The methods, solutions, and directions were worked out based on the world’s first digital currency. Bitcoin as a realized idea appeared in 2008. Alternative cryptocurrencies did not face any significant difficulties in promotion and followed the paths paved by Bitcoin.
Initially, Bitcoin mining looked like a game, and users could have a personal computer with a CPU to earn $1 for each electronic coin. From 2011 to 2013, the price of Bitcoin rose to $1000, and in 2019, it is expected to grow to $5000, with 2021 marking a milestone at $7000. Powerful processors, top-of-the-line PCs, and enhanced graphics cards are used, with motherboards having three, four, or five PCI-Express slots, and graphics adapters working in specialized SLI and Crossfire modes.
What is required to obtain Bitcoin?
Having just one computer and a regular graphics card is no longer sufficient. There is no question of using gaming consoles, laptops, or mobile gadgets. Individual Bitcoin mining can be compared to a primitive mountain range next to a metallurgical plant. First and foremost, you need a large, dry, cold room with good air conditioning. Powerful computers and equipment are manufactured specifically for specialized factories where rows of machines work day and night performing complex calculations. Chinese companies are at the forefront of manufacturers, initially competing with their Chinese counterparts, then with South Korea, and only then with the rest of the world. The processing speed of 2 megabits per second is a thing of the past. One Bitcoin factory consumes as much electricity in one day as a small town. Since 2017, ASICs have been sold for $5000, but their profitability tends to zero. To earn about three dollars a day, you must not pay more than 33.6 kWh for electricity. Taking into account maintenance costs, rent, and electricity at $5.5-7 per hour, it is better not to think about buying devices.
Workarounds for Bitcoin Mining.
- Computer industrial farm. All community members have equal rights and different incomes. Accordingly, according to the emission protocol, the best reward is given to more powerful devices. After four years of operation, profits decrease by half due to halving rules (260,000 blocks). If the initial cost was 50 BTC per block, it became 25 BTC in 2016, and in 2020, it will be 6.25 BTC. Over time, Bitcoin will be completely exhausted.
- Pool – an association of miners in a group. Such formations have become the most popular. Individual users provide their capacities for joint functioning with guaranteed rewards. The invested amount can be withdrawn in full after a certain period, but interest accrues all the time. After a year of participation, profits increase.
- The price of alternative cryptocurrencies is lower, but production is much cheaper. It makes sense to pay attention to them.
At present, special computers equipped with ASIC modules that can calculate hashes at a tremendous speed have begun to be produced for mining purposes.
