Mining bitcoin entails using specialized computers with relatively high electricity demand to solve cryptographic puzzles that earn “mining rewards” in the form of bitcoin. Bitcoin mining hardware has undergone an impressive evolution over time so it’s critical to get started with the right knowledge.
The mining operation you plan and construct will depend on the resources you have available. You have a few options, but you’re going to want to get your hands on one or more application-specific integrated circuits (ASICs), regardless. You can use ASICs to mine a few other SHA-256 cryptocurrencies, too.
We are going to take a look at what you should consider before you implement your ASIC operation and what you need to get started.
At ASIC Jungle, we want to make sure you have everything you need to get your mining operation up and running. From sourcing ASICs at the lowest cost to providing you with catered knowledge and support services, we’re here to bring your mining ideas to reality.
Before you get started
As you will see below, implementing a smooth mining operation requires multiple steps and considerations. Taking some time to plan before your execution will go a long way to minimize downtime and increase rewards. Factors influencing your decisions include profitability, building requirements, and location.
You may not be motivated by profit, but it remains important to know the financial implications of your project. There are three main considerations for your profitability; cryptocurrency prices, equipment costs, and electricity usage.
Bitcoin’s price volatility
How much are you going to earn in bitcoin rewards? As the price of bitcoin fluctuates, so will the value of the total rewards you earn. Is this a good time to enter the market? Take a look at bitcoin’s price behavior over the short, medium, and long term. This will help you determine the average value of rewards you can expect to earn given the average amount you are able to mine.
The cost of ASICs
The market for ASICs experiences considerable volatility as the price of bitcoin varies. If you have the time and resources, then you can benefit from entering the market while equipment costs are relatively low. This tends to happen during market downturns, so start saving now so you can deploy your reserves in a timely fashion.
Which ASIC should I buy?
Once you start looking into ASICs, you’ll soon notice a large variety of models to choose from. Which hardware you choose will ultimately depend on the balance between profitability and power consumption you are after. See here for a helpful real-time ASIC profitability resource.
What is the minimum amount of electricity you will need to mine at the scale you require? Can you feasibly (and safely) draw this much from your mining location?
Of course, you will also need to consider the cost of electricity where you plan to mine. Make sure you’re aware of what costs to expect.
An ASIC provides the complete package and doesn’t require much more than plugging it in before you can start mining. There will be some inevitable tinkering involved, especially as the scale of your operation increases.
Typically, installing your ASICs is the easy part. The biggest hurdle comes from setting up a suitable infrastructure for your ASIC operation in the first place. Thankfully, there are services available for outsourcing infrastructure resources that we will cover below.
Do you intend to mine from home or do you have a separate location in mind? There are two important variables to consider before deciding to mine at home with ASICs. Before mining with ASICs at home, first account for the fact that they are rather loud and, secondly, generate an impressive amount of heat. We recommend researching hosting facilities in case noise and heat implications render home-based mining impractical for you.
Hosting facilities offer all the infrastructure necessary to operate your ASICs in a convenient environment. There are many providers to choose from, which you can select based on location, electricity cost, revenue share, and more. If you’re looking for a hosting facility, feel free to contact our team and we will be happy to connect you to an ideal solution.
An independent location
If you have a fully separate location to play with, then the possibilities really are endless. While heat and electricity may pose restrictions on a home-based environment, they can act as resources for creative opportunities if you have land to spare.
For example, bitcoin mining is being adopted as a means to offset the cost of energy production from renewable energy sources, like solar, and the excess heat can be used in buildings like greenhouses for food production. With policies for sustainability driving the market, the savvy entrepreneur has a host of opportunities to choose from.
Ready to build
This is the exciting part. You’ve narrowed down your options and now you’re ready to get your hands dirty. Aside from procuring adequate mining infrastructure and resources for larger projects, installing your ASICs is a fairly quick process.
Installing your ASICs
As mentioned, your ASICs should arrive ready to start mining. Once you plug them in, you can move on to getting your software synced to all your fun new hardware.
For home-based miners, it’s important to stress that you draw your electricity safely. While older ASIC models can mine from a standard 120V plug at home, all new models require at least 240V outlets. You can refer to this power distribution guide for more help.
Once you have your ASICs installed, you’ll need to select a mining pool and mining software to manage your operations.
A mining pool is where you share your processing power with other miners in return for consistently distributed rewards. There are various pool providers to choose from with varying stakes in the network and distribution plans. In some cases, you may opt to not participate in a pool at all.
There are many applications to choose from that relay information to you about your miners’ output. These can be very useful to manage your operations remotely and gain valuable insights to optimize your operation. We would be happy to recommend miner management software commonly trusted by our clients.
Wherever you are on your mining journey, the team at ASIC Jungle can offer the resources you need to keep things moving. Our dedication to elevating and leading the standard for customer service in the mining industry motivates us to help you succeed. Reach out today!