In this episode i’ll try to answer to the following questions:
- What is the Mining of cryptocurrencies?
- Difference between Hardware Mining and Cloud Mining;
- How much money you could earn with the Mining? It’s a good investment? It’s possible estimate how much costs it and how much you could profit? (e.g. cryptocompare.com);
- Cloud Mining Online Services (e.g.. Genesis Mining, HashFlare, Eobot).
The mining of the cryptocurrencies is the action to collect some kind of currencies with two types of methods: Hardware Mining and Cloud Mining.
The Hardware Mining needs a particular type of tool called “Mining Rig”, that is a workstation with a certain number of graphic cards (usually from 4 up to 8), because the mining activity uses the GPU Power on the blockchain (where take place the cryptocurrencies transaction) to facilitate the deposit or withdrawal operations within the network. The purchasing of a Mining Rig is a great investment: on online market (e.g. Ebay or Amazon) one of this tool costs 3.000 USD (e.g. Antminer S9 ~13.5TH/s @ .098W/GH 16nm ASIC Bitcoin Miner - Amazon Price).
Also, you need to know that a Mining Rig consumes a relevant quantity of Electrical Power, so you have to added the cost of the Power consumption in Watt (it means that you need to know how many watts the Rig will consume, and the cost for every single Watt consumed). A Mining Rig is a long-time investment because it takes a long period of time to recover the cost of the entire investment. It’s possibile to build your personal Rig with a normal PC connected to 4 graphic card with a medium-high GPU quality (e.g. RX 480 model) and a special case for the allocation of the cards.
An useful way to calculate the cost and the profit of Mining is the site Cryptocompare https://www.cryptocompare.com/mining/calculator/btc.
At the section “Mining > Calculator” after the choose of the currency, you can insert the data of the Hashing Power, the Power consuption (w) and the Cost per kW/h ($) you can estimate the potential profit you’ll earn with the mining (per day / per week / per month / per year).
CURIOSITY: After the boom of Hardware Mining, the prices of Graphic Card are rapidly growing (about +35-40%). Particularly the AMD Cards have showed to be the best choice for the Mining Activity. Three months ago a RX 480 8GB DDR5 costed 300$. Now it’s costing 390$. Some companies sell a 6 pack of Graphic Card precisely because they know that the number of miners are constantly growing.
The high price of the Hardware Mining and the cost for its management forced some potential miners to Cloud Mining.
The Cloud Mining is a form of mining where a miner subscribe a contract for the rent of a certain quantity of power-mining (called Hash) for a period of time. There are many companies that have built their Mining Farm and rent their hardware to cloud miners. Personally, i use Genesis-Mining that is the most important company in the cloud mining Market.
You can visit the company site https://www.genesis-mining.com/.
For subscribe a contract you need to register your account.
At this point, you can choose one of the different plan they offer. Actually, they offer contract of 2 years duration for Ethereum, Monero and Zcash. Unfortunately the lifetime contract for Bitcoin is out of stock.
I’ve been lucky because three months ago i’ve purchased a lifetime Bitcoin contract for 0,080 Bitcoin (1,5 Tera Hash – equal to 220 dollars). After 3 months i’ve already earned 0,036 Bitcoin that is, at the actual Bitcoin quotation, equal to 139,51 dollars, that means about the 65% of my investment in ONLY THREE MONTHS!!! If you consider that the contract will have lifetime duration, after the 5th month i will begin to EARN PROFIT FOREVER!!!
Genesis Mining has a referrals system: if you would subscribe a contract you could use my code ilFHeM, so you can obtain a discount of 3% on the amount of your orders.
Rules to observe:
- When you choose the cryptocurrency you would mine, keep in mind that it has a mining difficult factor: some currencies are simplier than other to mine. For any further information you can visit the site Coinwarz https://www.coinwarz.com/cryptocurrency;
- Some kind of cryptocurrency can’t be mined;
- When you choose a Cloud Mining service, you must consider the profit and the cost of that. As i’ve said, you could use an online tool like cryptocompare to estimate these data. The most important advantage of the Cloud Mining is the absence of costs for Electrial Power, even if the provider of the service will hold a commission for the management of the hardware rent by cloud;
- As i said, the Cloud mining platforms offer a referrals system: if your friend will subscribe a contract using your code you’ll have an increase of your Hashing Power, while he will obtain a discount of a certain percentage on the amount of his orders.
I remember you my code for Genesis-Mining to obtain a discount of 3% on your orders: ilFHeM
Next time i’ll talk about Passive Investment such as Bitconnect, USI-TECH and Aurum Bank.
Thanks for the attention!