Bitcoin Farm: How to Create and Buy a Bitcoin Farm

19 days ago
Bitcoin Farm
Bitcoin Farm

Bitcoin farm — a design of several devices whose work is aimed at mining coins of the first cryptocurrency. To implement mining, miners usually use bitcoin farms from video cards, FPGAs or ASIC miners. Note that the last option is the most profitable. 

The type of equipment, brand and number of devices directly affect the level of income from the farm. In addition, factors such as the cost of electricity used, costs of equipment, cooling, rent, etc., must be taken into account. 

To date, the most profitable option for mining Bitcoin is the Bitcoin farm from ASIC Antminer S17 + from the Chinese manufacturer Bitmain. With the cost of one unit in the region of $ 1,700, the payback period of the farm in the current market conditions is about a year and a half. 

We will talk about how to install a Bitcoin farm, which one is better to choose and how profitable it is under current conditions in the article below.

What is a Bitcoin Farm

Bitcoin Farm
Bitcoin Farm

Bitcoin farm is a design whose work is aimed at computing complex tasks. In turn, their solution leads to the issue of new coins of the first cryptocurrency. 

As part of a Bitcoin farm, there may be from two devices. The limit on the number of designs is unlimited, it all depends on the budget and the possibilities of their maintenance. So, the bitcoin farms of such well-known crypto companies as Bitmain or Hut 8, number tens of thousands of devices.In addition, any large-scale cryptocurrency mining requires certain conditions: good ventilation, moderate temperature and humidity, uninterrupted Internet connection and a reasonable price for electricity, specialized knowledge in the field of mining, as well as the availability of technical personnel who can service power lines.

Types of Farms for Bitcoin

What are the bitcoin farms
What are the bitcoin farms

In order to mine cryptocurrency, you first need to decide on mining equipment. Today, there are three types of farms for bitcoin.

Farm for Bitcoin from Video Cards (GPU)

Note that mining is possible only on powerful graphics cards. Market leaders are GPUs from manufacturers AMD and Nvidia.

Among the disadvantages is the relatively low power with a high probability of overheating of the equipment. Given the current situation in the field of bitcoin mining, namely, indicators of the complexity of mining and the price of cryptocurrency, this option will not be the best choice for bitcoin mining, but it is perfect for most altcoins.

So, buying a mining farm from the GPU will cost a lot, and most likely will not justify its costs. The main purpose of the GPU is rendering graphics. Thus, the farm performs calculations faster than the PC, but is significantly inferior to other types, such as FPGA and ASIC. 

Bitcoin Farm from FPGA (Field Programmable Gate Array)

Such designs are a programmable matrix aimed at processing data at hyper speeds. Components do not take up much space, therefore, the second generation of bitcoin farms is characterized by more compact sizes. 

FPGAs are much more efficient than mining on GPUs and far superior to mining on CPUs. However, the device cannot be compared with ASIC miners.

Bitcoin Farm from ASIC

ASIC Bitcoin Farm
ASIC Bitcoin Farm

ASIC (Special Purpose Integrated Circuit) — devices that specialize in performing a narrow range of operations, which ensures maximum efficiency.In the case of Bitcoin mining, these devices are aimed at performing SHA-256 algorithm calculations. 

The ASIC Bitcoin farm is much faster than the devices described above, and at the moment they are the preferred option for the extraction of the first cryptocurrency.

Note that with a further increase in the bitcoin hash, most likely, only the latter will “survive”, since it will only be more difficult to get a return on your investment (ROI) on video cards and FPGAs. In turn, GPUs cannot compete with devices that perform the same functions 5–20 times faster. 

Equipment for Bitcoin Farm

Selection of equipment for bitcoin farms
Selection of equipment for bitcoin farms

There are many ASIC miner manufacturing companies on the market. Each of them offers products that perform identical functions. These products vary only in price, depending on their characteristics. Below are the manufacturers and some of their models that have received recognition among miners around the world. 

Bitmain

When it comes to Bitcoin mining, usually Antminer is the first thing that comes to mind. Bitmain is the developer of the ASIC line, among which the latest developments are the Antminer S17, released this fall. 

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Official manufacturer Bitmain website  

Of the older models that still make a profit — Antminer S9. However, the break-even point of this miner is just around $ 7500.

Therefore, in the near future, they can be disconnected from the network, giving way to more advanced models.

Depending on the ASIC chosen, the hash rate of a “viable” device is between 14 TH / s and 56 TH / s. The level of computing efficiency varies depending on the model, which directly affects the profitability of miners. 

Halong Mining

The level of computing efficiency varies depending on the model, which directly affects the profitability of miners. Sending the first batch of the miner falls in March 2018.

Operating from a voltage of 220 V to 240 V, the miner consumes 0.075 J / h at a hash rate of about 16 TH / s. According to user reviews, the model is not much different from the Antminer S9, but it costs twice as much.

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Halong Mining official website   

Canaan Creative

Bitcoin Farm from Canaan Creative
Bitcoin Farm from Canaan Creative

The most powerful models from the Chinese manufacturer are AvalonMiner 1166-68T (68TH / s), AvalonMiner 1146-56T (56TH / s) and AvalonMiner 1066 (50TH / s). 

At the same time, users claim that the Canaan Creative miner is not as effective as the Bitmain miner. However, the prices from this vendor for models identical in performance are more reasonable than those of the Antminer developer.

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Canaan Creative official website  

Ebang

The manufacturer combines in its devices such properties as efficiency and stability. The powerful ASIC EBIT E12 + produces 50TH / s, followed by the less powerful EBIT E12 (44 TH / s).

The EBIT E10.6 (16 TH / s) can be purchased on the Ebang website at a price of around $ 600. 

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Ebang Official website

How to Create a Bitcoin Farm

Creating a Bitcoin Farm
Creating a Bitcoin Farm

How to make bitcoin farm:

  1. Step 1. Choose equipment and accessories.
  2. Step 2. Decide on the room.
  3. Step 3. Create a bitcoin wallet;
  4. Step 4. Select a pool for mining.
  5. Step 5. Set up a bitcoin farm.

Below you will find a detailed description of each step.

Equipment and Accessories

First of all, we choose the equipment. For higher efficiency, we pay special attention to power and energy efficiency. To understand what amounts are involved, it is recommended to use a special calculator to calculate the profitability of a bitcoin farm, which we will return to a little later. 

Also, do not be lazy and monitor rating tables and thematic forums. Of course, it is worth considering that income will also depend on the budget allocated for the purchase of equipment. 

As we have already said, bitcoin mining is effective only with the use of ASIC miners.

Room

Mining equipment has a number of features. Firstly, it is very noisy, and, secondly, it emits a large amount of heat. And if the latter can be used for their own benefit, for example, for heating a room, then noise is unlikely to have any positive aspects. In addition, mining needs ventilation and moderate humidity.

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And if we are talking about several dozen devices, then they will certainly have to be put on shelves, the purchase of which is better to take care in advance. 

Thus, when assembling a bitcoin farm, three points must be taken into account: 

  1. Soundproofing. The “army” of coolers will work at the farm at the same time, so you should not hope for silence. In this regard, it is highly recommended not to create bitcoin farms in residential premises. 
  2. The area of the room. It is advisable to install the farm in spacious hangars, since in a tightly enclosed space ventilation will work inefficiently. 
  3. Wiring. Mining farm needs a powerful electric power industry, so you need to make sure that the work of the installed machines is reproduced smoothly and efficiently.
Bitcoin Farm Graphic Image
Bitcoin Farm Graphic Image

Bitcoin Wallet

To make a profit, you need to create a wallet, which, in fact, will receive the extracted coins. Since Bitcoin is the most common cryptocurrency, there will not be any special problems with finding a service, but they can make a choice. In order to determine the most suitable option, you need to build on your own needs: reliability, versatility, ease of use, security, etc.

If the extracted coins are planned to be withdrawn to fiat immediately at the time of their receipt, then you can consider creating a wallet on the cryptocurrency exchange. It is here that BTC will be exchanged directly for fiat. If we are talking about long-term storage, then you should choose from more reliable options, for example, desktop or hardware wallets.

Mining Pool

Bitcoin mining pools
Bitcoin mining pools

As you create your wallet, we proceed to register your account in the mining pool. In this niche, as a beginner, it is recommended to choose from the top pools, the rating of which can be viewed on the Blockchain.com website:

The most popular bitcoin mining pools
The most popular bitcoin mining pools

Popularity and trust in services is determined, to a greater extent, by the percentage of hashrate (computing power). However, very high rates can also lead to centralization of mining, which contradicts the concept of the first cryptocurrency. Therefore, in addition to the rating, the choice of miners is based on the size of commissions, the distribution system of rewards and the threshold of payments. 

As for the connection, each pool has all the necessary instructions. 

Bitcoin Farm Set Up

The final step is to set up the farm. The setup process itself takes no more than 30 minutes. The only way to become a profitable miner is to buy an ASIC miner. Typically, devices do not require the installation of a separate mining program, so all that remains to be done is to launch it and establish a link to the mining pool. 

Note that the assembly of such farms is much simpler. But at the same time, these designs are not cheap. Given that the future fate of bitcoin prices is unpredictable, today it is risky to spend money on such farms. However, at the moment this is the only way to get digital gold without compromising your budget. 

Where to Buy a Bitcoin Farm

Buying a Bitcoin Farm
Buying a Bitcoin Farm

The Internet is full of ads with offers for the sale of mining farms. We will not consider GPU designs, since this type is not very effective in the case of mining coins using the SHA-256 algorithm. Therefore, we will dwell on ASIC miners in more detail. 

So, in addition to the fact that the equipment can be purchased directly from the manufacturer, which will be much cheaper, resellers also offer it. But note that the price is far from being the main component of production success in all cases. Equipment delivery speed also plays a significant role in such a volatile crypto space. 

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So, usually on the manufacturer’s website, a pre-order for the bitcoin farm is first issued, the sending of which will be realized only after a certain period of time. Everything else, running models are bought up at the speed of light by the same resellers.

To select the most affordable price, special aggregators have been created on the Internet, which show where and for how much you can buy a particular model. Or you can independently find the most suitable option by monitoring the following sites.

How to buy a quality Bitcoin farm
How to buy a quality Bitcoin farm

Cheaper options can be purchased on hand. Typically, such purchase and sale announcements are published on advertising platforms, or on thematic online sites. 

Note that in recent cases of scams.

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Not so long ago, the scheme for gluing stickers on devices was relevant, passing off cheaper models as expensive. 

Thus, unscrupulous sellers earned good money by selling less powerful models at inflated prices.

Therefore, a purchase from a legal entity will at least protect the parties from losses, in case of disclosure of a fraudulent scheme or in identifying other shortcomings in the work. If you buy a Bitcoin farm from an individual, the buyer is likely to be left alone with his problems.

Payback on Bitcoin Farm in 2020

Calculation of farm payback for bitcoin 
Calculation of farm payback for bitcoin 

There are many factors on which the income generated by a bitcoin farm will directly depend. Although after its installation, at first, it was not about profitability, but about its payback. 

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The payback period is interrelated with the cost of electricity, the cost of equipment, contributions to the pool, labor costs for servicing a bitcoin farm, etc. 

But it is the cost of equipment and electricity that will make up the bulk of the costs.

As mentioned earlier, a special mining calculator is used to calculate the profitability of the ASIC. Among the most popular services are CryptoCompare, WhatToMine, AsicTrade. Based on the obtained data calculations, you can determine how long mining equipment will pay for itself.

For example, take the most powerful ASIC from Bitmain Antminer S17 + with a power of 73 TH / s and a power consumption of 2920 watts. We drive the cost of electricity in the region, the miner model and other data, if necessary, into the calculator table. But basically, for the calculations, only the first two indicators are enough.

Crypto Mining Farm at Apartment | January 2020 Update

It is worth considering that the mining process will be accompanied by unforeseen expenses. But in general, the latest model pays off quickly enough, due to which it deserves special attention from miners, indicating that mining is still alive and can bring good income. Especially when it’s not about one device, but about a whole bitcoin farm.

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