3 Reasons Miners Buy $ 875 Mini Rig, What You Should Know

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Idan Abada says people buy the mini miner to try to solve a block, learn how to mine or overclock. It’s not really profitable unless you resolve a blockage, which is statistically a very slim chance. JP Baric shares the two data points miners should consider when purchasing a miner for profitability.

Which asset has experienced a 588% increase in the past year? This is not the S&P 500 stock index or the Nasdaq.

Love it or hate it, bitcoin has made headlines with its price action, prompting individuals and businesses to seek it out in a variety of ways. And in April, the 12-year-old cryptocurrency hit an all-time high above $ 63,000 before collapsing 50% in a matter of months.

Idan Abada was the manager of an online store that sold remote control gadgets such as airplanes and toy cars before becoming a crypto miner in 2015. He is now the founder of Bitcoin Merch, an online store that sells hardware. for minors.

The store was founded in 2017, a year its industry may have been seen as a niche even as bitcoin went from $ 1,000 to nearly $ 20,000. But today, it is firmly part of a growing trend: The global cryptocurrency mining hardware (ASIC and GPU hardware) market is expected to grow by $ 2.80 billion at a compound annual rate of over 7% from 2020 to 2024, according to Technavio, a market research firm.

Buying bitcoin today can earn the average investor a small fraction, so mining may seem like a great alternative to earn it without buying it on the stock exchange. This is why Abada posted a few videos showing a mini bitcoin mining platform that costs around $ 875 on his TikTok called “howmuchchannel”. They went viral, racking up millions of views.

A video with over 2.6 million views shows Abada sitting at Starbucks, mining from her laptop and the platform. This is quite a different scene from the large facilities known as farms that are often associated with mining bitcoin.

“Minimal” rewards

The main product, known as NewPac, is a dual ASIC chip which, if purchased on its own, sells for around $ 80 at Bitcoin Merch. The chip plugs into a USB hub, which can be purchased in a package and can hold up to 10 chips and a mini fan.

But even if he’s mining bitcoin and bitcoin cash, the amount is probably very small, says Abada.

Mark D’Aria has been operating mines since 2013 and is the CEO of Bitpro, a mining consultancy firm that also liquidates mining rigs and farms that are no longer profitable. He told Insider that he liked the product and found it interesting.

“I wouldn’t recommend it as a way to make money, but as a hobby it’s fantastic,” D’Aria said.

D’Aria notes that it is probably unprofitable if used to join a mining pool, a process by which a miner shares their processing power over a network to share the reward as well, as you would lose money. money in electricity costs. But he added that you might see a little profit if you were to mine solo.

“If you were to try to mine mine for how much I’m going to earn today, then that won’t be the best thing you can buy,” D’Aria said.

Advantages and disadvantages of mini-plants

There are three main reasons people buy the platform, says Abada.

The first is that it can be used solo to try to solve a block, which happens every 10 minutes. The reward for solving a block is currently 6.25 bitcoins. But Abada says the odds of that happening are one in a billion, and compares her to playing the lottery every 10 minutes.

D’Aria agreed with this analogy. “If you look at it in terms of ‘I have a chance to be the one who gets that 6.25 bitcoin’, it’s a small chance, but it’s a chance, like buying a Powerball ticket. Yes, that’s absolutely true. You have a chance. “

Abada said the second reason people buy it is for educational purposes. Anyone looking to get into bitcoin mining will find that it is both an expensive endeavor and a learning curve. This rig is a great way to learn before tackling the big rigs. Customers also buy them as gifts for someone who wants to learn.

Third, people can try to play with overclocking, which is the process of pushing the platform to mine more than what it’s designed for, Abada said.

JP Baric, CEO of MiningStore, operates multiple bitcoin mining farms, hosting over 3,000 S19 Pro miners for internal profit and on behalf of clients. He says that for anyone who wants to operate profitably, there are two things that need to be considered: electricity costs and terahash, which is the speed of the machine.

“It’s almost like a car, you have the speed the car is going, [or] how many miles per hour, and it’s the same as a terahash. Then you have how many gallons you get per mile, ”Baric said.

New models also come out every few years, as older models become less efficient. All of this should also take into account the volatile price of bitcoin.

Miners often find it easier to purchase an ASIC miner and have it housed on a farm where it is maintained and shared with other miners in exchange for a monthly fee paid in bitcoin or fiat, according to the. host.

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