Comparing an Ethereum Cloud Mining Contract with Ethereum GPU mining on a desktop computer.
For the past year I’ve been experimenting with mining ethereum, I bought a 1 year Ethereum cloud mining contract with HashFlare – and have been studying how to buy hashing power from mining pools on the hashpower exchange called NiceHash.
1.4 MH/s daily ethereum cloud mining earnings.
All of my mining research was focused on renting hashpower from someone who manages the hardware – assuming that it is too complicated to set up and manage the special mining rig computers, that it was too costly to buy a good mining rig, and that the return on investment was more than a year away…
Getting Started Mining At Home
Early 2017 I focused on studying the ‘bitcoin mining tutorials’ and ‘how-to mine ethereum’ videos from the most well-known youtube channels. Several of the best mining hardware setups revealed how to set up computers to mine cryptocurrencies. I watched dozens of hours of walk-through videos and even blogged my own unique tutorial on a DIY ethereum and monero mining rig that outlined the hardware recommended in the step by step guides for using GPU Graphics cards as a mining machine.
The List Of Mining Rig Parts
Then I created my own shopping list of recommended parts for a DIY cryptocurrency miner – detailing everything I would need to build a GPU mining rig at home, so I could mine Monero, Ethereum and many others.
Finally I started reviewing complete and assembled GPU Mining Rigs that are turn-key with software installed, ready to plug in, select a mining pool, and start earning.
The more I researched – the more I discovered some of the best GPU Cards for the most efficient and profitable ethereum GPU mining. All of the product reviews on Amazon contained questions and answers about testing how much power is used. No matter if it was Motherboards, Power Supplies or the GPU Graphics card – every watt is critical in improving profitability.
Installing The Most Economical Card
My first step into mining was to order a low-cost, best-selling GPU Graphics Card. The card and software drivers installed easily into my computer, and in minutes I was churning out 6 or 7 MH/s of GPU mining hashpower, and earning Ethereum with my home computer.
Starting With The Easiest Mining Pool
I have been familiar with MinerGate for a while, and found they now have a free download with a Smart Miner. It installed quick, and it was easy to de-select from the range of coins that it can mine, and have it focus only on earning Ethereum and Monero.
Benchmarking the Hashing Power for Ethereum (7.4 MH/s) is quite different than the Hashing Power for Monero (240 H/s) – and I am now experimenting with calculating the profitability for each of the two different currencies. Watch for updates on the Forum.
How Does Cloud Mining Compare To GPU Graphics Card Mining?
I don’t have all the true data to compare correctly yet. I do not have a Watt Meter to measure exactly how much electricity I am using per MH/s of mining power. My 7.4 MH/s is certainly earning more per day than my 1.4MH/s cloud mining contract – and I would expect that – I have not yet subtracted the daily cost of power, so I can’t compare them properly as yet.
7.4 MH/s daily ethereum GPU mining earnings in 2017.
Learning From A HashPower Rental Service
Renting hashpower remains an area of continued study for me.
The various mining algorithms are complicated. Bidding to rent hashing power – and actually make a profit – takes some careful study and calculations. As I watch and study the markets of buying and selling hashing power, I was reading carefully through NiceHash….
I found that NiceHash also provides a GPU Farm Rental Service. NiceHash allows you to rent physical GPU miners through certified third-party GPU farm providers. That is, you rent the mining rig at a flat monthly rate, rather than bidding for hashing power in an open market. Perhaps a more interesting angle is that you can also work with NiceHash to become certified as a third-party GPU farm (if you have 50+ rigs to rent out… more on that later), thus earning a flat monthly income for running the rigs, no matter what the profitability might be for earning cryptocurrencies.
Plans For Expanded CryptoCurrency Mining in 2017
- Cloud Mining
- Home-Based Mining Hardware
- Renting Hashpower
- Providing Mining Rigs For Rent
In addition to the classic process of providing hashing power to secure the network of blockchain data for each different cryptocurrency – we have the option to provide hard drive space and earn digital currencies. These passive earning centers can be included with home-based mining rigs – and will become a greater part of the reporting and studies in this blog.
After Mining Ethereum – Earning Compound Interest
The profitability of mining ethereum or monero, etc, generally considers just three things:
- the price of the coin today,
- the network hashing difficulty today and
- the cost of electricity today
Assumption A: the price of these coins could go up in a growth pattern similar to Bitcoin.
Assumption B: hashing difficulty will increase in the future, these are the best days to mine.
I agree with these assumptions – but few people also talk about the process of mining coins, keeping them, and growing them. Many people talk about long term holding – and some people just mine and sell for the profits today.
I want to focus on including the power of compound interest in addition to the long-term strategy of holding for 3 to 5 years.
And so I’m focused on mining coins that have a lending market on Poloniex – and while I experiment a bit with the Poloniex Lending Bot, I’m finding that our manual style of Advance Lending Strategy (taught in our CryptoCurrency Trading Course) is out-performing the auto-lender.