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Efficiency of DIY bitcoin miners? Answered

First, I would like to say that I do not know if this is the place for this question, but: I have just heard of bitcoin mining and started to look into it.  I have learned that pretty much the only way it is plausible is through the use of a machine dedicated to mining the bitcoins, not through using gpu's anymore apparently.  But I have seen that these machines are expensive, so naturally I would want to build a DIY one if I started this.  But are these dedicated miners even efficient? And what if they don't have the top of the line components?  I tried to look this up myself but I don't really understand the hash rates of these machines so I don't know what is considered an efficient rate.  And, in my current situation, I don't pay for electricity or internet so now would be an optimal time to do so and maximize profitability.  So, do these dedicated miners work efficiently enough to make it worth while to build/buy one? Especially if I don't pay for electricity or internet?

Discussions

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texpert

4 years ago

Thanks for all of your replies. I have not strongly considered doing this, I just began to look into it and was curious about this

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rickharris

4 years ago

Wouldn't know how to start. AFAIK Bitcoins pretty much applies to gamers only.

Wouldn't "minimg" them ammount to theft?

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texpertrickharris

Answer 4 years ago

I thought the same thing, but from what I've read it doesn't seem to be

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bwrussellrickharris

Answer 4 years ago

Not sure what "Bitcoins pretty much applies to gamers only." even means but essentially Bitcoin is sort of like the "buying gold bullion" of the internet generation. The people that are seriously into it are doing it mostly because they feel that it's a better system than your current finical systems.

Mining is how new bitcoins are created or "discovered". It's called that because the bitcoins are hidden in huge blocks of data that the computers "mine" through looking for the coins.

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wootin24

4 years ago

i havent done much research on the topic myself, but i know that one of my favorite youtubers, barnacules , is going to soon release a video all about his experience with it. it will be worth watching for sure.

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bwrussell

4 years ago

From a quick search of bitcoin mining efficiency calculators it seems like you're going to be dropping well over $1000 to get/build a machine that can break even anytime in the next few years and closer to $3000 or $4000 if you want to break even within a year. What happens when you break even though, or start making an actual profit? Essentially you're investing the cost of the machine into bitcoin and any profit you eventually turn is your return.

You have to weigh this like any other investment. Do you want your money tied up in bitcoin? You need to look at exchange rates, where they're going, where they've been, how quickly will the difficulty increases and block reward decrease render your machine ineffective?

Personally I don't see any use for having thousands of dollars tied up in bitcoin particularly with the USD<>Bitcoin exchange rate steadily falling in the past year. Also the Block Reward is going to be cut in half (currently 25) in just over a year and a half which will essentially halve the efficiency of your machine (given my basic understanding of the system).

You are correct that not paying for power or internet is a big help in this but be aware that depending on your situation (apartment complex, university dorms, etc) it may be against the terms of service for you to use your utilities in this manner and/or the high usage rates will trigger some sort capping or fee/fine.