Name: How Much It Costs To Mine For Cryptocurrency
Uploaded: 2021-06-08T08:58:48.000Z
Duration: 8 min 10 s
Description: Thousands of YouTube videos with English-Chinese subtitles! Now you can learn to understand native speakers, expand your vocabulary, and improve your pronunciation...

Everyone seems to want in on this cryptocurrency boom, bitcoin topped fifty eight thousand dollars

for the first time ever in February 2021 Bitcoin spiking, as we learned just moments ago that Tesla

bought one point five billion dollars of the cryptocurrency Bitcoin, crossing fifty thousand

But it's one hundred thousand, I think in 2021.

The more people that own and use it and then begin to transact on it.

Ether The world's second biggest cryptocurrency has also been hitting new record highs this year

and even the price of dogecoin, a cryptocurrency invented as a joke that doesn't have the same

serious function and institutional backing is something like Bitcoin surged more than 50 percent

While it's easier than ever to buy a small fraction of one Bitcoin using, for example, an app

like Coinbase. That's not the only way to get your hands on crypto cash.

Before the pandemic took hold in the US, we went to a block chain production studio in Brooklyn to

learn how to mine for Bitcoin's biggest rival ether.

Here's how it works and how much it costs.

Digital mining is kind of like real life mining, except that instead of shovels and dynamite, it's

accomplished with software and computers.

A miner is essentially just running a computer program that solves a complex math problem.

Solving that math problem is how crypto transactions are verified so that money correctly

The miner who solves the problem first is awarded crypto cash by the algorithm for their bookkeeping

efforts. In the 12 years of history, not a single entry on its block chain has been fraudulent.

Now they processed probably close to 10 trillion dollars of transactions and not a single false

entry in the, you know, that same 12 year period of time.

What percent of banking system activity was false?

It's probably close to seven or eight percent to achieve that kind of security while being

Can you explain to me what we're looking at right now?

So this is an Ethereum mining rig, and this is just like any other computer that you would build

on your own only instead of having an actual case that all the components live in.

And you need to do this because when the GPs are running, they get really hot and it's important to

Lee learned how to mine watching YouTube videos.

This is back when he was still mining in his spare time.

And so the main components here, this is your power supply.

This is what wires up all the logic on the computer.

You need to have an operating system running on your motherboard.

And so this is an SSD, isolated, hard drive.

And I have a specific operating system called FOS installed on this.

And this is a graphics card that people use mostly for gaming.

But these are also really good for mining crypto currencies.

Once this is sewed into place, we need to plug it into the power supply.

And then we need to plug in the data so that graphics card can read from the computer

This is so that I can get data out of the motherboard.

So once it's all wired up like that, this is ready to go.

We can just turn it on and we'll start mining.

All in this rig cost roughly 1400 dollars because of the parts that you see here.

The only other thing left to do is create a wallet, a wallet is a digital address for crypto

cash, and then how long does it take for it to actually start minings?

This should just automatically start connect to the network and knows your address.

You'll see it start going in a couple of minutes.

When the rig is mining, what it's actually doing is running what's called a hashing algorithm.

So it's computing millions of math equations to work out all those digital transactions.

But this mining rig isn't doing all these math problems in a vacuum.

It's actually competing against miners all over the planet to be the first person to verify a

Someone wins this race roughly once every 13 seconds, and whoever wins is awarded to ether.

They also get a transaction fee, which averages out to about 2.3 ether.

But there's a mining pool fee that has to be paid, which is about one percent of the block

When you combine all three at today's prices, that comes out to about sixty four hundred

dollars. And is everyone using the same hashing algorithm?

Everyone uses the same hashing algorithm.

It just depends on the hardware that you have and the cost of your electricity.

So the only advantage you would have is if your GPU runs faster than someone else's or your

Yeah there's no way to shorten to shortcut it.

This rig with only one graphics card can run roughly twenty seven million math equations every

But on the theorems network right now, there's 400 trillion math operations happening every

second. So Lee's rig in Brooklyn accounts for around one 15 millionth of the entire Ethereum

network. That's why people join something called a mining pool.

A pool lets a single miner combine their hashing power with thousands of other miners all over the

They could be in Europe or South America.

You're all sharing your resources together and it doesn't matter where you're physically located.

So you are working together with these people to compete to solve a block faster than anybody else.

It's one giant competition between everyone that's on the network.

So it's a race between you and your computers and the computers in your mining pool versus the

let's fast forward an hour teaming up with my mining pool.

Here's how much I managed to rake in as a miner.

OK, so is it actually worth it to spend all this money on gear and electricity in order to mine for

Our one graphics card rig costs roughly fourteen hundred dollars.

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How Much It Costs To Mine For Cryptocurrency

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