Bitcoin mining in your own four walls? That’s how it’s done

taketonews

Not all crypto enthusiasts are excited about the opportunity to purchase cryptocurrencies through crypto exchanges or bitcoin ATMs. A possible alternative is bitcoin mining in your own four walls. This is what it could look like.

• Bitcoin mining as an alternative to crypto exchanges
• Own equipment required
• Joining mining pools increases the probability of winning

Long smiled at and dismissed as a futureless tech gimmick, cryptocurrencies have now reached the mainstream. Numerous institutional investors have now expressed their interest in the crypto sector, have launched their own blockchain currencies or are preparing their own crypto products.

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It has also become easier for small investors to access Bitcoin, Ethereum & Co. There are now numerous different crypto exchanges that enable trading in cyber currencies. Alternatively, bitcoin machines are available at many locations around the world, which also allow you to exchange fiat for cryptocurrency.

Another possibility is to go among the miners yourself and mine Bitcoin & Co. in your own four walls. This alternative is particularly useful for those people who want to maintain their anonymity in the crypto world. Finally, crypto exchanges are subject to the so-called know-your-customer (KYC) regulations and must therefore know the identity of their customers. On the other hand, some crypto enthusiasts find it too cumbersome to go to an ATM to purchase cryptocurrencies. In addition, there is a fee for converting fiat to cryptocurrency.

Bitcoin mining equipment

If you want to do bitcoin mining at home, you first need the necessary equipment. There are now dedicated mining machines that can be purchased for use at home. The range includes numerous models that have different computing capacities. Roughly speaking, one can assume that the more computing power a mining device can provide, the more expensive it is to purchase and also the electricity costs associated with the energy-intensive digging. However, anyone who relies on a device with lower performance that is cheaper to buy and consumes less energy can find themselves in a situation where mining becomes a loss-making business.

Merger in mining pools

However, it is also clear that a single private crypto miner will hardly be able to compete with the crypto companies that operate entire farms of mining devices in order to collect as many coins as possible. While it is possible and there are always individual miners who outsmart large mining operations, it happens very rarely. For this reason, there are actually few real solo miners. Instead, many individual Bitcoin miners join together in so-called pools in order to increase the chances of verifying the next block in the blockchain and receiving the desired tokens as a reward.

One such pool that someone who wants to mine Bitcoin at home could join is Braiins Pool. According to the company’s website, the association has tens of thousands of “active workers” and has already mined more than one million Bitcoin.

If Bitcoin is mined, it is distributed evenly and proportionally to the computing power provided in the pool, so that the members generate a steady income that is booked directly into their wallet. Depending on how the cryptocurrency in question is quoted at the time, the payout can be higher or lower. Whether Bitcoin mining is worthwhile also depends largely on how the cyber currency performs.

According to calculations by crypto platform ASIC Miner Value, crypto miners equipped with the popular Antminer S19 miner with a maximum hashrate of 255 Th/s currently earn $1.22 per day, for example to call. An Antminer can be connected to a router using a LAN cable. The more precise setting is then made via a web browser. In addition, no additional device or software is required. There are now bitcoin mining devices that come with a power supply.

The costs at a glance

Mining devices tend to be priced higher when the crypto market is up. Even if Bitcoin mining would then yield more, it is therefore more difficult to get into the business. It is exactly the other way around when the crypto market underperforms: here the mining equipment becomes cheaper again, but the risk increases that the high energy costs may not be covered.

Since mining cryptocurrencies is very energy-consuming, the mining devices produce a lot of heat. Many an inventive crypto enthusiast is taking advantage of this, using the waste heat around their own home or, in the case of Gerald Glickman of the US, to heat their backyard pool, the bitcoin miner shared in a post on X.

In order to cover the high energy costs, there are other home miners who rely on solar systems on the roof. However, if you want to do Bitcoin mining at home, you should also be aware that the crypto machines not only emit a lot of heat, but are also very noisy.

Nevertheless, for many crypto enthusiasts, despite the high initial investment, mining for Bitcoin in their own four walls remains an alternative to conventional crypto exchanges – or just an unusual hobby.

Editorial office finanzen.net



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