Should You be Mining Cryptocurrency?

Is it worth mining Cryptocurrency?

Crypto mining can be a gamble in 2018. However, some solutions exist for managing risk- and If you’re a hobbyist then there’s nothing to lose. Inform yourself on the potential for mining cryptocurrencies today!

Mining Cryptocurrency Might be Worth it

Crypto mining can be a gamble in 2018. However, some solutions exist for managing risk- and If you’re a hobbyist then there’s nothing to lose.

Cryptocurrency mining for the layman is a touchy subject. Some schools of thought hold that over the long term, Cryptocurrency will continue to go up in value. In which case, it’s a win to mine during cold periods in the market.

If the historic bullish third and fourth quarter trend repeats  in 2018 we can expect mining to make a huge return, and miners to make huge returns.

In previous historical examples of financial trouble, Crypto has shot up. Recently Bitcoin became very expensive in Zimbabwe after a political coup threw the nation’s financial status into uncertainty.

 When such panic and fear grips, people will favour more reliable international currencies. Bitcoin has outperformed a few currencies globally this year even despite it’s poor performance. For example the Venezuelan Bolivar, another hot topic nation in unfortunate turmoil.

At the moment Cryptocurrencies are a sound bet for investment. Most of the financial sector has piled in at this point, and are in the process of opening or already are running crypto divisions. Crypocurrency is here to stay, and to invest in and run a miner may well be a great idea.

There are a number of exciting projects on offer everyday that can be mined. If you take a long term view that Crypto is only at it’s inception then mining is a worthwhile endeavour for you.

 

Crypto Mining can be a Risky Business

However, with this optimistic perspective must be weighted the current situation. Markets have been on a general down swing since January. The markets are showing little signs of recovery, and many of getting worse.

There doesn’t seem to be much sentiment for Cryptocurrency right now, and although some coins have faired better than others, the Cryptocurrency market is in chaos.

 

Companies like AMD are reporting considerably less sales of their Radeon & Ryzen GPU’s to miners.  The market is clearly not hot on cryptocurrency currently. The flip side is that it’s a cheap time to buy a miner.

There are a number of exciting projects on offer everyday that can be mined. If you take a long term view that Crypto is only at it’s inception then mining is a worthwhile endeavour for you.

3 Reasons Against Mining:

The main practical problems with mining cryptocurrency in the current climate can be reduced to a few points.

  1. Electricity costs are at record highs, and miners are very energy intensive
  2.  Buying the equipment, including casing, GPU’s/ASIC’s, fans, risers and motherboard is generally expensive for newer builds
  3.  Cryptocurrencies are becoming less valuable whilst simultaneously becoming tougher to mine

The Flip Side?

Consequently mining crypto is often resigned to those with a load of disposable cash. When starting off it is recommended that you start off small, and with a lesser known coin that can be mined using GPU’s such as the ASIC-resistant security coin Monero.

The idea there is that many smaller coins are less likely to be flooded with the more expensive ASIC miners or have a large network mining them. In the future, some of these lesser known projects will probably moon.

Picking the right coin to mine can also be a weekly swap if your setup allows it. Many lesser coins can be profitably mined and sold.  Some pundit sites even list the deal of the day!

If you’re looking to get started with mining, you should start off with a low key mining software on your computer, or with a USB miner.

 

 Many profitable USB hobby miners exist. The intention to get to grips with software and run an active miner can be good fun. It also works to prepare for your future big boy ASIC or GPU miner.

Examples of a plug n’ play USB miner: the Scrypt FutureBit Moonlander

Or if you’re feeling creative and like to tinker with electronics then consider repurposing some old kit!

Ken Shirriff is a playful figure in the crypto community who likes to repurpose age old electronics into miners. Old PC’s and SNES gaming consoles are a couple of the items Shirriff has turned into miners!

Read more here:  How Developers Like Ken Shirriff Are Making the Most Out of Old Electronics for Bitcoin Mining

Want a Big Boy Miner? 

Unless you’re a rich oil salesman or have a nifty 10K tucked away, building a mining rig using ASICs is incredibly costly. Most ASIC miners on the market cost $1000+ and have some chance of becoming obsolete. For example if a coin decides to make its algorithm ASIC resistant.

Or worse, if the currency changes its encryption algorithm in any way- you’re totally out of luck. Yeah you guessed it, many ASIC miners are algorithm specific. To boot, the waiting times are awful and the customer service when anything ‘goes wrong’ is often horrendous, and a panicky experience.

 It’s recommend instead to for coins that can be mined using top of the range GPU’s with high resale value should you decide to swap rigs. Monero is the aforementioned exception, which can be mined effectively with GPU miners and is going places.

Still set on Mining? Get your own Monero Rig with our Exclusive Build!

Monero is the coin we will cover for this affordable and effective beginner build. It has a lot of capabilities for expansion and will mine effectively. Monero’s ASIC resistant algorithm means that people are on a more equal footing using a GPU miner like the one featured.

To build a miner you need eight components.  We’re going to show you an example build for mining Monero with the hugely effective Vega RX 56 GPU. Please be aware of the specifications required should you decide to use different components.

1. Frame – unless you want to fork out some serious cash, build your own! Old computer cases or other cheap metalic casings can be adapted to hold smaller rigs. Reddit has some creative examples of man made frames, including an old radiator casing frame. 

2. Storage – you’ll need to buy some drive space to store your system files, mining software and so on. We recommend a reliable 120 gb solid state drive by Kingston which at £23 is a bargain.

3. RAM – we recommend going for at least 16 GB of RAM for the Vega RX — if you don’t want it to crash. Two sets of these Corsair desktop memory units work a treat and are pretty well priced.

4. CPU – just a cheap basic CPU will do, try the Intel Celeron G1840.

5. Motherboard – A punch little ASRock motherboard fits the bill perfectly and comes in at only £50.

6. Power Supply (PSU) This 650 W PSU by Corsair will give your GPU plenty of juice to mine, and is quite economical at under £50. Mind, if you plan on getting another miner later you can double the power needed by buying a single higher power PSU.

7. Riser – Delivers power to your GPU. 

8. GPU – The Vega RX 64 is a money printing machine, and has high resale value if you decide to upgrade.

Next, you have somewhat of an IKEA job on your hands. Luckily, numerous videos and articles are available on the fine tuning of a miner. After set up the next stage is joining a decent mining pool. Go forth, and mine!

Comment ( 1 )

  1. Monero is the Best Cryptocurrency Around Right Now - CryptoClub
    […] Or, if you’d rather mine it yourself then check out our build recipe and arguments for mining Monero here. […]

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