You are curious, you have already vaguely heard about the mining of crypto-currencies but you are completely lost, you do not really know what it is, what to do and much less if it is really profitable. Cryptos-Mining aims to make you understand all this in a clear and simple way. In this article we will try to understand if mining is a profitable business.
First of all there are several ways to undermine:
Crypto-currencies mining with ASIC hardware
ASIC hardware is primarily an equipment dedicated to mining on compatible algorithms, a good example is Bitcoin (SHA-256). The material is however almost impossible to resell and it has no use other than mining, its resale will be intended only for someone who also wants to undermine.
We will not discuss this mining method in more detail on cryptos-mining at this time.
The mining of crypto-currencies with GPUs (graphics cards)
Initially planned for the game or mathematical calculations and photo/video processing graphics cards are also able to undermine crypto-currencies whose algorithm is intended for or resistant to mining via ASIC can not be used on. The Ethereum (Ethash/Dagger-Hashimoto algorithm) For example was impossible to undermine with ASIC hardware, this is no longer the case today.
The Me (Cryptonight algorithm) was, until it was little impossible to undermine via ASIC hardware, this was nevertheless possible for a very short time before the developers evolved the algorithm of the Me, CryptonightV7.
The ASIC material used on this grace period for Cryptonight has therefore become obsolete after this change in the Me algorithm.
At the writing of its lines, the company Bitmain proposes the Antminer E3 which is able to undermine on the algorithm Ethash/Dagger-Hashimoto for a purchase cost of $850 in presale. Today this equipment is offered at $2150, without regard to the important delivery times, the power supply (PSU) as well as the customs charges to be added to the calculation.
This ASIC offers 180 MH/s (hashrate Ethash) for an electrical consumption of 800w, so it is not disturbing when compared to its purchase price. The graphics cards also offer financial security, in fact it is always possible to resell its graphics cards if you want to stop the mining, the risk is therefore more moderate compared to ASIC equipment.
Cryptos-Mining will give you all the information about mining with graphics cards.
Mining with CPUs (processors)
It is possible to use its processor (or its processors) to undermine crypto-currencies intended for this type of mining. They are few and often mining can be done with the combination CPU plus GPU. The most experienced will nevertheless choose a processor with a good power/price ratio when choosing the currency to undermine, its profitability as well as the most suitable software for the equipment. The cost of electricity is a critical part of the equation. We will not talk about this method (CPU alone) on Cryptos-Mining at the moment.
is crypto-monnaie mining a profitable business?
We will be interested in the mining by GPU (graphics card), one must first know that a minor will use one or more graphics cards to miner 24/24h and 7/7days.
To answer the famous question of profitability one must have in mind several parameters:
Your electrical cost is the most important thing in the mining of crypto-currencies because your graphics cards consume current. It will therefore be necessary to quantify this data (in Watts per hour) to calculate your profitability.
Taxes and legislation, this will depend on your place of residence, if you live in France you will have to report your earnings to the state and pay a percentage of your profits. On the other hand if you live in Belgium this is not currently the case, however the cost of electricity (KW/h) is more important in Belgium than in France.
The hashrate (see article definitions) of your graphic card (s) If you have for example 4 graphics cards providing a power of 120 Mh/s on the Ethash algorithm (Dagger Hashimoto) It is necessary to calculate the profitability according to the Crypto-currency chosen and include your electricity cost as well as the consumption of the RIG (see Lexicon) in full.
To go further we will have to look at our article on calculating profitability and other different items available on Cryptos-Mining.
We recommend that you start with the information articles before looking at the ones concerning the mining.
If you have any questions, if you think it is missing something important to add or correct do not hesitate to write a comment.