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RE: Requirement for crypto mining

in #cryptocurrency7 years ago (edited)

Do not install cryptocurrency mining software on your computer. Most of it is junkware, and some of it steals your data. But it can even take CPU cycles from you to do crypto mining for them rather than you, but use your computer and your energy costs without your knowledge. This is super bad.

To get into cryptocurrency mining, you need specialized hardware. The days of mining bitcoins on laptops and desktops is long gone. You need at least a super fast mining rig with lots of GPUs. Better still is to use energy efficient custom mining specific Gate Array or ASIC chips optimized for the task. These rigs do not even run an operating system, except on the controller device. They are just flat-out digital circuitry. Only big players are competitive in terms of hardware and electricity costs. In terms of energy consumption, the energy per bitcoin on the most optimal rig these days at US electricity costs, the cost is well over 500 USD/BTC. That is expensive, and you need a large-scale rig to make it worthwhile. That is a fixed capital cost with risks that depend on a volatile exchange rate. If you really think that BitCoin is a good bet today, then just buy BitCoin with USD, instead of paying the same amount of USD to set up a modern efficient rig.

Also, you may solve crypto blocks now and then on a lesser rig, but without a super fast connection to the internet, you will loose the race against other miners every time. Of course, get other opinions, but I would not do it.

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It is very expensive, but it's still profitable if you have good mining rigs and cheapish electricity. Altough, if you have money to invest, you are better off just investing in a crypto of your choice.

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