Bitcoin mining hardware - what is a bitcoin miner?

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bitcoin miners

Cryptocurrencies are becoming more and more popular all over the world. By making money on them you can make your life a little easier. In order to do that, though, you have to obtain them first.

What is a bitcoin mining hardware?

After making a decision about becoming a BTC miner, you'll need the right equipment - a bitcoin miner. What is a bitcoin miner? A Bitcoin miner is a computer or a graphics card that is used to extract BTC. Bitcoin miners can be divided into three types:

ASIC miner - as far as Bitcoin is concerned, the only profitable solution is to buy a professional ASIC miner. The best way to buy such an miner is a direct purchase from Chinese manufacturers who offer the best quality equipment. The largest companies producing miners like that are Bitmain and Avalon. A few years ago, when the mining industry was developing rapidly, the demand for miners was enormous which caused the price of the equipment to grow. As a consequence, the money spent on buying one was not always returned. Those times are over, fortunately, and it can be assumed that the cost of the miner you purchased will get you a payback in a few years. When it comes to mining altcoins, most investors decide to buy a cryptocurrency miner based on graphics cards.

GPU miner - mining cryptocurrencies with the use of a graphics card is one of the most popular ways to mine cryptocurrency. In most cases, the computing power of the graphics card is used for mining altcoins: Ethereum, Ethereum Classic, Pascal, Electroneum or Monero. A potential profit depends heavily on discounted prices of cryptocurrencies and graphics cards. The cheaper you buy an operable GPU, the faster you get a return on investment in equipment and electricity. The best GPU miners are supplied by companies such as Nvidia and AMD. What is more, you can often find sets of 6 cards and more. A solution of this kind enables power optimization in addition.

CPU miner - the solution is profitable, because of the fact that it does not require the purchase of specialized computer equipment. Moreover, the script configures digging for us while using the processor's computing power. Not all cryptocurrencies can be mined like that, though, as altcoins with mining algorithms for the CPU exclusively allow this.

USB miner - it is, theoretically, possible to mine bitcoins through extremely cheap USB bitcoin miners. An miner of this kind can be purchased for around $30, but it is not a very profitable investment. Annual use of such an miner allows you to earn the equivalent of around several dollars only and there is a high risk of computer damage in addition.

If you have an intention to mine cryptocurrencies via a desktop computer, what you also need is the right software. In the article on how to mine Bitcoin, you will learn which bitcoin miner program to choose.

What is cryptocurrency mining?

Cryptocurrencies can be bought on the cryptocurrency market. A solution like that has its drawbacks, however. Among them is high price volatility, especially when it comes to the most popular currency - Bitcoin. There is an alternative solution. Bitcoin cryptocurrency, similarly to many other cryptocurrencies, can be dug up. Crypto mining (or digging, from "gold digging") involves confirming transactions in a distributed database. As far as Bitcoin is concerned, new transactions flow into computer nodes located in the Bitcoin network every second. 

Every once in a while, all valid transactions are closed in the block and attached to the transaction book. For performing such an operation, the Bitcoin miner responsible for doing it receives newly created Bitcoins. Do you want to become a cryptocurrency miner? Find out more about what mining cryptocurrencies is all about!

Bitcoin miner - price

Do you want to become a cryptocurrency miner? Are you considering buying a Bitcoin miner? Remember that the price goes hand in hand with power and it varies depending on the computing power of the device. The cheapest, and the weakest miners, can be bought for around $800. The cost of the most expensive ones, however, may be close to about several dozen thousand USD. In comparison, in 2013, the then most powerful Bitcoin cryptocurrency miner - KNC Jupiter type, cost about $14000. miners' power is not the only indicator of their price. After 2013, the price of the mentioned Jupiter miner and other cryptocurrency miners dropped sharply. Why? As a result of the drop of the BTC's price. The prices of mining equipment also depend on the price of Bitcoin. If the price of Bitcoin is high, more miners appear on the market.

 Consequently, the demand for miners is increasing. What is the result? Devices' prices grow because there are fewer and fewer of them. Today, the price of KNC Jupiter is just around $0.3. Even though the purchase of a bitcoin miner is a costly investment, adequate power combined with energy saving will result in a quick return on  costs .

Bitcoin miner - profitability

Prior to making an investment, you should consider if it is profitable. The same applies to the purchase of cryptocurrency miners. When it comes to Bitcoin miners, there are many things worth rethinking and calculating. It is worth finding some time to analyze all the pros and cons of tinvesting in a crypto miner. First and foremost, the current Bitcoin price should be taken into account. You will probably be considering starting Bitcoin mining as soon as its price reaches its peak. Remember, however, that you are not the only one with such plans. Together with an increase of the number of cryptocurrency miners, the demand for crypto miners increases too. 

Current electricity prices are another important issue to consider. Critical miners consume huge amounts of energy. If electricity costs a lot in your area, your bills may exceed your earnings. You may want to consider changing the location to a more affordable one, then, or abandoning the idea of Bitcoin mining. The last, but equally important, issue is the Bitcoin network. The more miners appear on the network, the harder it is to dig it. This is due to the fact that the network generates "puzzles", mathematical equations for the miner to solve. As a reward for solving the equation, the miner receives a certain number of crypto coins. The more miners join the network, the more difficult generated equations are and digging one Bitcoin can take a long time which is not always profitable. 

As it was mentioned before, the miner consumes a lot of energy. There is also a cooling issue as well as you also need to invest in an air conditioning system and windmills, especially if you keep an miner at home ( devices that consume so much energy emit huge amounts of heat). Not everyone is able to stay in a room at a temperature of e.g. 30° C. The devices themselves need to be cooled too, because they overheat very quickly. Taking all these issues into consideration, it is worth using calculators that help in calculating the profitability of such an investment. They calculators include the price of the equipment and electricity bills (and other data, everything depends on the type of the calculator), and they calculate whether it is worth considering a particular investment or not.

Where can you buy a bitcoin miner?

Buying a bitcoin miner is not as easy as it may seem. Bitcoin miners in stationary stores do not occur, like, for instance, ordinary computer equipment. There are two ways to buy a cryptocurrency miner:

Directly from the manufacturer - it is best to search among manufacturers from China. As for now, Bitmain is the largest Chinese company producing cryptocurrency miners. The company manufactures Bitcoin miners based on ASIC software and is famous primarily because of its Antminer Bitcoin miners. Halong Mining is another company producing miners. The company is one of the younger but, thanks to Dragonmint 16T, it has already gained popularity.

Second-hand - advertisements for used cryptocurrency miners can be found on the Internet forums or on auction portals. By not deciding to purchase a new miner, you will definitely minimize investment costs. Moreover, you will avoid additional costs (e.g. for customs duties) and shorten delivery times. What you should avoid are the advertisements regarding the pre-sale of the equipment. After making a decision to buy such an miner, we are taking the risk that it will be completely unprofitable.

The best Bitcoin miners

You already know if investing in a Bitcoin miner is profitable and where to buy an miner like that. It is also worth finding out which Bitcoin miners are the most popular on the market:

Antminer R4 - by a great number of users regarded as one of the best Bitcoin miners for people operating at home. Its hashrate equals 8.6 TH/s, which can be considered an extremely favorable result in this price category (the value of such equipment fluctuates around $1000).

Avalon 6 - in spite of the fact that this miner does not achieve such fantastic results as the most famous models (hashrate 3.50 TH/s), it is characterized by high performance and a relatively low price. Its value is about $555. The fact that it works rather quietly should also be considered as a big advantage, as it is perfect for people who deal with Bitcoin mining as a hobby, at home.

Antminer S9 - an miner, which is designed to meet the requirements of even the most demanding investors who are focused on a large return on investment. It allows you to achieve hashrate at 14 TH/s, with relatively high performance. This, in turn, translates into impressive results. The price of this miner is high, however, and amounts to about $3000.

Dragonmint 16T - considered the most powerful device of this type on the market (intended primarily for hobby-miners). Due to its performance the results are impressive, but its price is relatively high. Dragonmint 16T costs about $2745.

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