Is it worth buying a mining farm now

Asics

ASICs are integrated circuits designed for mining Bitcoin, Litecoin, Dash, Dogecoin and other popular coins. Mining on asics is most profitable in 2023 due to the high performance and quick payback of the equipment.

The disadvantages include high prices for equipment, noise and high power consumption. To mine cryptocurrency on ASICs, you need startup capital from $10 thousand. This amount includes the price of the device, components and equipping the room. It is better to organize a full-fledged data center. If the equipment will work in an apartment, you need to think about good noise isolation.

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Video cards

The use of ASICs hurts the decentralization of digital networks. Private miners cannot withstand the competition of large companies.

Users connect their equipment to pools to maximize potential profits. Thus, computing power is concentrated in the hands of small groups of individuals. The risk of a “51% attack” is growing.

To avoid this, cryptocurrency developers create protocols to combat asic devices. Therefore, mining coins on video cards remains relevant. You can start working on a stationary computer with one GPU and gradually add components to create a farm.

Minimum investments in the mining business

At the end of 2021, the prices of components for setting up farms have increased significantly. Due to the difficult economic situation in the world, the supply of GPU chips decreased. Buyers were forced to wait for orders for months.

At the beginning of 2023, GPU prices decreased amid the bitcoin correction. But compared to 2022, it now costs 3-6 times more to build a farm.

To decide whether it is worth starting a mining farm in 2024, you need to calculate the investment in the business. Usually a rig of several video cards is installed by beginners with a budget of $5-7 thousand (400-550 thousand RUB). Such a farm consists of compactly assembled components. They are as follows:

• Power supply. This is the central element, on which the performance of the entire assembly depends. Therefore, you need to buy a reliable server model for 6-10 thousand rubles. For 6 video cards will require 2 power supplies.
• Video cards. The price range for new models is large – 25-300 thousand rubles. It is worth choosing a GPU with good cooling. For example, Nvidia 3060 will cost 65-75 thousand rubles.
• Processor. Since the mining of cryptocurrencies on the CPU is unprofitable, you can buy the most budget model for 15-18 thousand rubles.
• Motherboard. It is worth choosing from reliable models of the middle price segment – for 15-20 thousand rubles.
• RAM. For active work requires a minimum of 8 GB. The average check will be 3-4 thousand rubles.
• Hard disk. It is better to buy an SSD with high speed. A disk with a storage capacity of 128 GB will cost 1.5-2.5 thousand rubles.
• Riser (connector for connecting video cards to the motherboard). For a farm you need 6-8 pieces. Each costs 300-400 rubles.
• Case. It can be assembled independently. The costs will be 500-1,5 thousand rubles.

On average, a PC with one video card can be bought for 128 thousand rubles, and a small assembly of 6 video cards will cost 483 thousand rubles. It is worth considering that the farm consumes a lot of electricity – up to 2 kWh.

How much you can earn from mining today

Mining digital currencies in 2023 is profitable, if you correctly calculate the costs and payback. The potential profit depends on the performance of the system and the coin rate.

For example, on a PC with one video card, you can mine Ethereum with an income of $1.5-5 per day. From this amount, you need to subtract the price of components and the electricity bill.

Payback on Nvidia graphics cards

In the mining ring, the most expensive component is the GPU. Components can be bought for 45-55 thousand rubles, and the graphics card will cost 25-300 thousand rubles. In 2023, ETH mining is relevant. The table shows the calculation of the payback of mining the main altcoin for a farm of 6 Nvidia graphics cards.

Payback on AMD video cards

The minimum cost of Rig components is 127 thousand rubles. A video card can be bought for 10-185 thousand RUB. The table shows the payback on 6 new AMD Rig for Ethereum mining.

Payback on old cards

In 2023, buying top-end Nvidia and AMD GPUs for crypto mining is unprofitable. Due to the increase in chip prices, the payback period has already exceeded 2 years. There is a high risk that by this time GPUs will exhaust resources and fail. In addition, developers release models that have restrictions against mining (a series of LHR cards from Nvidia and Intel).

Older video adapters are less productive, but they cost less. Therefore, they have a lower payback period. You can buy a card in good condition on the secondary market. Taking into account energy costs, such GPUs will start bringing income in 8-15 months.

Mainers with experience among outdated models choose more reliable AMD cards. Before work, you need to pump the cooling system of the farm. Older models are more heated.

ASIC payback

Asic miners surpass video cards in energy efficiency and performance. The table contains data on the payback of the most popular models in 2023.

Difficulties in creating a farm

Beginning miners often placerigs in apartments. In such cases, users face two problems – overheating and high noise levels. To avoid them, the farm should be installed in a separate room.

Another problem that beginners will have to face is that the electrical wiring in old houses is not designed for large electricity consumption. This can be the cause of a fire. Therefore, old wires will have to be replaced.

Beginning miners are also waiting for such difficulties:

• High prices for components.
• Built-in performance limitations of video cards (Nvidia).
• Long payback period of GPU.
• Decreasing coin prices and growing complexity of networks.

Experts recommend finding the right moment to enter the business. It’s better to wait for the prices of ASICs and graphics cards to drop, the complexity of networks to decrease, and the payback period of the farm. The market is cyclical – a period of decline will be followed by new growth.

Main risks

Buying a mining farm is a business that requires a lot of money and patience. The cryptocurrency market is unstable. It may take a long time to recoup your investment. So is it worth buying a mining farm?

As the popularity of the coin grows, the complexity of the network increases. If the price of the asset decreases, the profitability of mining will drop. In 2021, the complexity of Ethereum mining increased 3.2 times. During this time, the coin rose in price 4 times. The payback of cards and components increased from 5 months to 2 or more years. In order for it to return to the previous level, the following conditions are needed:

• The exit of a part of video cards from mining.
• The growth of asset quotations by 5 or more times.

The profitability of this business depends on many factors. Therefore, it is impossible to accurately calculate the potential profit. It is difficult to predict changes in graphs over long periods of time.

Risk factors also include new technologies in creating cryptocurrency protocols with built-in protection against ASIC devices. In 2023, Ethereum is scheduled to switch to the PoS algorithm. After that, the coin cannot be mined.

Users may also face other problems:

• Breakdown of the build elements. The miner must periodically stop the process to perform maintenance. But even in this case, parts may need to be repaired or replaced. This will incur additional costs.
• Legal risks. In 2023, the status of cryptocurrencies in the Russian Federation remains uncertain. There are many gaps left in the current law “On Digital Assets”. Officials are still arguing about the ways in which coins can be used. There is a possibility of a ban on crypto mining.

Prospects for mining

The market of digital currencies over the past 10 years has experienced several major ups and corrections. Investment trends are changing. Many users are making long-term investments. Over the past 3-4 years, the threshold of entry into the cryptocurrency mining business has increased significantly. More large miners are entering the market, able to finance the launch of industrial farms worth millions of dollars.

Many miners see ASICs as a threat to decentralized networks. New protocols are being introduced to counter ASICs. Therefore, mining on video cards will remain relevant for a long time. There are no prerequisites for the disappearance of solo mining of digital currencies, despite the growing popularity of PoS algorithm steaking.

Whether it’s worth buying a mining farm in 2023

The best time to enter mining is after a major correction. At such times, the market often consolidates. Many miners get tired of waiting for growth and stop working, the complexity of networks falls.

If you enter the business at this time and wait for a new cycle of growth, you can earn good money. It is worth to be patient and not to spend the mined coins on current expenses. It is better to sell cryptocurrency after a significant growth of rates – at least 5-15 times. Sometimes it takes 3-4 years or more.

It is impossible to make money from mining in a short period of time. Mining cryptocurrencies is a complicated and costly business. It can be done only with free money, the loss of which will not change the standard of living.

Frequently Asked Questions