Cryptocurrencies have become more and more popular, their use has become greatly democratized in recent years. However, it remains complicated to explain in detail what they are, how to generate them or what they are really used for.
That is why the comparison is often made with mining that everyone visualizes and assimilates. In gasoline, exploiting an oil field or a vein of gold is like making a profit. The question is, then, what is the gain in relation to the activity and especially to the investment? In the case of crypto-currencies, it is more or less the same problem. Expenses, expenses and more expenses
Roughly speaking, we can determine the initial investment by adding the cost of the machines, the energy consumed and the maintenance of the extraction system. But time (which is money remember) should also be counted. However, its priceless and objective nature does not allow to know a precise and accounting value. In any case, with or without the time parameter, the equation is applicable when it comes to extracting oil or generating cryptocurrencies.
The difference lies in the modus operandi, in fact, to extract oil in large volumes, it will be necessary to dig in the sea or the land and build important structures requiring a large amount of energy to operate. Clearly, to mine crypto-currencies, the investment is much less important. However, it should be borne in mind that to get a good hash rate, you will need to have a computer with a good number of graphics cards and running 24/7.
The investment is not trivial, it is still necessary to have at least 8 graphics cards, and to count on a crazy energy consumption that will impact your electricity bill for sure. The advantage of renting a dedicated server
The necessary basic investment is often the cause of failure for artisanal mining platforms. When you realize that you need to increase the subscribed power or that you need to invest in GPUs, the accounts can start to get out of balance. Again, the comparison with the extractive sector may apply: Renting equipment and outsourcing tasks to reduce investments, optimize expenses and increase their profit.
If you make the decision to rent GPU servers, you will significantly reduce the expenses associated with hardware, in terms of purchase but especially maintenance (hardware and software). This option will especially avoid any loss of control over resources or decrease in performance.
Renting dedicated GPU servers greatly facilitates the work of “miners” starting out in mining. But the biggest advantage remains the control of the budget, especially in terms of electricity consumption. All costs being fixed, it becomes much easier to plan a budget and avoid unpleasant surprises at the end of the month. The Xeon GPU Dedicated Server
At IKOULA, we know how difficult it is to optimize investments to increase profits in the cryptocurrency sector, which is why we offer a dedicated server equipped with a GeForce GTX 1070 that displays an interesting performance / price ratio.
More concretely, we are talking about a power of 6.5 TFLOP, 8GB of DDR5 RAM and a speed of 1506 MHz. Features that, combined with the Pascal GPU architecture and its small size, make it possible to achieve good results. Add to that an Intel Xeon E3 1230v5 processor with 16GB of RAM and 1TB of hard drive.
These performances are more than enough. However, if the extraction begins to bear fruit and you want to add capabilities, you can still double the graphics card, without worrying about the installation that will be done by our experts. A few words about Bitcoin
We talked about the expenses, it’s time to talk about the benefits. First, which cryptocurrency should be mined? In principle, we advise you to focus on the cryptocurrencies that best respond to GPU mining and offer the best profitability. Due to its popularity, BitCoin is often the number 1 option for new miners, sometimes without consideration of its disadvantages.
The first disadvantage is its volatility in the markets. There are countless peaks and sharp declines in its value that have caused some mistrust among investors.
Fortunately, BitCoin is not the only option, many other currencies have entered the market. This is for example the case of Monero, which exploded thanks to Microsoft and its inclusion in a BlockChain As A Service project.
The best way to mine cryptocurrency is to join a pool, it is nothing more than a network of miners who cooperate with each other, sharing the benefits of the blocks. The advantage of contributing to a pool is to increase profits, which are calculated according to the contribution of each miner.
A pool is a form of association comparable to cooperatives. Freelancers, entrepreneurs or liberal workers have been using it for a long time to minimize the risks of going it alone. For beginners in cryptocurrency mining, it is more than recommended to join a pool. Indeed, it is very complicated for a single miner to make his installation profitable in the first year.
Unlike a miner pool that has a sufficient hash rate to solve a minimum of blocks and therefore make a profit from them. Even if they are shared, they have the merit of being predictable and therefore of projecting you over the long term. There are a large number of pools, if the one you are just starting out on does not suit you, you are perfectly free to change to try to increase your profits.