Bitcoin mining in nigeria

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Next came mining with field-programmable gate arrays FPGAs. ASIC mining. Similar to FPGAs, application-specific integrated circuits are chips designed for a specific purpose, in our case mining bitcoin, and nothing else. ASICs for bitcoin were introduced in and, as of November , they are the best processors available for mining bitcoin and they outperform FPGAs in power consumption. Mining pools. To offset the difficulty of mining a block, miners started organising in pools or cloud mining networks.

Whenever a miner in one of these pools solves a block, the reward is shared with everyone in the pool in a ratio representative of how much work you put into the pool even though you personally never solved the puzzle. Cloud mining. Clouds offer prospective miners the ability to purchase mining rigs in a remote data centre location.

There are many obvious advantages, the most obvious being: no electricity costs, no excess heat and nothing to sell when you decide to hang up your virtual pickaxe. Where do I store my mined bitcoin? Once miners receive bitcoin, they are given a digital key to the bitcoin addresses. You can use this digital key to access and validate or approve transactions.

You can keep these digital keys safe with a number of wallet options : Desktop wallets. Software like Bitcoin Core allows you to send and store bitcoin addresses and also connects to the network to track transactions.

Online wallets. Bitcoin keys are stored online by exchange platforms like Coinbase or Circle and can be accessed from anywhere. Mobile wallets. Apps like Blockchain store and encrypt your bitcoin keys so that you can make payments using your mobile device. Paper wallets.

Some websites offer paper wallet services, generating a piece of paper with two QR codes on it. One code is the public address at which you receive bitcoin and the other is your private address you can use for spending. Hardware wallets. You can use a USB device created specifically to store bitcoin electronically and your private address keys.

Are people still making money mining bitcoin? Making money mining bitcoin is much more difficult today. The following are some of the issues contributing to this difficulty: Hardware prices. The days of mining using a standard CPU or graphic card are gone. As more people have begun mining, the difficulty of solving the puzzles has increased.

ASIC microchips were developed to process the computations faster and have become necessary to succeed at mining today. Rise in corporate miners. Hobby miners must now compete with for-profits — and their bigger, better machines — when mining to make a buck. Puzzle difficulty. The more computational power put toward mining, the more difficult the puzzle. Power costs.

Power may be more expensive here than it is in other parts of the world, making it further difficult to compete with big-miner money. When discussing the feasibility of bitcoin mining, an unexpected variable rears its head: power consumption. Keep in mind that miners compete with each other to mine blocks. With an unreliable internet connection, your rigs and software will be useless. Keep in mind that reliable internet speed remains a challenge in Nigeria.

A financial analyst Olumide Adesina gave his views on the mining business in the country. He cited the high power that mining crypto requires to mine. That is not to mention additional costs such as the required human capital to monitor the mining machines and rent. Conclusion You may not find the crypto mining business cost-effective if you are an individual miner.

Considering other factors like rent and the human capital needed to run the machines disqualifies the crypto mining business in Nigeria. What is your opinion on this subject? Comment below. Related Posts:.

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This means your iCore 7, 16GB ram computer will not be able to mine Bitcoin as regular household computers will not see any success in the modern Bitcoin mining ecosystem. In Nigeria, the first and most important piece of equipment needed to mine Bitcoin is specialized mining hardware called application-specific integrated circuits ASICs.

But the price of mining hardware is only a fraction of the expense involved. ASICs consume tremendous amounts of electricity, the cost of which may quickly exceed the cost of the device using it depending on the cost of electricity in your country or region. Another very key cost is the cost of a standby, industry generator to power the mining rig in case of power failure which is a common occurrence in Nigeria.

The cost of electricity for Bitcoin Mining This is the most important cost to consider and it is the major determining factor as to whether or not to venture into the mining business. Other ancillary costs like renting a building, getting a support staff to monitor the rig, stable internet connection and maintenance in case of faulty hardware will also be taken into consideration.

To determine the profitability of Bitcoin mining, 3 major expenses must be considered which are the hardware, software, and electricity. The current value of Bitcoin will also be considered especially because the market is very volatile. The mining rig, software, generator and other ancillary cost shows how capital intensive mining can be.

These costs are enough to think twice about the mining business and another cost which may seem insignificant but very vital is internet speed. Mining is like a competition between different miners who want to earn a commission on mining the block. Without good enough internet speed, the rigs and software become useless and good internet speed in Nigeria is hard to come by.

The carbon emission from Bitcoin mining affects the environment negatively. Bitcoin produces more carbon emission than a leading America airline company, American Airline, that has more than million passengers a year. In Nigeria, we do not have a stable power supply that could make the business somewhat viable. Bitcoin mining is known to be an energy-intensive endeavour which Nigeria is not ready for. Online wallets. Bitcoin keys are stored online by exchange platforms like Coinbase or Circle and can be accessed from anywhere.

Mobile wallets. Apps like Blockchain store and encrypt your bitcoin keys so that you can make payments using your mobile device. Paper wallets. Some websites offer paper wallet services, generating a piece of paper with two QR codes on it. One code is the public address at which you receive bitcoin and the other is your private address you can use for spending. Hardware wallets. You can use a USB device created specifically to store bitcoin electronically and your private address keys.

Are people still making money mining bitcoin? Making money mining bitcoin is much more difficult today. The following are some of the issues contributing to this difficulty: Hardware prices. The days of mining using a standard CPU or graphic card are gone. As more people have begun mining, the difficulty of solving the puzzles has increased. ASIC microchips were developed to process the computations faster and have become necessary to succeed at mining today.

Rise in corporate miners. Hobby miners must now compete with for-profits — and their bigger, better machines — when mining to make a buck. Puzzle difficulty. The more computational power put toward mining, the more difficult the puzzle. Power costs. Power may be more expensive here than it is in other parts of the world, making it further difficult to compete with big-miner money. When discussing the feasibility of bitcoin mining, an unexpected variable rears its head: power consumption.

This catches a lot of prospective miners off-guard. After all, we rarely consider how much power our electric appliances are consuming. So the question we have to answer is this: will the small reward you earn from bitcoin mining be enough to offset the cost of power consumed? This leaves us with pools, ASICs and cloud mining. Must read: Cloud mining warning Cloud mining will almost never be profitable.

The reason it moves back is because Bitcoin mining difficulty tends to rise over time, especially as Bitcoin prices do. This means the amount of Bitcoin you get from cloud mining will usually decrease over time, which pushes back the break-even point. Bitcoin mining difficulty will usually only drop if Bitcoin prices do, but if that happens then your Bitcoin is worth less, which also pushes back the break-even point.

In the rare cases where a cloud mining contract turns out to be profitable, it will have been more profitable to simply buy cryptocurrency instead of cloud mining. Where to buy cryptocurrency Bottom line The rising costs of mining effectively and competing against large mining pools have made it harder for the hobbyist to profit on mining bitcoin. FAQs Do all cryptocurrencies use this kind of mining? A lot of altcoins kept the bitcoin model of proof of work as it has been shown to be effective.

Others have decided to break away from this process and instead have implemented a proof-of-stake system. This method only requires miners to have a certain amount of coins in their wallet. Users with more money, or users with money that has been kept in a wallet for longer, have a better chance of solving the block without any work required whatsoever.