Anyone Mining here??

Discussion in 'Digital Currencies' started by Markco2, Jul 6, 2020.

  1. Markco2

    Markco2 Active Member Silver Stacker

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    Just wondering if anyone is mining the cryptos.

    I am thinking of buying an FPGA Miner.

    As they are reprogrammable, it could be worth investing in.

    Any thoughts?

    Cheers Markco2
     
  2. dozerz

    dozerz Well-Known Member Silver Stacker

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    hosted or you hosting? electricity cost? what coin will you mine?

    crypto mining follows the law of diminishing returns, its almost alyways more profitable to just buy the coins you plan to mine.
     
  3. Markco2

    Markco2 Active Member Silver Stacker

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    Thanks for your reply.

    I recently joined Nuggetsnews and from there discovered Miningstore.
    They would be hosting.
    The electricity works out at around 12 cents an hour, much less than what I would be paying.
    Must admit, in the past I have always thought that mining would be out of my reach given
    the electricity costs and the initial capital outlay.

    However, this could be a solution.
    Still looking into it.

    Miningstore claims you would be making approximately $10-13 per day on average, depending on
    which coins you were mining. They set the parameters as to which are the most cost effective coins to mine and you
    can then trade the ones you don't want to keep from your wallet.

    It's just another passive way of investing and a bit of a hobby for me.

    If I was serious about it, I would treat it much more as a business and invest a lot more into it.
    At the moment, I am just testing the water.

    Cheers Markco2
     
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  4. inmizu

    inmizu Active Member

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    I'm not. But I'm trying to figure out staking.

    And I'd like to see this thread become a vibrant and continuing one.
     
  5. Markco2

    Markco2 Active Member Silver Stacker

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    Copied this from a blog which gives an insight into the difference between staking and mining Proof of Work.
    Also Will and Kal from mining store did a Podcast on the difference.





    What exactly is Staking and Mining?

    Staking : requires the use of an algorithm called Proof of Stake (PoS) staking involves the purchase of crypto coins and holding them in a wallet for a particular period of time. You are rewarded for supporting the network. Therefore, your coins will increase in number depending on how long you hold them in the wallet.

    Mining : Mining requires technical know-how as well as computational power and uses an algorithm called Proof of Work (PoW) mining is performed by high-powered computers that solve complex computational math problems - when computers solve these complex math problems on the network, they produce new coins

    Staking Vs Mining

    Mining requires high computational power which is very energy-intensive and leads to high electricity costs. Not to say the initial investment in the mining equipment is also relatively expensive. On the other hand, staking does not require those costs. Instead, an individual needs to stake some amount of coins as collateral for a determined time.

    Preference: I am currently staking several coins and receiving rewards for doing so, I’m finding this to be a very cost-effective way to generate a form of passive income from some of my favorite projects. One of my top staking projects - Divi also created the tiered masternode feature which incentivizes people to accumulate and work up to the next level which improves their chances of earning block rewards.

    Tiered Masternodes Breakdown :

    100 000 coins — Bronze

    300,000 Coins — Silver

    1,000,000 Coins — Gold

    3,000,000 Coins — Platinum

    10,000,000 Coins — Diamond

    Conclusion : I have found staking to be a very interesting low cost and a fun way to earn and add to some of my favorite crypto projects - at the same time staking also helps support and provides a crucial role in the validation process and provides a critical role in the security of the network.

    Cheers Markco2
     
  6. Soprano16

    Soprano16 Well-Known Member Silver Stacker

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    Mining isn't something that really interests me, as I know the costs involved and time required don't really line up with my objectives

    I've been staking 1 particular coin for close to 12 months now. Couldn't be easier. It's pretty much just a matter of holding a coin/s and staking them to the network, which is often done through the coins wallet in many cases, and in turn just earning coins for essentially doing nothing. If you hold a coin that has staking, I'd suggest looking into what's involved and how to go about it, because it's basically free coins with next to no effort on our end. You don't need to keep your PC on, wallet open etc - just set up the stake, and collect the rewards
     
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  7. dozerz

    dozerz Well-Known Member Silver Stacker

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    you arent going to make anything until you pay back the cost of the miner, minus your fees. when is your break even point?
     
  8. Markco2

    Markco2 Active Member Silver Stacker

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    If i sell the coins straight away rather than trade them when i think is the right time, the breakeven point is about 16 months to pay of the miner, including electricity. The FPGA Miner lifespan is about 5 years.
    As I said, I will treat this as a hobby, and to test the water to see if it would be worthwhile taking it to a whole new level.

    At the end of the day, the $4,000 initial capital cost plus running costs are pretty good in my books.
    Plus I get to trade them and gain some knowledge along the way, hopefully not to get scammed.

    Alternatively, I could build up my stack as it gains dust, speculate on a couple of shares (Been there, done that.)
    Buy a nice set of Golf Clubs.

    No! I like the Crypto world and the amazing technology behind the Blockchain.
    IMO, the future is very bright along a turbulent path.

    Cheers Markco2
     
  9. dozerz

    dozerz Well-Known Member Silver Stacker

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    alternatively you could take the $4k and invest it in the coins you think youll mine, 16 months is a long time in crypto minutes :)

    looks like you have done your homework anyway, enjoy the ride and welcome.
     
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  10. inmizu

    inmizu Active Member

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    'There are major advantages and disadvantages to both of them.' -- the Mining Store podcast above.

    There's a thing here that blasts shards of awareness and discourse in every direction across the crypto galaxy, and my explanation here is idiotically simplistic:

    A crypto's algorithm tells it how many units it will have. Okay. but the emission -- the 'birthing' -- of those units happens in one of two ways. Either the crypto is POW, which means that the units get 'trickled into existence' as the mining proceeds. Or the crypto is POS, in which case the whole lot gets birthed at Moment One, in which case you are unavoidably in territory that Bitcoin set out very specifically to avoid: centralisation.

    Have a look here: http://www.marketoracle.co.uk/Article45939.html 'Insta-mines' and 'Foundations' and 'IPOs' and 'hidden launches.'

    So there are related realities: how the units get 'emitted,' and how (very) large chunks of the currency do or do not wind up in too few hands, and how the network is secured, and how secure that securing is, and how much 'leccy it all takes.

    Now, just for fun: remember I provided a sort of 'Glossary' of crypto types? Well, 'POW/POS' wasn't on it. Let's invent Stacker Coin:

    STC launches as POW. So its birthing is the trickle trickle model. And this goes on for maybe two or three years. Then the devs flick a switch, a new wallet is released, and voila, Stacker Coin is permanently POS, with all the benefits that that includes, but without the centralisation problems that come with a 'pure POS' coin.

    I gotta admit, the POS-POW thang has been a weird journey for me. The division between the two camps is almost bitter. And my crowd and I got sorta stuck in the middle for a good while.

    One final thing: y'all startin' to get a sense of how each coin is a 'suite' of stuff. I know a crypto that is POW-POS and merge-mined against Bitcoin. A crypto can run both POW and POS -- a tiny trickle of mining. Okay. But the bulk of the securing achieved by POS. So if you got a tiny increment of POW happening, you got low low 'leccy consumption and the merge-mining. Merge-mining is sweeeeet!!! And ya got ya staking to boot.
     
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