There are many ways to increase your savings using Bitcoin and other digital assets. For example, doing mining and other methods. But how much investment will it take and how quickly will it pay off? Mine alone or in a pool? Should you use Bitcoin faucets? Let’s figure it out.
Collecting coins with a bitcoin faucet
How to earn bitcoin with bitcoin faucets? Now it’s hard to believe, but back in early 2010, everyone was handed out 5 bitcoins each just for solving captcha on special platforms called bitcoin faucets. Although, on the other hand, there is nothing surprising in this. After all, at that time, bitcoin was practically worthless. Today, such cranes also exist, but you can already make less money on them.
For example, let’s take one of the most popular bitcoin faucets freebitco.in with over 37 million registered users. This bitcoin faucet allows you to earn 30 Satoshi every hour (the smallest bitcoin particle named after its creator Satoshi Nakamoto), and withdrawals become available after accumulation on the user’s account of the amount of 30,000 Satoshi. Let me remind you that one bitcoin is equal to 100 million satoshi.
It turns out that in order to accumulate one bitcoin, you will need to visit the site more than 3,333,333 times. If we forget about sleep and rest, then in this way we can earn 1 bitcoin in 380 years.
Once upon a time, to mine bitcoin, it was enough to install a special program on your computer. An ordinary CPU processor was able to cope with this task.
But the Bitcoin network is designed in such a way that the complexity of mining new coins is constantly growing, and the complexity of the cryptographic problem being solved increases in proportion to the number of miners.
Therefore, after the processors, bitcoin was mined first with video cards, and then with ASIC miners.
An ASIC is a device that, unlike a video card, is designed to solve just one specific problem. Therefore, they are more efficient for mining cryptocurrencies.
But the competition continued to grow. Then, in pursuit of a reward, miners began to unite in pools. Pools have accumulated so many capacities today that it is no longer realistic to compete with them alone in the pursuit of a reward.
But on the other hand, you can register in these pools, connect your equipment to them remotely and receive a reward in proportion to the power expended. For a place in the pool, however, you will have to pay a commission from 2 to 10 percent.
To join a pool, you first need to buy hardware. Take, for example, the now popular ASIC Bitmain Antminer S19, which has a hash rate of 95 TH / s (terahesh). Then we will select the pool we like, register in it and make the necessary hardware settings. As calculators show, in this way we will be able to earn about $ 200 per month from one ASIC device.
In this case, the payback will be approximately 15 months. And we will be able to earn one bitcoin only after 42 months.
What if you decided to compete with the pool? Let’s calculate how much equipment you need in this case.
As an example, let’s take the F2Pool pool, which has one of the leading positions in bitcoin mining. Over the past day, according to the blockchain.com service, this pool has mined 20 blocks, which corresponds to 125 btc. The hash rate of this pool is 17.83EH / s (exa hash).
In order for you to compete with such a giant, you need to purchase so much equipment so that the power is no less than 17.83 exahashes. To do this, we will translate exaheshes into teraheshes and calculate the required number of asik miners – 187 68 pieces.
Do not forget that each device consumes 3.25 kWh. This means that such a quantity of equipment will use 14,639,352 kW of electricity per day. This is why many criticize Bitcoin for harm to the environment. They also require 3128 large racks with a capacity of 60 units / rack. It is also clear that it will not be possible to place all this equipment in an apartment; you will need to rent a giant warehouse or many server rooms.
Let’s take as a basis that every day we take the reward from the F2Pool pool, all the blocks go to us, and the Chinese giant is left to count the losses. For the convenience of the calculation, we neglect the fluctuations in the rate and reward.
Let’s say that we manage to earn 20 blocks every day (6.25 bitcoins per block) – this is 3750 btc per month, at the current exchange rate almost 50 million dollars or 3.925 billion rubles per month. Not bad.
The third method will bring us the first bitcoin in 11 minutes.
But you need to remember about the payback of the equipment not taking into account the work of the staff and the rental of equipment, the payback is at the level of one year. It’s good business if you have an extra $ 50 billion in your pocket.
A new alternative to mining is staking. Coins that work on the Proof-of-Stake algorithm are stored in the wallet, and while it is running, they bring a certain income. The amount of earnings depends on the account, the annual interest rate for PoS and, to some extent, on luck. Staking is like a bank deposit, where a user deposits funds into an account at interest for a specified period of time. The more money in the account, the higher the profit. The power of the computer does not matter, only the balance of the wallet and the shelf life are important. To search for coins on the PoS algorithm, there is a StakingRewards service.
Now you understand why mining Bitcoin alone in 2021 is not the best prospect. Only a few can afford this type of business. Therefore, in any case, you cannot do without a pool.
But on the other hand, you can quite successfully solo-mine other cryptocurrencies, because today there are thousands of them. And then, if you wish, you can exchange them for bitcoin on popular exchanges or exchangers, if the purpose of accumulation is BTC.
One way or another, experts advise considering mining as a type of business with at least 1 million rubles in investments.
By mining popular altcoins, you can reach a net profit with a round-the-clock workload in the region of 15-20 thousand rubles from one device.
The payback in this case will be at the level of 1.5 years. At the same time, do not forget about the high volatility of the cryptocurrency rate, as well as possible equipment breakdowns.
Do you invest in cryptocurrency? Share your opinion in the comments below! I would be happy to answer any questions or submit your project to my team at Astorts Group for evaluation.
Alessandro Rocco Pietrocola is an entrepreneur and investor based in London and operating mainly in Europe, Asia and Oceania with main focus on UK, Baltic Countries, Russia, China, Hong Kong, Malaysia, Singapore, Middle East and New Zealand as area of interest! At the moment is the CEO of Astorts Group. He is an UK FCA (Financial Conduct Authority) Approved Person and is has great experience as director of regulated companies. He uses to dedicate part of his life to inspire others and help them achieve the most out of their life. Since he was 20, he had successfully founded and managed several companies operating in the field of management consulting, wealth management and fintech. He loves travelling, he is a cigars lover, an amateur golfer and a dapper man.