The world of cryptocurrencies is evolving each year. Nowadays, Bitcoin mining is still going strong and people all over the world are dedicating hardware to help the blockchain record transactions and solve complex mathematical problems to earn a good reward.
If you’re wondering whether or not mining Bitcoins is still worth the effort or the investment, the answer is that it could be. It’s no secret that the mining profitability depends on many factors. However, ensuring profitability can be achieved by carefully planning your strategy.
In the end, it all comes down to one essential thing, which is choosing the best Bitcoin mining hardware. But what does the best mean in this case? Simply put, the best indicate what’s best for your needs and not the most expensive hardware on the market. With that in mind, here are a few ways you can choose the best Bitcoin mining hardware.
How serious about mining are you?
Mining Bitcoins is a full-time commitment. Then again, it doesn’t have to be. This depends on what you want from mining and how serious about it you actually are. For example, casual miners want extra profits from mining without overspending on hardware or electricity bill. They will mine Bitcoins every now and then without any serious commitment.
On the other hand, serious miners want the best outcome in every sense of the word. They want to earn a living mining Bitcoins or they want a good way to diversify their investment portfolio. These miners are quite serious and they will closely monitor any cryptocurrency market trend. How serious about mining you are will determine which hardware you will need?
The hash rate
One of the primary factors you need to focus on when choosing mining hardware is the hash rate. Hash rate indicates the processing power of the blockchain network, as well as the number of times the network can attempt to solve complex mathematical problems every second.
ASIC (Application Specific Integrated Circuit) hardware’s performance is portrayed in hash per second TH/s. The higher the hash rate the more efficient your hardware will be at mining Bitcoins. Therefore, hardware with 10 or above TH/s means exceptional performance.
Another thing to watch out for is the power consumption of a particular hardware rig. For example, a good Bitcoin mining rig should also be energy-efficient. This is especially true when calculating profitability. If you overspend on electricity, it won’t matter that you successfully mined Bitcoins.
The power consumption for various hardware rigs varies from around 800W to more than 2000W. If you have expensive electricity, you want to limit the power draw as much as possible without sacrificing efficiency. If you have cheap electricity, then the power draw doesn’t make much of an impact on your decision.
Hardware prices also vary, as the power draw does. Which hardware you’ll choose comes down to your budget and how serious you are about mining endeavors. The prices vary from around $600 to $3000 or more. So, how much should you invest?
Again, this depends on your goals, in general. If you want maximum profits, you’ll have to make a significant investment.
Oftentimes, you’ll need more than one rig to ensure maximum profits. That also means a higher budget for buying hardware and more money spent on electricity. However, if you’re a casual miner, you may get what you need with just one rig on the high-end of the hardware spectrum.
Mining profitability depends on the hardware you use and the price of Bitcoin. In the end, you must calculate how much you’ll spend on electricity and how much you’ll gain from mining Bitcoins. The reward for solving a blockchain problem is 12.5 Bitcoins currently, which is divided among all the participants in the mining pool.
However, due to the increase in mining and complexity of blockchain problems, there will soon be another Bitcoin halving. This means that the reward will decrease by 50%, and it will come down to 6.25 Bitcoins but that also means that the price of Bitcoins in the market may skyrocket once again.
The noise, heat, and space
Like all hardware, mining rigs generate heat even with good cooling implemented. They also require space and they can get quite noisy depending on the rig itself. These are also factors to consider when making a purchase. It’s important to note that some rigs reach 70-80db noise levels and they have to run for 24/7 in most cases.
If you’re living in an apartment, you can expect that your neighbors won’t be too happy about it. Moreover, you need space to place mining rigs and you can’t pile them on top of each other. Last but not least is heat. More power draw means more heat, and if your space isn’t air-conditioned things can get pretty heated. There’s always a way to resolve those issues, of course, but they’re still important to consider beforehand.
Choosing the best Bitcoin mining hardware isn’t that much of a problem if you know your needs. There are various options available to you on the market. The key is determining what’s best for you and what you want to achieve by mining Bitcoins.