What Hardware Do You Need to Mine Bitcoin?

The mining of bitcoins (BTC) is the process that allows new units of BTC to be generated. It consists of solving complex mathematical problems using powerful computers to add blocks to the blockchain. Miners who manage to find the solution first are rewarded in BTC. This allows them to make a profit on their investment, making mining an interesting opportunity. If you want to start mining bitcoins, you need to have specialized equipment. Discover in this article what materials you need to effectively start this activity.

Mining Devices for Bitcoins: The Field of Possibilities

PC, Tablet, or Phone: Less Productive Options

To mine Bitcoin, you can use your laptop, tablet, or phone. Indeed, BTC mining has been designed to be accessible to everyone.

However, with the increase in mining difficulty and the emergence of increasingly sophisticated mining hardware, these methods have become less and less popular.

In reality, these devices generally generate little profit, as they are limited in terms of computing power. This drives miners to resort to the use of specialized hardware to gain productivity.

We are talking here about mining rigs, also called mining rigs in English.

Mining Rigs: The Preferred Work Tool for Bitcoin Miners

As mentioned earlier, Bitcoin mining is a resource-intensive task. This is why to engage in this activity profitably, you absolutely need to have a mining rig.

These platforms are designed based on a hardware configuration that enhances their capacity. The goal is to make the most of the components that comprise them.

Specifically, what is a mining rig?

Roughly speaking, one might be tempted to say that it is a computer capable of processing information faster than standard computers.

But more specifically, rigs are assemblies of electronic components specially designed for cryptocurrency mining with the greatest possible energy efficiency. They generally consist of multiple microprocessors, graphics cards (GPU), and power supply units (PSU).

Microprocessors and the GPU handle the processing of data and execution of instructions provided by the mining software and the Bitcoin protocol. The PSU supplies the necessary power to run the hardware.

Mining rigs are used to mine all cryptocurrencies that use a proof of work (PoW) algorithm.

However, as illustrated in the diagram below, Bitcoin is by far the network that mobilizes nearly all (over 99%) of the global hashrate generated across all PoW blockchains.

Prefabricated Mining Rigs and Assembled Mining Rigs

When you want to acquire a mining rig, you have two options to choose from.

Prefabricated Mining Rigs

These are ready-to-use devices that you can buy directly from manufacturers or stores. They have the advantage of reliability and are generally more efficient than assembled models.

However, quality comes at a price; they are also more expensive. Furthermore, they offer less flexibility and do not allow for possible resource optimization.

Assembled Mining Rigs

The magic of the mining industry is that you can build your own rig. All you need is the right hardware configuration and to source quality electronic components (motherboards, RAM, ROM, CPUs, GPUs, ASICs, FPGA circuits, etc).

Miners who undertake this experience have the chance to benefit from reduced costs and accessibility of components. This is ideal for developing regions like Africa, where shipping costs for prefabricated rigs can be very high.

This is also an opportunity for DIY enthusiasts to indulge their passions while enjoying the excitement of designing and assembling such a gadget.

Assembling your rig yourself allows you to add or remove components to improve the hardware’s efficiency. That said, one must not overlook the time involved in implementing the system as well as its optimization.

Moreover, if you embark on this type of experience, there is no guarantee that the expected result will be achieved. There is indeed a risk that nothing will work in the end and that you have wasted your time unnecessarily.

This is why you need to have a minimum of technical knowledge in computing and electronics before venturing into this type of project.

What are the types of mining rigs?

Depending on your needs, budget, and short, medium, and long-term objectives, you can choose from several types of mining rigs. Notably, we distinguish rigs made from CPU, GPU, ASIC, and FPGA.

CPU-based mining rigs

The mining with a processor is the oldest and simplest method to generate new units of Bitcoin. 

In the early days of Bitcoin, CPUs were the main tool used for mining. However, faced with increasing competition, miners quickly turned to other alternatives.

Although CPUs are present in all computers and are responsible for processing tasks, they were not designed to handle the complex calculations required to add a block to the blockchain.

Consequently, mining with a CPU is less efficient when it comes to Bitcoin mining. However, some people continue to use CPU-based mining rigs to mine less energy-intensive cryptocurrencies that are less popular than Bitcoin.

GPU-based mining rigs

GPUs are not specifically designed for cryptocurrency mining, but rather for applications such as graphic and video rendering, video games, and machine learning.

However, due to their ability to perform a large number of calculations simultaneously, GPUs have proven to be viable tools for cryptocurrency mining.

Introduced in 2009, GPU mining has increased efficiency by about 332% compared to CPU rigs. 

Indeed, mining rigs based on graphics cards provide better performance than CPUs and have the advantage of being able to mine different cryptocurrencies.

However, this equipment can be expensive and slightly more complex to optimize. A GPU mining platform is a computer specially configured to mine cryptocurrencies.

The most popular GPU manufacturers include companies such as Nvidia, Asus, MSI, and AMD. Among their most sought-after GPUs for mining are the GeForce RTX 3060 Ti and the GeForce 3090 from Nvidia, as well as the RX 6700 XT and Radeon RX 580 from AMD.

ASIC-based mining rigs

The ASIC mining (Application-Specific Integrated Circuit) is currently the most popular method. Each ASIC is designed for a specific use. Therefore, miners can only use ASICs to mine a specific cryptocurrency.

Introduced in 2013, ASIC mining has achieved an energy savings of over 460% compared to FPGA miners. Indeed, ASIC mining rigs offer superior performance and significantly better energy efficiency.

However, this equipment lacks flexibility, and its high cost can pose an obstacle for some miners. 

Furthermore, this promotes the centralization of mining power in the hands of large mining farms. A concern that has led to many Bitcoin forks.

FPGA-based mining rigs

FPGAs (Field-Programmable Gate Arrays) are programmable electronic circuits designed to perform specific tasks, including crypto asset mining.

The first FPGA-based mining rigs appeared in 2011, showing a power savings of about 615% compared to GPU-based rigs. They have proven to be more energy-efficient than the latter.

The FPGA mining rigs offer greater flexibility than ASICs. Indeed, it is possible to use them to mine a specific cryptocurrency and then reprogram them to mine another.

However, this process can be complex.

Additionally, FPGAs are expensive, which can be a barrier for beginner miners.

Finally, although they are powerful, FPGAs have lower energy efficiency than ASIC mining rigs. This explains why they are less commonly used in the mining industry.

Mining software

It should be noted that apart from mining rigs, you need to have a mining software suitable for your hardware. This software allows you to configure and optimize your mining rig to effectively extract bitcoins.

There are a variety of mining software options suitable for different types of hardware. Generally, you can download this software for free on the internet.

Most importantly, do not forget to regularly monitor the performance of your mining rig and adjust the settings as needed to maximize your profits.

What is the best hardware for mining Bitcoin?

Factors to consider

When choosing your Bitcoin mining hardware, you must take several essential factors into account:

• Compatibility with the cryptocurrency to mine: for example, if you buy an ASIC dedicated to mining Bitcoin Gold, do not expect it to mine Bitcoin.

• Price: your budget determines the type and model of rig you can afford to buy.

• Hashrate or hash rate (TH/s): this parameter determines how fast you can mine. It allows for an estimate of your potential earnings.

• Energy efficiency: it determines the ratio between the computing power produced and the amount of energy consumed, which directly impacts profitability.

• Flexibility: ideally, you should be able to switch from one cryptocurrency to another based on profitability at a given time.

• Required technical skill level: if you want to assemble, manage, optimize, or maintain your hardware, this factor is important.

• Durability: the hardware can quickly become obsolete, which affects the overall cost of your investment.

• Resale: prioritize equipment that you can easily resell at a reasonable price.

• Profitability: some online platforms such as ASIC Miner Value allow you to assess the profitability of various solutions available on the market.

• Noise and heat generation: mining hardware is known to be loud and produce a lot of heat. These factors can influence both the comfort of use and the durability of your equipment.

The dominant mining equipment

As of this writing, the Bitcoin mining devices that dominate the market primarily come from the ASIC category. Additionally, the models currently offering the most impressive performance in 2023 are as follows:

• Bitmain AntMiner S19 Pro
• Bitmain Antminer S19 XP Hyd
• Bitmain Antminer S19 XP
• Bitmain AntMiner S9
• Bitmain AntMiner T19
• Whatsminer M30S++
• Canaan AvalonMiner 1246
• Canaan Avalon Made A1366
• Dragonmint T1
• Ebang Ebit E11++.

How much does a mining rig cost?

The cost of an ASIC mining rig can range from $2,000 to $20,000. However, a high price does not necessarily guarantee the quality of the equipment.

When acquiring a miner, you should not focus solely on the cost. Typically, miners are more interested in efficiency relative to price.

However, the efficiency per dollar invested is not always the most reliable performance criterion. Depending on the models, the electrical infrastructure required can increase overall expenses.

On the other hand, some models, due to their size, have a higher hashrate and can thus optimize the use of your existing power source.

Conclusion

Before diving into Bitcoin mining, you should be aware that this activity can represent a significant financial investment. Additionally, it may require some technical complexity. Indeed, mining requires dedicated equipment capable of producing substantial computing power, as well as a minimum of technical knowledge to ensure its operation. Nevertheless, with the right hardware and software configuration, you can make your investment profitable.

La Rédaction C.

L'équipe éditoriale de Cointribune unit ses voix pour s’exprimer sur des thématiques propres aux cryptomonnaies, à l'investissement, au métaverse et aux NFT, tout en s’efforçant de répondre au mieux à vos interrogations.