Table of Contents 94e1i
In the digital age, professionals, companies and consumers have invested in different alternatives to prioritize the success of their economies. The much-debated bitcoin is one of them. a lot is said about how to mine bitcoin and how to make it happen. If you don't know the technique, we'll give you an overview of its definition, performance and resources needed to execute it. 1bc24
What is bitcoin? 426h1r
Although it seems quite complex, the definition of bitcoin It's quite simple, actually. It is a decentralized cryptocurrency, a kind of electronic money that is used to make transactions from blockchain, a digital currency and cryptocurrency financial services platform. Bitcoin works just like other currencies we know, such as the dollar, real and euro, for example. The main difference is its 100% digital character.
Therefore, everything that the individual buys or a businessman invests, for example, is not actually received in hand. Profits in this kind of money are reserved in digital spaces. Daily, bitcoin suffers ups and downs in its value, which modifies the investment strategy of each . There are other digital currencies available such as Ethereum e Helium, but bitcoin was the one that most popularized the niche.
The most 'controversial' topic about the currency is the need to do a kind of mining on the blockchain to be able to keep the numbers that make up each bitcoin active. Today, a single bitcoin coin can be worth more than R $ 230 thousand. As this practice gains more and more visibility, interested parties try to go after what seems to be a golden opportunity.
How to mine bitcoin? 67636y
With a very specific definition, the bitcoin mining is a process of circulation and maintenance of the currency itself in the blockchain. As this species is decentralized, that is, it needs an intermediary to record each transaction, there are some steps that a person who wants to venture into the process needs to face. This intermediary is also known as the miner.
The bitcoin miner is the person who provides computing power for each block ed in the blockchain. From an automated and large-scale work, the values contained in the network — which are unknown until the blocks are opened — are released to the individual. “The mining process is the process that ensures the validation of network transactions,” says Roberta Antunes, Chief of Growth at hashdex, fintech from Rio de Janeiro specializes in helping investors boost their money in bitcoin stocks.
As for the actual process, first of all, the investor will find very sophisticated mathematical problems to solve when accessing the trading platform. blockchain. The entire mining process is time-consuming, detailed and costly. That is why it is more common to see large companies or entrepreneurs already well established in the market developing projects and leading this type of work. Elon Musk, owner of Tesla, is a good example of an actor in the area.
In practice, the process consists of completing “blocks” of transactions made on the digital currency platform. Once active on the site, the can work on mining without spending any real money, but requires deep technical knowledge to be able to execute all the commands. The so-called rewards of such mining are awarded to the first to solve the complexes. On the other hand, every four years, their values drop by half. There is a website called Bitcoin Clock (“Bitcoin Clock”, in translation) that shows how much each readjustment is.
With a consolidated career in this area, Roberta compares the bitcoin process as a 'race' to discover the source code and uses the Sudoku game as an explanatory example, which requires logical reasoning to complete. The difference is whoever wins the money is the one who solves the block problem first. The expert adds that the most interesting thing is that this network is dynamic, since, to encourage competitiveness and increase results, the digital currency system itself adjusts the difficulty of the code as the number of accesses grows. The average of a bitcoin solution is, on average, six minutes.
What does it take to build a mining PC? 553c2n
As an essential part of the process, it is necessary to understand that there are still huge costs to have a rugged PC, which is vital for bitcoin mining. Roberta says that, at the beginning of the mining phenomenon, it was common to carry out mining operations with the computing power of a cell phone. Today, in particular, anyone who wants to enter this universe needs to ensure that they have a powerful GPU (Graphics Processing Unit) or a ASIC (foreign abbreviation for Application Specific Integrated Circuits) to get into mining. And all this is very expensive, considering that the and the shares in the market are also worth a lot.
Working in the cryptocurrency market for four years, Felipe Percigo, financial educator and CMO at Liqi Digital Assets, the first tokenizer in Brazil, says that specific and very powerful machines are essential for mining, such as the so-called S9 Pro, which costs, on average, $8 to $12. Such machines have a useful life of four to five years.
“It's not something for an amateur, to do at home.”
Felipe Percigo, financial educator and CMO at Liqi Digital Assets, regarding bitcoin mining.
The expert says that a real professional assembly requires an investment of at least US$ 150 to US$ 200, given that the miner will need to open a company to install machines. This is done in a shed, with a structure to hold electrical energy (perhaps using a transformer or generator), a refrigerated shed to house the equipment, implement a “wind tunnel” (structure with filters to avoid dust) and employees for 24-hour monitoring. per day. It's not for anyone.
With a simple personal computer, it is practically impossible to carry out such actions on the bitcoin platform. The would need to ensure that their machines have an optimal response performance, in addition to having an appropriate processor on hand. The logic is that the intense block solution forces investors to have supreme machines to be able to solve them as soon as possible.
“In general, for you to be a successful miner who actually earns money in bitcoin, you need a very high investment, almost like mining “farms”, where thousands of computers connected in a network with great computing power are working. simultaneously 24 hours a day to discover these codes.”
Roberta Antunes, Chief of Growth at Hashdex, on the need for an 'army' to profit well from bitcoin today.
Another vital item for cryptocurrency mining is an excellent quality motherboard. To get an idea, it is common for Internet s to acquire a machine with several GPUs precisely to optimize the performance of computing processes. Sometimes up to four slots of video card are sought after.
Some GPU brands are successful in the national market for their performance and are examples of mining aids. The best video cards today are those from NVIDIA, of the models GeForce RTX 3080 e RTX 3090. With trade taxes, prices are quite salty for Brazilians.
One of the RTX 3080, for example, is costing BRL 11.999,90, in Magazine Luiza, one of the main e-commerces. Already the RTX 3090, the latest on the market, reaches the R$ 23.493,56, also in Magalu. Notebooks can also be used if they are very powerful. An example is the model Alienware X17 what today costs BRL 28.335,12, in the Submarino. In any case, it is visible that there is a large expense in machines and structures to enter the bitcoin business.
There are several content creators and cryptocurrency professionals, mainly from the international market, who teach you how to assemble a powerful structure from various machine options. It is worth ing, however, that the Brazilian reality is a little different from that of other nations, and this applies from the acquisition of a machine to the execution of mass mining work.
Electricity, a big enemy of the bitcoin miner 3n5s25
There are also cheaper intermediate video card models, but expenses remain high, even because the electricity bill is increasingly expensive in the country. In the most recent increase, the extra consumption tax per 100 kWh is costing R$14,20. Second Andrew Pepitone, director general of National Electric Energy Agency (Aneel), the average Brazilian bill was around R$ 60 — this with normal use. With the increase, it rose to R$ 74,20.
“The biggest costs for a miner are the hardware structure in computers and electricity.”
Roberta Antunes, Hashdex's Chief of Growth, on the costly challenges of mining.
In Brazil, assuming that a beginner in the bitcoin market wants to invest in the business, he will need to spend more time than usual in his setup. Powerful machines also pull more energy. Consequently, the electricity bill can be very high, with consumption reaching around 1.000 kWh. Using this data, an individual would spend R$ 14.200 in a month. To give you another idea, a single S9 machine, mentioned by Felippe, can consume from R$1 to R$2, and a process like mining is never done with just one copy of these.
Bitcoin mining is done anywhere in the world. However, those who work directly with large networks or for large companies will always prefer to install their equipment in a place where energy is more affordable. And this is not only an advantage for the miner, but also a worldwide trend. Roberta uses as an example the movement observed in the middle of this year in which China banned local mining. The large percentage of miners that existed in the country — after all, the energy there was paid for by the government itself — spread to other corners of the globe, such as the state of Texas, the United States, and Eastern Europe.
“That's why a lot of miners go for renewable energy, like volcano — which is the case in El Salvador — solar s, or even natural gas. Because the cheaper the energy cost, the more profit the machine can make.”
Felipe Percigo, financial educator and CMO at Liqi Digital Assets, about alternatives to make the process cheaper.
How long until you make a profit? 565u6z
Profits do appear sporadically. Often only one person will bring the solution of the blocks in Hash (kind of cryptography), which makes the competitive landscape somewhat inaccessible. In addition, there is also a factor of luck, because not always solving a topic on the blockchain, will guarantee the receipt of bitcoin.
As such, there is no way to specify exactly an exact period to start generating profits for the . Felippe states that a definitive return can occur between 12 and 18 months, based on the analysis of the machines' performance. In addition to these circumstances, there is also the factor of variation in daily values based on the overall investment.
All block solutions, their values and sizes can be followed live through a website called TradeBlock. On the platform, it is possible to access the number of transactions that are in a block, as well as identify the name of the person responsible for its redemption, if released. As the amount is variable, blocks ed on this site can show that the profit was US$ 17 as well as US$ 500 thousand. There is no redemption limit.
Roberta says that those who earn most of the money from the blocks are precisely those who manage to assemble huge teams with super-powerful machines. “Today, mining has changed a lot and you have to make heavier investments […] (The profit) varies depending on the price of bitcoin, the miner's electricity cost varies,” she says.
Is it worth mining bitcoin? 2r1d4k
Without technical apparatus, advanced knowledge of mathematics and agility on the platform, it becomes more difficult to achieve positive results with bitcoin. Thinking about Brazil, above all, this is an expensive process, which depends on a lot of electricity. It is necessary to weigh the pros and cons to decide to invest in the area.
“It's very difficult for someone to say 'I'm going to start building bitcoin by myself'. You will have to set up a company and invest a lot of money because the competition for mining these blocks has increased a lot.”
Roberta Antunes, Chief of Growth at Hashdex, on starting bitcoin mining.
Based on all topics, it is recommended that an evaluation of costs and feasibility of action be carried out before actually entering the bitcoin. While there is the possibility of bringing solutions and profiting without the transaction of cash from another type of currency, this is a very competitive scenario that requires a lot of willingness and niche technical knowledge to reach some level of success.
Specialist Roberta says that another more viable path would be to look for a company to broker investments in bitcoin market shares, as is the case with Hashdex, which offers funds regulated by authorities that give bitcoin exposure. This alternative is more advantageous in of data security and the ease of the process as a whole of earning money from the assets, since there is with professional and specialized managers in the area.
Felippe, on the other hand, says that it is worth betting on mining cryptocurrencies, but only if there is an extremely professional operation, which consequently leads to an investment whose cost is extremely high. At Liqi Digital Assets, a company in which it operates, the work carried out is to transform assets into digital fractions, aiming at the accessibility of Tokens, something that can be useful for anyone interested in this market.
See also: 124l53
Also access other related content. See how the bitcoin profit calculation works on Crypto-Time Machine.
Sources: Business Insider | Investopedia
