chip based on a 16nm process node has been more technologically challenging for our engineering team than any of the previous chips had been,” Bitmain Head of Marketing Nishant Sharma told Bitcoin.com in a previous conversation.
Bitmain have increased efficiency as such, that they can use fewer chips and still reach a higher hash rate. Perhaps, the Beijing mining hardware company discovered ways to increase power to their chips without ruining them. Perhaps they’ve also managed to have the chips deliver results with less faults and/or developed a better cooling system capable of handling higher clock frequencies. If each chip is better tuned, and can handle more power, perhaps it is not that strange T9 consumes more power with fewer chips – a fact many commenters online have questioned. [We’ve reached out to Bitmain for additional comments, Editor’s note.]
Earlier models than Bitmain’s T9, such as S7 and S9, have been credited with providing the Bitcoin blockchain with much of its processing power.
The T9, with 11.5 terahashes per second and the BM1387 chip available in preceding models, resembles greatly the S9, but with a lower power efficiency. It is also less expensive than the S9.
According to social media reports, before the T9 came to market, Bitmain had not sold an Antminer in at least a couple of months. Interested parties were left searching eBay and Amazon for mining equipment.
Bitmain released January 13 the fifth and sixth batches of its smaller miner, the Antminer R4; at 7.5TH/s and 8.7TH/s, respectively. The company is known as one of the few companies which regularly launches new mining products.
State of Mining Equipment
Thanks to an arm’s race of Bitcoin mining equipment, new Avalon and Antminer models always attract much attention.
Mining company Canaan’s most recent model is the Avalon720. The preceding Avalon 6 and 7 are considered functional pieces of bitcoin mining hardware, and to have contributed a significant amount of hashing power to the bitcoin network, but not as much as Bitmain.
Bitfury may have engineered the next best thing to Bitmain, say some, and also design their own hardware. But the company does not sell mining rigs to the general public. Rather, besides mining Bitcoin it leases hash rate and offers “blockchain services”.
This leaves relatively few hardware options, perhaps, for those interested in Bitcoin mining compared to how the market looked just two years ago, when there were several mining hardware manufacturers to choose from.
What do you think about the state of bitcoin mining hardware in 2017? Will we see another contender enter the space in 2017? Let us know in the comments below.
Images courtesy of Bitmain, Canaan.io
The rollercoaster ride of bitcoin exchange trading is too tame for some people. If you’re the type who prefers something with more edge, head over to the Bitcoin.com Casino. All games are high-stakes and provably fair, run by professionals.