Cloud vs Physical Rig Cryptocurrency Mining in 2019

Bharat Venkat
Jul 6, 2019 · 9 min read
Photo by CreditRepairExpert

Physical Rig

I want to preface this article by stating that by no means am I anything close to a cryptocurrency expert, I just thought this would be a fun experiment considering I already had a mining computer. I also don’t expect it to be profitable to mine in the cloud, especially because cloud service providers typically regulate what types of instances users can provision using free credits.

  • 1 x ASUS ROG GeForce GTX 1080 Ti 11GB
  • 1 x EVGA GeForce GTX 1060
  • 1 x Gigabyte GeForce GTX 1070
  • 1 x ASUS TUF Z270 Mark 2 Motherboard
  • 1 x Corsair RM850x PSU
  • 1x Cooler Master V850 PSU
  • 1 x ISPG 120 GB SSD
  • Intel Core i3 7th Generation CPU
  • HyperX 8GB DDR4 RAM

Cloud Based Mining

I am relatively new to using cloud technologies (less than a year of experience) but I have wholeheartedly jumped on the bandwagon. Cloud service providers like Amazon Web Services (AWS) and Microsoft Azure are changing the way the tech industry works. Gone is the age in which technical architects had to guess how much infrastructure a project needs. Now, using online portals, users can provision massive amounts of computing power at the click of a button. Both Azure and AWS have a wide selection of services available, making it easy to design and implement solutions for anything ranging from analyzing IoT data to provisioning a server to allow students to learn how to code in the same development environment.

Conclusions

Contrary to what you may of heard, in the current market it can still be profitable to mine cryptocurrency. By no means is it going to be as profitable as it would’ve been even 2 years ago, but if you already have the hardware in place it can make a lot of sense. For those of you living in colder climates that profitability could also end up being twofold, earning you cryptocurrency while also cutting your heating costs.

Setting Up Virtual Machine

The process of setting up the VMs was fairly simple, I’ve included directions below incase any readers are interested in trying for themselves. These instructions are intended for people using MacOS, but it should be fairly simple to complete even if you use a different operating system.

  1. Ensure you have the Azure CLI installed and working. For Mac users you can use run the following commands in Terminal if you have Homebrew installed, otherwise follow the instructions in the Azure Documentation. The first command ensures you have an up to date version Homebrew and installs the azure-cli package. The second command is used to verify your installation works correctly.
brew update && brew install azure-cli
az --help
az login
./deployf4s.sh
https://github.com/nicehash/NiceHashMinerLegacy/releases/download/1.9.1.5/nhm_windows_1.9.1.5.zip

The Startup

Get smarter at building your thing. Join The Startup’s +799K followers.

Medium is an open platform where 170 million readers come to find insightful and dynamic thinking. Here, expert and undiscovered voices alike dive into the heart of any topic and bring new ideas to the surface. Learn more

Follow the writers, publications, and topics that matter to you, and you’ll see them on your homepage and in your inbox. Explore

If you have a story to tell, knowledge to share, or a perspective to offer — welcome home. It’s easy and free to post your thinking on any topic. Write on Medium

Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store