How to earn money by mining bitcoins and other cryptocurrencies from scratch

For two years, I had a cryptocurrency mining machine and I didn’t even know it.

Currently, I have two of the most powerful graphics cards you can buy right now – the GTX 1080 and GTX 1080 Ti – which turn out to be the best graphics for cryptocurrency.

Cryptocurrency is basically the process of solving complex problems to verify digital transactions using computer hardware, in this case a graphics card. By performing this process, miners can create a cryptocurrency or be paid for using their computing power with a cryptocurrency.

These graphics cards cost me a good peak, and that I bought them before the massive rise in the prices of the graphics cards caused by the massive purchase by the crypto miners. While I was not playing with the computer, my GTX 1080 and my GTX 1080 Ti were simply there, doing nothing, without making me earn money.

That ended. One day I decided to try to mine cryptocurrencies with them.

At first I had some profits, although not too many. So I was curious, what if I add more graphics cards? How much could I earn?

Check out my scruffy mining platform experiment to see how many bitcoins I am getting.

Why not buy cryptocurrencies instead of mining them?

I could buy cryptocurrencies instead of undermining them, but that would mean I would be paying for it.

My goal is to accumulate as many bitcoins as possible for as little money as possible and that is within my means, of course. And if I’m going to make a profit, even if it’s not huge profits, why not do it? Provided it covers the cost of the electricity I consume and the additional pieces of hardware I bought to carry out the experiment. By the time the mining becomes more expensive than buying the currency directly, I will stop mining.

I am not mining bitcoin to immediately convert it into cash.

Simply, I want to have a reserve of bitcoins to do with it whatever I want.

I have two separate mining configurations: a dedicated mining platform in the basement of my house, and my office computer. Here are the components – graphic cards – that I am using, which are fundamental to the mining process:

  • 1 x GTX 1080Ti on my gaming PC
  • 1 x GTX 1080 on the mining platform
  • 3 x GTX 1060 6GB on the mining platform
  • I already have the GTX 1080Ti and the GTX 1080, which I have been using to play video games on my PC, so I don’t consider them as an “investment” in my mining experiment.

As for the costs, I am only considering the additional parts that I had to buy as part of the experiment: three GTX 1060 graphics cards, a basic motherboard and a power supply.

The total cost of these additional pieces for mining amounts to $ 1,601 and is an amount that I will need to recover by mining

It is not the prettiest mining platform, but at the moment it is in the experimental phase so I am not wasting time in which it is beautiful, but in that it works in the right way.

What is Nicehash?

Nicehash is like a kind of market with buyers and sellers in which everything is traded with bitcoins.

Buyers in Nicehash make offers in bitcoin for the processing power – or “hash power” – of a seller’s graphics cards.

Nicehash will automatically associate the seller’s hash power with the most expensive offer, so it is a competitive market for buyers.

Since bitcoin is the most valuable cryptocurrency at the moment, I chose Nicehash instead of extracting other cryptocurrencies like ethereum.

It is also worth noting that Nicehash takes a small commission from what the seller earns.

I have to keep my graphics cards cool so they don’t spoil

Electronic devices hate heat and wear out faster when exposed to high temperatures for long periods of time. Practically, it seems that cryptocurrency was designed to destroy graphics cards since miners normally use them 24 hours a day and the mining process generates a lot of heat.

To keep the cards cool, I set the built-in fans to run at a fairly high speed. At the same time, I don’t want to put them at full speed, since I can also wear down the fans. Everything is a game of balance between heat and fan speed.

How many bitcoins am I doing?

With my current configuration using Nicehash, I am doing 0.0015 bitcoins a day. Compared to some larger mining platforms, which can undermine several bitcoins a day, my project is the equivalent of finding loose money on the sidewalks of the streets.

With the current value of bitcoin over $ 8,200 that means about $ 12 a day, or about $ 4,500 a year. But, I insist, I am not looking at the dollar value of bitcoin unless it goes down as much as the mining becomes more expensive than buying it directly from an exchange house.

But you have to amortize the cost of the hardware

By getting approximately $ 2,555 a year through mining (at the current price of bitcoin), I am on my way to paying for the additional pieces of hardware I bought for the project in about 230 days.

Therefore you have to take those 2,555 dollars of gross profit and subtract the 1,601 dollars that I spent on the extra pieces. With that we reach about $ 954 of net earnings per year.

While I make a profit, I am basically getting free bitcoins and paying for those extra pieces that I bought for mining. As soon as it ceases to be profitable, it will be time to stop the mining and probably sell the additional pieces that I have bought online.

It is still a bet

I just hope that I can offset the cost of the additional pieces before the bitcoin goes down significantly in value, since at that time I will have to stop extracting. Even so, I will be able to sell the hardware pieces through the internet to recover part of the expenses.

Should you do it? Maybe, but probably not

If you already have a gaming computer equipped with a GTX 1060 (6GB) or higher graphics card, or an equivalent AMD graphics card, go ahead! Simply consider the electricity costs by calculating how much energy your PC uses and find out how much your electricity company charges you.

I used a consumption meter that connects to the power outlet to calculate how much electricity my equipment consumed while mining, and I contrasted it with my electricity bill to see how much my company was charging me per month.

Otherwise, should you spend money buying hardware pieces for mining? I would not recommend it to everyone. There is much to keep in mind, such as the volatility of bitcoin or the risk that the graphics cards you can buy become less efficient for mining when new models are launched.

When there are new models of more powerful graphics cards, the miners will replace their current models with the new ones. As more miners do so, the difficulty of the encryption problems that are solved through cryptocurrency will begin to increase, so that older graphics will be slower and less efficient to solve increasingly difficult problems while consuming the Same amount of electricity.

If you want to maintain an efficient configuration of cryptocurrency mining you will have to sell your graphics cards and buy the newest models, which is understandable, but it does not seem like something that everyone will be willing to do.

In addition, it is a very slow way to earn money if that is what you are looking for, unless you are planning to mount a huge mining platform.

However, if you love to mess with computer parts and stay on top of the crypto market that everyone is talking about, you can try your luck.

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