How To Mine Crypto and Earn Bitcoin – NiceHash Guide
How To Mine Crypto and Earn Bitcoin – NiceHash Guide
What is NiceHash?
For most people that have heard of NiceHash, it is a way to mine cryptocurrency and get paid in Bitcoin ($BTC). Yet, that is just a narrow slice of the pie. NiceHash is also a Crypto-Exchange where you can buy and sell crypto as well as a place where you can rent crypto-mining power to participate in pool mining for specific tokens.
- Mining Platform
- Compute Power Marketplace
There has been quite a lot of discussion regarding NiceHash. Some swear by it and use it as a license to print money; others claim that they wouldn’t touch NiceHash with a 10-ft pole. Let’s walk through the main considerations so you can decide for yourself if NiceHash is for you.
Find out why I don’t think Bitcoin will Replace USD, although, it will remain a great store of value.
Disclaimer: I personally use NiceHash on my PC and have done so for several months. Read on to see how much.
- How Do You Make Money
- Why Use NiceHash
- Why NOT Use NiceHash
- Who Should Use NiceHash
- How Much Do I Make Mining with NiceHash
How Do You Make Money?!
One of the first questions you will likely ask is:
“If I’m not mining Bitcoin directly, how and why am I getting paid in Bitcoin?”-Me
Good Question. If you choose to setup NiceHash on your PC you have to choose a particular algorithm to run. Depending on the algorithm, your PC will perform computations called “Hashes”. The default algorithm is called “daggerhashimoto” referred to as “dag(g)”. This algorithm is most commonly used for mining on the Ethereum network; at this time ETH is still using Proof-of-Work (PoW) to mint new tokens on the blockchain.
When someone else wants to mine on the Ethereum blockchain using dagg but doesn’t have an army of PCs to mine with, they will rent the computational power from NiceHash; that might even include your PC’s work. The user renting from NiceHash pays a rental fee which compensates the miners (YOU).
Why You Should Use NiceHash
Put Your PC To Work. If you’re like a large number of people, you have a PC with more power that you regularly need. What is your PC doing while you’re at work? Is your PC doing anything while you sleep? If you answered either of those questions with “Nothing…” you might be surprised at the value you’re missing out on.
With a mid-range graphics card that came out anytime after 2015, chances are pretty good that you could install NiceHash and start your very own crypto-mining operation when your PC (mainly GPU) is not playing games. A quick look at the NiceHash Profitability Calculator can give you a pretty accurate estimate of just how much you could make..
Setup is EASY. You don’t need any technical knowledge to setup NiceHash. Start mining with QuickMiner in 3-steps:
- Download QuickMiner
- Run the installer
- Double-Click the Desktop Icon
Paid in BTC. If you want to be part of the cryptocurrency movement and get your hands on some Bitcoin, you’re in luck. Payment in BTC can be a blessing or a curse since the USD value is directly related to the price of Bitcoin. Keep in mind, you can hodl the BTC you’ve earned and sell it when the price is more favorable.
Electricity Cost. Are you concern that it will cost more to mine than what you earn? That’s a common misconception. Since the price of crypto has gone up, the gap between cost to mine and BTC earned has grown. Although you may not make money while BTC is worth $1USD, since BTC is over $50kUSD the profit margin has increased. Take a look at your most recent energy bill and use the cost per kWH with this calculator to see if it pans out for you.
Why You Should NOT Use NiceHash
There are three main reasons why you should be cautious of NiceHash and “wearing out your GPU is not one of them”.
Large-scale mining and the climate
There is an argument to be made that mining cryptocurrencies are bad for the environment – this is only a half-truth in my opinion. Although a mix of clean and coal-burning electricity is used to mine crypto and power the blockchain, consider the amount of energy required to hold up the infrastructure needed to support a FIAT currency such as the U.S. Dollar or Gold. Bitcoin mining operations are estimated to use ~127 terra-watt hours (TWh) of electricity per year as compared to gold mining at ~140TWh.
I do not have a concrete source to site for this example, yet, consider the energy costs and carbon emissions associated with: Bankers, Finance Regulators, and Government Officials. All of which require varying amounts of energy for their buildings, cars, and other consumable goods. Additionally, consider the environmental impact of mining for resources such as gold. Up to 20 tons of waste is created while producing a single wedding band.
Renewable Energy for Mining
A recent study from Cambridge University shows that as much as 39% of all Bitcoin mining operations are powered by renewable energy sources, mostly hydroelectric. However, that’s not nearly enough. Even though 79% of bitcoin miners site some use of renewable energy, there’s huge room for improvement.
According to Mr. Wonderful, Keven O’Leary, institutional investment companies may begin to tighten the screws when it comes to where individual bitcoins can originate from. Specifically, “Chinese Blood Coins” or coins that are mined in countries or regions with limited respect for the environment and human health – will be strictly disallowed. This could be a massive reason for current and future crypto-mining companies to adopt higher-quality environmental standards and invest in renewable energy.
In the past, one of the co-founders of NiceHash was involved with the creation and distribution of malware. The co-founder served time and has (as far as we know) been on the up-and-up ever since. Keep in mind NiceHash has a team of 30-40 developers and managers. It’s unlikely that they’d all be involved in a new malware scheme.
NiceHash Wallet Hack
In 2017 NiceHash lost over 4,000 BTC to hacking. The stolen BTC belonged to individuals participating in the platform. As a result, security has been increased and NiceHash has reportedly repaid 100% of the lost funds to the individuals that lost coins.
Who is NiceHash For?
If you are new to crypto-mining, have a small number of devices worth mining on, and are not super tech-savvy – NiceHash is PERFECT! It’s a simple way for you to use your existing hardware to generate additional “passive income”. The money received for using NiceHash is the closest thing to free money that most of us have ever seen.
On the other hand, DO NOT use NiceHash if you intend to set up multiple devices specifically for mining or if you want to pick exactly which pools you contribute your resources toward. It is technically possible to get better returns by configuring your own mining software and joining a mining pool. Yet, if you’re a crypto-newbie, it’s really not worth the extra effort for an extra $5/month.
How Much Do I Make?
I have a modest, yet modern build that contains a single Nvidia EVGA 3060 TI (affiliate link). I keep NiceHash running nearly 24/7, even when I work – the only exception is when I play video games, not nearly as much as I’d like these days. According to the NiceHash calculator (shown below), can make about $6.24 / day. That’s actually VERY accurate.
If you take a look at the last week, I’ve been mining almost 24/7, with the exception of a few hours. During the course of the week, my daily payout was $6.29. That may not seem like a lot, but, it’s enough to buy lunch. Every. Single. Day. Let’s do some quick math.
|Daily Gain||Weekly Gain||Monthly||Yearly|