Recently, many are considering the Bitcoin generator as a source of passive income. It is worth noting that this activity is very different from other attempts to make money. To have a chance to make any profit, a rather large initial investment is required.
Most people today are familiar with bitcoins, even if they have never used them. This is the first currency in the world that is controlled by the cryptographic protocol, and not by the central bank. In principle, you can pay for something by sending BTC from a virtual wallet on your computer to the seller’s device.
So how can you make money on this? Theoretically, your computer could become a node on the network that processes and verifies transactions. With each processed blockchain, a new block is created from a certain number of coins. This is called bitcoin mining or mining. Sounds good, but how does it really happen? To understand this, you need to study the feedback on Bitcoin earnings submitted by experts.
What are the difficulties?
If, as of 2014, 25 coins cost about $ 2,500, today difficulties with cryptocurrency mining have increased by 50 times. This makes mining an unprofitable event if you do not have powerful ASICs.
The price of BTC has risen sharply (about $ 1,000 today), but this does not completely compensate for the increase in complexity. According to the profit calculator, mining at 5 GH / s will give you $ 1.50 per day.
With the right equipment, bitcoin mining is pretty much like using a printing press for money, except that it is completely legal. But what conditions does this earnings require - a bitcoin generator? Reviews about him will help to deal with this.
What do you need to start mining?
Technically, all you need to become a node on the network and start printing your own virtual coins is a computer with Internet access. You can download a free wallet to your PC, one of several free mining programs and join the process.
Sounds great, right? The problem is that the required power of the computer is phenomenal for it to work as a bitcoin generator. Earnings at home, reviews of which are positive, will not be provided by a device with average characteristics. If you work on your own with only one PC, it may take several years before you see your first unit. For this reason, most users join a pool where collaboration is underway and rewards are possible.
In the pool, when a block is formed and new coins are created, you will receive only a small part of them. But usually several blocks appear in one day. The person managing the pool takes a small percentage as a fee (say 3%), but you get almost instant profit through this bitcoin generator. Reviews about making money at home using this method contain a number of details. So, one of the important aspects of mining is that the complexity of solving blocks increases with time.
So can you make a profit in bitcoins using a personal computer? It depends on how good your PC is. Oddly enough, the processing needed to mine BTC is much better done using a graphics card (GPU) rather than a processor. Therefore, if you do not have a gaming computer with a good dedicated graphics card, you can, in principle, make a profit, but it will be so small that it is unlikely to change your financial situation.
Today, there are two manufacturers of graphics processors that provide chips for all graphics cards - Ati Radeon and Nvidia. According to reviews about making bitcoins, Radeon cards work much better on bit than Nvidia. Something is related to their architecture, which does not really affect the rendering of graphics in games, but makes a huge difference in development.
If you try to mine bitcoin with a gaming PC that has an Nvidia card (GTX 660Ti, say), you can get the following results. The performance of your setup is expressed in megawatts per second (Gh / s). Let's say your card runs at about 100 Gh / s.
If you work for 24 hours with slight interruptions, you will be able to create 0.002 BTC. It costs about 20 cents. It can be assumed that a full day of production of bitcons will bring income to 30 cents.
In addition, this indicator is very variable when you work as a pool, which has a collective capacity of 3000 Gh / s. Sometimes you will get into full load in 10 hours, sometimes in less than an hour. Therefore, it is impossible to accurately calculate what exactly the earnings of the bitcoin generator will be. User reviews also affect other nuances.
But remember that increased power consumption is mainly used through the use of a graphics card. Also, the gradual wear of the card probably means that it will not work for a very long time with the same power. It is possible that mining bitcoins with such input data will make you spend money, not make money.
Maybe you can get results 3-5 times better with a Radeon card. It is even better if two cards are installed on your PC, working in the mode of replacing and supporting each other. But frankly, it is unlikely to pay off.
New mining equipment: ASIC
On the other hand, there is the possibility of buying an ASIC (specialized integrated circuit) - a piece of electronics designed to develop bitcoins that you connect to a computer. The weakest of those that are currently being released by Butterfly Labs works at a speed of 5 Gb / s (this is 500 times more than that of the average graphics card).
According to a new message from the manufacturer, miners will dial 5 watts for hexes so that they have hashed. For comparison, the 42-inch LCD TV is rated at 200 watts. Therefore, a user of a 5 Gbps scheme will use 0.6 kilowatt hours per day, while a more professional ASIC will use 3 kWh.
The BTC mining profitability calculator estimates that you will earn $ 17 a day with ASIC 5Gh / s and $ 170 with ASIC 50Gh / s after factoring for energy use. Thus, this is a very real income on bitcoins. User reviews suggest that powerful schemes allow you to achieve quite a large profit.
How to buy such a scheme?
This equipment is not cheap, a 50 GH / s circuit costs $ 2,500. However, according to the calculator, it will pay for itself in 15 days. And then you can "print" money. However, everything is not so simple.
As follows from the reviews of real users, the 5Gh / s scheme will help to earn a little more than a dollar a day (if the price of BTC does not increase). That is, the benefit of such work is very doubtful. Probably, mining looks more attractive when working with the 50Gh / s scheme - the profit will be about $ 15 per day.
Other ASIC manufacturers
By the way, Butterfly Labs are not the only ASIC manufacturers. In fact, another company (Avalon) managed to create and sell its mining scheme earlier this year.
However, they only sell lots and only to customers on the waiting list, so if you want to buy a scheme from them, you will not get it right away.
There is also the opportunity to get a small ASR ASB, whose capacity is 336 Mh / s. According to reviews about making bitcoins, if you install and use 6 of these developments at the same time, they consume little electricity and do not slow down the computer, but at the same time they surpass the graphics card.
Problems with ASIC
If we consider all of the above, the purchase of equipment and mining seem to be a good idea. However, there are some nuances that experienced miners talk about.
At the moment, there are excellent developments that you can’t just buy online. When Butterfly Labs first introduced them into production, they collected money from pre-orders. Consumers paid to be the first to get the schemes, and the money received was used by the developer to invent and create new machines. But, of course, numerous difficulties arose on the way.
The bottom line is that the smallest ASICs started shipping to customers who placed orders a few months ago. Apparently, the shipment took place very slowly, and only last year's orders were provided during the year.
As soon as the technical shipment of large schemes began, the company sent the first copies (50 GH / s) by appointment from the first day of pre-order, June 23, 2012. As a result, buyers have been waiting their turn for about two years.
ASICs will become less profitable over time
This is not just a problem of delaying fantastic earnings. Remember that the difficulty of mining bitcoins increases with time. Thus, a supercar that can help you get 1.6 BTC per day will produce significantly less in a year.
This may seem like an acceptable risk if you can get them right now, as they have to pay for themselves in a couple of weeks, making bitcoin earnings on the machine. But if you have to part with a large amount of money now, and start earning in the long months, the risk is obviously much more significant.
Also, bitcoin mining cannot go on forever. A certain limit is set in the system, and the block size is halved every 4 years, which is why the increase in the total currency is limited. In a few years, much fewer new coins will be created than now.
In 2010, bitcoins were used by a small number of people, and their value was often discussed between the buyer and seller individually. One well-known case concerns the sale of pizza for 10,000 BTC. At today's exchange rates, this is equivalent to more than $ 1,000,000.
Can bitcoins become the main currency or will they disappear?
It is quite risky to deal with bitcoins, the price of which is very variable. Since their offer is strictly limited by the algorithm, it is hoped that if they are used by a large number of people, their price will increase. Reviews about making money on the Bitcoin exchange rate are also contradictory, since it is very difficult to make a forecast.
But it is equally possible that the value will fall, or they will become completely useless in a few months. If bitcoins crash, nothing will follow. There will be no operations from the IMF and no meetings of G8 leaders trying to keep the currency.
At the same time, there are still many investors who accumulate BTC, counting on rising prices in the future. These people, as a rule, are at much greater risk than spending considerable amounts on trading options or currencies. On the other hand, if you want to invest some money in the hope that BTC will cost more in the future, you can just buy coins on the exchange, and not get them. Regardless of how you purchased cryptocurrency, you will be able to use the services of a bitcoin broker in the future. Reviews of earnings on the resale of BTC are very volatile, and at the same time, such speculation is always associated with great risk.
Should I buy ASIC from resellers?
Today there is a way to get a medium, and sometimes powerful ASIC faster. Some people who have already waited their turn, sell them on eBay and other similar online stores.
Or, more often than not, they sell their place in line. You pay money now (and, obviously, a larger amount than if you bought it directly from Butterfly Labs), but the seller actually does not yet have a scheme. They will send you the goods as soon as they are provided by the manufacturer.
This means, however, that you will receive your (virtual) equipment for "printing" money faster than if you place an order with the manufacturer. At least with the delivery of low-power circuits, you do not have to wait too long.
There are certain risks of buying on hand. Some suggestions appear to be fraudulent. For example, one eBay auction was that someone bought an ASIC Avalon for $ 1,500 for more than $ 20,000!
What is the prospect of mining?
What are the reviews about making money on bitcoins in 2017? At the moment, mining using high-power technology allows you to make tangible profits. However, no one can guarantee its long term.
One of the problems of people receiving very effective miner schemes is that the level of complexity of work will increase rapidly as soon as they join the network. This is explained by the fact that the protocol is configured to create a new block of 25 coins approximately every 10 minutes. This will make BTC mining much less efficient.
On the other hand, there is a possibility that since production using simpler devices becomes much less profitable, people without ASICs will stop doing it. Presumably most people who do this do not use such expensive and inaccessible devices.
Is it possible to earn bitcoins without investments?
Mining reviews suggest that this process is too time-consuming and does not have certain forecasts. In addition, to start this procedure, you need to invest quite a lot of money. But is there a bitcoin earnings without investments?
Sometimes BTC pays for simple tasks that any user can complete. This is probably the easiest niche to work on the Internet in which you can get, but at the same time it involves a very time-consuming task. Such tasks usually take a lot of time, and are paid for by a very small (almost irrelevant) amount of bitcoins. Even if you have a lot of free time, it still will not bring you tangible income.
These are primarily PTC or Paid-to-Click websites. As the name implies, these are resources that will provide you with a small amount of cryptocurrency for viewing ads and visiting different pages via links. Reviews about making bitcoins on these resources suggest that you are unlikely to get any tangible income, even if you spend many hours on it.
In addition, there are cranes or “collectors” of BTC. These are sites that will give you a small amount of bitcoins every few minutes. Some of them give out up to 1000 satoshi (0.00001BTC) every five minutes. But even if you manage to get 1000 wins, each time within 24 hours, you will still earn only 0.00288BTC. Thus, you will receive about 1.31 dollars in 24 hours of work. Thus, feedback on earnings on bitcoin faucets is also not very positive.