What is the minimum Bitcoin mining setup?

By | Nov 17, 2017
bitcoin-mining
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Difficulty of Bitcoin Mining

I am not trying to put you off, but it is now difficult for an individual miner to make decent profits mining Bitcoin, (but read on because you can mine other coins), because the Bitcoin hash difficulty has risen so much (and is continually increasing in difficulty), that any equipment you purchase will soon be out of date, and you will not able to mine effectively.

Durability

There is also the problem that the equipment used to mine doesn’t last forever, so not long ago, when high-end graphics cards were sufficient to mine Bitcoin, the cards, which are expensive, often failed despite elaborate cooling systems, perhaps four times a year, and had to be replaced. Electronic equipment needs to be very robust to run 24 hours a day at full power, unless it uses very little power.≈

Now, application-specific integrated circuit chips (ASICs) — hardware created solely to solve Bitcoin blocks are almost exclusively used in Bitcoin mining, and this equipment is expensive. You pay for the hash rate they can solve and lower power consumption, because if you have a cheaper rig, the cost of the electricity it uses can be ten times as much and will eat up more than any profits you can mine in electricity costs, and break down quicker, usually due to heat induced stress on components.

What is the Blockchain?

You might be wondering what the hash rate and blockchain are all about, but you only need a very basic understanding of the concepts to mine. The fact is, all you need to do is plug in your equipment, set it up according to the manual that comes with it, and you are mining, knowing next to nothing about the blockchain, because the equipment does the work, not you personally. And you’ll learn as you go along, and interact with other miners on voting etc. But you can also find more detailed technical information here, simplified enough for most people : What are bitcoin miners really solving?

Mining Equipment

The better rigs such as the KnC Neptune cost around $12995.00 (USD), and running just one of them using only .07watts/hr it would take a long time to pay of the capital cost of the equipment in Bitcoin mined profits, especially if you were paying standard electricity costs. As I said, there are much cheaper rigs, but they use a lot more power.

Neptune Mining RigBitcoin Farms

Thus, Bitcoin farms have arisen, funded by the very wealthy or giant corporations and possibly even governments, and you can rent a rig at a farm for a price specific to the hash-rate it can solve. I’ve never done this, but it is said that you can start going into profit in anything from a few months to 18 months depending on what you are willing to rent from them. But Bitcoin problems are getting continually more difficult to solve and what you make profit from one year, could make you a loss the next year.

Mine Other Coins

There are other options though. With a very good rig you could mine coins that do not yet have extremely difficult hash problems to solve. And you could probably profitably mine Ether or Zcash and get paid in Bitcoin, so you can still make Bitcoin profits mining. Just not mining Bitcoin for the individual, in most cases.

And if you get a rig running at just 0.7 watts per hour, you could run that off solar or other renewable energy, or even from a Tesla energy collection plate, as described here: http://www.free-energy-info.com
And of course, if you can afford multiple rigs, you can multiply your mining profits.

PS: I make no claims to be correct about anything at all, although I try hard to be correct. I’m a fallible natural human. So please do not act on what you perceive to be my advice. it’s just my opinion, not my advice. If you want advice, you won’t find it on this website—you’ll just find information, and have to do your own due diligence before taking any action.

PPS: I answered this on Quora, and later thought I should copy it here. I have reformatted slightly for this website.

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