Earn Easy Money Mining Ethereum
Passive income is great. We are used to working hard for our money and have few opportunities to make it with minimal effort. Ethereum has gained over 1,300% since last year, making mining viable in a variety of scenarios. If you have a gaming computer or workstation at home with a modern graphics card (GPU), depending on your hardware, casually mining Ethereum while your computer is idle can generate a few coins per month. You can easily earn a hundred dollars.
In this post, I will show you what mining is, what are the options for mining Ethereum, and how to set my preferred method. In 10 minutes you can try mining Ethereum and see if it works for you.
Note:
I recently wrote an introductory article on how cryptocurrencies work, explaining their purpose and what happens when you use them. If not, start reading this post and then come back here.
Background
global chip shortage
Many people are aware of the unprecedented graphics card shortage that is occurring today. Over the past few months, if he's been gaming, video editing, or deep into building a learning workstation, chances are he couldn't get a latest-gen graphics card like the Nvidia 3080. These days, even used Nvidia 1070-like cards sell for $500, which is well above the $380 retail price in 2016! , how are they being sold at original retail prices? The full answer involves multiple factors, including the far-reaching impact of COVID-19 on global trade, but the main reason for the GPU shortage is Ethereum mining.
Nvidia has publicly stated that it is seeing unprecedented demand for its products and that supply is not as limited as some might think. As TomsHardware published this article, Nvidia's GPU shipments increased slightly in Q4 2020 compared to 2019, but demand far outstripped this supply. This demand is a mix of people who need computers for working from home, gaming, and cryptocurrency mining. Today, if you are mining with a 3080, the ROI of the 3080 is almost guaranteed. As long as the value of Ethereum remains constant, the card will pay for itself in a few months. If you have a lot of cards, it pays off faster. As the value drops, more demand for cards accumulates on the second-hand market. From gamers to pros.
Basics of mining
The simplest way to describe Ether mining is that people borrow hardware time and processing power to process transactions on the Ethereum network.
The underlying technology of cryptocurrencies is blockchain. Blockchain stores transaction data in blocks chained in a timeline. As transactions come in, they are added to the block, and when the block is full, miners can compete in the process of creating (adding) them to the blockchain. Bitcoin and Ethereum use what is known as the Proof of Work Consensus Protocol, which allows miners to prove to the majority of members of the network that the transactions they wish to add are valid. , you need to prove that a certain amount of work has been completed. The work they do to prove that a transaction is valid is guessing the solution to a very difficult math (cryptographic) puzzle. This is why you need a good modern graphics card to solve math problems.
When a block is ready to be added to the blockchain, the first miner to guess the correct solution gets the solution.
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