Recently, Bitcoin mining has been trending as one of the profitable venture that anyone can invest on today. Something that once started as a hobby has now attracted many people across the world. Others join this business because they just enjoy it though, you can make much money from this venture but only if you live in a place with inexpensive power-cost.
However, to start mining Bitcoin, it is essential to purchase an ideal hardware that is better suited for the job. On this article, we are going to talk about all that you need to know about in regards to Bitcoin mining hardware as well as the best ASICs you should choose. This will include the kind of hardware you’ll need and how one can figure-out the profitability of setting-up hardware.
Things you must know:
It’s important to first learn about mining Bitcoin and the right hardware but it is as well necessary to have realistic expectations when it comes to the potential profits.
The popularity of mining Bitcoin has indeed made it to be competitive and since these hardware consume a large amount of-electricity; to avoid incurring losses due to high electricity bills, moving your hardware to an area with cheap power.
One of the best places to do Bitcoin mining is China, they have very cheap electricity. However, you’ll need to get the operation set-up there which means there will be need for you to live there personally though; people living in such places are not that ken on Bitcoin miners.
Sometimes, it is good to be realistic, let these not discourage you. All we want is to give you that realistic perspective about mining Bitcoin. For those who just want to have bitcoins, the best opportunity and cost-effective option is-to find a reputable Bitcoin Exchange thus, purchase then outright rather than mining them.
How did it all started?
Initially, miners used CPAs for Bitcoin mining then later; they realized that GPUs were much better. Thanks to the technology advancement, ASICs come out and GPUs were rendered obsolete for mining-purposes. Though ASICs provides excellent performance, they aren’t cheap as well.
Developers of ASCIs did not release these machines to everyone at once but some developers such as Bitmain and others initially sold off their products or rather machines to the mining cartels.
Today, there are warehouses known as mining farms that have thousand of such ASICs running at ago. Though, most of these farms are operating in China majorly due to the low cost of electricity.
Can you use a Computer to Mine?
Technically you can use a computer to mine Bitcoin but to say, it is a bad idea since this venture has become progressively challenging and more difficult hence mining hardware are the only but best option which is fast as well as efficient enough for mining. Though you may use your computer to mine Bitcoin but you will not even score 1% per month. Mining is very intense such that by
using your computer, you’ll be faced with all kinds of wear-and-tear thus, on your computer. It isn’t worth it, all you need is a proper equipment.
Can a USB do?
If you’ve been doing some research about Bitcoin mining, you may have come across this mining option; a USB Bitcoin miner. It is plug into a computer’s USB-drive, it’s kickback is that, it doesn’t have the hashing-power needed to do much.
As a starter or someone who just want to learn or rather play around on how to mine, you can use this option to gain some knowledge about the whole idea.
ASIC Bitcoin Miners
This is the latest machine used in Bitcoin mining. Before, people were using their computers to mine just as the cryptocurrency creator intended.
However, when the miners realized that graphics cards had much greater hashing power they then switched to using ASICs hardware. Therefore, the next step-up from graphics cards was then ASICs that means Application Specific Integrated Circuits.
Basically, ASICs are computer that are made exclusively for the purpose of Bitcoin mining. They can solve equations as well as verify transactions thus, with considerable speed as well as efficiency.
Since, they are able to do more mining within less time; people are now using them to make mining profitable. However, it’s necessary to know that ASICs are only used to mine Bitcoin but they do not whatsoever secure any bitcoins for anyone thus, you will need to have a Bitcoin-hardware wallet.
How to Calculate Profitability of Mining Bitcoin
If you want to calculate how profitable Bitcoin mining is, the easiest way would be using profitability calculator. All you need are; your hardware’s hash-rate as well as the electricity cost each time you’ll be mining.
Factors that can affect your profitability:
·Hardware’s hash rate
·Bitcoin current value
The hash rate will help you to determine the number of bitcoins you can mine as well as compare the value of these bitcoin thus, to power costs on-order to show your profitability.
One of the major benefits of using calculator is-that, it also considers that the network hash-rate will increase daily (day by day). Though, some profitability calculators often fail to factor that onto their calculations hence giving false expectations about profits to users.
However, at the same time, it is also important to know that neither of these calculators can fully account for Bitcoin value due to the volatility of cryptocurrency. Remember that any rises/falls in the Bitcoin value will have a great effect on profits.
What to look for in ASICs Bitcoin Miners
·Hash rate-This simply refers to no. of calculations in which the hardware can perform thus, in one second. This is an essential factor to consider for hardware such that the higher it is thus, the more chances that you’ll solve complex-mathematical computations as well as get BTC reward.
In addition, the machines that have higher hash-rates tend to be more expensive than the rest.
·Efficiency- It entailsthe ration of your electricity to bitcoin which you get when mining. A more efficient ASIC will obviously get you bitcoins thus, at a much lower cost. The Halong-Mining Dragonmint T16 is currently leading when it comes to ASIC efficiency.
·Energy consumption- the more powerful-hardware is, the more expenses one should expect. Henceforth, check the machine’s electricity consumption-ratings based on watts to determine if its mining revenue really compensates your electricity-bills
·Cost-You will probably pay more that is, if you need or want an efficient-miner that has a high hash rate. Remember that cheaper options won’t get you many bitcoins thus; you save to purchase a better machine.
However, always look at efficiency first if you want to make a profit in mining while keeping your costs down, thereafter, you can then consider the machine’s hash rate as well as cost.
Best ASIC devices for Bitcoin mining in 2018
For those who want to start their own Bitcoin mining today, you’ll need ASIC devices that are specifically designed and built for such purposes. These devices are expensive as well as difficult to purchase. However, on instances, you’ll also have to buy a good quality-PSU (power supply) in-order to ensure maximum efficiency.
When you are purchasing your ASIC machine, always consider how fast you are likely to get a return based on your initial investment. This is simply determined by the hash-power of your device minus the electricity costs, mining-pool fees as well as current difficulty.
To help you in your buying decision, we have shortlisted the best ASIC devices for Bitcoin mining in 2018 including their current price, hash rates as well as power consumption rate of each device.
1. The Dragonmint T16
This machine stands out among other Bitcoin mining hardware.Draginmint T16 from Halong-mining is unbeatable and exceptional since it is the 1st device to achieve the hash-rate of 16 TH/s.
If you think it consumes lots of energy then you’ll be surprised. It only needs 1600 W of power supply though consumes on averagely only 0.075J/GH compared to 0.098J/GH in Antminer S9 of Bitmain
The device efficiency can be enhanced or boosted by 20% due to ASICBOOST algorithm which is implentented in this Dragonmint T16. Judging from its hash-rate as well as energy consumption level; this machine is 30% more efficient compared to its minor competitors.
2. Antminer S9/S9i
The Antminer SP is a product of Bitmain which is the largest as well as a renowned mining equipment manufacturer world-wide since 2013. On average, this machine cost $ 608 with a power usage of 1,320W. Not to mention, it hash power ranges between 13.5 TH/s.
This device is among the most popular ASIC-mining devices in the today’s market. It is as well considered to be thus, the most energy-efficient machine. However, this will depend on the electricity costs on where you live as well as the PSU type used with it.
Though these types of PSUs are purchased separately but still you can buy one with S9i on Bitmain’s site for additional cost of $90.
The S9 is on high demand but they operate same as the S9i version. However, Bitmain often improves the specs of S9-units hence, if you purchase second-hand ensure to check the exact hash-power offered. The updated units were shipped-out in 2014, May having an optimal hash-rate of 13.5TH/s.
3. Antimer S7
Antimer S7 is much cheaper than the S9 with a power usage of 1,293 W. Although its costs varies but it has a hash power of 4.73 TH/s; the good thing with this machine is that, it may provide faster ROI.
It’s the predecessor to the-S9 thus; they are all manufactured by Bitmain. After the arrival of the S9 in the market, many miners have since upgraded thus flooding the making with cheap used S7 devices.
S7’s hash-power is averagely a third that of it’s predecessor. It operate on lower cost and since most second-hand units often come with a PSU-pre-bundled. If compared to the S9, with S7 machine, you may see a much faster-return on your investment.
In addition, the S7 may generate less heat as well as noise compared to the S9. However, before you purchase a used S7, it is advisable to check on how long it has been in operation to determine on how reliable it might be.
To sum it-up, to be on the safer side, always check on the seller’s refund policy such that in-case it develops any fault later after the purchase, you can return it back for a refund or an exchange.
However, if the unit comes with a PSU, ensure that it is of good quality effort thus, for maximum energy efficiency.
You can use a high-end PSU with your S7 machine but it won’t be as energy efficient as it’s predecessor the S9 but on instances, you may still generate a substantial profit using the S7 hat is, if you happen to purchase more than 1 unit or rather use renewable energy like solar power to reduce costs.
4. AvalonMiner 761
AvalonMiner 761 is manufactured by a china-based firm known as Canaan Creative. It was among the first companies to venture in manufacturing Bitcoin-specifc ASIC-chips. Therefore, we can say that this machine is made from a reputable manufacturer who specializes in such area. Though the cost of these machines may vary but its power usage is about 1.320W with a hash power of 8.8 TH/s.
Many users have reported good reviews about the performance of Avalon Miner 761 and it is relatively pocket friendly device. It’s highly praised for how quiet it operates or runs as well as the A3213 16nm-chips that are employed in Avalon’s units.
This device supports cluster mining through a specialist-AUC3’AvalonMoner-Controller” that is based on the Raspberry and can support up-to six devices. On average, the AUC3 Controller costs about $ 80 and can be connected thus, to others in-order to form larger clusters
Although, you’ll need to buy a PSU separately at around $ 150; If compared to the cost of purchasing a used S7, It may cost you less to purchase the Avalon 761. In addition, it has a greater hash-power as well as energy efficiency thus; you are most likely to get a faster return on your investment.
5. WhatsMiner M3.
The M3 has been in the market since late 2017. It is a product os a Chinese firm known as Pangolin Miner. If you are new to Bitcoin mining, you can check on its manufacturer’s website to get more detailed information in regards to mining. In addition, they provide good tutorial video to guide you on getting set-up.
It cost on average $1,507 with a power usage between 1,800-2,100W. Its hash power runs for 12.5TH/s with a 180 days warranty. If compared to the Antminer S9, its hash rate is slightly less.
According to the Bitcointalk Forum review, the M3 device uses a lot of power but with its built-in fans, it dissipate the heat much faster and operates quietly with less-to-no noise compared to other efficient miners such as the S9.
6. AvalonMiner 821
The AvalonMiner 821 has a much greater hash-power compared to the 761. It’s a huge improvement in regards to its predecessor. It contains 104 A3210-16nm chips that give it a reliable hash-rate of over 20 percent better than thus, of the AvalonMiner-761.
On average, it cost $ 508 with a power usage of 1,200W. However, it operates with a hash power of 11 TH/s. In addition, it has a power-efficiency of 0.109 Joules per-Gigahash that is about 10 percent less than the Antminer S9 which operates at just under-0.098.
You can see there is a slight difference between the two when it comes to power efficiency thus, you may choose to purchase either of the product based on price consideration rather than power
You will also need to buy a PSU separately that will cost you about $ 200. To sum it-up, you’ll also be in a position or able to cluster-mine thus, by connecting up-to 5 821’s to your Avalon’s AUC3
controller. This will immensely increase the hash power.
Where can I buy a Bitcoin Miner?
You can get a Bitcoin miner on Amazon and eBay. If you are looking for a second-hand miner, you can get one of eBay though, they sell both new as well as used miners.
However, if you are on a strict budget or trying to find an ideal miner with the lowest price tag the eBay is your to-go place.
You’ll find plenty of used-ASICs there at a very affordable and reasonable process. Both the eBay and Amazon has buyer protection.
Other mining options
·There are some companies which allow people to get their hardware sent to the company’s warehouse such that, they will be operating the machine on your behalf.
·Cloud Bitcoin Mining- though these options are not as profitable or enjoyable but to some miners, they are better suited.
Other required equipment necessary for Bitcoin mining
·Miner’s power supply
Since Bitcoin mining needs its own power supplies to operate, you can’t just plug into an extension-cord as it uses lots of electricity to run. You’ll need to get a power-supply that may cost you on about $100-150 depending on your location.
They are very important in Bitcoin mining. On instances, miner’s needs to work much harder and in the process, they generate lots of heat. Whereby, if the machines overheat then, they are most likely to shut down.
You can chose to get cheap or even expensive fans but ensure that you purchase enough such that your device stays efficient as well as cool at all times.
Before buying an ASIC, use the profitability-calculator once more using the machine hash rate as well as your power costs. From this, you’ll be able to determine if you can make a profit or not. But in-order to generate more profit from Bitcoin mining, you’ll need to live or rather move to a place with low electricity costs.
Thereafter, you can start by looking for the best and quality miners which on instances are the Dragonmint T16 and the Antminer S9 due to their high efficiency. They may get you the best deal as they are the best options available in the today’s market though are somehow expensive but worth the price.