Bitcoin Mining: Is It Worth The Effort In This Day And Age?
Bitcoin Mining: Is It Worth The Effort In This Day And Age? William M. Peaster on January 23, 2018 / 1 Comment With the ongoing cryptocurrency boom, there has been an explosion of newcomers into the crypto ecosystem. And, unsurprisingly, one of the hottest topics in the ongoing boom is bitcoin mining. Thats because 1) bitcoin is the OG cryptocurrency, and 2) because cryptocurrency mining is unlike any phenomenon that humanitys ever seen before. Accordingly, the novelty and profitability of bitcoin mining have many of these newbies wondering: is mining right for me? Its an important question to ask before you sink thousands of dollars into a mining project, as there are numerous factors that might make you tilt yay or nay when it comes to your own personal tastes. Today, then, well be looking at the past, present, and future of bitcoin mining to help you get a better idea for whether or not mining bitcoin would be right for you personally here and now. In the first days of Bitcoin, Satoshi Nakamoto was the only miner on the network. Reportedly using several computers simultaneously, Nakamoto mined approximately 1,000,000 bitcoins in the first weeks of the project, courtesy of only CPUs. And this dynamic remained for the Bitcoin networks beginning months, as more and more miners arrived to use their CPUs to verify the network. As Hal Finney noted in his goodbye letter to the Bitcoin community: Those were the days when difficulty was 1, and you could find blocks with a CPU, not even a GPU. I mined several blocks over the next days. But I turned it off because it made my computer run hot, and the fan noise bothered me. In retrospect, I wish I had kept it up longer. One CPU was supposed to provide a single vote on the bitcoin network in the projects beginning days, but thin Continue reading >>
Is Cloud Mining Dead? Meet The Alternatives
Is Cloud Mining Dead? Meet the Alternatives Antonio Madeira October 26, 2017 3:00 pm Cloud Mining is losing popularity in the cryptosphere. Meet three alternatives that are giving cloudmining companies a run for their money! Cryptocurrency Mining Landscape & Cloud Mining The introduction of ASICs has changed the mining industry and has priced out regular users who cant access large mining facilities and specialized hardware. This change has led to a centralized ecosystem where mining can only be performed by certain companies, many of which are hedging their risk by selling mining power to users in the cryptosphere. Cloud mining is a popular practice among entrant users in the cryptocurrency world. This is especially true for cryptocurrencies like Bitcoin and Litecoin which can only be mined profitably with a specialized ASIC miner. Among these, the most popular are Genesis Mining and Hashflare . Bitcoin Cryptomoney Cryptocurrency Btc Cryptography While these companies have been able to gain popularity throughout the years, and especially during 2017, very few clients end up satisfied. This is because cloud mining companies sell contracts that often end up costing the user money, making them wonder why they didnt just purchase and hold the coin instead. These companies rely heavily on affiliate systems in order to attain new customers, many of which are attracted by misleading vlogs or articles in which the author brags about how much money he made with cloud mining. Authors usually forget to mention that the profits come from referrals and not from the actual contracts. Not only are these cloud mining contracts risky and unpredictable, they have also become a target for scammers in the space. Last year, for example, HashOcean was able to disappear with its customers m Continue reading >>
Etherium Mining Is Dead
Ethereum mining and its impending DAG increase (the difficulty in which Ethereum mining is set at) began a huge upwards trend a few days ago, its biggest rise in difficulty... ever. Other than being "sensational" and "exaggerated" (no surprise there coming from tweak town) it is true and it is finally happening. The difficulty of mining Etherium went up by a lot, and it's price went down, so, without being dead, it's not as worth it to mine anymore. If the difficulty keeps on rising, expect to see a lot of video cards flood the used market. Also, this is too bad for companies like MSI and Asus who were building "Mining gpus" that didnt come out in time... i7 6700K || 16GB HyperX Fury || AsRock Z270 Extreme4 || Gigabyte GTX 1080 G1 Gaming || 2x Samsung 750 EVO 250GB SSD (Raid0 500GB) || Samsung 850 EVO 500GB || WD Black 2TB || A Blu Ray drive|| EVGA 650GQ || BeQuiet Shadow Rock 2 || FearlessSwami29 , H0R53 , rattacko123 and 4 others reacted to this Thiback , matrix07012 , Phate.exe and 4 others reacted to this Snorlax: i7 5820k @4.5ghz, Asus X99 Pro, 32gb Corsair Vengeance LPX 2666, Cryorig R1 Ultimate, Samsung 850 evo 500gb, Asus GTX 1080 ROG Strix, Corsair RM850x, NZXT H440, Hue+ NvidiaIntelAMDLoveTriangle , Nicnac , normpearii and 12 others reacted to this I'm sad I didn't sell my GPUs a few weeks ago (there was a small window of irrationally buying any half-decent GPU for mining), so I could now buy a used, newer card. Intel Xeon E5 1650 v3 @ 3.5GHz 6C:12T / CM212 Evo / Asus X99 Deluxe / 16GB (4x4GB) DDR4 3000 Trident-Z / Samsung 850 Pro 256GB / Intel 335 240GB / WD Red 2 & 3TB / Antec 850w / HD5850 / Win10 Pro x64 HP Envy X360 15: Intel Core i5 8250U @ 1.6GHz 4C:8T / 8GB DDR4 / Intel UHD620 + Nvidia GeForce MX150 4GB / Intel 120GB SSD / Win10 Pro x64 rattacko123 , Continue reading >>
Browser-based Cryptocurrency Mining Makes Unexpected Return From The Dead
How To Start Mining Bitcoins In 2017 - Updated 2017
If it was as profitable as you think it is, everybody would be doing it. Unless you somehow have access to extremely cheap/ free energy (which I highly doubt since you mention southern IL) it isn't a profitable venture. 5 years ago, yeah maybe. But today, not unless you have millions to invest and access to extremely cheap electricity. Youre too late to the mining party, mining is done by large corporations with millions to invest in mining hardware. In order to compete with the industrial scale mining operations that we see today in China and around the world you will basically need free power or the need for a significant number of electric heaters. Even with free power, its necessary to carefully control the cost of your equipment. Overpaying for your mining equipment will likely make it impossible to make that money back. Thats not to say mining is entirely dead though. Instead, it has evolved into a global energy arbitrage game of sorts, where feasibility is determined by two factors: Access to the latest and most efficient ASICs (at a reasonable cost) Access to the cheap electricity, wherever it might be Unfortunately for you, Canada has high power costs and unless you plan to move to some other country (China, Trinidad ;)) with cheap electricity, mining is a train that left the station long time ago. If you are thinking about mining with your GPU, its impossible. BTC mining in 2017 is extremely competitive. There are special microchips called ASICs(application-specific-integrated circuits) that are designed to mine bitcoin and nothing else. They are at least 100x better at mining bitcoin then even the best GPUs. Mining bitcoin with a GPU is like trying mine gold with a spoon. In order to turn a profit mining bitcoin you will need access to the latest ASICs and a Continue reading >>
It Is No Longer Worth It To Build An Ethereum Mining Rig
It Is No Longer Worth It To Build An Ethereum Mining Rig Building an Ethereum mining rig hasnt been worth it for months, and soon they will be completely obsolete. Goodnight, sweet prince. Image: Daniel Oberhaus/Motherboard Back in May I wrote a guide explaining how to build an Ethereum mining rig , a special type of computer that forms the backbone of the Ethereum network and earns ether, the digital currency native to the network, for its owner. Shortly thereafter, Motherboard also made a video documenting this process . Since then, Ive received countless emails from readers inquiring about my mining rig. Ive received three such emails this week. The most common question voiced by these readers is whether or not it is still worth it to build a mining rig. The answer to this question is no. Building an Ethereum mining rig hasnt been worth it for months and a few months from now, mining ether will be completely obsolete. Read More: An Idiot's Guide to Building an Ethereum Mining Rig Arguably, building an Ethereum mining rig wasnt even worth it when I built my machine in May, and many readers let me know this when the article and video first came out. This is somewhat true, but there is a necessary caveat here. Mining ether also wasnt worth it for about the first year and a half of the cryptocurrencys existence. The price of ether hovered around $10 from 2015 until early 2017, when it saw a spike to $25. This was important because it meant the value of the ether being mined was higher than the cost of the electricity that was needed to mine it. In other words, until that point small scale mines were operating at a loss in the belief that the tokens they were mining would someday be worth a lot more money. In hindsight, these early miners were rightthe price of ether has Continue reading >>
Gpu Mining Isn't Dead: Life After Ethereum
There seems to be a growing consensus among many cryptominers that their mining rigs will be close to valueless in another few weeks. This is because of the incredible growth in the mining difficulty of Ethereum and Zcash, which has lowered the profitability of mining across the board. I have heard many miners say all summer that there is "no sense in investing in a rig that won't pay itself off (in Eth)". And their math is correct. The amount of Eth mined at current prices will not be sufficient to pay off the initial investment into a mining rig. The issue with this point of view is that it ignores the entire purpose of mining which is to be a hedge against the volatility of crypto. It also bases the entire outlook of mining solely on the Ethereum ecosystem, and does not take into account the broad possibilities for the future. When the RX470 and 480 first launched in late 2016, I seriously considered building myself an Eth mining rig. However, the Eth price was relatively depressed at that point in time, and many people were saying that it was pointless to build a new mining rig. I weighed the argument, and ultimately decided against getting into mining. A few months later, the price of Eth skyrocketed and I regretted that decision. A simple $1500 investment into a mining rig would have turned into $30K worth of Ether! Of course, hindsight is 20/20 and I had no way of knowing that at the time. The price could have also continued to plummet, and I would have barely broken even on my electrical costs and on the depreciation of my hardware. The point of this example is to illustrate the unpredictability of GPU mining. This unpredictability is the fundamental problem that many people run into when they first start mining. In order to be a successful miner, you have to b Continue reading >>
2017 Was Bitcoin's Year. 2018 Will Be Ethereum's
2017 Was Bitcoin's Year. 2018 Will Be Ethereum's Dec 27, 2017 at 12:45 UTC|UpdatedDec 27, 2017 at 20:58 UTC Jez San is CEO of FunFair Technologies, an ethereum-powered casinoplatform. A vocal supporter and critic of blockchain technologies, San wasalso a pioneer in real-time, 3D games. The following article is an exclusive contribution to CoinDesk's 2017 in Review series. As a long time investor in bitcoin and cryptocurrencies, 2017 has been remarkable. But it's important to remember, this is really just the beginning. Despite the valuations, major protocols remain deficient in delivering value to users. Bitcoin with it'shigh fees and slow transaction times is hardly suitable for payments - spending the same fee whether you buy a coffee or send $100,000 is a joke and thepromise of scaling solutions such as the Lightning Network hasn't been fulfilled. Suffice to say, its new positioning as a store of value is precarious, even if,judging by the huge uptick in bitcoin price, the store of value narrative is winning for now. While there's no shortage of old and new believers to keep the party going, along with plenty of developers working to create better, forked versions of bitcoin, I'm betting my chips on a more flexible alternative. The door is wide open for blockchains that use smart contracts , like ethereum, and I believe their potential market dwarfs that of "store of value" chains. Platforms like ethereum are an operating system for decentralized finance and commerce. Think of bitcoin as DOS and ethereum as Windows or Mac OS. There is nothing wrong with DOS. It came first and was an essential part of the computer's success. Us geeks grew up on DOS, but computers only went mainstream when Windows and Mac OS appeared.DOS is difficult to learn, tricky to program and fe Continue reading >>
Cpu Mining Is Making A Comeback (but Only On Botnets)
CPU Mining is Making a Comeback (But Only on Botnets) Join our community of 10 000 traders on Hacked.com for just $39 per month. CPU mining malware increased sixfold during the first eight months of 2017, according to a new report from IBM X-Force. As CCN has reported, the number of computers infected with cryptocurrency mining malware has increased every year and is on pace to reach 2 million in 2017 alone. However, the number of computers infected with CPU mining malware has surged sixfold this yearfar beyond the rate of overall increase in infections. For the average user, CPU mining has been dead for what seems like agesreplaced by more powerful GPU and ASIC miners. However, the IBM X-Force threat intelligence service has identified a remarkable increase in computers infected with CPU mining malware during 2017. The report theorizes that cyber attackers turn to this flavor of mining malware because, even though CPU mining is not worthwhile on an individual level, hackers often control botnets containing thousands of infected computers. Since they do not have to foot the cost of electricity, what little profit each individual computer makes quickly adds up. The X-Force team found that a standard Intel i5-6500 4 core processor running an Ubuntu server could net about $2.35 per month.Hackers most commonly used the botnets to mine anonymous CryptoNote currencies such as Monero and Bytecoin. The attacks were often deployed using steganography, the practice of hiding data within image files. After hiding the malware inside a fake image file, the hackers placed them on compromised web servers. According to the report, the manufacturing and financial services sectors tied at 29% for the highest volume of CPU mining attacks. They stated that many of the attacks exploited in Continue reading >>
Ethereum Mining Is Dead: Price Drops, Difficulty Booms
Ethereum Mining is Dead: Price Drops, Difficulty Booms Ethereum price drops to a two-month low, while difficulty goes through the roof, hitting ALL miners overnight. For the last six weeks, cryptocurrency has been all over the place like an infection... currency markets, GPU mining, global GPU shortages, and more. It's a volatile market as it's open 24/7 and doesn't close like regular FIAT-based trading markets. The latest trend is Ethereum mining (for the most part, anyway) and the global GPU shortage of the last 5-6 weeks. Ethereum mining and its impending DAG increase (the difficulty in which Ethereum mining is set at) began a huge upwards trend a few days ago, its biggest rise in difficulty... ever. The downwards trend of the price of Ethereum didn't help, as it created the perfect storm for the temporary tank in Ethereum ROI from mining. For anyone who has just purchased, or is in the process of purchasing PC hardware (GPUs, PSUs, risers, etc.) is paying heavily inflated prices for something that was in the headlines a month ago as a great way to make money. The difficulty increase and drop in the price of Ethereum has slapped us a few times across the face, in what feels like every day. I wrote an article that did amazingly well for us, as it was written at the peak of this as it began to really scale right up in difficulty, and down with price. Buying hardware at a huge inflated premium isn't good, with wholesalers, retailers, and everyone in between making a quick buck on the global GPU shortage. If you had purchased 10 x Radeon RX 580s before the beginning of June for Ethereum mining, you'd be making some damn good money - somewhere in the vicinity of $2500+ per month before electricity (and paying off the hardware). This meant you could pay the cards off pret Continue reading >>
What Is The Ethereum Ice Age?
Ethereum is currently a Proof of Work cryptocurrency, meaning that computational power is needed, not only to produce new coinsbut to process transactions and to keep the entire ecosystem moving. In order to ensure the system is scalable and decentralized, Ethereum plans to move to a Proof of Stake protocol where a lot lesscomputational power is required and miners can earn rewards according to their balance. The Ethereum Foundation is still working on the Proof of Stake protocol, Casper. Since Casper is not finished and it's not contained in the release version of Ethereum a hard-fork might be required to implement this change. An hard-fork creates an incompatibility between the previous version and the latest, there is always the possibility to create a "split" that result in two blockchains, like Ethereum Classic , did on the 1920000th block, after the hard-fork to refund The DAO token holders took place . In order to ensure such event doesn't take place (although it did already) and to give themselves a time-frame to finish Casper (making the community aware of the introduction of a hard fork within that time-frame), a Difficulty Time Bomb, is also known as Ice Age was implemented in Ethereum. The Ethereum Ice Age is a difficulty adjustment scheme that was put in place to ensure that everyone has an incentive to move to the new blockchain once the hard-fork is implemented. It was introduced on the 7th of September (2015-09-07), about 11 months ago and it's programmed to raise difficulty exponentially. It's impossible for miners to keep up with the increase of difficulty which would raise block time and it would make the blockchain freeze, hencethe name Ice Age. The key part is the calculation for the increase in difficulty is Math.pow(2,Math.floor(block.number / 10 Continue reading >>
Anyone Buying Hardware To Mine Ethereum Is Going To Lose
Anyone buying hardware to mine Ethereum is going to lose Theres a huge cryptocurrency mining boom taking place right now, with global GPU shortages for both AMD and NVIDIA, as well as a general shortage on high-end PSUs that drive over 1000W. This all began to spiral out of control starting in late May, and into the first week of June when Ethereum really exploded onto the scene. It was being mined the hell out of behind the scenes, but it was in the middle of June when it felt like it was absolutely everywhere. GPU shortages across the world, with both reactional effects to AMD and NVIDIA as well as eBay sellers, retailers, wholesalers, and even the second-hand market. Older graphics cards from AMD began doubling or tripling in price in the second-hand market, with the Radeon R9 295X2 selling for nearly $1000. This drove people to buy Radeon R9 290/390 series cards, on top of people stripping shelves bare of the Polaris-based Radeon RX 470, RX 480, RX 570, and RX 580. Both variants were depleted with 4GB and 8GB models selling out, and then NVIDIA felt the effects with GTX 1060s becoming super popular overnight, selling out just as quickly as retailers began cashing in on the Ethereum mining boom. It wasnt long until the higher-end GTX 1070s began leaping in price, before also flying off shelves. This trickle effect was hitting other markets that werent being talked about, including high-end PSUs. I had a near impossible time of finding high-end PSUs, with 1000W+ units selling out all over the place. There were a few high-end 850W units left, but the numbers were thinning. On eBay, there were plenty of mining-oriented products that began enjoying the Ethereum rush, including PCIe x1 to x16 risers, steel frames for multi-GPU rigs, and more. Now that there are virtually Continue reading >>
Rbc: Nvidia's Crypto Boom Isn't Dead, It's Just Getting Started (nvda)
RBC: Nvidia's crypto boom isn't dead, it's just getting started (NVDA) Some have argued that the boost Nvidia has seen from cryptocurrency mining is over, but one analyst thinks differently. Alt-coins have been exploding in value and could provide another big boost to Nvidia's bottom line. Some analysts have already called for the end of the crypto boom for Nvidia , but Mitch Steves, an analyst at RBC Capital Markets, thinks differently. "While the Ethereum market opportunity could fade, we are confident the market will be open (at minimum)," Steves said. Steves argues that the bigger cryptocurrencies bitcoin and ethereum aren't likely to add to Nvidia's bottom line in the coming year, but almost every other one can . Cryptocurrency miners were born alongside bitcoin in 2009, and soon figured out that the type of math required to mine the digital coins was made faster by introducing graphics cards initially used to improve video game graphics. Nvidia, as well as rival AMD, has profited massively from the trend. But, as the number of miners increased and the process of mining got harder, it lessened the impact of buying a graphics chip. Now, there are specially designed mining rigs that maximize the ratio of power consumption to processing power, as the cost of electricity can easily outweigh the benefits of inefficient mining. Ethereum, the second largest cryptocurrency as measured by market cap, is still mostly profitable to mine with a graphics processing unit (GPU), but will soon move to a "proof of stake" system for payment verification. This will greatlydiminish the impact a GPU will have on the mining process. Ethereum payment verification will soon happen via a sort of voting system rather than a race to find the answer to a complicated math problem, which is th Continue reading >>
It Takes 556 Days Of Computing And A Hefty Electricity Bill To Mine A Single Bitcoin. Is It Worth It?
It takes 556 days of computing and a hefty electricity bill to mine a single bitcoin. Is it worth it? It takes 556 days of computing and a hefty electricity bill to mine a single bitcoin. Is it worth it? The prices of crypto mining computers have risen with soaring bitcoin prices, prompting some enthusiasts to mine for Ethereum and other alternatives PUBLISHED : Wednesday, 17 January, 2018, 8:03am UPDATED : Sunday, 21 January, 2018, 2:48pm Continue reading >>
Ethereum: Gpu Mining Is Back But For How Long?
Ethereum: GPU Mining Is Back But For How Long? By now, everyone and their dog has at least heard of Bitcoin. While no government will accept tax payments in Bitcoin just yet, its ridiculously close to being real money. Weve even paid for pizza delivery in Bitcoin. But its not the only cryptocurrency in town. Ethereum initially launched in 2015 is an open source, it has been making headway among the 900 or so Bitcoin clones and is the number two cryptocurrency in the world, with only Bitcoin beating it in value. This year alone, the Ether has risen in value by around 4000%, and at time of writing is worth $375 per coin. And while the Bitcoin world is dominated by professional, purpose-built mining rigs, there is still room in the Ethereum ecosystem for the little guy or gal. There may be many factors behind Ethereums popularity, however one reason is that the algorithm is designed to be resistant to ASIC mining. Unlike Bitcoin, anyone with a half decent graphics card or decent gaming rig can mine Ether, giving them the chance to make some digital currency. This is largely because mining Ethereum coins requires lots of high-speed memory, which ASICs lack. The algorithm also has built-in ASIC detection and will refuse to mine properly on them. Small-scale Bitcoin miners were stung when the mining technology jumped from GPU to ASICs. ASIC-based miners simply outperformed the home gamer, and individuals suddenly discovered that their rigs were not worth much since there was a stampede of people trying to sell off their high-end GPUs all at once. Some would go on to buy or build an ASIC but the vast majority just stopped mining. They were out of the game they couldnt compete with ASICs and be profitable since mining in its self uses huge amounts of electricity. Economies of Continue reading >>