Table of contents:
- What are the difficulties?
- What do you need to start mining?
- New mining hardware: ASIC
- How to buy such a scheme?
- Other ASIC manufacturers
- ASIC issues
- ASICs will become less profitable withtime
- Can bitcoin become the main currency or will it disappear?
- Should I buy ASICs from resellers?
- What is the prospect of mining?
- Is it possible to earn bitcoins without investments?
Recently, many consider the Bitcoin generator as a source of passive income. It is worth noting that this activity is very different from other attempts to earn money. It requires a fairly large initial investment to stand a chance of making any profit.
Most people today are familiar with Bitcoin, even if they have never used it. It is the first currency in the world that is controlled by a cryptographic protocol and not by a central bank. Basically, you can pay for anything by sending BTC from a virtual wallet on your computer to the merchant's device.
So how can you make money from this? In theory, your computer can become a node on the network that processes and validates transactions. With each processed block, a new block is created from a certain number of coins. This is called bitcoin mining or mining. Sounds good, but how does it actually happen? To understand this, you need to study the reviews on earning bitcoins provided by experts.
What are the difficulties?
If in 2014 25 coins cost about 2500 US dollars, then todaydifficulties with the extraction of cryptocurrency increased 50 times. This makes mining unprofitable unless you have powerful ASICs.
BTC price has skyrocketed (around $1,000 today), but that doesn't quite offset the increase in difficulty. According to the profit calculator, mining at 5 GH/s will give you $1.50 per day.
With the right equipment, bitcoin mining is pretty much like using a money printing press, except it's perfectly legal. But what conditions does this earnings require - a bitcoin generator? Reviews about it will help to deal with this.
What do you need to start mining?
Technically, all you need to become a node on the network and start printing your own virtual coins is a computer with Internet access. You can download a free wallet on your PC, one of several free mining software and join the process.
Sounds great, doesn't it? The problem is that the required computer power is phenomenal to make it work as a bitcoin generator. Earning at home, reviews of which are positive, will not be provided by a device with average characteristics. If you work on your own with only one PC, it may be several years before you see your first block. For this reason, most users join the pool, where collaboration is possible and rewards are possible.
In the pool, when a block is formed and new coins are created, you will receive only a small amount of thempart. But usually several blocks appear in one day. The person running the pool takes a small percentage as a fee (say 3%), but you get almost instant profit through this bitcoin generator. Reviews about making money at home using this method contain a number of details. So, one of the important aspects of mining is that the difficulty of solving blocks increases over time.
So can you make a profit in bitcoins using a personal computer? It depends on how good your PC is. Ironically, the processing required to mine BTC is much better done with a graphics card (GPU) rather than a CPU. So if you don't have a gaming PC with a good dedicated graphics card, you can potentially make a profit, but it will be so small that it is unlikely to change your financial situation.
Today, there are two GPU manufacturers that provide chips for all graphics cards - Ati Radeon and Nvidia. According to bitcoin earning reviews, Radeon cards perform much better per bit than Nvidia. Something to do with their architecture, which doesn't really affect graphics rendering in games, but makes a huge difference in development.
If you try to mine bitcoin with a gaming PC that has an Nvidia card (GTX 660Ti, say), you can get the following results. The efficiency of your setup is expressed in megawatts per second (Gh/s). Let's say your card is running at around 100 Gh/s.
Ifwork for 24 hours with minor interruptions, it will be possible to create 0.002 BTC. It costs about 20 cents. It can be assumed that a full day of bitcoin mining will bring income closer to 30 cents.
Also, this rate is very variable when you operate as a pool that has a collective capacity of 3000 Gh/s. Sometimes you'll hit full load in 10 hours, sometimes in less than an hour. Therefore, it is impossible to accurately calculate what exactly the earnings of a bitcoin generator will be. User reviews also touch on other nuances.
But remember that the increased power consumption is mainly used by the graphics card. Also the card's gradual wear probably means it won't last very long with the same power. It is possible that bitcoin mining with these inputs will make you spend money instead of earning.
Maybe you can get 3-5 times better results with a Radeon card. It's even better if you have two cards installed on your PC, working in replacement mode and supporting each other. But honestly, it's unlikely to pay off.
New mining hardware: ASIC
On the other hand, there is the possibility of buying an ASIC (application-specific integrated circuit) - a piece of electronics designed for bitcoin mining that you connect to a computer. The weakest one currently being released by Butterfly Labs runs at 5 Gbps (that's 500 times faster than the average graphics card).
According toa new message from the manufacturer, miners will draw 5 watts per hex to hash. By comparison, a 42-inch LCD TV is rated at 200 watts. Therefore, a user of a 5 Gbps circuit would use 0.6 kilowatt hours per day, while a more professional ASIC would use 3 kWh.
The BTC Mining Profitability Calculator estimates that you will earn $17 per day with a 5Gh/s ASIC and $170 with a 50Gh/s ASIC after power usage factoring. Thus, this is a very real income on bitcoins. User feedback suggests that powerful schemes can achieve quite large profits.
How to buy such a scheme?
This equipment is not cheap, a 50 GH/s circuit costs $2500. However, according to the calculator, it will pay for itself in 15 days. And then you can "print" money. However, things are not so simple.
According to feedback from real users, the 5Gh/s scheme will help you earn a little more than a dollar a day (if the price of BTC does not rise). That is, the benefit from such work is highly doubtful. Probably, mining looks more attractive when working with a 50Gh/s scheme - the profit will be about $ 15 per day.
Other ASIC manufacturers
By the way, Butterfly Labs are not the only ASIC manufacturers. In fact, another company (“Avalon”) managed to create and sell their mining scheme earlier this year.
However, they only sell batches and only to buyers on the waiting list, so,if you want to buy a pattern from them, you won't get it right away.
There is also the possibility of getting a small ASR ASB with a capacity of 336 Mh/s. According to reviews about earning bitcoins, if you install and use 6 of these developments at the same time, they consume little electricity and do not slow down your computer, but at the same time they are superior to a graphics card.
Given all of the above, buying hardware and mining seems like a good idea. However, there are some nuances that experienced miners talk about.
There are great designs out there right now that you can't just buy online. When Butterfly Labs first put them into production, they raised money from pre-orders. Consumers paid to be the first to receive the circuits, and the money received was used by the developer to invent and build new machines. But, of course, there were numerous difficulties along the way.
The bottom line is that the lowest power ASICs have started shipping to customers who placed orders months ago. Apparently shipping was very slow and only last year's orders were delivered during the year.
As soon as the technical shipment of large circuits began, the company sent the first copies (50 GH / s) by appointment from the first day of pre-order, June 23, 2012. As a result, buyers waited for their turn for about two years.
ASICs will become less profitable withtime
It's not just the problem of delaying fantastic earnings. Remember that bitcoin mining difficulty increases over time. So a super machine that can help you get 1.6 BTC per day will be producing significantly less in a year.
It might seem like an acceptable risk if you can get them right now, as they should pay for themselves within a couple of weeks by making automatic bitcoin earnings. But if you have to part with a large amount of money now and start earning in many months, the risk is obviously much more significant.
Also, bitcoin mining cannot go on forever. A certain limit is set in the system, with the block size being halved every 4 years, due to which the increase in the common currency is limited. In a few years, far fewer new coins will be created than now.
In 2010, bitcoins were used by a small number of people, and their value was often negotiated between buyer and seller individually. One famous case concerns the sale of 10,000 BTC pizza. At today's exchange rate, that's the equivalent of over $1,000,000.
Can bitcoin become the main currency or will it disappear?
It is quite risky to deal with bitcoins, the price of which is very volatile. Since their supply is strictly algorithm-limited, it is hoped that if they become used by more people, their price will increase. Reviews about earning on the bitcoin course alsocontradictory, since it is very difficult to make a forecast.
But it is equally possible that the cost will drop, or they will become completely useless in a few months. If Bitcoin crashes, nothing will follow. There will be no operations from the IMF and no meetings of the G8 leaders trying to save the currency.
At the same time, there are still many investors who accumulate BTC, counting on price growth in the future. These people are generally at much greater risk than those who spend a lot of money trading options or currencies. On the other hand, if you want to invest some money in the hope that BTC will be worth more in the future, you can simply buy coins on the exchange instead of mining them. Regardless of how you purchased the cryptocurrency, you will be able to use the services of a bitcoin broker in the future. Reviews of earnings on the resale of BTC are very volatile, and at the same time, such speculation is always associated with great risk.
Should I buy ASICs from resellers?
Today there is a way to get a medium and sometimes powerful ASIC faster. Some people who have already waited their turn are selling them on eBay and other similar online stores.
Or, more often than not, they sell their place in line. You're paying money now (and obviously more than if you bought it straight from Butterfly Labs), but the seller doesn't really have the schema yet. They will ship the product to you as soon as it is provided to them by the manufacturer.
This means, however, that you will receive your (virtual) hardwareto "print" money faster than if you place an order with a manufacturer. At least with the delivery of low-power circuits, you won't have to wait too long.
There are certain risks of buying from the hands. Some offers appear to be scams. For example, one eBay auction involved someone buying a $1,500 ASIC Avalon for over $20,000!
What is the prospect of mining?
What are the reviews about making money on bitcoins in 2017? At the moment, mining using high-powered equipment allows you to get tangible profits. However, no one can guarantee its longevity.
One of the concerns of people getting very efficient mining schemes is that the difficulty level of the job will quickly increase once they join the network. This is explained by the fact that the protocol is configured to create a new block of 25 coins approximately every 10 minutes. This will make BTC mining much less efficient.
On the other hand, there is a possibility that as mining with simpler devices becomes much less profitable, people without ASICs will stop doing it. Presumably most of the people who do this don't use such expensive and hard-to-find devices.
Is it possible to earn bitcoins without investments?
Reviews about mining say that this process is too laborious and does not have certain forecasts. In addition, to start this procedure, you need to invest quite a lot of money.But is there a way to earn bitcoins without investments?
Sometimes BTC pays for simple tasks that any user can complete. This is probably the easiest online job niche you can get into, but it also involves a lot of work. Such tasks usually take a lot of time, and are paid for with a very small (almost irrelevant) amount of bitcoins. Even if you have a lot of free time, it still won't bring you any tangible income.
Primarily these are PTC or Paid-to-Click websites. As the name suggests, these are resources that will provide you with a small amount of cryptocurrency for viewing ads and visiting different pages through links. Reviews about earning bitcoins on these resources suggest that you are unlikely to be able to get any tangible income, even if you spend many hours on it.
Besides this, there are faucets or "collectors" of BTC. These are sites that will give you a small amount of bitcoins every few minutes. Some of them give away up to 1000 Satoshi (0.00001BTC) every five minutes. But even if you manage to get 1000 wins every time within 24 hours, you will still only earn 0.00288BTC. So you'll get about $1.31 for 24 hours of work. Thus, the reviews about making money on bitcoin faucets are also not very positive.