Undoubtedly, as digital currencies are becoming more popular, we encounter new currencies every passing day, even every hour I pass. One of them is Ethereum!
In this article, I wanted to answer the questions of what is Ethereum mining and how it is done.
In crypto money mining, which we know as mining, Ether, which is obtained by Ethereum mining, is processed on a different block chain than Bitcoin. This blockchain has a different algorithm, just like other cryptocurrencies, and Ethereum also has a different algorithm called Ethash. There are some important points and different hardware that those who want to do Ethereum mining should know. I will try to explain in a very simple way what you need to know about Ethereum mining for you.
What is this Ethereum mining?
Ether, the method used to obtain ETH digital currency in crypto money, is called Ethereum mining.You do not have to use the ASIC (ie special circuits) that Bitcoin has to mine Ethereum. Even a standard Windows user can easily mine Ethereum. However, the point you need to pay attention to; This is because you need very high GPU power when mining Ethereum.
How should the hardware required for Ethereum mining be?
Since Ethereum mining is a process with extremely high dynamics, you will need very high GPU power. 64 Bit Windows10 users are recommended to use a graphics card with at least 8GB of memory. However, even that may not be enough.
I can say that AMD graphics cards are one of the most preferred brands in Ethereum mining. Alternatively, the high priced but powerful models AMD Radeon VII and AMD Radeon RX 580 are some of the models that cope best with the Ethash algorithm.
At least Intel i3 CPU, at least 8GB of ram and a powerful SSD are absolutely necessary for Ethereum mining. Since you may need more than one GPU power, you will need a case to keep all that hardware together and a cooling system to deal with even high temperatures. A strong electrical connection is also a must, and it is recommended to use even specially manufactured outlets to minimize technical malfunctions from power outages to avoid damaging your equipment.
So is Ethereum mining profitable?
1 Ether obtained by mining Ethereum is currently worth an average of $ 1517 USD (February 27, 2021). After installing all these necessary hardware and starting mining, 4.21 Ether per year can be obtained with 180 MH / s power.
Every 15 Seconds (4 times per minute), a block is created on the Ethereum blockchain and the miner is given an average of 2ETH per block. If two blocks are generated at the same time, one is added to the blockchain, the un-added block is called Uncle Block and the miner gets a different reward for that block.
However, you should know that; Considering the money paid for the electricity used, the necessary equipment expenses, and the extra costs, you may not be able to generate a large income in the first months (perhaps the first year). But if you look at this as an investment, you may have an increased income in the coming years.
For starters, I tried to briefly answer questions such as what is Ethereum mining and how it is done. The more powerful your hardware, the more efficient Ethereum mining will be. Remember, you should calculate the profit and loss ratios well in digital money mining, as in every investment.
