Today, there are no people left in the world who have not ever heard about bitcoin and cryptocurrency exchanges. Many people talk about crypto assets and coins, and trading is becoming an increasingly popular way to earn money online. Traders get money by buying and selling bitcoin using various methods (crypto exchanges, bitcoin ATMs, personal meetings).
Bitcoin exchange is a convenient online service that allows you to trade and exchange digital currency for another or fiat money. Crypto traders buy bitcoin at the lowest price but sell it at the maximum. However, not to lose money, you need to work with proven online services that, in addition to quotes, guarantee the security of data and the safety of funds. Therefore, the primary task is the knowledge and watched reviews about the bitcoin sphere. Unfortunately, crypto exchanges and other bitcoin transaction methods do not guarantee successful results. There is always some risk of being trapped by scammers. For this reason, be careful with the choice of the seller and when conducting the transactions.
By the way, the so-called bitcoin mining process has been gaining momentum recently. The essence of bitcoin mining is that many computers that are not connected solve mathematical computational problems through bitcoin mining hardware. Such tasks are necessary for the functioning of the blockchain cryptocurrency network. As bitcoin mining evolves faster and faster, the need to understand this process is also growing. Therefore, in this article, you will learn about mining hardware, crypto trading, and how the entire process works.
Bitcoin mining hardware for a miner
The concept of bitcoin that has blown up the Internet community has given rise to a new industry in making money – bitcoin mining. The number of miners is steadily growing, and mining is becoming harder and more labor-intensive. Some time ago, people could mine at home on a computer and earn a decent amount of bitcoins. It requires expensive bitcoin mining hardware.
The only way to participate in bitcoin mining is through miners (bitcoin ASIC miners). Perhaps the best bitcoin mining is the following:
- Bitmain Antminer T19
- Bitmain Antminer S19
- MicroBT M30S
In simple words, bitcoin mining is the earning of cryptocurrency by processing power equipment (a personal computer or specialized mining machines). It is not always vital for a beginner to know the meaning of mining, as people need to understand how much they can earn. Usually, the average miner does not get to the bottom of what is happening during bitcoin mining.
This article covers the entire history of mining, bitcoin mining hardware, and understanding of blockchain technology and mining operations.
Therefore, to start in bitcoin mining, read the content of this guide:
- Bitcoin mining history
- Evaluating bitcoin mining
- Popular bitcoin mining hardware companies
- Bitmain Tech
- Canaan Creative
- Innosilicon Technology
- GMO Internet
- Best bitcoin mining miners
- Types of hardware
- Your questions
- Final words
Bitcoin Mining History
As mentioned earlier, first of all, you need to understand what mining is. If you have never encountered this mining process before, it is better to familiarize yourself with it. On the other hand, if you know about mining and how it integrates with the bitcoin network, then learn more material by watching the video.
In general, the explosive growth of the bitcoin exchange rate has generated a whole wave of miners who want to have time to make money on such a phenomenon as cryptocurrency. Initially, people were very skeptical about cryptocurrencies and mining software. However, bitcoin has proven its viability, independence from external regulators, and demand from investors. The success of bitcoin has led to the emergence of more and more new cryptocurrencies with new encryption algorithms.
In almost any country, mining is related to the concept of extraction of minerals. Usually, a miner interprets this process as creating new structures (blocks in the blockchain and get a block reward) for the cryptocurrency platforms. Usually, mining is reduced to a series of calculations with parameters to find a hash power with the specified properties. Different cryptocurrencies use various models, but they are always long to find an acceptable option and fast enough to verify the found solution.
Thus, mining has become a hobby miners and something to do at home. In practice, miners have transformed bitcoin mining from using a computer to using GPUs. Further, the miners improved their activities, as field-programmable gate arrays appeared, and only now ASICs (application-specific integrated circuit) is operating. Just imagine that such a process went through several stages before the advent of ASIC. Every miner needs to understand that mining anything other than an ASIC miner leads to disastrous results. ASICs are designed exclusively for bitcoin mining and, for this reason, they are the most efficient way for every miner. For comparison, a single ASIC miner has the equivalent power supply of 700 GPUs. For this reason, miners began to resort to ASIC because it is easier to earn money.
It is worth noting that miners mainly focus on creating small ASIC chips to produce more power consumption. There is one rule: the smaller the chip, the more chips can be placed in the miner, increasing its mining power supply. For instance, the smallest chip for commercial purposes is the seven-nanometer Bitmain itself and their Antminer S17. However, statistics show that shortly there will be five-nanometer from other companies.
Evaluating Bitcoin mining
It is no secret that any technique must have its power supply and efficiency. In general, network support consists of confirming transactions by combining them into blocks and calculating the hash of such a block. The block hash does not allow you to change the information in the future (it excludes changing transactions). Finding a hash with the specified parameters does not happen instantly. It needs to generate many keys to get the specified one. After generating the hash, need to confirm the validity of such a block from other partners’ process data. In the bitcoin network, you need to get at least 120 confirmations. This confirmation is another degree of protection against distortion and additional verification of data in the network. It is the meaning of cryptocurrency mining.
When evaluating the hashing power and bitcoin mining, you should pay attention to the following factors:
- Power draw (energy consumption)
- Hashing power
- Energy efficiency
Consider each factor that affects bitcoin mining hardware.
1) Power draw
Power consumption is the primary indicator for bitcoin mining hardware. Indeed, you need to understand how much electricity costs and how much energy consumption do you need. Power consumption is measured in watts. The lower this number, the better for the miners. The expenses for a miner (network participant) are the purchase of the best bitcoin mining devices and electricity costs for its operation. Thus, each new bitcoin has a material resource, which is finite. For the appearance of a new coin, you need time for calculations, ASIC mining hardware, and electricity.
2) Hashing power
Hash power is the amount of energy that a miner has for bitcoin mining. There is nothing fancy about it, and the hash power supply measures the amount done per second. By the way, modern ASIC hardware can make many times more assumptions per second. It follows that the higher the hash, the better for the miner.
3) Energy efficiency
In any bitcoin mining, it is necessary to save energy since electricity costs are high. For this reason, you should understand efficiency, which is excellent proof of work. Efficiency is an indicator of how much electricity costs are needed to create a bitcoin. The best bitcoin mining requires less electricity, due to which it wins. Thanks to this indicator, you may compare miners, choosing the best one.
Thus, bitcoin mining requires all three of the above indicators. If you do not consider at least one of the factors, it is unlikely that your business will be profitable. So make sure that you calculate these factors first. By the way, you can use all indicators and amounts to calculate the number of bitcoins. To do this, you need to insert the sum into the bitcoin mining calculator.
Popular bitcoin mining hardware companies
For bitcoin mining, you should have the best mining machine and related products. To some extent, even the best mobile device that allows you to communicate with the participants of the mining network is necessary. There are some of the best bitcoin mining hardware and companies that produce mining software in the world.
1) Bitmain Tech
Today, the most reliable and well-known manufacturer of bitcoin mining hardware is Bitmain. This company appeared in 2013 with the development of cryptocurrency and has developed its network of offices in the world. The company has developed Antminer hardware, a series of ASIC products for crypto, bitcoin, and litecoin. By the way, this manufacturer also released a service as a mining pool (BTC.com and Antpool).
A mining pool is a server that divides a block signature calculation task into small tasks. The mining pool distributes them to the connected devices. The contribution to the overall performance of each miner participating in the mining pool is estimated using the share. Once it satisfies the current complexity values, the pool server announces the structure signing.
Despite some advantages in releasing the best bitcoin mining equipment, the company has several disadvantages:
- Production monopolization ASIC hardware
- The obstacle in updating SegWit
- Support in promoting Bitcoin Cash
- Eliminating competitors
- Questionable business practices (Antbleed vulnerability and scandal)
Thus, most of the mining hardware is the product of this company. It is evidenced by the statistics and analytics of mining manufacturers. However, due to some setbacks, Bitmain develops a less aggressive business strategy. Although the company produces the main products of ASIC hardware, it correlates its policy with its competitors.
The beginner of bitcoin mining hardware (and mining software) is Micro BT. Although the company faces difficulties and has strong competitors, its activities are successful. Micro BT sold more than 650 000 ASICs hardware in 2019. For this reason, this manufacturer is a competitor to other companies. This company produces the Whatsmine ASIC line and several series in this range, including the Whatsminer m3x.
3) Canaan Creative
Another major producer of the best bitcoin mining hardware is Canaan Creative, founded in 2013 in Beijing. In general, the history of the development of this company is incredible, since initially, Canaan did not produce hardware ASICs. In 2019, the company was a success, as it raised more than $ 90 million by listing on Nasdaq, the technology-focused US stock market. Thus, the company has a clear business strategy focused on successful ASICs product development. Moreover, the company has many years of experience in electronic design as well as manufacturing.
4) Innosilicon Technology
Another bitcoin mining hardware company is Innosilicon. This manufacturer is expanding its activities, so there are offices in both China and North America.
The mission of the company is to produce low-cost, high-performance hardware ASICs, as well as other equipment:
- Cell phones
- Network devices
- HD set-top boxes
Most customers express positive feedback about this company, which guarantees security, stability, and efficient technologies. By the way, the company has established itself as a reliable manufacturer of bitcoin mining hardware and has released a series of Terminator (T3+ Pro) in the market.
5) GMO Internet
In June 2020, it became known that GMO stopped producing bitcoin mining hardware due to its unprofitability. This company has introduced several crypto-miners. However, the main focus of the activity is advertising and financial services. While developing the Internet infrastructure, the company also operates a business for measure ad performance, mobile entertainment, and cryptocurrency. One successful direction of the company was the release of the crypto exchanges, as these online services are gaining momentum in popularity. In this direction, the company also manages contracts for cloud mining.
This Ebang company mainly specializes in the development of research and development work. The company also produces and sells fiber-optic telecommunications products. Indeed, today the company leads the market in the production of ASIC microchips. From the latest news, the company filed for an IPO on the USA stock market. Such a tactical move speaks of the company’s far-reaching plans.
Completing this list is Bitfury, which is engaged in bitcoin mining operations and the production of high-quality hardware. The company has many years of experience in bitcoin mining, conducts large-scale operations, and accounts for large volumes of the hash network.
The company has a service for the various hardware (and mining software), including Clarke, an enterprise-grade server Tardis, and a bitcoin mining geolocation data center. The company has an extensive network of offices in different regions of the world. Therefore, each miner can order products for bitcoin mining.
Best Bitcoin Mining Hardware
As noted earlier, bitcoin mining requires first-class equipment. Although there is a wide range of miners on the market, it is better to use the best bitcoin mining hardware. It will save you time and nerves and pay off quickly on your investment. Below is a brief overview of the best hardware. Read this list carefully.
1) MicroBT M30S
This hardware occupies a leading position for bitcoin mining. It is worth noting that many users call this hardware the new hash king. The equipment has 12-nanometer chips, and it has a high power draw and efficiency (112 TH/s).
2) Bitmain Antminer T19
Perhaps this line is the latest updated version of the best bitcoin mining hardware. The company launched the development of these products to find a middle ground between price and hash power. This Bitmain Antminer hardware has excellent energy power (84 TH/s) and performance indicators, thanks to which it wins over such a miner S19 Pro.
3) Bitmain Antminer S19
The best mining hardware in comparison with Antminer T9 and Antminer R4 is Antminer S19 Pro. It is a versatile heavy-duty hash miner (110 TH/s) for high-performance and bitcoin mining. According to the reviews, it is difficult to say which of the two options presented by Bitmain Antminer is the best.
4) Bitmain Antminer S17
This miner is also the hardware of the company Bitmain and is a competitor to other products. At the same time, the hash rate reaches 68 TH/s with average power. In general, these are good indicators in the market.
Among some miners, it is worth highlighting the following:
- Antminer T9
- Antminer S9
- Antminer S5
- Antminer R4
5) Antminer T9 and Antminer R4
One of the most productive mining devices of the company Bitmain is Antminer T9. The new version of Antminer T9 went on sale in 2018, becoming a direct competitor to the Bitmain Antminer S9 model. Indeed, the Antminer T9 is a budget version of the popular Antminer S9 in the past. The equipment works according to the SHA-256 algorithm, which made it possible to mine bitcoin and Bitcoin Cash coins with it. In general, it is budget hardware for mining.
As for Bitmain Antminer R4, this model is significantly larger than other miners (Antminer S5). Bitmain Antminer R4 body is made of riveted steel sheet and is disassembled into three parts. The body does not bend. Unlike the device S9, there are only two hash boards inside, but they have a more elongated shape. It is a good model for mining cryptocurrencies.
Types of hardware
Thus, there are several better miner models that quite logically fit into this activity. However, it is best to compare this equipment using a computational calculator. The most vital indicator in mining is electricity (in the USA, this cost is equal to 0.67 dollars). The price of bitcoin itself is constantly growing, but it is also being introduced into the calculations. When counting all factors, the cost of mining is about 6.25 bitcoins. It follows that every manufacturer must resort to such calculations to understand the mining process. It is the so-called content measurement.
Below are the conclusions of comparing the best mining software after one month of mining.
- Antminer S19 (final earnings after calculations is 90 dollars)
- MicroBT M30s (84 dollars)
- Antminer T19 (37 dollars)
Thus, the Antminer S19 is the leader in terms of indicators and occupies an advantageous position. Almost every miner includes more energy costs. Among other miners, the first two on this list are the best. Unfortunately, the last miner (Antminer T19) is not in any comparison with the others. This device does not lead and does not occupy high positions. Undoubtedly, it is necessary to include all costs and related factors. However, the first two devices outperform the Antminer T19.
1) Using a personal computer
Unfortunately, with the current development of mining, using a regular computer is not a profitable business. As a rule, you cannot use a laptop.
2) The cost of a mining rig
Prices of mining rig are from $ 1000 to $ 2000. However, it is not new equipment in the secondary markets that you can buy at low prices. It all depends on the preferences and choice of the manufacturer. If you are planning successful mining, it is better to buy professional equipment.
3) The last bitcoin
According to the division rule, users will get the last bitcoin around 2140. It is not that soon, but it is not that far away either.
4) Mining profitability
Although trust in cryptocurrency is growing and there are more crypto miners, the profitability in this area is high. If you have high-performance mining units with low energy costs, you will earn a lot. However, do not forget to make mining calculations.
5) Bitcoin mining in a day
Using different manners (Whatsminer M30s or Whatsminer M3X) at a coefficient, you can get about 0.00054466 bitcoins in one day.
6) Remaining Bitcoins
For 2020, there are about 2.6 million bitcoins left to be mined.
To sum up, Whatsminer M30s and Antminer S19 Pro are the best mining hardware on the market with low electricity costs. The higher the profitability, the greater the development of mining companies (for instance, Samsung).
What hardware do I need for bitcoin mining?
Mining requires first-class, updated equipment and mining software. Secondly, these devices should have high performance, power, and less energy-consuming. In this case, the Antminer S19 and Whatsminer M3X are better suited. By the way, many manufacturers produce products for mining based on audience insight. In many ways, reviews help you navigate in this area.
Can I mine bitcoin on my PC?
In theory, you may do it. However, for successful mining, it is necessary to use the best technologies and mining software. Therefore, in practice, it will not work. In any case, any mining is the business of every person who has privacy rights. Someone claims this, and someone does not.
How long does it take to mine 1 bitcoin?
Despite the increasing number of miners, you can get one bitcoin in ten minutes. Everything also depends on the speed and efficiency of the CPU mining software.
What is bitcoin mining hardware?
It is a mining software designed for mining cryptocurrency. Such equipment has high-quality and high-speed characteristics. However, not all hardware and not all software are reliable. Scammers also did not stay away from cryptocurrencies. Since it is almost impossible to steal cryptocurrency, they went the other way. Hackers began to create hidden mining programs that were installed on many PCs with viruses and used the power of computers to mine cryptocurrency. Major antivirus software companies regularly fight such viruses.