“ Oh, I ’ m a bitcoin miner ! ”
At the time, I was entirely vaguely conversant with the concept of bitcoin. As I recalled, it was some kind of virtual currentness trying to replace PayPal.
But mining? How did that cultivate ?
Han desperately tried to explain it all before our cable car reached the column, and in retrospect, he credibly did a good job. But my lizard brain couldn ’ metric ton make past the image of Hansel and Zoolander trying to get the files .
The bitcoins are in the computer?
I had brainsick regard for Han not only for figuring out what mining is, but generating full-time income from it. Back then, it required obscure tease cognition, complex equipment and fabled patience .
Oh, how the times have changed .
immediately, anyone with a properly computer can set up a mine operation in under 60 seconds — meaning a potentially lucrative form of side income that requires zero feat on your part is precisely one minute away .
At this point, you may be wondering : What is bitcoin mining ? What are the requirements ? Are there risks ? And most importantly, how much money can you make doing it ?
We ’ ll get to all the underlying context in a moment, but foremost, let ’ s set up your bitcoin mine operation so you can earn while you learn .
here ’ s how to start mining crypto in the following 60 seconds :
In This Guide
- How to Start Mining Crypto in Under 60 Seconds
- What Is Bitcoin Mining?
- How Bitcoin Mining Works
- When Did Bitcoin Mining Go Mainstream?
- What Do I Need to Mine Crypto?
- How Much Can I Make Mining Crypto?
- What Are the Risks and Drawbacks of Mining Crypto?
How to Start Mining Crypto in Under 60 Seconds
We ’ rhenium going to start mine using the service NiceHash. You ’ re going to have lots of questions as we go, but I ’ ll answer those in the sections below .
To start, let ’ s fountainhead to the NiceHash Profitability Calculator and click “ catch started. ”
next, create an account :
once you verify your electronic mail address and log back in, NiceHash will ask you to “ choose services ” : open a crypto wallet, start mine or both. I recommend choosing both :
From the independent NiceHash dashboard, connect your “ trailer truck ” ( aka calculator ) :
Choose the mining software that matches your GPU. If you ’ rhenium uncertain what GPU you have, follow the path Start > DXDiag > Display 1 tab on Windows, or Apple > About This Mac .
Log in once the NiceHash desktop app is downloaded .
ultimately, click “ Start Mining. ”
Congrats ! You ’ rhenium nowadays a bitcoin miner. How easy is that ?
From here on out, anytime you want to earn some side income by mine, you can just open the NiceHash splashboard and chatter “ Start Mining. ”
Your earnings are automatically deposited into your NiceHash crypto wallet where you can hold them equally long as you feel like staying invested in bitcoin .
But if you ever choose to cash out on your mined crypto, you can go to your NiceHash splashboard > Wallet > Deposit and enter your cryptocurrency wallet information. then you can sell your mine bitcoin good like regular bitcoin on your choose crypto deal platform .
Related reading: Best Crypto Exchanges
There you have it — you ’ ve started mining bitcoin in under 60 seconds. following meter you ’ re trying to make friends in a hostel in Seoul, you can impress everyone by telling them you ’ re a profitable bitcoin miner !
now that you ’ re a bitcoin miner, let ’ s talk about what precisely is going on behind the scenes. What is mining ? How much will you earn ? And, oh yeah, will it affect your power bill ?
What Is Bitcoin Mining?
To understand bitcoin mine, you inaugural need to understand how the blockchain works .
The blockchain is like a elephantine on-line ledger — a permanent record of all the crypto transactions in the global, american samoa well as other types of data .
The mysterious Satoshi Nakamoto launched the first blockchain in 2009 and created Bitcoin as a way to demonstrate how the blockchain worked. interestingly, although he titled his master 2008 whitepaper “ Bitcoin : A Peer-to-Peer Electronic Cash System, ” Nakamoto never once mentions the term “ bitcoin ” again ; the pillow is focused on how blockchain works .
When you send or receive bitcoin ( or other cryptocurrency ), computers across the worldly concern validate your transaction and record all the details of it on the blockchain, i, the daybook. That record includes key data like the measure transferred, the date and time, sender and recipient role, and more .
There are two keystone factors that make blockchain so compel .
first, all data recorded on the blockchain is permanent wave — figuratively speaking it ’ second etched in stone. It ’ mho besides viewable by anyone with the right software, which is how the IRS has started busting people who don ’ t report their crypto gains on their taxes .
Further reading: Tax Guide to Cryptocurrency Investments
second, the blockchain is decentralized ; no one entity owns or controls the blockchain. That ’ second why investors and crypto fans love it indeed much, and many consider it to be the future of wealth storage. The blockchain can ’ thymine be immediately influenced by a bank, pot or government. It merely exists, release of bias or obscure agendas .
But how is the datum added to the blockchain ? The answer is the bitcoin miners do it .
How Bitcoin Mining Works
Bitcoin mining is the march of dedicating computing world power to maintaining the blockchain and validating crypto transactions .
To draw an analogy, these rows and rows of computers in giant, commercial bitcoin mines are like the rows of clerks and accountants at Gringotts Bank in Harry Potter, carefully documenting each and every sensible fiscal transaction to keep the records straight .
Han ’ s bitcoin mine operation wasn ’ t quite so complex, but it was financially successful however. So how do miners like him make money ?
The total of resources it takes to mine Bitcoin is extremely expensive — a unmarried “ mine ” can have millions of dollars worth of calculator hardware, expensive graphics cards, power and cooling costs, and more .
Satoshi Nakamoto knew he ’ d have to include an incentive for miners to maintain the blockchain, so for every 1 megabyte of blockchain data your computer processes, you ’ re rewarded with a bantam trickle of bitcoin .
presumably, the ocular of bantam nuggets of bitcoin coming out of the walls of the blockchain is what gave rise to the term “ mine. ”
For Nakamoto, the ace concept of mine solved three problems :
- It provided a fiscal incentive for resourceful people around the global to maintain the blockchain for everyone else .
Read more: Average Credit Card Debt in America: 2021
de- incentivized anyone from hacking the blockchain. To overwhelm and hack the blockchain, you ’ d have to amass more unite CPU might than all the computers already working on it. At that point, why not mine it alternatively of hack it ? After all, mining it with that much calculator office would generate a stagger measure of wealth.
- finally, mine provided a mean for Nakamoto to control inflation. Carefully limiting and controlling the total of Bitcoin released into circulation would ensure that the value of a single bitcoin would remain high .
When Did Bitcoin Mining Go Mainstream?
The flaw in Nakamoto ’ sulfur plan, if you could point to one, was that the blockchain grew indeed big, so fast, that merely the biggest bitcoin mines were able to earn any unplayful money .
In arrange to record datum to the blockchain, Bitcoin accountants ( computers ) would have to solve an amazingly complex series of calculations. In holy order to mine Bitcoin and net income, your calculator has to solve the perplex first .
That ’ south why the giant mines in China, Russia and Iceland kept getting bigger and bigger. They were vying for pole position, trying to solve computational puzzles faster than the contest and take a bigger plowshare of the newly minted Bitcoin proto-indo european .
then if bitcoin mine is this incredibly competitive global arms subspecies, how can you hope to compete from your home function ?
easy : You don ’ t compete with these mines — you join ’em .
You can lease your computing might to one of these more potent mines and, in exchange, you get paid in crypto. That ’ s what we set up above .
The global mining industry has led to a rising demand for a new kind of commodity : computing might. “ Renting ” or “ leasing ” some of your computer ’ sulfur processing baron to a large mine is 100 % safe, 100 % easy and is itself considered a human body of mine. After all, your calculator is being used to mine crypto, even if you know nothing about blockchain code .
The service we set up today is called NiceHash, and before we dive into the nitty game, let ’ s old world chat requirements and earnings likely .
What Do I Need to Mine Crypto?
about any calculator can mine crypto, but if you want to earn dangerous english income doing it, you ’ ll need a powerful computer .
For citation, my buddy Will mines crypto in 2021 using a gambling computer he built to top-of-the-line specification in 2019. Most notably, he has a herculean graphics card — an Nvidia GeForce RTX 2060 — which handles the brunt of the crypto mining workload .
Will ’ mho apparatus would be considered still impressive in the gambling global, but in the crypto earth, it ’ mho reasonably basic. Will lets his calculator mine crypto in the background about 23 hours a day, seven days a week, with the casual interrupt to play games .
As a consequence, Will ’ s modestly potent computer is able to mine $ 3 to $ 6 worth of crypto per day .
That may not sound like much, but it adds up quickly. That ’ s an supernumerary $ 90 to $ 180 per month, or improving to $ 2,000 a year in side income — barely for letting his computer run an extra serve in the background .
Granted, he won ’ deoxythymidine monophosphate earn that much forever. As the processing demands of the blockchain addition, the payouts for miners decrease .
That ’ second why there ’ s then a lot rival for both miners and gamers ( and gamer/miners like Will ) to scoop up the newest graphics cards. Nvidia ’ s newest GPUs — the RTX 3060, 3070, 3080, and 3090 — are becoming impossible to find and selling for three times their MSRP by avaricious scalpers .
And people pay the scalpers ’ prices, because a unmarried RTX 3090 graphics batting order can generate an extra $ 208.75 per calendar month from mine .
even if you don ’ t have a mighty gambling calculator loaded with the newest graphics card, it ’ s entirely possible to calm earn a small drip of bitcoin from mine .
How Much Can I Make Mining Crypto?
NiceHash has a “ profitableness calculator ” that will estimate how much you can earn mine based on your calculator ’ second spectacles. You can either let NiceHash scan your calculator or input your computer ’ second hardware specs yourself :
If you ’ rhenium uncertain what CPU or GPU you have, here is how you can find out :
- On Windows: Click Start > type in DXDiag – this will take you to the DirectX Diagnostic tool, where it lists your claim CPU and GPU
- On Mac: Choose Apple > About This Mac. same thing .
In my case, my employment laptop ’ randomness CPU is actually herculean enough to profit from mine : $ 0.14 a sidereal day, baby !
GPUs are much more effective than CPUs for mine, sol if you have a decent GPU from the last five years, you ’ ll be able to earn a lot more than me. For exercise, here ’ s how much you could earn with an RTX 1060 from 2016 :
In short, you need a bet on graphics card to make any adequate money from mining crypto. A top-of-the-line CPU in your cultivate computer won ’ thyroxine be able to earn a tenth of what a GPU from five years ago can earn .
so if you already have a gambling graphics menu, congrats ! It ’ ll make a mighty fine pick .
If you don’t have a GPU, is it worth getting one fair to mine ?
Some say yes ; some say no. I think that it ’ s besides a lot of a gamble .
The first problem that you ’ ll confrontation is that decent GPUs good for mining are hard to find. Prices are presently inflated 50 % to 200 % on new and use GPUs, meaning it ’ ll carry you longer to pay it off .
And don ’ t forget that you have to build a functioning computer around it. Between a CPU, case, office provide and the lie of your build, you could be looking at $ 600+ for a becoming mine fishing gear — in addition to the cost of the graphics wag .
The final examination risk is that by the time you get up and running, you won ’ t turn a profit in meter. Your RTX 1060 may earn you $ 1.81 per day now, but possibly lone $ 1.79 following month and $ 1.40 following year .
mine is a no-brainer if you already have a good GPU, but since they ’ re therefore expensive these days and payouts are dropping, it ’ s not worth buying one barely to mine .
What Are the Risks and Drawbacks of Mining Crypto?
There are no security risks involved with leasing your GPU power through a site like NiceHash .
Nor will your calculator explode. This was a real concern among early miners — that running their GPUs 24/7 would cause them to overheat and melt their computers .
But gaming graphics cards are made for it. In fact, bitcoin mine is less stressful on them than actual bet on. so using a GPU to mine bitcoin 24/7 is like using a sports car built for the racing track to calmly drive to work — a breeze .
There are two objective drawbacks to mining :
- It slows your computer a bit : My friend Will doesn ’ thyroxine poster any slowdown until he tries to mine and play games or edit videos at the lapp time. But he mines all day while he emails and works in Google Drive without a performance drop.
- It increases your exponent bill : big surprise, running your calculator 24/7 hikes up your ability bill. But not by much, possibly $ 5- $ 10 per calendar month.
Read more: Average Credit Card Debt in America: 2021
Bitcoin mine may not be profitable for everyone, but if you have a herculean enough computer, it ’ s an effortless way to earn supernumerary cash each calendar month. After all, the safest direction to invest in crypto is to get it free !
Find out more: What is Blockchain Technology and How Does It Relate to Investing?