- Ethereum is considered the most popular currency for mining as $ 150 has been added to its price
- Abkhazians had spent more than $ 500,000 on mining equipment alone in the past six months.
As mining rigs are back, there are a few things that need to be known by those interested in owning a rig at home.
According to a recent report, in the midst of this global pandemic and a generally unstable political and social environment, cryptocurrencies have shown remarkable stability. This pandemic-induced economic recession has played into the hands of the industry by attracting professional cryptocurrency traders, and mining has also been revived as a way to generate passive income.
Although it is not surprising that countries that are currently experiencing difficult political and economic situations have suddenly witnessed a boom in the purchase of GPU cards. Illegal crypto activities since 2018 in the Abkhazia region have shown citizens had spent more than $ 500,000 on mining equipment alone in the past six months.
One of the main reasons for the popularity of mining is the rise in the price level in major cryptocurrencies, Bitcoin’s price value has risen by almost a third, and Ethereum is considered the most popular currency for mining since $ 150 was added at its price and the decentralized frenzy has caused gas taxes to reach unexpected levels.
The components of the mining plant
A computer that has many graphics cards but no monitor creates a cryptocurrency mining rig. Computer cases are filled with different things like GPU cards, a power generation unit, motherboard and cooling system. When the monitor is connected, it becomes a normal computer, where the user can open the browser or play video games.
Because the plant is connected to the internet, the blockchain network, the network is said to operate on its own to conduct monetary transactions with the power of graphics cards.
Further details regarding the mining facility
As a rule, a rig must include four to seven video cards. Although miners can connect 10 to 15 GPU cards to one motherboard. After the purchase of mining equipment, the cost of electricity used during its operation becomes the main expense, which affects profitability.
Cryptocurrencies are mined via a remote connection to the rented equipment. Philip Salter, the head of operations at Genesis Mining, told Cointelegraph that mining has become more competitive, as a result of which margins are shrinking and it has become more difficult for domestic miners to compete. Miners need to get every drop of efficiency possible, and this refers to growing economies of scale, but doing so at extremely low electricity costs has left cloud mining the only option for many.