Getting into the world of mining or mining cryptocurrency is quite difficult. There’s a lot of hardware to buy, a lot to learn, and a lot of factors to consider.
While the same is true for Bitcoin Gold, the developers aim to make it easier. How? Bypassing ASIC computers and making Bitcoin Gold mining available to everyone.
Bitcoin Gold is the oldest and most popular hard fork in the cryptocurrency world, Bitcoin. This Bitcoin Gold developer created it with a single guiding principle. They developed it to make it possible to mine Bitcoin with ASIC computers.
What is an ASIC computer? It stands for Application-Specific Integrated Circuit. The context in this article means a machine built specifically for Bitcoin Gold mining. The good thing is, machines like this don’t exist in this cryptocurrency.
Apart from mining options, Bitcoin Gold is quite similar to its predecessor. It follows the same rules. It has the same transfer speed.
You can use them for the same purpose, trading with each other. If you decide to do so, be sure to choose a secure cryptocurrency exchange platform, such as Coinbase, Binance, and Coinmama.
What is Hash Rate?
That is how many hashing operations your system can complete per second. ASIC computers are much more advanced than the other two methods, GPU and CPU mining. So earlier it wasn’t funny.
What does this mean?
Simple. If you are a minor, you have no chance of profiting without an ASIC. Unless you start mining Bitcoin Gold. Its founding principle is NO ASICs.
When it comes to non-ASIC mining methods, GPU mining is ahead of every other option. This is why GPU prices have skyrocketed in recent years.
Why is ASIC a Major Problem?
Bitcoin Gold forked from the Bitcoin blockchain to prevent ASIC mining. This mining engine is much more efficient at mining than GPU and CPU miners who don’t stand a chance.
Your mining success is determined by your machine’s hash rate.
Hashrate is a metric to describe how fast machines mine cryptocurrencies. The best consumer-grade CPUs and GPUs can’t compete with ASICs.
Why is this a problem? Cryptocurrency purists believe that mining should be something that everyone can do. you should be able to do it with just a laptop in the dorm room. ASIC makes it impossible.
Why is it not possible? Simple. Miners get cryptocurrency for completing the hash function first. It encrypts the blockchain, securing it. When you succeed, you are entitled to issue the next block in the chain and get compensated in Bitcoin Gold.
When only the first person to solve the problem gets the prize, people always find a way to stack the pile they like. ASICs are an insurmountable obstacle for anyone running a consumer-grade machine.
OK, What Should I Start?
Hardware
Alright, are you ready to learn how to mine Bitcoin Gold with your home computer? Here’s what you need to know to start your journey. Hardware.
The only effective method to mine Bitcoin Gold is via GPU (video card). Bitcoin Gold can be mined using your computer’s processor. However, it is not that effective.
Think about if you are going to paint the fence. Yes, you can paint the fence with a toothbrush (CPU). But why would you do that when you can use a proper painting brush (GPU)?
Okay, how to mine Bitcoin Gold? What hardware do you need to buy? It depends. If you’ve recently upgraded your system and want to give mining a try, to see what it’s all about, you might be able to.
A decent CPU, GTX 10xx video card, some RAM, and a good SSD? you are good to start. However, don’t expect to become a banker or retire from your day job. Bitcoin Gold mining requires a much more robust system to make serious money.
Remember, you only get paid if your machine completes the hash function first when mining itself. There is a way to get around this by joining a Bitcoin Gold mining pool, but we’ll talk about that later.
For now, you will only see what Bitcoin Gold mining looks like on a consumer-level computer. If you get some Bitcoin Gold in the process, great!
Once you know the process, you can start working towards a more mining-centric PC. What is covered?
You need to get some powerful GPU and find a way to cool down the whole system. If you save on cooling, your $900-GPU will run out, ultimately costing you more.
Six video cards is a great goal to work with.
You also have to make sure your PSU (Power Supply Unit) can support all of that equipment. Don’t skimp. Cheap ones will not be efficient in converting power. Your system will run hotter. you will need more electricity to power the system, cutting your profits.
A good motherboard is also important. It doesn’t matter if you break your piggy bank for six NVIDIA RTX 2080 Ti cards if your Motherboard can only support two.
Related to that, you should look for cases that focus on mining or build your own. After all, consumer-grade PC cases aren’t built to accommodate six graphics cards.
Even if there are enough PCI-E slots for six GPUs, that doesn’t mean the Motherboard will run everything well. The best thing to do is research the specific board you want before buying it.
Apart from that, you need an Operating System. Never forget the Operating System. While both Linux and Windows work, we’ll start with Windows because it’s easier to use and set up.
Recap: you can start mining Bitcoin Gold on your gaming PC, but you’ll need a GPU mining rig to get serious. Six high-end video cards. Good hard drives.
An efficient PSU with enough power to supply your video card. A motherboard that can run it all. Don’t skimp on good cooling solutions. It will pay off in the end.
Okay, you are part of the way to find out how to mine Bitcoin Gold. Read on to find out more.
Software
To start mining Bitcoin Gold, you’ll need three pieces of software, maybe a fourth too.
First, you have to open an account on a cryptocurrency exchange that you trust. Once you mine Bitcoin Gold, you need an exchange to convert it into fiat currency (or real money for us plebs).
Next, you need a cryptocurrency wallet account to store your Bitcoin Gold. After all, what kind of Bitcoin Gold miner would you be if the currency had no purpose?
Lastly, you will need special mining software. This software connects your computer to the blockchain.
This also makes it work, completing the hash function to give you that Bitcoin Gold. When you finally turn it on, you can call yourself a Bitcoin Gold miner. Just don’t be afraid if your computer starts making jet plane sounds.
Some of the recommended mining software include:
- cgmining.com
- hashflare.io
- minergate.com
- nicehash.com
The fourth piece of software you may need is the mining pool client if you choose to use that option. Why do you want to join a Bitcoin Gold mining pool? you’re lucky, that’s the point of the next part!
Bitcoin Gold Mining Pool
You may want to become a solo Bitcoin Gold miner, overcome all the problems, and get the full reward. This may not be a good idea.
You see, you only get something if your machine is the first in the world to solve a hash function, as we noted earlier. With a single gaming PC or even a 6-GPU mining rig, you don’t have much of a chance.
To get consistent returns, you need to build an entire Bitcoin Gold mine. It will have multiple 6-GPU rigs, cost a lot of electricity and be a constant headache to keep going. The room where you store your entire Bitcoin Gold mining operation will also become a furnace.
Even if you build all of that, there are those with massive mining and much more computing power. you compete with them when you start mining Bitcoin Gold.
You must have extraordinary luck to stand a chance.
However, there is a solution. Miners around the world are finding ways to pool their resources into Bitcoin Gold mining pools. This is how you compete with big mining mines.
When you are part of a mining pool, you are not actually mining Bitcoin Gold yourself. You allow the pool to use your system’s processing power to mine it.
Let’s say there are 200 people who are interested in Bitcoin Gold mining. They all have machines with 500 h/s or 500 hash rates. Can they compete with others who are mining Bitcoin Gold themselves? No.
Combined, they have a hash rate of 100,000 hours/s or 100 Kh/s. Now they have a much better chance of getting things done while competing against the rest of the world.
That begs the question, how is the Bitcoin Gold the pool won awarded? The system is different in each mining pool. After all, they are all independent of each other.
It is very popular to split the profits according to the hash rate contributed by a certain person.
Mining Bitcoin Gold in a pool is a much more stable way to earn Bitcoin Gold.
As long as the pool wins often enough and the Bitcoin Gold price is worth it, you will make money. It will be a trickle of water than a flood but better a sparrow in hand than a dove on the roof, right?
What if you don’t want to join mining? What if you don’t want to buy your machine, maintain it, and pay higher electricity bills? There are other ways to call yourself a Bitcoin Gold miner, but we’ll talk about that in the next section.
Cloud Mining
The idea behind cloud mining is like a cloud game. Let’s say you have a bad computer but want to mine Bitcoin Gold. Or play the latest Assassin’s Creed game.
Cloud services can help you in both cases. In gaming, you pay a monthly subscription to use a powerful computer somewhere in the world. You see what’s going on on that computer and it starts to move. All you need is a good Internet connection.
Cloud mining is similar. you pay a fee, say $500. For your money, you can use some hash rate 24/7 to mine for two years.
The company running the service will maintain the hardware. This will ensure that you get your hash rate.
You have to pay every day to pay for electricity and maintenance costs. The amount you pay will be small, no need to worry about that.
Sounds good, right? All the benefits of mining Bitcoin Gold without any problems. Sometimes it’s too good to be true.
You see, the cloud mining market is full of scammers. When choosing a service, you have to be a skeptic.
You should also consider how long it will take you to get your initial investment back. This could take a long time or the price of Bitcoin Gold could spike tomorrow and you would be rich in a week.
You should also ask yourself other questions. This cloud mining service has an amazing hash rate to work with. Then why are they renting it out to someone else instead of mining the cryptocurrency themselves?
Taking full advantage of yourself is definitely better, right? It is possible that many cloud mining services are Ponzi schemes.
Minimizes (because users cover it) electricity bills and new customers keep them going. When the money from the incoming person cannot cover the cost, the service is closed.
Did you pay $500 for 2 years of hash rate yesterday? Very bad.
This may not happen at all but it is worth being careful in this and all other cases related to cryptocurrencies. Where there is money to be made, there are always people looking to make a profit.
Mining Bitcoin Gold can be a (mostly) source of passive income. Hopefully, now you know what you need to learn how to mine Bitcoin Gold.
Another thing you can try if you want to make a profit is trading. Choose a reliable cryptocurrency exchange, like Coinbase or Binance and start doing it!