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Cryptocurrency mining: calculations and recommendations for beginners

Cryptocurrency mining: calculations and recommendations for beginners
04 September 2017   |  by Denis KAYZER, Master Degree in Math, HSE, Python developer, co-founder of blockchain startup
In the previous article, Bitnewstoday.com described all basics that every new miner who’s just planning to obtain cryptocurrency must know. The mining farm types have also been described there, so here one will find more information on successful mining farm establishment and the profit the beginner should expect.

The review of kinds of mining farms would be logical to start with farms based on video cards; the primary advantage of this type is flexibility. The application-specific integrated circuit, or ASIC that some miners use, can get only one cryptocurrency because the system can mine using only one algorithm. Video cards provide an opportunity to mine different cryptocurrencies depending on the market situation. Another pro of graphic processor that should be noted here is relatively small start-up costs.

Let’s look at the varieties of GPU rigs. According to experts, the optimal cryptocurrency for such mining would be Zcash, so this review has been prepared with this particular currency in mind.

Source: personal photo of the author

  1. NVIDIA GeForce GTX 1060/1080
  2. It would be optimal to review mining machines consisting of four GPUs, although a real enthusiast can build even bigger rigs. One rig consisting of four 1060s will cost around $1,700. The rig of four 1080s will, in turn, cost around 3 thousand dollars. Ideally the chassis of the farm is constructed of aluminum angles: looks aesthetically, stays strong, easy to build, but if the miner’s budget is tight, he can use wood.

    NVIDIA-based rigs summary stats.

    Rigs based on 1060:

    • power consumption: 450/500 watts per hour;
    • income from 1 rig with 4 GPUs: ~ $180 per month;
    • payback period: ~ 9 to 10 months.

    Rigs based on 1080:

    • power consumption: 1/1.2 kilowatts per hour;
    • income from 1 rig with 4 GPUs: ~ $330 per month;
    • payback period: ~ 9 months.
  3. Specific circuits
  4. The advantage of specific mining circuits, or ASICs, is their power efficiency, high has rate, compact design and they are easy to deploy and maintain. Currently, buying X11 DASH-miners seems to be a promising idea.

    First of all, the algorithm X11 itself is very promising and justly considered to be one of the most secure, as it has 11 layers of protection. This leads to the currencies where this algorithm is implemented showing some good market dynamics. One of them is DASH, the experts consider this altcoin to be one of the most prospective and it’s growing rapidly.

    Value and volume

    Source: WorldCoinIndex.com

    Secondly, because the X11 algorithm is very sophisticated, machines that supported have just entered the market. Most major companies that produce mining machines have only announced new devices based on X11.

    New devices

    Source: AsicMinerMarket.com and dualminer.com

    These leviathans who cost around $10,000 give out 30 Gh/s. Naturally, after they appear in retail, the total hash rate of the network is going to grow drastically, but the first miners using these devices will probably get their payback after 3 months or so, enjoying inexpensive mining after that.

  5. Cloud mining

Cloud mining is a good method because it’s as easy as one, two, three, and the initial expenses can be as one wishes them to be. With our previously mentioned DASH cryptocurrency in mind, let’s look closer at this type of mining. If one invested $58 in April 2017 he will get 10 Mh/s. Optimistically speaking, in a year, with network hash growth in mind, a miner will get approximately 0.6 dash, which equals ~ $120 by the current exchange rate.

Plus one hundred percent – might seem like a good income. But it’s even better: in April 2017 the price of DASH was around $60, so after buying 1 DASH for that price, a miner would get $197 due to changes in exchange rate, or +200% of income only in 5 months.

The author hopes that this article has provided some valuable information to the reader and will help him to choose what suits him best. He wishes all readers the best of luck in mining!

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