When Bitcoin first came into existence, it was possible to mine the Bitcoins only using the power of your CPU (central processing unit). However, as the difficulty for mining increased, it required more powerful machinery, and dedicated machinery, such as a GPU (graphics processing unit) to mine the cryptocurrency. Today, it is no longer truly feasible to mine in this manner, and the Bitcoin miners have moved on to ASIC mining tools.
What Is an ASIC Miner?
ASIC stands for Application Specific Integrated Circuit, and these miners are made with the specific purpose of mining cryptocurrency like Bitcoin. Because they were designed for this function, it provides them with advantages over other types of devices that were used in the past to mine for Bitcoins, such as the GPU mentioned earlier. After all, the purpose of a GPU is for graphics.
These types of miners can process the transactions at a much faster rate because they have a higher hash rate. The higher the hash rate the more calculations that can be done in a second. The top options on the market today include the Antminer S9 and Dragonmint.
Setting Up a Typical ASIC Miner
The basic setup of a Bitcoin miner tends to be very simply. Different machines will require different amounts of power to run. The S9, for example, will require 1,275 watts of power, so you need to make sure you have a power supply that will accommodate your machine. You will then connect the power supply unit to the S0 using the cables, and then connect an ethernet cable to the miner.
Then, turn on the PSU to power the miner. Following that, you will get onto a computer that is on the same network as the miner and enter the miner’s IP address. Many of the miners available today are DHCP enabled, so you will not have to set the address manually.
Log into the miner via your computer using the instructions, which should have been included with the machine. Make sure you change the password, so it is unique to you. Go into the configuration area on the setup and enter the address of your mining pool to get started. There is more on why you might want to join a mining pool and what to look for in a mining pool below.
Using a Datacenter
You might also find that it is easier and more cost effective from an energy usage standpoint to have your machines hosted at a datacenter. In some cases, you will supply the machines and set them up, but many will have the ability to set up the machines for you. This is often the easier option, and it can help to save on your energy costs.
Choosing a Mining Pool
The competition is fierce in Bitcoin ASIC mining, and it is nearly impossible to solve a block on your own if you are using only one or two machines. For this reason, most have started to join mining pools. Here, everyone pools their resources and then splits the rewards and pays a mining pool fee, which is typically a percentage of the reward. This allows people to make money with Bitcoin mining more consistently.
When you are choosing a pool, you will want to consider those that have been established for a while, and that have quality infrastructure in place. You want to have a pool that has a payout threshold and frequency that you are happy with, and that you understand the pool fees and any other requirements that they might have.