Mining as an Integral Part of the Blockchain System

Bitcoin mining is the process of individuals or groups of people verifying transactions using graphics processing units or application-specific integration units. Those engaged in mining also prevent double-spending, which is when someone duplicates a Bitcoin. When someone verifies a transaction, they successfully “mine” Bitcoin. However, there are conditions that the miner has to meet to receive a financial reward.

To be successful, the miner must verify one megabyte of transactions. One megabyte is equal to one block of the blockchain. The blockchain is where transactions are recorded and verified. Secondly, he must be the first person to complete a complex math problem called a “hashing puzzle” using his computation hardware. When the hash puzzle is solved, one block on the blockchain is created. Miners with higher hash rates, the speed at which the math problem is solved, are more likely to solve hashing puzzles successfully.

Mining is also how new Bitcoin gets into circulation. It is similar to someone minting a coin or printing a currency note. At some point, though, Bitcoin will no longer be mined. As of Autumn 2019, there were 18.5 million in circulation. The cap was set at around 21 million by the creator or creators of this cryptocurrency.

Everything Needed for Mining Bitcoin: Hardware, Time, Space, and Money

A lot of computing power is needed to verify all transactions involving Bitcoin, which causes a problem for miners who think they will get Bitcoin quickly and effortlessly. All of this computing power comes from thousands of miners working on verifying transactions. Since there are so many people working on building blocks on the blockchain, it is harder to mine Bitcoin. The competitive nature of Bitcoin mining means miners have to devote a lot of time and money to their efforts.

In the past, it was possible to mine Bitcoin using a personal computer. That is no longer the case now that people are using more powerful computing equipment to mine Bitcoin. Currently, miners use graphics processing units and application-specific integrated circuits. This hardware can cost hundreds or tens of thousands of dollars. Also, it could take a long time for someone with a small operation to mine one coin considering he will be competing against miners who own thousands of computing units stored in multiple warehouses. Operations large and small consume a vast amount of electricity, so it is vital to mine in an area with cheap electricity rates.

Plenty of space is needed to house all of the processing units. As is the case in the link mentioned above, the miner being interviewed required two warehouses to store all of his equipment. However, someone who wants to start a small operation for fun can dedicate a room for storing the equipment.

Start-up capital will be required to start a large and profitable operation. Few people have the money needed to start a business independently, so they need to attract investors. To do this, create a comprehensive and easy to understand business plan covering information about the operation’s location, potential costs, zoning ordinances, etc.

Is Bitcoin Mining Worth It?

For most people, Bitcoin mining is not worth the trouble. The start-up costs are enormous, and it may be challenging to find people willing to invest in such a scheme. Bitcoin has a negative stigma among many investors (Warren Buffet in particular) because they consider it highly speculative. Another problem miners will encounter is a collapse in the value of Bitcoin. It is not a stable currency, as reflected by the history of its value. Small miners who spend a lot of money on a dozen computing devices will find it difficult to break even if Bitcoin dips into the bear market territory. However, a huge mining operation will likely be able to weather the storm simply because of the sheer volume of coins it can mine.

But do not be discouraged. Someone who has the time, money, and expertise to do this should try it. Many people do it as a hobby, and they enjoy themselves doing it. However, anyone considering doing this for a living should perform a serious cost-benefit analysis before starting an operation.

Mining is basically competition whoever can do most efficient. And you want to rigs run as efficient as you can.

So the steps are following to increase another 1-2 mh/s on top of your 1500mhz strap bios mod.

1.By default 1500mhz and down bellow DramTiming12 is set to 2850 and on some cards 2945.

2. You need to edit this to at least 6000 in (1550mhz,1750mhz,1800mhz,1875mhz,2000mhz). Some gpus timing starts from 1500mhz it really doesnt matter which bios you have. I tried both of these and seems like it is working just fine.

3. I have tested this on Asus Strix RX5700XT and also Gigabyte RX5700XT

What i have noticed your cvlt and mvdd also has to be low as possible , my cvdd was set to 760.

Im sure there is more to it and we can increase more performance by adjusting these timing. This process is very time consuming, and im sure people will find how to adjust more of this to increase mining speed.

Checkout full guide in video:

For the last day i have been working on some stats and ROI for 2 types of investment for 12xGPU RX5700 MineBox 12 mining rig and Innosilicon A10 ETH ASIC miner. My goal was to let the data speak about it self and then make a decision what is better investment for ethereum mining GPU or ASIC. Im compering 2 most efficient miners :

1. ASIC miner Innosilicon A10 , costs 3000usd(specs. 500mh/s at 860w)
2. GPU miner MineBox12 , cost 4487euro ( specs 700mh/s at 1800w)

Miner price is about the average would it cost to you 12xGPU mining rig might cost you 100-300 cheaper if you would build one yourself. Innosilicon A10 would cost you lot more if you would like to import it out of China. Price would be closer to 3500euro + you would need to buy power-supply for it.

I have created google spreadsheet and inserted the GPU data and performance by the current currencies price and mining profitability. Included also my thoughts about advantages and disadvantages using GPU or Asic miner:

Opinion based on mining profit data. We can see that MineBox 12 ROI if electric price is free or very cheap is faster then ASIC miner A10. And even at 0.10c a kw/h at current Ethereum price there is only 80day difference on Equipment payback time. But the biggest thing is for example when your miners are paid back your investment. You still are available to resell your MineBox 12 hardware for other use case or just mine different coins. Where with Innosilicon A10 you can throw it into bin as soon as ETHASH coins are not profitable to mine. This is the biggest downside of Asic miners. So to answer your question is ETH asic mining coin. My answer would be Yes ASIC miners are slightly more profitable , BUT they are not worth the risk you are getting by buying one. Also you can see clearly that GPU miners has lot more advantages then Asic miners. The difference on ETH miners are not so noticeable then like it was Bitcoin GPU vs ASIC mining. There is still profit to be made with GPUs mining ETH. If ETH switches to new POW ProgPOW , again another benefit for GPU rigs as the same GPUs are quite efficient mining ProgPow. Buying and Asic miner there is to much risk, saying from experience. Have lost a lot of money, my last adventure bought 5xAntminer S17 back in November and 4 of them hashing boards stopped working after 1st week. Not counting the previous purchases Antminer D3 etc..

Let me guys know what you think about this, would your rather use ASIC miner for mining ETH of GPU miner?

1660 Ti is amazing performer in mining , its great by price per hash and watt per hash. The low power usage keeps the graphic card very cool. So i decided to compare which is the best coin to mine on these graphic cards .Two most profitable coins currently for mining are Ethereum and Ravencoin .

System setup:

• all in one 8xgpu mining rig case
• 8x Zotac 1660Ti graphic cards
• hiveOS

Testing Ravencoin

• OC – (+150core, +1400mem, 115PL)  Performance 123-128mh/s @1090w
• OC – (+150core, +1400mem, 100PL) Performance 123-128mh/s @650w

Testing Ethereum :

• OC – (+150core, +1600mem, 100PL) Performance 232mh/s @650w

After inserting this data in profit calculator Whattomine, clearly can see that these cards currently is the best to use for mining Ravencoin (ETH -3.57us , RVN-4.88usd)

Even the GPU mining profit is still very low, these would be the one of the best graphic cards choice for mining. Specially if you electric price costs over average electric rate.