After the talks of the ban on Ethereum mining in China, there has been confusion about several aspects of Ethereum mining in general. People have been confused mainly since Ethereum mining has been very profitable and has been increasing still. The major question posed is Ethereum mining dead after the Ethereum upgrade announcement.
To keep the answer short, NOT YET, Ethereum mining is not dead yet. And to further explain this, we will be discussing Ethereum mining in general and some of the frequently asked questions briefly. Since there is still Ethereum mining is still active, check out some of the 12 Best Graphics Card for Mining Ethereum in 2021.
What is Ethereum Mining?
Coming to our main topic, what is Ethereum mining? Ethereum is basically a cryptocurrency blockchain and the process of mining any cryptocurrency involves verification of the proof of work done by nodes or users anywhere in the world. This process basically adds more blocks to the blockchain and in return, newly generated coins are rewarded to the miners.
The mining process is processing-intensive work which means if you have the greater processing power, you can mine more cryptocurrency and mine it faster than your competitors, enhancing your chances of getting the reward for verifying a certain block. The mining can be done by using Processors or CPUs, graphic cards or GPUs or specifically built mining circuits known as ASICs. To know more about graphic card mining, see the article why do you need a graphics cards for mining in 2021
How does Ethereum Mining work?
To understand how Ethereum mining works, you first have to know about blockchains in general and cryptocurrencies and the basic knowledge about how they work. As the mining process is explained above, you can understand the basic principle of mining. All you need for Ethereum mining is a GPU or a group of GPUs combined called a GPU rig, attached to computers running the software. Basically, the miners use their time and electricity, and processing power to process and confirm transactions that add blocks to the blockchain and are rewarded in turn.
To know how you can build a GPU mining rig, you should refer to our website on how to build a crypto mining rig in 2021. This will you deeply understand building a GPU mining rig and increasing your crypto mining potential. Compared to Bitcoin, Ethereum is a relatively easy coin to mine.
Which is best for Ethereum Mining? Graphic Cards or ASIC miners
The hot topic for this decade is ASIC miners. You can learn what is the basic difference between graphic cards and ASIC miners here. But to make it short and easy to comprehend, ASIC miners are specifically built circuits for mining only while graphic cards can do a lot more than mining. That is why ASIC miners are ridiculously faster in mining than graphic cards but cannot do anything else. So, both the mining mediums have their pros and cons. While you can do gaming and graphic intensive tasks using a GPU, you can only mine cryptocurrency using ASIC miners.
The major disadvantage of an ASIC miner is that it can only mine a single coin, the coin it is designed for. This is where GPUs take the winning spot, although GPUs are nowhere near the mining capacity of an ASIC miner, GPUs can mine any coin at any time.
To get your hands on ASIC miners, check out the 11 Best ASIC miners for mining Ethereum in 2021.
Which are more Profitable? Graphic Cards or ASIC miners
Coming to profitability, depending upon your mining operation, both can be profitable. it depends on various factors such as the temperature of your region, the electricity costs in the area of your mining operation, your budget, etc.
When it comes to simply Graphic Cards vs ASIC miners, definitely ASIC miners are more profitable. Since these are specifically made for mining and mining very fast. So, whenever you are confused in Graphics card or ASIC, always go for ASIC miners. You can easily look up profitability for all the ASIC miners available to buy.
Difference between Ethereum mining and Bitcoin mining
Another aspect some new miners cannot get their heads around is what is the main difference between Ethereum mining and Bitcoin mining. Now, since this is related to our ongoing discussion, we will be addressing this too.
Short answer is that the basic difference between Ethereum and Bitcoin mining is the algorithm on which the cryptocurrency is based. Bitcoin is based on the SHA-256 algorithm, which is currently the most secure and difficult algorithm to crack and mine. There are other coins based on this algorithm too. On the other hand, Ethereum uses Ethash which is based on the SHA-256 but is a modified and in mining terms, relatively easier cryptocurrency to mine than Bitcoin.
Other than that, there are several minor differences that differentiate Bitcoin and Ethereum in terms of sustainability, their energy print on the ecosystem, and many other factors.
Best Ethereum Mining Rig in 2021
Exploring Graphics card mining, we mentioned earlier that to increase the mining capability of your GPU mining setup, you should always use GPU rigs rather than single GPUs. Since the competition is quite tough because of huge mining farms. There are several options available when it comes to mining rigs. You can either make your own DIY rig if you are into it, or there are a lot of pre-built rigs available online.
There is another important hardware requirement when you want to make crypto or Ethereum mining rigs. That is a motherboard that can accommodate all the graphic cards in the mining rig (usually 5 to 7). There is a wide range of crypto mining motherboards in the market, thanks to many Chinese manufacturers. You can explore that in the best motherboards for mining Ethereum in 2021.
How to start Ethereum Mining
There is not much you need to start mining Ethereum right now. As of the time of writing this article, the Ethereum update has not gone live which means that you can still mine Ethereum all you want. The ideal settings for any mining operation are:
- Cold Regions (to cut the cooling costs)
- Low Priced Electricity (the monthly bills are going to be high)
- Several Thousand Dollars (the more the better)
So, keep in mind these things before starting any kind of mining operation. You can start from a very low budget using just a GPU mining rig, but remember the profitability will be relative to your budget and the caliber of the mining rig.