The rise of cryptocurrency has unlocked a floodgate of new opportunities just waiting to be exploited by the curious among it. With an INSANE amount of attention towards adopting this new form of currency, many have begun to take it a lot more seriously in 2021.
One of the new opportunities that has presented itself due to the sudden interest in cryptocurrency is mining Bitcoin. Although it is relatively new, the potential for the endeavor has proved to be extremely lucrative in the long run.
In this post, I aim to guide you as to how exactly I am taking advantage of this new and exciting concept, and how I have grown it into something that has allowed me to make an extra $1000 per month PASSIVELY as a 21 year old in college. After reading this, you will be equipped with all of the necessary knowledge needed to build a mining rig of your own and begin to see the profits!
Table of contents:
- What is Mining Bitcoin and How Does it work?
- Why Bitcoin Mining is Profitable.
- Making Passive Income Through Your Mining Rig
- Your Bitcoin Mining Rig as an Asset
- So How Do You Begin Mining Bitcoin?
What is Mining Bitcoin and How Does it Work?
Mining Bitcoin isn’t exactly what you think it is from the name. When we say “mining” we aren’t talking about generating new currency in every instance. Instead, we are talking about approving transactions which are occurring on the blockchain.
Now STICK WITH ME because I know this may sound extremely alien at the moment, but soon you will understand exactly what I mean by this.
Because cryptocurrencies like Ethereum are decentralized, meaning they aren’t controlled by a specific governing body, the blockchain is used to determine the authenticity of a transaction when it occurs. This is important because if it weren’t for the blockchain, the use of cryptocurrency would have no validation behind what it’s worth and where it has been. A new creation on the blockchain allows those who handle crypto to feel safe knowing that what they own is REAL and AUTHENTIC.
The blockchain has allowed cryptocurrency to become all that it is today, but why is this important to us?
As crypto miners, the use of a blockchain is the very reason that we are able to make money. Typically, a centralized currency has something like a bank, or the government, to approve transactions and track where specific currency has been. This is increasingly more true as money seems to be becoming more and more digitalized.
HOWEVER, because most cryptocurrencies are decentralized, there isn’t a bank that is established to be able to approve those transactions. That’s where cryptocurrency miners come into play.
Every time a transaction occurs on the blockchain and someone buys, sells, or trades using cryptocurrency, a new part of the blockchain is created. That transaction is then sent to a miner, like you or I, who approves that transaction and gets paid while doing so.
If you have ever seen those cryptocurrency warehouses which are currently being built with rows and rows for graphics cards, this is exactly why. The more graphics cards, the more transactions which can be approved.
Now that we know what mining Bitcoin is, I’d like to explore exactly why this is an amazing investment for anyone to be apart of, especially now. The potential for undergoing such an endeavor is PROFITABLE and EXCITING.
Why Bitcoin Mining is Profitable.
Cryptocurrency in general has been a very profitable endeavor for those who have been able to “buy in” during the most opportune times. Because the market is so volatile, people who have owned Bitcoin or Ethereum have experienced HUGE returns on their investment.
While some have been able to gain a piece of this plentiful pie, many are still skeptical about the integrity of their investment into Bitcoin. Let me tell you, I was too.
Then I came across Bitcoin Mining. I soon realized that by investing a portion of my money into a machine called a mining rig, I would be able to participate in this new and exciting market, without having to put in any of my own capital. Instead, I could feel ok knowing that I could mine and approve transactions, and if anything went wrong, I could sell the rig and break-even and in some cases even make a profit.
This is why I believe that everyone should be investing in a Bitcoin Mining rig. If you are also skeptical, this is a great opportunity for you to be able to put money into the market at no extra cost than your initial investment.
Making Passive Income Through Your Mining Rig
Not only will you be able to participate in the growth of this new and exciting industry, but you will also be making money all the while.
Many of the most successful people during the time of the Gold Rush weren’t the people who were mining the gold, but instead it was the people who were supplying the miners that were all on their journey to find their fortune. They found THEIR fortune out of the people who were searching for their own piece of the new found gold.
I view cryptocurrency in the same fashion. If the Bitcoin market is going to be extremely versatile and people are going to be putting hundreds of thousands of dollars into it, then there needs to be someone who is approving those transactions for those people. That’s where you and I come in.
Due to current transaction rates, with a 5 GPU mining rig, you can expect to make anywhere from $800-$1000 a month. JUST FOR RUNNING A SOFTWARE. No extra work must be done on your side except for the occasional maintenance checks that the machine requires.
Your Bitcoin Mining Rig as an Asset
Not only does Bitcoin mining make you passive income, but it also provides you with an asset that is in extremely high demand. As of today, the graphics card market has become extremely inflated due to the lack of graphics cards being created. A graphics card that would usually cost $500 is selling for $1400 on eBay. If you can get your hands on a couple of these GPU’s, your mining rig will prove to be an asset in itself while it generates money for you.
Many of the greatest investors of our time have expressed how idle money is dead money. I encourage you to put it to work, so that it is also making money for you on top of your hard earned fruits of labor.
I don’t want you to feel intimidated by all of this so find comfort in knowing that there are tips and easy-to-use software out there that makes this process a lot more digestible. Now that we know exactly what the blockchain is and what a miner’s role in it plays, as well as why Bitcoin mining is a great investment, we are now ready to discuss HOW to actually mine.
So How Do You Begin Mining Bitcoin?
I want to begin with this. I am a 21 year old who is currently in college and still has A LOT of learning to do. Not just in my studies but also in life. If I can build this rig, then you can as well. So don’t be discouraged if something like this seems to be over complicated. I’m going to try my best to make this as simple and straightforward as possible.
To begin, I want to provide a list of parts that you should begin to look into. I have already created a post which goes deeper into this and provides the EXACT parts that I use in my mining rig to produce $1000 a month.
If you would like to go to this post, click the link here.
Otherwise, here is a summarized parts list of pieces you will need to build your Bitcoin mining rig. These are the EXACT pieces that I currently use in my own setup.
- Gigabyte GeForce RTX 3070
- ASUS Prime Z390-P
- Intel Core i3-9100F Processor
- Corsair 850 Watt Fully Modular Power Supply
- Western Digital 1TB Hard Drive
- Mining Rig Frame for 6 GPUs
- Powered GPU Risers
- DDR4 RAM
Now that you have your parts list, you can go ahead and start to search the internet for the pieces that you’ll need to build these rigs. Be warned, because of recent effects of COVID, some parts are hard to come by and you will have to put in a little extra effort to attain them, but it is entirely worth it. Putting in the time to attain those hard to find pieces will inevitably pay you plentifully in the long run.
As far as software goes, I HIGHLY recommend that you use NiceHash. NiceHash has been extremely helpful as it provides an all-in-one, built-in package, which makes mining as easy as pushing a button. All you have to do is download the software and NiceHash will guide you through the necessary steps of beginning mining.
I would also recommend downloading MSI Afterburner, as this will allow you to overclock your cards, enabling you to push your cards to their true potential and maximize your profits.
Putting the Rig Together
When putting the rig together, there are many great resources that you can go to which will show you step-by-step exactly how to undergo the process.
YouTube has played a substantial role in my education in this field. If you have any questions while putting the pieces together, type it into YouTube. I guarantee that someone on the internet has solved whatever problem you might go through.
If you would like the video that I specifically used when putting my rig together, click here.
Above is all that I can provide of the knowledge that I currently have to beginning your Bitcoin Mining journey. While this can be a lot to soak in, it is extremely lucrative in the long run. An extra $1000 added to your income can be dedicated to so much more, inevitably compounding your equity in the long-run.
I understand that you may have lots of questions when it comes to this so don’t hesitate to reach out should you come across an obstacle, I am more than happy to talk with you, the reader!
Sign up to be the first to know when new financial tips and tricks are released!
Andrew Martinez, owner and writer of Minerva Money