The DIY industry is becoming very popular among people, especially those who want to escape the high cost of hiring professionals to install or build anything they need. With a good and detailed DIY video and the correct tools you are set to go and start your construction. The only time you will need a professional or an expert is to come and check if you did everything correctly. It’s also a good way of managing repairs if you live in a town far from the city and accessing repair services will be very costly. So the big question is can you build your own bitcoin mining device?
Just like other devices, many will be tempted to build their own versions, make money from it by either selling it or by mining bitcoins from it. However, these devices and the mining process need a lot of technical knowledge, can a person who is well advanced in technology or a team of people be able to build their own bitcoin miner and mine bitcoins from it. Well, we try to look at the odds of building a bitcoin miner or just buying one. Bearing in mind, already there are several DIY videos on how to make your own bitcoin miner.
Before you begin the whole construction and mining process, it’s crucial that you clearly understand all the aspects of bitcoin mining. It’s legal to mine bitcoin and it’s achieved by operating the SHA256 (a double round hash) verification processes. This is done so as to validate the bitcoin transactions being done and also to offer the highest level of security to the public ledger (who is trading bitcoins in the bitcoin network). The speed at which the mining device mines bitcoins is measured and determined in hash per second.
Miners are compensated by the Bitcoin network by receiving bitcoins. The bitcoins are only given to the miners who contributed to the required amount of computational power. These rewards are in two forms: newly given BTC and BTC from the transaction fees, which are normally included in the validated transactions when the mining process was taking place. If you want to earn more bitcoins then you must be ready to contribute more computing power to the mining process.
The above information is just simple and sketchy framework of how the mining process works. For more technical knowledge, then you can do more research on the bitcoin mining process. Next we look at the devices that are used in mining bitcoins. If you understand how they operate, then you can able to construct something that has the same operating system and hence come up with your own mining device.
The Bitcoin Mining Hardware
We will look at the three most popular mining hardware in the market. A short detailed review of how these hardware operate and function, will help you in determining whether you want to buy a readymade mining device or you want to build your own mining device.
The GPU/CPU Bitcoin Miner
Compared to the other mining hardware, your computer comes out as the least powerful device. Theoretically, it’s possible to mine BTC using the CPU of your computer, however, when you decide to put this theory into practice you will be shocked by how slow things will be. Compared to today’s standards the mining process will be very slow. This means your computer needs to have a very powerful CPU, something that the average man can’t do. Such advancements in the CPU can only be done by computer experts.
In order to enhance the hash rate of your bitcoin miner, you can add graphics hardware to the computer you are using. These graphics cards have GPUs (graphical processing units) that have been designed and constructed to operate under heavy mathematical lifting. This gives them the mathematical ability to solve and calculate every complex polygon. With this feature, they are the best tools to use in solving the transaction block. If you want the best GPUs in the market, the most reliable vendors are Nvidia and ATI. Be ready to spend a few hundreds of dollars in buying high end graphic cards, but then be guaranteed that you will be provided with an improved CPU hashing rate. For instance, an ATI graphic card with 5970 graphics will give you a hash rate of 800 MH/s way better than your normal CPU that has an average hash rate of 10 MH/s.
So what is so good and reliable about the GPU? The GPU is more versatile, unlike the other bitcoin mining hardware that we will discuss below. The GPU can be sued to mine other cryptocurrencies apart from BTC. For instance, the working algorithm used by Litecoin is different from that one used by BTC and its called Scrypt. This algorithm has been customized to be friendlier to GPUs and CPUs hence making them a very good cryptocurrency option to mine when using the GPU mining hardware. Since the emergence of the ASIC mining hardware and software, the GPU mining has totally gone under the radar and might be hard to find. The Bitcoin Mining difficulty for the past few years has accelerated greatly hence the need to have very improved mining power that even powerful graphics cards are unable to compete with. But, if you still want to make use of the graphics cards, then it’s good to be prepared with a motherboard, which has the technical ability to take other multiple boards. This will help you in saving energy and time, used in operating different PSU for the multiple motherboards.
The FPGA Bitcoin Miners
The FPGA (Field Programmable Gate Array) refers to an integrated circuit that has been designed and constructed to be built and then configured. This allows the manufacturer of the mining hardware to purchase the chips in large quantities. After that, the chips are customized for bitcoin mining then placed into their own mining equipment. Since these chips are already customized to mine bitcoins they have more improved performance compared to the GPUs and the CPUs. A single FPGA chip can operate with a hash rate of approximately 750 MH/s, since this is at the higher end, there is the possibility of using more than one chip in the box: hence much higher hash rate.
The ASIC Bitcoin Miners
They are currently the most commonly used bitcoin mining hardware available on the market. The ASIC (Application Specific Integrated Circuit) have been designed and constructed to only perform one task. They have been programmed to mine bitcoins and at very high speeds while consuming very little power. Since they have been specifically designed to mine BTC and also fabricated, this makes them to be very costly and consume a lot of time (but their speeds are very impressive). Their hash rates range from 5 to 500 GH/Sec, (though purchasing them is a little difficult since some online purchase cannot be shipped to some places). Vendors and manufacturers have promised bitcoin miners of more improved ASIC devices possessing more mining power and hash rates close to 2 TH/Sec.
The Initial Investment
So is it worthwhile to invest in mining bitcoins or any other cryptocurrency? There are the black and white aspects that exist when you look at the cryptocurrency mining industry. But a careful look at all the factors will present you with the possible high revenue return from the mining process. Since the advantages outweigh the disadvantages then it’s best to invest in mining bitcoins and other cryptocurrencies in the market. You will need to purchase some important hardware before you can set up and start your mining process. These items are:
- A high quality GPU (FPGA, ASIO and/or ATI only)
- Calculated hash rate of your GPU
- Reliable power supply for your computers.
- Enough cash to cater for the high electricity costs.
If you buy the right equipment that are of high quality, with a little patience you will be making money from your mining.
The Advantages of Mining Cryptocurrencies
So why should you invest in mining bitcoin while there is the option of trading bitcoins in the several exchange platforms. There are several advantages that are associated with mining bitcoin or any other cryptocurrency. Below are the major merits of why you should be mining your own cryptocurrencies:
- You have ultimate control over your bitcoins always.
- There is no possibility of dealing with counterfeit currencies.
- The operating and transaction fees are lower.
- Cryptocurrencies are now accessible to everyone and are the future global currencies.
- No dealing with third parties hence immediate settlement.
- No cases of identity theft normally frequent due to use of credit and debit cards in making money transactions.
As more people continue to use bitcoin and other cryptocurrencies most of the goods and services provided globally will lower their market prices.
What is The Future of BTC Mining?
The cryptocurrency industry is still growing and the future looks very bright. The mining of the digital currencies is a new concept to many and will need time to be fully accepted by many people, especially those who are used to the tangible currency. Though this might not take long since these days nobody carries cash anymore, people are so used to credit/debit cards and online payments. However, it’s hard to determine how fast the rational common man will accept the cryptocurrency, it’s good to continue learning more about BTC and other cryptocurrencies before you embark on the mining process. After all, the future of global financial transaction medium is indeed the cryptocurrencies.