Mining cryptocurrencies

Bitcoin Serverraum

Mining is the new gold fanning!

As a miner you earn virtual money (Bitcoins, Ethereum, etc.) for providing computing power. Mining is the execution of mathematical calculations by computer hardware to confirm Bitcoin transactions and increase security. As a reward for your services, Bitcoin Miner can collect transaction fees for transactions they confirm and newly created Bitcoins.

Mining mainly distinguishes two types, Asic Miner and GPU Miner, which depends on the algorithm of the respective currency.

Asic Mining

An ASIC is an application-specific integrated circuit, a high-performance computer built only for a specific task; Calculate a hash algorithm as soon as possible. An ASIC can charge hashes 100,000 times faster than even the best CPU. ASICs are tailor-made for a few or individual hash algorithms. Therefore, you have to buy different coins, different ASICs. Some coins that are mined with Asics are, for example. : Bitcoin, Bitcoin Cash, Litecoin, Dash, Zcash. 

Algorithm Examples: SHA-256, Scrypt, X11

Currently, there are several companies, such as Bitmain, Canaan, Innosilicon, GMO, Dayun etc., that are developing ASICs. Due to its special nature and niche application, a powerful ASIC is not cheap. For high-end hash power, a single ASIC can cost $3,000 to $5,000.

GPU Mining

Although they are not as powerful as an ASIC, GPUs are more flexible in their application. You can't mine bitcoins with it, but you can do most alt coins like Ethereum, Ethereum Classic, Monero, Loki, Metaverse and many more. The GPU is the Graphics Processing Unit. It is the chip on the graphics card that performs the calculations. While Miner uses the GPUs for mining, they are actually meant to provide "smooth decoding and playback of 3D animations and video" in gaming computers.

Algorithm Examples: Ethash, Lyra2REv2, CryptoNightV7, CryptoNightV7

Companies like AMD and Nvidia, have originally developed GPUs for graphics applications. However, there has recently been strong demand from customers using GPUs to mine cryptocurrencies.

The price of high-end GPUs had jumped at times. Due to massive demand there was a lack of gaming graphics cards. To protect players, some retailers restricted sales, to one graphics card per person, or granted discounts to those who bought other components for a real gaming PC.

Read also our tutorial to build Mining Rig yourself