My Crypto Journey Started!
Mining and getting into the Blockchains
4 min read
I'm very excited to be writing my First Post on this personal Blog. For a long time I've been thinking what should I write first? Finally I decided that what I should be writing is my everyday learning!
For a week I've booted a recently setup Mining machine 🤑. If you don't know what that is I suggest you click here. But a quick explanation would be that I'm basically using computer graphics cards to make calculations until we discover a new Block on a blockchain ( In this case is the ethereum network ) , for that miners receive a reward in form of the network coin ($ETH).
Doesn't that sounds AMAZING! That a machine can do Work for you at home? Well I think so, here's my thought process :
BUT FIRST, Disclaimer : THIS IS NOT FINANCIAL ADVICE , This involves risk so do your research too!
Me and my wife worked a lot to have some extra money for bad days. But this money is losing it's buying power because inflation 😭 . So What to do? Invest. Okay , okay everybody knows that , but the where to invest and how much to invest is the hardest part. I would consider myself very conservative , risk is something that I try to minimize as much as I can. This is where mining came along.
-But Lucas, Crypto is so volatile , how are you minimizing your risk?!
Well you are right. BUT , read this and tell me how risky it sounds. Bitcoin today is ~U$44.000 in a 12 year period, bitcoin is the biggest crypto asset , followed by ethereum at ~U$3.000 in 4 years. these 2 coins alone make up to 60% of the crypto market ( more than a trillion dollars ) , NFT's which everybody now heard of, are processed on the etherium network. With just this little information, I'd say that this market is no joke, and does not seem to be vanishing any time soon.
With that in Mind , let's talk mining. Everything is about how many calculations you can do per second using the algorithm provided by the network. In ethereum we have MegaHashes/second. If you can calculate the performance of your GPU you can predict how much money you'll make.
I've decided to start with $3000 worth of equipment.
- Motherboard, cpu, power supply, ram and sdd.
- 2x Nvidia RTX 3070 and 3x 1660 Super , as graphics cards.
( I know I really got a good deal on these 😁 )
A total of : ~220mh/s , using 460 Watts at a cost of 0.12/kwh.
If you simulate my numbers in this site we would get roughly U$10/day ~ U$300/Month. Which means that in 10 months I should be able to return all of my investment. It seems a lot of time, but I don't know if you noticed , that's not the only asset we got. PC parts and specially Graphics cards are suffering from a chip shortage, making the demand too high as a result prices go up! My 5 year old PC sells better today than when I built it. So we are not taking huge losses on the hardware!
So if we are talking risk, if we are not losing more than 10% in depreciation and Electricity in a month, we are making profit EVERYDAY! with almost no risk. - Almost you say?
Well yeah almost. That's because etherium price is volatile so we could be making U$10/day or 20 or 5. it all depends on the market. Since crypto's have been performing so well in the long run ( C'mon we are talking 65221.24% returns on BTC and 750342.60% on ETH ), I will hold my earnings and I'll keep looking for more opportunities in this amazing technology.
this is how it's looking :
That's it for today, I hope you learned something 🤗 and if you want to chat follow me on twitter , I'm not the most active on the platform but I'll respond.
Have a Great Day!