Cloud mining equipment
Bitcoin mining has become a top-rated source of passive income for many investors. With the rapid growth of the digital asset market, this business has, on average, shown high profitability over the past few years. However, to create your crypto farm, you need both capital and an understanding of trends, the profitability of equipment from different manufacturers, the ability to purchase devices for mining BTC profitably, and so on. Today we will answer the most common questions about this area.
How to create an effective crypto farm?
Sources of income for miners are rewards for mined blocks and commissions of network users. Searching for blocks and confirming transactions is a costly process regarding the required computing power. Therefore, special equipment ASIC or ASIC (Application-specific integrated circuit) is used for such a business. Asics are combined into crypto farms, which are then connected to mining pools. Individual miners receive remuneration from the pools.
The competition in mining is relatively high due to the ever-growing complexity amid the increase in the total computing power of all devices on the network. Therefore, when choosing ASICs for a crypto farm, you need to be guided by the following parameters:
- Hardware hashrate. This is its processing power, most often measured in terahesh per second. There are also such units of measurement as megahash and gigahesh, but they are needed for a more accurate calculation of profitability;
- Energy consumption. ASICs consume a large amount of electricity; its payment is the main expense item for miners;
- Equipment price. Considering the cost of a crypto farm, you can calculate its payback.
- Cryptocurrency price. Since rewards are paid in BTC, the dollar equivalent of income can fluctuate significantly depending on the value of Bitcoin.
Buying ASICs alone is not enough; they need to be placed indoors (when renting for mining, this is another cost item for a business). Apart from this, crypto farms also get very hot and require constant cooling. That is, the miner’s “shopping list” includes not only the ASICs themselves but also additional equipment in the form of racks, coolers, pipes for coolant, uninterruptible power generators, and so on.
Mining hardware manufacturers
Mining equipment brands are replenished with new manufacturers every year; modern cloud mining providers use many of them. Let’s single out the most famous names among them:
- Bitmain is one of the first companies producing ASICs. It is the most popular in its field and occupies an impressive market share. Bitmain has had problems shipping goods lately, as the company is based in China, where Bitcoin mining was completely banned this year;
- Canaan. This company became the first ASIC manufacturer in the world. In addition to manufacturing hardware, Canaan provides various services to miners and owns industry-related platforms;
- Bitfury is one of the largest European manufacturers, based in the Netherlands;
- Whatsminer is another notable market player with a good reputation. The latest ASIC models from the Whatsminer M32–70 line are pretty compact compared to similar offerings from competitors, so they are great for scaling a large mining center.
You should buy equipment only from well-known manufacturers since there have been cases when miners were caught by scammers who sold them practically useless hardware in the history of the crypto industry. Purchasing new hardware is desirable, but used mining hardware can also be purchased. Here, however, you will have to focus not only on the efficiency of the crypto farm itself but also on the conscientiousness of the seller.
How to calculate the profitability of a crypto farm?
To calculate the profitability, you can use the Whattomine mining power calculator. Below, we take a look at the profitability of the five most popular ASICs on the market as of the end of 2021.
Antminer S19 Pro
- Hashrate: 110 terahashes per second;
- Power consumption: 3250 watts;
- Average cost: $ 10,000.
One of the copies of the recently released series by Bitmain also includes the Antminer T19 and Antminer S19. It has a built-in power supply and cooling in the form of coolers. They can increase power consumption depending on the ambient temperature. Therefore, as is the case with other ASICs, you will have to take care of a reliable room cooling system.
Let’s enter hash rate, energy consumption, and cost into the calculator to calculate profitability. These indicators will change for each ASIC, but the cost of electricity (on average 10 cents per kilowatt-hour) and the price of Bitcoin ($ 50,000) will remain the same for all other ASICs in the rating.
From the calculation in the screenshot, you can see that the expected profitability for the same BTC price and unchanged difficulty will be $ 705.20. That is, a crypto farm consisting of such ASICs will pay off in about a year. In practice, ROI is more likely to be lower depending on the increase in difficulty and BTC price.
- Hashrate: 90 terahashes per second;
- Power consumption: 3430 watts;
- Average cost: $ 5300.
In terms of its characteristics, the AvalonMiner 1246 is a direct competitor to the Antminer S19 with the same hash rate and power consumption. At its peak, the latter figure reaches 3430 watts, taking into account the maximum performance of the ASIC. Its only drawback is a slightly higher cost in its category of equipment.
As the calculator shows, the price of AvalonMiner 1246 will pay off in about 10–11 months under ideal conditions. If a miner has the opportunity to purchase a large batch of such ASICs, they can become a reasonable basis for a crypto farm for the following year.
Whatsminer M3OS ++
- Hashrate: 112 terahashes per second;
- Power consumption: 3472 watts;
- Average cost: $ 13,000.
The following representative of the rating is a direct competitor to Antminer S19 Pro with a slightly lower hash rate and similar power consumption. The average price of the M3OS ++ is higher than the S19 Pro on most trading platforms. However, cheaper deals can be found in the secondary market. The main advantage of M3OS ++ over its competitor is its compactness and not such a high level of heat dissipation; that is, fewer resources will be spent on cooling the crypto farm.
The payback period for this ASIC is more than a year under ideal conditions. It will generate approximately $ 706 per month at an electricity price of $ 0.10 per kilowatt-hour.
- AvalonMiner 1166 Pro
- Hashrate: 81 terahesh per second;
- Power consumption: 3400 watts;
- Average cost: $ 3,500.
The AvalonMiner A1166 Pro is very popular because of its relatively high hash rate and low power consumption at a very low price. ASIC has some of the most profitable economic indicators among its competitors. Unfortunately, due to high demand, the cost of the A1166 Pro from resellers around the world can be as high as 200% of the manufacturer’s price. To buy equipment directly from Canaan, you will have to order at least 5 ASICs and wait a long time for delivery.
- At $ 3,500, the hardware will bring the miner $ 446.7 per day. That is, the A1166 Pro will pay off in just about eight months under ideal conditions for the Bitcoin price and mining difficulty.
Ebang EBIT E11 ++
- Hashrate: 44 terahesh per second;
- Power consumption: 2000 watts;
- Average cost: $ 2,100.
The latest copy of the rating has half the hash rate than the A1166 Pro, but EBIT E11 ++ has the advantage of a low price and much lower power consumption. Unfortunately, there are also disadvantages — the noise level and cooling of the device are not as good as those of the ASICs mentioned above. EBIT E11 ++ sales began in 2018, but ASICs are still relevant today due to their efficiency and attractive value in the aftermarket.
The payback of a crypto farm from several EBITs E11 ++ will be just under one year in ideal conditions. At the same time, unlike other ASICs, the EBIT E11 ++ price allows you to build a farm with much less capital. Compare for yourself: for $ 10,000 a miner can buy only one Antminer S19 Pro, but for the same money, one can buy up to 5 EBIT E11 ++.
An alternative in the form of cloud mining
Those mentioned above most popular ASICs are just the tip of the iceberg in creating your crypto farm. To the search for the best offers for the sale of equipment, it is worth adding problems with its configuration, placement, and technical support of additional equipment. That is why Hashmart customers have an alternative in the form of cloud mining.
Cloud mining power is a reasonably flexible metric that can be adjusted depending on the investor’s investment. A client buys a contract on the website and gets a guaranteed profit from the cryptocurrency mining in his cryptocurrency wallet daily. The equipment itself for cloud mining is located in a remote mining center. Thus, by paying the cost of the contract, the client relieves oneself of many difficulties and problems associated with this business.
In addition, cloud mining has a much lower “entry threshold”, the capital required to start earning starts from $ 40–50. You can calculate the approximate profit using a convenient cloud mining hashrate calculator.