As soon as the cost of Bitcoin and other popular cryptocurrencies began to grow rapidly, suddenly everyone started talking about mining farms. Moreover, these conversations were reinforced by the demand for video cards and other components of mining equipment. However, a mining farm a few years ago and a mining farm today are different things if you look at them in terms of profitability. We will talk about differences and trends in this article.
What is a mining farm?
A mining farm is a set of computer equipment whose resources and computing power are directed exclusively to mining cryptocurrency. In fact, we are talking about a kind of computer or a certain number of computers that solve the required mathematical problems and are not used for other purposes.
Mining farms are often divided into professional and home. Sometimes, semi-professional farms are also distinguished as an intermediate type, which represent a kind of intermediate state when moving from home to professional farm, but there is no clear boundary in this case.
Professional mining farms are complexes consisting of a large number of autonomous sets of mining equipment that require resources that cannot be provided at the place of residence of the average person for their operation. In particular, such resources include
Homes are called farms, which are located in a regular apartment and can be served by one person. Often, only one set of equipment is used, so the professionals in this case prefer to talk about the presence of the so-called rig, and not the farm itself.
As a rule, equipment units are placed in one of the rooms in such a way that they have enough natural ventilation of the air in the room in combination with additional blowing. Home farms rarely consume more than 2 kilowatts of electricity, while the most budgetary ones fit 0.8-1 kilowatt.
What determines the profitability of a mining farm?
There is a program installed on the computer that works as a mining farm that deals with solving mathematical problems. Calculations are performed in conjunction with other farms in a network called a mining pool. The more contribution a particular farm has made to the solution of the problem, the greater part of the reward (cryptocurrency) will be credited to its “account”.
The contribution that the farm makes to the solution of the problem depends on the speed with which it is able to do the calculations. This speed is called hashrate and is considered to be in megahesh per second, gigahesh per second, tera, and even petahesh per second.
The farm profitability scheme for mining is as follows: the higher the calculation speed => the more tasks the farm will solve => the more participation it will take in closing the next block of operations => the more share it will receive from the reward.
Hesh rate directly depends on the technical component. The more powerful the equipment from which the mining program draws its resources for work, the faster the program will work.
Everything is almost the same as on a regular computer – only if programs need a good processor, a lot of RAM, a decent amount of physical memory, etc., then a mining program requires some other hardware with a focus on one component, which ensures the performance of the necessary operations. Depending on which component of the hardware is being used, the mining farms are divided into several types of CPU trusses (processor power is used), truss GPU (video card power is used), ASIC trusses (power is used by a special mining chip).
How promising is a home farm for mining?
If we talk about making really impressive amounts, mining cryptocurrency on home computers is becoming more and more impractical.
As soon as the next cryptocurrency rises in price so that the meaning of its mining appears, professional miners from all over the world pay attention to it. They throw such equipment on its production, compared to which even the best home supercomputer is just a drop in the ocean.
As soon as such capacities are included in the game, the tasks, thanks to the solution of which cryptocurrency is made, are instantly complicated hundreds, thousands of times and the speed of their solution on one computer, respectively, drops by the same amount. The mined cryptomonet is now divided not between several computers, but between one computer and entire “computer plants”. It is divided according to the capacities provided for its extraction, and the owner of just one computer receives practically nothing.
It would seem that in this situation, the existing giants do not allow everyone to join in the process of extracting coins, and in this regard, home mining of cryptocurrency as a phenomenon should remain the past stage of the formation of cryptoeconomics. However, there are no miners who begin to design more powerful equipment than the usual home computer, unite into pools and become part of other – decentralized – giants who compete with “computer plants” with one owner.
Extraction of coins in pools is quite profitable. Thousands of dollars a minute can not be counted, but $ 10-40 a day is quite realistic to get – and that is with one rather simple construction of a house that you can easily assemble yourself. If there are more structures, the income will increase proportionally, speeding up the payback period of investments in equipment.
For example, a budget mining farm on six low-cost and not too powerful video cards will cost about $ 2000 (and with a lucky share you can meet the $ 1,700 – $ 1,800) – and will bring about $ 20–25 daily if you take Ethereum as a basis for calculations . Energy consumption will be about 1.1-1.2 kW.
A 1.5 kW farm with more powerful graphics cards and a better motherboard will require an investment of $ 2,800–3,200 and may bring about $ 35,338 per day during the mining of the same “ether”.
The most budgetary farm for mining “ether” and other promising cryptocurrencies now from among those that it makes sense to collect, will require about $ 1,200,100, 0.8 kW of electricity and a lot of time to search for cheap components from foreign sites and flea markets. It will bring about $ 15 a day.
If you pay attention to less popular cryptocurrencies, the farm can be collected for much less money – for example, using the power of not six, but only three cheap video cards. However, the risks of not recouping investments increase significantly, since the cost of unpopular cryptocurrencies is initially low (and far from the fact that it will grow in the future), and daily earnings in dollar terms are scanty.
Home mining farm built, what next?
With the right choice of components for a home farm and cryptocurrency for mining, it is possible to recoup the initial investment in two, three, maximum four months – in particular, it is these indicators as of today that have Ethereum “miners” who mine in pools. Accordingly, for the same amount of time you can save money for a similar construction and build it in the image and likeness of the previous one.
The language of professionals each such construction will be called the rig – one of the units of the expanding mining farm. Later, a third rig appears, and on the fourth, the farm owner moves to a separate room with more powerful electrical wiring. This is how semi-professional mining mines are born, from which the giants grow farms.
If a room with a 10 kW wiring is not difficult to find, then you will not be able to place a 10 mW farm anywhere. However, this is not the limit. Now the owners of large farms are considering the possibility of building mining giants in reservoirs, next to the most powerful hydropower plants in the world, as well as in areas where solar panels can solve the problem of energy consumption. For example, ideas were expressed regarding the construction of mining farms of giants in the Sahara.
The transition from a small home farm to a large professional requires the creation of fundamentally new cooling systems, which is the second significant problem.
Operating equipment sets produce significant amounts of heat. On the scale of an apartment, this is not critical, but professional miners spend serious money on ventilation and cooling systems. Otherwise, the equipment becomes unusable in a matter of months, not to mention the increased risk of combustion of the entire farm. On giants farms, ventilation pipes with a diameter of 50–80 cm pass through the entire premises and workers wear t-shirts and shorts even during the cold season.
The miner, who solves the problems of energy consumption in an innovative way will surely become one of the richest people in the world. In the meantime, industrial miners use already known and standard solutions, which does not prevent them from being on the lists of people with an income level of hundreds of thousands or even millions of dollars.