What is a Bitcoin farm
Bitcoin is a worldwide virtual currency that is not issued by any particular state, but is generated by the system with the participation of users from many countries. The developer of the currency is a person or group of programmers under the nickname Satoshi Nakamoto. You can use BTC like any other electronic currency:
- Pay in online stores or on sites that provide various services;
- Exchange for dollars, rubles, euros or other banknotes;
- Transfer to other users.
A Bitcoin farm is a set of powerful computer equipment with which Bitcoin is issued. Another name for this process is mining. The term means "mining", by analogy, as in a mine.
One farm can have from one device to several tens of thousands. For example, one of the largest enterprises for the issuance of cryptocurrency, located in China, has 21,000 pieces of equipment. It is installed in several long hangars equipped with an excellent ventilation system. From the side, one-story buildings lined up in one row really resemble a farm. The maintenance staff consists of 50 people.
Types of bitcoin farms
Bitcoin farms can be classified, depending on the hardware they run on:
- Multiple graphics cards connected to one PC. Only AMD devices can cope with mining, but they overheat in the process, requiring additional cooling. This type of equipment was common at the dawn of the emergence of cryptocurrency generation. At the moment, the design of several video cards is practically not used, because it performs operations too slowly, and it consumes a lot of energy.
- Field-Programmable Gate Array (FPGA module). This is a programmable matrix that processes data at hyper speeds. It doesn't require a lot of energy. Additional cooling, although used, is less powerful than for video cards. The component does not take up much space, so the second generation of bitcoin farms is more compact.
- Special purpose microcircuits (ASIC). They perform only a certain function in the device, so the calculations occur at a very high speed. The latest generation of bitcoin farms use only ASICs. Very small dimensions allow you to install several dozen devices on 1-2 square meters, but subject to good ventilation and cooling.
Companies specializing in the production of equipment for mining are constantly introducing new developments. Therefore, the next generation of farms will probably use specific devices adapted exclusively to generate cryptocurrency at maximum speed.
How to set up a bitcoin mining farm
Earning on bitcoins is a profitable business, especially considering its today's rate, which has exceeded $ 8,000 per 1 BTC. The assembly of an ASIC-based farm can be divided into three stages:
- Preparatory work.
- Choice of equipment.
- Assembly and connection of components.
Let's consider in detail the implementation of all operations.
Preparation
Preparation includes choosing a location for the ASIC installation, as well as finding a reliable supplier who will deliver the equipment in the shortest possible time and offer the lowest possible price. After spending a few hours or days, you can be sure that the investment will be profitable. With careful selection and verification of the supplier, the possibility of running into a scam is excluded when the company offers components at a low price, asks for an advance payment and disappears from view.
Choice of accessories
Domestic manufacturers do not produce ASICs, so they will have to be ordered in online stores, or on sites like AliExpress, Avito, etc. These can be both new and used devices. In addition to the miner, you will need:
- Power supply of appropriate power. It may be included in the ASIC kit.
- PC or laptop. They are not needed directly to connect the equipment, but the gadget is necessary to view statistics and withdraw earned funds. Its technical characteristics do not play a role, since it will only be needed to access the Internet.
Specifications and prices of the most popular models of 2017
Name | Antminer S9
| Ebit E9 Plus Miner | Antminer R4
|
Power | 1350W
| 1305W | 845W |
hash rate | 13.5TH/s
| 9TH/s | 8.6TH/s |
approximate price | $2,100 | $2800 | $1000 |
Farm assembly
The standard kit consists of an ASIC and a power supply. Instructions for connecting the device:
- We install the device in the chosen place. The distance from the wall must be at least 30 cm.
- We connect the pin connectors. At one end, the cords are soldered into the PSU, and at the other end there are connectors that must be inserted into the slots located on the device case.
- We establish an Ethernet connection by connecting a network cable to the router through the LAN connector.
- We insert the power cable into the PSU and plug it directly into a power outlet or surge protector. If the device is working correctly, the green indicator will light up.
- We determine the IP address from our PC, then go to sites with pool directories (crypto-mining.ru, BitMakler.com and the like), and select the resource where we want to register.
- We start an account by entering the IP address of our ASIC during registration.
It will be possible to monitor the earnings of money from your Personal Account. The profile will reflect the statistics of the profit received, as well as the speed of the miner.
How much does a home bitcoin farm cost
The purchase of one set of equipment will cost approximately 2000-2500 dollars, which is approximately 110-150 thousand rubles. The newest models cost about 200 thousand rubles. But do not forget that one ASIC consumes 25-30 kW of energy per day, so you need to add 1-2 dollars for each day the device works (the cost of one kW depends on the region of residence). Plus payment for the Internet, which is determined by the provider.
How to evaluate profitability
It is only possible to calculate the time for which a bitcoin farm will pay off, since the exchange rate is constantly changing and it has grown almost 10 times over the year. For calculations, special online calculators are used, where all data is entered:
- Brand of equipment or its HashRate indicators;
- ASIC power;
- The cost of electricity;
- BTC course;
- Pool block reward.
Approximate calculations show that when buying a farm for 200 thousand rubles and the cost of electricity is 2 rubles per kW / h in 5 months, subject to continuous operation. HashRate indicators were used - 13.5 TH / s, power - 1300 W / h. Feedback from cryptocurrency miners suggests that the payback of less powerful, and therefore cheaper, equipment sets is 7-9 months.
How does a bitcoin farm work
Mining works on the principle of performing computational operations. Simply put, the machines crack the code that gives them the key to Bitcoin. One farm is not able to quickly decrypt it, so users are grouped into groups, the so-called pools. By registering an account on one or another pool, a person becomes a member of the group. Without joining the pools, they can afford to mine bitcoins on their own, only very large farms.
When a pool solves the next code, all its members receive a reward. It can be distributed both proportionally between all devices, and depending on the power of the equipment or other indicators.
Where to set up a bitcoin farm
Experienced bitcoin miners do not recommend placing the equipment in the living room, as it makes noise and also tends to overheat during operation. Moreover, if there are several ASICs, they will be able to raise the temperature in the room to 40 ° C and above. You can install the equipment in a separate room or on a glazed balcony (the temperature must be at least 0 °C). But the best for these purposes is an empty office that can be rented.
The main criteria to consider when choosing a room:
- Good ventilation and cooling system. Despite the fact that each miner is equipped with a built-in cooler, a serious farm will require the installation of air conditioners, at home you can get by with a fan.
- Stable internet connection. Its speed does not matter, but if a break occurs, the system will have to be restarted. To do this, the equipment is equipped with a special controller. Some ASICs are initially equipped with an automatic reset function.
- High quality wiring. When installing an ASIC at home, it is not recommended to turn on powerful electrical appliances at the same time, since the household network is not designed for such loads and automatic protection will work. And since the miner must work 24/7, this will be very problematic, especially if there are several of them. One device is comparable in power to an electric kettle, iron or vacuum cleaner. In offices or warehouses, electrical wiring can withstand heavy loads, so installing several dozen ASICs in them is more preferable.
Possible problems and difficulties
Problems can begin already at the stage of purchasing equipment. Since it is sent from other cities and countries, ASIC may get damaged to the recipient of the package. It is not always possible to determine this visually: the case will be in perfect condition, but the boards and wires may be damaged. To avoid such an incident, you should order only from trusted suppliers who provide a guarantee.
Other possible problems:
- Automatic protection is constantly triggered and the device turns off. It could be overheating or a voltage drop in the network.
- The red indicator is on. This means that the wires were connected incorrectly, a system failure occurred, or an ASIC failure occurred. And in some cases, only flashing the device helps.
- The network connection is constantly lost, and the PC does not find the module by IP address. It is necessary to restart the modem, turn off the PSU from the network, and reset the settings on the equipment to factory settings. If these manipulations do not help, the controller may have burned out or another part has failed. Service specialists will be able to help in solving the problem.