How to Build a Bitcoin Miner?

Ambika Taylor June 23, 2021 General Comments Off on How to Build a Bitcoin Miner? 344 Views

Bitcoins are not produced like simple coins, you and I use on a daily basis. People receive Bitcoins upon solving difficult and highly advanced sums. Bitcoins are basically reward coins with every coin having its unique identity.

Currently, there are 21 million Bitcoins mined and ready to be used by merchants and investors. Out of these 21 million, only 18 million are being used or circulated in the market.

Table of Contents

How Long Would it Take to Mine One Bitcoin?

Bitcoin mining is a highly complex process performed only by supercomputers. This process of mining Bitcoins includes solving complex puzzles and mathematical problems in just ten minutes.

No matter how difficult these problems are, supercomputers are always given 10 minutes to get them solved. This time constraint of 10 minutes is balanced every time with the difficulty of the problem to be solved. So, does it mean the more problems you solve the more difficult they become? Yes, absolutely.

How Much Electricity Does Bitcoin Mining Use

According to CNBC news, the annual electricity consumption of Bitcoin is about 113.89 terawatts per hour every year while gold mining consumes about 240.61 terawatts per year of energy.

According to a Princeton University associate professor, who is an expert in the field of cryptocurrency, Bitcoin mining is responsible for consuming 5 gigawatts of energy or 1% of the world’s total energy consumption.

So, the more popular Bitcoin is, the harder the sums will be and this will lead to more energy consumption. It is a vicious cycle.

What are Bitcoin Miners?

Just like machines used while mining fossil fuels, the machine or software used to mine Bitcoins is called a Bitcoin miner. There are websites and softwares that you can use as well as hardware mining rigs that you can buy online, to mine Bitcoins.

Some of the Best Bitcoin Mining Softwares

Nice Hash

The process of registration and authentication has been added to the software after it was hacked in the year 2014. This hack made Nice Hash lose around 4500 Bitcoins. It did repay the money and now has upped its reputation. It is better to enter your privately owned Bitcoin wallet address rather than using what the website gives you. This website has features of calculating electricity consumptions and shutting down mining if profits are not favourable. When you keep your computer unused for a while, the computer automatically starts mining and when you resume work, all the power supply is focused on getting your work done. Nice Hash is a good mining platform to begin with.

Awesome Miner

This is a much advanced software but the GUI makes it easy to use even for beginners. It aims or focuses on profit making and you can gain control over the minute details that will eventually help you mine more cryptocurrencies. It provides support to more than 50 other mining software and can be used on a Windows or LINUX operating system.

How to Build a Bitcoin Mining Rig?

There are three types one mining rigs you can opt for, CPU, GPU and ASIC (Application Specific Integrated Circuit). The selection of these rigs depends on what type of cryptocurrency you are going to mine. Let’s check out each type below.

1. CPU: Using a CPU is the most affordable way you can start mining but it certainly isn’t the best way. CPUs no longer support the efficient running of length and complex programmes. There are some high-end CPUs in the market that get the job done for people who can’t afford expensive gadgets.

Noctua NH-D15 (Cooling)
AMD Ryzen Threadripper 3970X
AMD Ryzen 9 3950X
Intel Pentium Gold G-6400

Here are the links that you can checkout for a step by step guide to build a CPU mining rig.

2. GPU: A GPU is what miners today use. You may need at least six GPUs to work together. They are expensive but if maintained for a longer period of time, the Bitcoins you will be producing will definitely bring back your money. Nvidia and AMD are some of the best-selling GPU brands. Check out this link to get a step by step guide on how to build a six-GPU mining rig. Here are some GPUs that are commonly used in Bitcoin mining rigs.

EVGA GeForce 08G-P4-5173-KR, GT
Gigabyte GeForce GTX 1070 G1
ASUS Dual GeForce GTX 1070
MSI Gaming GeForce GTX 1070

Check out these videos to get a step by step guide to build a GPU mining rig.

Are Mining Rigs a Good Investment?

Bitcoins fluctuate in value. An increase in the price of Bitcoin increases the value of production of Bitcoin, increasing the value of the mining rig. To say it simply, a mining rig not only produces Bitcoins but also increases its value in the market from time to time. It will sooner or later be an asset to your portfolio than a liability. Later, you can sell the rig itself and gain staggering profits.

When it comes to electricity consumption, there are two ways to deal with it. Either you pay your electricity bills or install solar panels to fund your electricity usage. Check out this video. Electricity consumption costs the highest in major cities like New York but it’s the lowest when it comes to Asian and African countries. So, it makes total sense to set up a mining rig in Egypt or Afghanistan.

You not only earn profits by producing Bitcoins but also earn transaction fees and block reward prizes at the same time. It may be a huge amount of money to invest in the beginning but in the long run, we see profits unless the entire blockchain collapses, which would be a complete disaster!

Warning Signs Before Starting Bitcoin Mining

While in the process of mining, your computer is going to be running in full hundred percent mode. Longer the mining, the more strain on your computer. Make sure the fanning system is doing its job.
Since the system is going to be at its highest performance ability, it is going to heat up fast. So, if you are someone who likes a cool room to be in, Bitcoin mining is not for you. The heat from the computer is going to transmit throughout the room.
This entire world of cryptocurrency is based on volatility. Nothing stays for longer. If you have your coins on an online website then make sure to transfer them into your private crypto wallet. You can also use a physical wallet, often called the cold storage, to store your crypto portfolio.

Hardware wallets include Exodus, Electrum, Ledger Nano, mycelium.

Conclusion

Bitcoin mining is a highly advanced process made simple for us by using expensive supercomputers and software. Take into consideration the electricity consumption and the actual pollution caused by it. Mining is not the only way to earn Bitcoins. Create account in Bitcoin Millionaire and start investing in Bitcoins.

We hope you have got an idea about how costly the entire process of Bitcoin mining is and how time consuming it is to build a mining rig. The fruits of your labour are definitely going to be sweet but are you willing to risk it all? The ball lies in your court.