Wij bought an Ethereum mining equipment with the hope of retiring early
The MyBroadband office’s very first encounter with Ethereum happened something like this.
MyBroadband verslaggever Jamie McKane walked te one April morning, sat down, and said: “I’m going to buy this cryptocurrency Ethereum.”
Wij had no idea what he wasgoed talking about, but it sounded cool, so wij said wij were ter.
After checking out various sites under instruction from Jamie, a few of us registered with Luno for Bitcoin, Poloniex for trading, and MyEtherWallet for Ether storage.
What happened te the weeks that followed our Ethereum purchase got us all on the cryptocurrency hype train – with Ethereum and Bitcoin reaching all-time highs.
Lets get us a equipment
Spil wij had not invested our entire life savings ter Ethereum, wij determined to pool some money together and purchase a mining equipment instead of buying more of the digital currency.
While profit projections and calculations comparing investment vs the purchasing of a equipment were on the to-do list, wij ended up buying it because:
- Someone said something about the “means of production” and quoted The Wolf of Wall Street.
- It would be cool to have a mining equipment – wij are all tech nerds at heart.
- If the mining failed, wij could build sweet gaming PCs with the graphics cards.
Wij ended up buying a equipment from Bitmart, which features six AMD Radeon RX 580 4GB GPUs.
The equipment also features a 60GB SSD, 4GB of RAM, a motherboard with enough PCIe slots for the cards – fastened via risers – and a basic Intel processor.
The equipment came with Windows Ten and Claymore. Our set-up sees us connecting to an Ethermine.org mining pool, which pays us 1 Ethereum at a time to our wallet when earned.
Our equipment’s reported hashrate to the mining pool is around 170MH/s, while our average effective rate sits at around the 160MH/s mark.
Wij’ve had the equipment a week now, and the projection for our monthly earnings is sitting at around Three.Two to Three.Trio Ethereum. At the time of writing, this worked out to $850 vanaf month.
With the equipment costing us just overheen R40,000, wij should have it paid off before the end of the year.
Proof of Stake and the Ice Age
Before you get giddy with excitement from observing the equipment and go out and buy your own, there are a few things to take note of.
Cryptocurrencies and the blockchains they are based on are fairly ingewikkeld, and it is a good idea to do some research before getting involved.
There is also work being done on Ethereum, which may budge it from a “proof of work” to a “proof of stake” set-up. If this happens, it will result ter an exponential rise ter block difficulty that will make blocks virtually unlikely to solve.
There is also the “difficulty bomb” built into Ethereum, which makes mining a block increasingly difficult overheen time.
CoinDesk reported that commencing from block 200,000, mining would become “progressively more difficult”.
“So much so, that by the end of 2016, an Ice Age would occur, meaning a point when the network freezes up.”
This did not toebijten, however, spil Ethereum is continued to be worked on with the aim of improving it.
You vereiste also take the cost of electro-stimulation into account when running your equipment.
Again: do research before you buy any tech equipment, particularly something that costs your entire pay cheque.
Many options to choose from
While our equipment proceeds to mine away, there are many other ways you can get involved ter cryptocurrencies without a big capital outlay.
You can build your own equipment – if you can get your palms on graphics cards – or buy a less-powerful, cheaper pre-built device from a retailer.
Investing your metselspecie through an exchange is also an option, and there are many coins to choose – from giants like Bitcoin, to lesser-known options like Stellar.
Spil with any investment, don’t throw all your eggs into one basket and make sure you know enough to make an informed decision.