Bitcoin Mining for Beginners
It all started in July when bitcoin got my attention. Specifically bitcoin mining. I spent WEEKS just reading articles on bitcoin itself absorbing every syllable on the subject. From forks to exchanges to different cryptocurrencies to media coverage I spent the better part of a month just learning everything I could about bitcoin.
I dipped my toe in the bitcoin mining water by starting to mine bitcoin on a PC using a Windows store app….
Bitcoin mining on a PC is a money losing proposition. That’s because I was getting paid roughly 30 cents per week for running a computer at full power 24×7. BUT it was a very educational exercise that schooled me on the fundamentals of bitcoin mining.
During the course of my research I realized that bitcoin mining at GH/s (such as with USB-based bitcoin miners) is exponentially more effective than a PC that processes with KH/s ratings. Running the numbers I concluded that at the end of a week you could earn enough money for a McDonald’s value meal. Then I discovered ASIC miners that perform bitcoin mining at TH/s and then I got excited
KH/s GH/s TH/s WTF?
- 1 KH/s is 1,000 hashes per second.
- 1 GH/s is 1,000,000,000 hashes per second.
- 1 TH/s is 1,000,000,000,000 hashes per second.
To make any kind of serious money in bitcoin mining you want as much firepower in terms of TH/s as possible. And that’s what ASIC miners do. They are stand-alone devices with a very dense array of chips designed with one single purpose; maximized mining at the most efficient rate possible to make more money.
This realization led me to start cruising eBay and Amazon and ASIC miner manufacturer websites looking for bitcoin miners to purchase. I quickly realized that after-market rates were TOTALLY inflated to the point of absurdity. Case in point, an Antminer S9 can be purchased for $1,415 directly from Bitmain – the manufacturer itself….
The downside is you’re going to wait over TWO MONTHS for your bitcoin miner to arrive. If you’re in a hurry and just can’t wait to start bitcoin mining you can buy an Antminer S9 with immediate shipment for “just” $3795 — “Only” 250%+ over the manufacturer’s own price…
Here’s the thing – it makes absolutely no economic sense to buy an Antminer S9 or an Avalon Miner 741 on eBay or any other after-market platform and pay these inflated rates. Even considering bitcoin prices are hovering right near record highs it would take you YEARS to recover your initial investment in ASIC mining hardware due to the unnecessary premium you’re paying to get a bitcoin miner sooner rather later. Even if bitcoin prices soar to $27,000 in the next 12 months it’s going to take way, way longer than necessary to make money mining.
That’s why I’m particularly proud of my first bitcoin miner; the Avalon Miner 721 I scored used on Amazon for just $900 INCLUDING the Avalon Controller and a good power supply. The seller was very patient and helpful which, as you will learn in future articles, was fundamental in getting me up to speed on cryptocurrency mining in no time at all. I knew enough to get started but there was a lot more I learned along the way…