Bitcoin mining is a process whereby different and numerous transactions that involve exchange and settlements globally are verified and included onto the open source ledger of the blockchain.
The mining process also serves as a way through which new bitcoins will be released. Bitcoin mining is open to anyone who has a computer and can access the Internet.
Bitcoin mining is a practice which began in 2009 with only 50 bitcoins pre-mined and has been evolving throughout the years in the mining process which has seen the value of the bitcoin go up unprecedentedly. The aim is to close bitcoin mining at the hard cap level of 21,000,000.
Bitcoin mining is a process that has been going on and will do so until the point where maximum mining has been attained. The real issue here thus will be the profitability of the investment.
What is Bitcoin USB miner?
Bitcoin USB miner is a mining device which is plugged into the USB port of a computer. Bitcoin USB miners are rigs like Full Programmable Gate Array (FPGA) or Application Specific Integrated Circuits miners (ASIC).
History of the devices
There is a foreseen need for improved technology both in the hardware and software mechanisms in the bitcoin mining come the year 2018. In light of this fact, there will be a need to devise specific tools which will enable bitcoin mining to be a profitable venture soon enough.
The first Bitcoin USB miner was ASICMiner Block Erupture USB that had a hash power 330 MH/s. However, nowadays due to the increase of mining difficulty this device is not profitable for Bitcoin mining anymore. However, this is a handy device for starters as it will be helpful in the process of learning about bitcoin mining.
ASICs became the latest innovation of the bitcoin USB mining devices after the FPGA. Its overall characteristic is super-output, incredible energy efficiency and high rate performance.
Crowd mining versus commercial mining
Individual miners who do not have an access to command heavy bitcoin USB mining activities should consider shunning crowd-mining and embracing commodity hardware that would yield at least the same or better results in comparison.
Team up! Enjoy the economies of scale. Bitcoins are mined in a pool in commercial mining. These are the benefits; bitcoins stream in on your balance at a much faster rate.
How does Bitcoin USB miner work?
The USB compatible chips are generated and plugged into the USB ports of a computer. Since the devices are meant to do nothing else but mine Bitcoin, you will expect the mining to flourish.
Bitcoin USB miner devices are largely and widely accessible, but there will be a need to choose the right device considering that not much fortune can be synthesized from these devices.
You need to ensure that you have a good quality USB hub that is well powered so that you may run some USB devices concurrently on the USB ports for this is another way to leverage on the Bitcoin mining.
However, there will arise a great deal of heat up of the USB devices because they run non-stop. You will then need to install USB fans which will cool them down.
Is there an alternative to USB miner?
Some people consider cloud mining as an alternative to USB Miner for the following reasons:
- There is no added electricity cost
- In event Bitcoin mining closes, I won’t be stuck with any mining equipment
- The heating up characteristics with USB mining devices is absent
However, in some cases due to contend with the fraudulent nature of the cloud, lower profits and of course and lack of flexibility control.
Can Bitcoin USB mining be profitable in 2018?
A lot of research, history, and testimonials point out to slim chances of making profits when mining with USB. However, the outcomes of any investment rely mainly on the inputs, and the accorded administration. That means, if bitcoin USB mining is going to be well resourced, the sky can only be the limit.
Primarily, for Bitcoin mining whether by USB devices or by prior methods, its profitability will so much rely on:
- The amount used in initial investment
- The level of technology and ongoing innovations to be acquired during the mining process
- The volatility and predictions of future prices and value of the bitcoin
In the world of business and investments, benefits are usually attached to challenges and risk factors associated with the project in question. These do not set apart bitcoin mining which may, if anything, be the riskiest of ventures.
Even in adopting the latest technology of ASICs USB mining of bitcoin, some of the following challenges will be awaiting the bitcoin miners in the year 2018:
- Expensive hardware
All types of ASIC devices will definitely be expected to hold high. In fact, the most commonly known and preferred type is going for nothing less of $3,000 poised to scale the price meter. The main reason is that they will keep improving and will be continually updated thus attracting an increasing cost.
- Increasing traffic
The history of bitcoin mining in the run-up to the year 2018 was a luring boom. The benefits and hefty profits enjoyed by the early investors in the crypto-market became a source of envy to the latest and aspiring entrants into the market. As the law of supply and demand has it, the prices of bitcoin will definitely go up, likewise, the cost of mining and retrospect a decline in profit margin.
- Cost of power
Computing hashes require a lot of power which cannot be sustained by the small bitcoin mining that is being experienced. In effect, the cost of power is overtaking the benefits of bitcoin mining.
Some ASIC bitcoin USB mining devices will require the operators to know how to operate the device. Acquiring this knowledge will be yet another cost.
To Sum Up…
It is worth noting that bitcoin mining is an investment and an essential one for that matter, it therefore, incumbent on the miners to employ both resources and technology to stay afloat. Yes, mining with USB devices will have replaced the traditional less efficient ways of mining bitcoin but there is need to be watchful on the gadgets to adapt so that should bitcoin mining come to a halt, the devices can be sold.