Many crypto currencies use mining as a blockchain technique, also known as Proof of Work, a network of computers checks the transactions by executing heavy calculations using the CPUs or GPUs. We will tell you more about building such a PC later. For this article it is especially interesting to look at the efficiency of such a mining rig. We do this based on an example. We assume a mining rig of around 3000 euros (for example 6x RX470 / RX570 of 800 W) and average electricity costs of 20 cents per kWh.
The Very First Step
The first step is then to calculate the effective electricity costs: the price per kWh × the number of watt consumption × the number of hours the rig is on per day. It is advisable not to assume 24-hour uptime, as problems may also occur. Many miners take into account about three hours a day of downtime as a conservative cost calculation. In our configuration we arrive at: 0.20 euros / kWh × 800W × 21 hours = 3.36 euros per day, or around 100 euros per month.
- To be able to mine effectively, it is necessary to participate in a mining pool: a group of miners who collectively look for the coins. To participate in such a pool, submit an average of 2 percent of the revenue at the time of writing. Next, mining software is also required, which in many cases also requires an amount of approximately 2 percent or less of the revenue. Together that is about 4 percent that you must immediately write off as a ‘mining tax’. With XTR gate Crypto trading platform blog .org you can have the perfect options available now.
Finally, there are transaction costs of the coins to get them in a wallet and to convert them back into euros. If you currently send 1 Ethereum to a wallet, you will pay about 0.002 Ethereum in transaction costs. To convert these to euros, the Ethereum must be moved to an exchange, which again requires transaction costs. Therefore, count on top of the previously calculated costs an additional 4 percent for all conversion costs back to euros.