Everyone seems to want to participate in this cryptocurrency boom, bitcoin surpassed fifty-eight thousand dollars for the first time in February 2021 in Bitcoinspiking, as we learned a few moments ago that Tesla bought fifteen hundred million dollars of the cryptocurrency Bitcoin, crossing fifty thousand for the first time. I'm a straight line, judge. But it's a hundred thousand, I think in 2021. The more people own it and use it and then start trading on it, the more valuable Bitcoin itself is. new records this year and even the price of dogecoin, a cryptocurrency made up as a hoax that doesn't have the same serious function and institutional backing, something like Bitcoin jumped more than 50 percent after a tweet from Elon Musk. While it is easier than ever to buy a small fraction of a Bitcoin using, for example, a Coinbase app. That is not the only way to get crypto cash. You can also extract it. Before the pandemic took over the US, we went to a blockchain production studio in Brooklyn to learn how to mine Bitcoin's biggest rival. Is that how it works. who much does it cost.
What is Digital mining?
Digital mining is kind of like real life mining, except instead of shovels and dynamite, it is done with software and computers. A miner is essentially simply running a computer program that solves a complex mathematical problem. The problem is how cryptocurrency transactions are verified so that the money moves correctly from A to B. The algorithm awards the miner who solves the problem first the cryptocurrency cash for their bookkeeping efforts. In its 12-year history, not a single entry on its blockchain has been fraudulent. Now they probably processed close to $ 10 trillion worth of transactions and not a single false entry in, you know, that same 12-year period. Was the system activity bogus? It's probably about seven to eight percent to achieve that kind of security without having a full permit. Anyone can really trade on this. I mean, that's quite an incredible feat.
My Ethereum Mining rig Setup?
So if there is an Ethereum mining rig, and this is like any other computer that you would build on your own instead of having a real case that all the components live in. It is in an open area like this. And you should do this because when GPs are running, they get very hot and it is important to have plenty of air circulation. Lee learned to mine by watching YouTube videos. This is when he was still mining in his spare time. Here, you need your power supply and motherboard. This is what connects all the logic in the computer. You need to have an operating system running on your motherboard. You need a SSD hard drive, isolated. And I have a there are a specific operating system called FOS ,they are much better. So you also need Nvidia Gforce GTX 1080 GPU. And this is a graphics card that people mainly use for gaming. But these are also really good for mining cryptocurrencies. on the power supply. And then we have to plug in the data so that the graphics card can read from the computer and then plug in this guy. So there is also a SATA cable. This is so you can get data.So once everything is connected that way, you are good to go. We can turn it on and start mining. Just turn the computer into a platform. A mining rig. Yes, everything on this platform cost roughly $ 1400 because of the parts you see here.
Digital address for cryptocash(Crypto Wallet) & how it works?
The only thing left to do is create a wallet, a wallet is a digital address for cryptocash, and then how long does it take to actually start mining? ? This should start connecting will automatically go online and know your address. You will see that it starts working in a couple of minutes. When the platform is mining, what it is actually doing is executing what is called a hashing algorithm. equations to solve all those problems, but this mining rig is not solving all these math problems in a vacuum. In reality, you are competing with miners around the planet to be the first person to verify a block of transactions. Someone wins this race about once every 13 seconds, and whoever wins is awarded a prize. to ether. They also get a transaction fee, which averages around 2.3 ether. But there is a mining pool fee that has to be paid, which is about one percent of the block price plus the transaction fee. When you combine all three at today's prices, that comes out to about sixty-four hundred dollars.
And do they all use the same hashing algorithm?
They all use the same hashing algorithm. It is completely democratic. It just depends on the hardware you have and the cost of your electricity. So the only advantage you would have is if your GPU runs faster than someone else's or someone else's. your electricity is cheaper. Yes, there is no way to shorten it to stop it. A single graphics card platform can run 27 million math equations per second. That sounds like a lot, right? But in the theorem network right now, there are 400 trillion mathematical operations that occur every second. So Lee's platform in Brooklyn accounts for around a 15 millionth of the entire Ethereum network. This is why people join something called a mining pool. A pool allows a single miner to combine their hashing power with thousands of other miners around the world. They could be in Afghanistan. They could be in Dubai. They could be in Europe or South America. Everyone shares their resources together and it doesn't matter where they are physically. Therefore, they are working together with these people to compete. solve a block faster than anyone. It is a giant competition between everyone who is on the network. So it is a race between you and your computers and the computers in your mining pool against computers and other mining pools. Let's go forward an hour as a team. with my mining pool. This is what I managed to earn as a miner.
OK, so is it really worth spending all this money on equipment and electricity to mine crypto currencies?
Let's take a look at the map. Our platform of a graphics card costs approximately fourteen hundred dollars. If we add five more graphics cards and we are forty-four hundred. If we run this platform at full capacity with all six GPUs, you can make around $ 0.348 per month, which is roughly $ 500. These platforms require a lot of energy. Therefore, the cost of electricity is an important factor. Where you live in the United States also plays a role and how much the mine costs. In interstate electricity prices, Alaska, Hawaii, California and Connecticut have the highest electricity costs in the country. New York is also one of the most expensive states when it comes to electricity bills. So it doesn't necessarily make sense to blow up New York here. But it is a totally different story where electricity is less expensive. Just look at the state of Washington. It has some of the cheapest energy sources in the United States, so the profits may outweigh the costs. Outside of the United States, prices drop even further.
My words:
A study published in Twenty Eighteen by Elitefixtures shows that countries like Egypt and Kuwaitare are among the places where it is least expensive to mine Bitcoin. But one important thing to keep in mind is that the size of the prize miners get decreases exponentially over time. 2017, it was five ether, but it has been reduced multiple times since then. Rewards are now 2 Ether. But again, you get a transaction fee for each completed block, and those fees - something they call gas prices - keep going up. So there is definitely still money in Ethereum mining. And, unlike Bitcoin, there is no limit on the total number. of ether coins you can find. The supply is endless.
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