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The world of crypto mining has exploded in recent years with the rise of cryptocurrencies like Bitcoin and Ethereum. Miners are individuals or companies that use computer hardware to solve complex mathematical problems, in exchange for a mining reward, usually in the form of cryptocurrency. In this article, we’ll delve into the exciting world of crypto mining through the lens of a hobbyist miner who is renovating his entire basement into a crypto mining farm.
The Mining Farm Construction
The miner starts by renovating his entire basement by himself – an endeavour he finds enjoyable despite the formidable amount of work and the responsibilities of being a father to three kids. There are still a lot of things that need to be done, but he is keen to take us through his current set-up and break down the profitability of his mining venture.
The GPUs and Their Number
The miner has a total of 44 Graphics Processing Units (GPUs), which are crucial for mining. He has set up an improvised studio, with a number of six-inch exhaust fans spread throughout to cool down the hardware.
Depending on the outdoor temperature he pulls in 50-degree air in the evenings and 70-degree air during the day using four intakes. Subsequently, more fans installed in the ceiling suck out the internal air, thus maintaining a balanced temperature vital for the machinery.
Mining Rig Set-Up
Situated in plain sight in the room is a 12 GPU rig containing a mix of 1080s, 1660 Ti’s, and 1060 6 gig cards. The rig generates roughly 320 Mega Hash (MH/s) – a measure of how many hash functions a GPU can perform per second.
Next to the rig 1, there is an HP motherboard pulled out of a tower currently running a Sapphire RX 574 gig card.
Rig 2 contains seven total 580s – a Sapphire Pulse and several XFX 580s, plus a 590, all running on a RebTech board. This hodgepodge of GPUs runs efficiently thanks to the all-inclusive nature of RebTech boards.
Upcoming Mining Set-Ups
The basement also houses parts for future builds. Several boxes of GPU risers are ready to be utilized, and 240-volt, 30-amp sockets line all three walls of the room, ensuring accurate power measurements.
The Grow Tent
The miner uses a grow tent to manage the heat output of his GPUs more effectively. It’s fitted with an 8-inch exhaust and an additional 6-inch exhaust. The tent houses two rigs, the ‘Dryad’ rig is mining Raven Coin with its 11 RX 470s, while the ‘Phoenix’ rig uses its seven R9 380s for mining Ethereum Classic and several other speculative coins. The grow tent does a phenomenal job of containing the heat produced by the GPUs, adding to the efficiency of the overall operation.
Breakdown of Mining Costs and Profitability
After showcasing the mining set-up, the miner shares insights into his mining operation’s profitability, running through the day-to-day revenues, electricity costs, and profit margins of each rig.
He runs his operation at an electricity cost of 0.057 per kWh thanks to solar power and a renewable electricity plan. These enhancements have allowed him to considerably reduce electricity costs, with an average monthly bill of $244.20 or $2,971 annually.
If the market conditions remain the same over the year, he could expect around $26,000 in revenue from his 44 GPU home mining farm.
Crypto mining is a mix of hobby, investment, and business. It requires knowledge, patience, and the willingness to take risks. Yet, as our miner example showcases, it can be incredibly rewarding – both in the sense of accomplishment derived from setting up and running a complex system of machines and in terms of financial returns. It’s an enthralling world that continues to evolve and captivate many across the globe. But as always, proper research and understanding are crucial before diving into this venture.