Minting new Bitcoin Gold (BTG) tokens and adding them to the Bitcoin Gold ecosystem is known as mining. In addition to safeguarding the network from malicious users, mining is in charge of verifying transactions made on the blockchain.
Mining is essential to Bitcoin Gold’s survival since without miners, the entire system will crash. One can mine Bitcoin Gold alone or in a pool with other miners in order to collectively earn BTG.
What is Gold Mining for Bitcoin?
Banks serve as middlemen in conventional financial systems, facilitating transactions between two parties. They have control over their users because, as data custodians, they must update ledgers, or records.
This can result in power abuse, and there are numerous cases throughout history of banks mismanaging the money of their customers and even restricting the flow of money, even to the point of freezing accounts and leaving individuals stranded.
There are no banks on the Bitcoin Gold network, and miners, who verify every transaction, maintain the ledgers up to date. All parties are welcome to try transaction validations on BTG to prevent any one entity from becoming dominant among the miners.
To solve puzzles, all they have to do is utilize their computers. With this free-for-all approach, the first miner to solve the equation gets to append the transactions in a group known as a block. Bitcoin Gold tokens, which are used as block rewards, are used to pay miners for their labors.
Why Miners of Bitcoin Gold Are Important?
Miners maintain the correctness of the digital currency’s ledgers by validating transactions. They make sure wallets are debited and credited in a timely manner to prevent double-spending by broadcasting information on the Bitcoin Gold network.
This is known as the “double-spend problem,” and it was the reason behind the failure of all prior attempts to create a working digital currency prior to Satoshi Nakamoto’s great idea of blockchains.
Like its original blockchain, Bitcoin Gold validates transactions by having miners use their processing capacity to solve mathematical equations based on game theory models.
Block rewards are used as an incentive in exchange, providing individuals with a cause to continue working. To maintain competition and the stability of the system, Bitcoin Gold raises the difficulty of the validation puzzles as more miners join the network. The processing power devoted to the network is measured in “hashes.”
Limitations on Bitcoin Gold Mining
In October 2017, the hard fork known as Bitcoin Gold was separated from its parent network. The split was started by a group of Bitcoin miners who thought that the old chain’s extraordinarily high hashrate was bad for decentralization since it limited participation to affluent miners who could afford powerful rigs, so establishing a new class of “elites.”
While Bitcoin Gold employs the ASIC-resistant Equihash algorithm, which gives mining power back to tiny participants who may use their GPUs, the Bitcoin blockchain uses the energy-intensive SHA-256 Proof of Work (PoW) method.
With a maximum supply of 21 million coins, a block duration of 10 minutes, and a reward of 6.25 BTG, the technical characteristics of the block are the same as those of Bitcoin. Value is created in large part by the block reward and the restricted coins.
The block rewards undergo a 50% reduction approximately every four years, an occurrence known as the “halving.” As adoption rises over time, demand is pushed up while supply is shocked by the halves of issuance. The value increases due to the application of the fundamental economic principle of supply and demand.
An explanation of the technical aspects of mining Bitcoin gold
You should be aware of some of the technical aspects of mining, such as the hashrate and what occurs when it increases, as well as the hardware needed, before deciding to utilize your GPU to start mining BTG.
What is meant by hashrate?
A hashrate is a measurement of the number of cryptographic puzzles that can be solved in a specific amount of time. Put simply, a hash is a riddle that the Bitcoin Gold network presents. The overall BTG hashrate, which can also be seen as network security, is the sum of the hashrates of all the miners.
Why does having a greater hashrate matter?
A block is more likely to be mined by miners with greater hashrates than by others. A blockchain’s code adjusts the complexity of the equations that must be solved as its total hashrate rises, making mining more difficult. As a result, the time needed to mine each block remains consistent.
It becomes more difficult to carry out a 51% attack and take control of the Bitcoin Gold blockchain with a larger hashrate. To take control of the chain, an attacker has to possess 51% of the network’s hashpower. A high hashrate secures the network by making it more difficult and costly to accomplish due to hardware costs.
How is the hashrate calculated?
The quantity of hashes performed per second is known as the hashrate. Typically, kilohashes/s, megahashes/s, gigahashes/s, and so on are used as the units. Because it is a fork of Bitcoin, the network size of Bitcoin Gold is comparatively lower, and the Equihash PoW algorithm uses GPUs rather than ASICs to process large numbers. The hashrate of the BTG network is therefore expressed in MH/s.
CPU and GPU processing power
Because Bitcoin Gold relies on the Proof of Work principle, to claim a block, miners must use their computers to do calculations and submit the correct answer. A miner with more processing power will have a greater hashrate.
When Bitcoin first started off, miners used their CPUs to solve block puzzles. However, they soon discovered that their GPUs were better suited for mining, so they switched to their graphic cards. Eventually, Field Programmable Gate Arrays (FPGAs), which are devices that can be customized to meet the needs of the user, became available to miners.
Eventually, Application-Specific Integrated Circuits (ASICs) took their place. These powerful devices are designed with mining as their primary use for all of their computing capability.
Because more people could not mine, several miners thought that the use of FPGAs and ASICs went against Satoshi Nakamoto’s original aims.
Equihash, a new PoW algorithm launched with the Bitcoin Gold fork, renders the use of these sophisticated devices for mining useless. GPUs can now be used to mine BTG, returning power to the people.
Hashrate required for profitable Bitcoin Gold mining
Since miners cannot utilize their ASICs and other sophisticated equipment, they have typically been against Bitcoin Gold, and the hashrate isn’t that high due to the comparatively modest power of GPUs. As of this writing, the BTG hashrate is approximately 6.84 MH/s.
Unless many devices are connected to work in tandem, employing standalone mining rigs is not practical due to GPUs ranging in power from 100 to 700 H/s.
Profits are not assured even in those cases because there are pools where hundreds of miners collaborate to answer the problems. To be effective, you would require power in the upper kilohashes per second range.
Bitcoin Gold Mining’s Benefits and Drawbacks
Advantages
- Since a block reward is 6.25 BTG and one BTG is around $46, earnings can be substantial.
- Because it is immune to ASIC, mining is simple.
- Reduced electricity costs in comparison to ASIC-friendly algorithms ensuring long-term network security.
- Higher profitability results from mining with a less expensive electrical supplier.
Disadvantages
- Few crypto-exchanges provide BTG support.
- Mining can use a lot of electricity, which will raise your utility costs.
- GPUs with more power come at a higher cost.
- Thorough investigation is necessary to prevent mining pool frauds.
How to Begin Doing Your Own Gold Mining for Bitcoin
We will now walk you through the process of setting up your Bitcoin Gold network mining operation. This is where you will find out about pertinent software, various hardware types, and other pertinent information.
Top Bitcoin Gold Mining Hardware
Profitable solo mining is extremely tough, even with the Equihash PoW algorithm for BTG and the low hashrate of the network. To have a chance of receiving a block reward, you will need to spend money on many top-tier GPUs, but it is doable. If you want to make more consistent profits, you can always choose to join a pool.
Check out our variety of GPUs if you’re interested in purchasing your own mining equipment.
For beginning miners, the NVIDIA GeForce GTX1060 is an ideal device. It’s not the most efficient mining gadget, but it’s probably the best. Because of its small size and clock speed of about 1600 MHz, the gadget is suited for BTG mining enthusiasts who do not wish to invest heavily in power.
It can be challenging to locate the gadget because of its high demand despite just drawing 120Wh. As little as $300 can be spent on the 1060.
Perhaps you should look into the AMD Radeon RX580 if you have a limited budget but yet want a reasonably strong hash power. AMD is well-known for producing high-quality hardware, and the RX580 is no exception.
With just $50 more than the GTX1060, you can obtain up to 29 MH/s from this card with a few small tweaks here and there in the parameters.
You should choose the top-tier NVIDIA GeForce GTX 1080 Ti if your electricity is reasonably priced. The GPU uses 250 Wh and has a maximum speed of 32.3 MH/s.
Because of this, it’s only a prudent decision if your utility costs are minimal; if not, your profits will be rapidly reduced by the electricity bill. The power is also reflected in the price, which is $860.
Other Expenses to Think About
Naturally, the GPUs are not standalone devices; you will also need to purchase appropriate computer systems with compatible hard drives, motherboards, processors, and other components. These may also cost you many hundred dollars.
Your utility company will be a major factor in your earnings. Naturally, lower electricity costs translate into lower bills. The cost of cooling comes next. These devices can produce a great deal of heat, particularly when several of them are connected to aggregate their hashrate. Even tales of miners using their GPU rig heat to warm their greenhouse have been circulated!
Applications
To mine any cryptocurrency, let alone Bitcoin Gold, you will need software. The app facilitates the process of linking your hardware devices to the BTG blockchain. Before you start mining for the available reward, you use the UI to configure the mining parameters.
You should only use mining software that is compatible with your hardware because different mining software supports different kinds of graphics cards.
While some software is compatible with Windows and Linux OS and can be downloaded to a desktop computer, others are optimized for mobile devices running Android and iOS. Remember this when selecting your mining program. Prior to moving further, if you are utilizing a mining pool, you should ascertain which products are supported.
Which applications are used by users to mine Bitcoin Gold
A novice miner won’t have any trouble finding a suitable one because there are many vendors of Bitcoin Gold mining software available on the market right now. However, which program is most frequently used by miners of BTG?
OptiMiner: OptiMiner is a software program that works with both AMD and Nvidia graphics cards and is compatible with Windows and Linux.
Claymore’s Dual Miner: With an intuitive user interface, the Dual Miner is an excellent software application. It works with both AMD and Nvidia graphics cards and is compatible with Windows.
EWBF Miner: EWBF works well with Nvidia GPUs and is compatible with Windows and Linux operating systems.
Is it Possible for Me to Mine Bitcoin Gold on My PC?
As previously mentioned, Bitcoin Gold mines using a CPU and GPU-based method that is resistant to ASICs.
In this instance, you can mine with any of these potent laptops or your desktop computer. You won’t like how slow it is, even though you can theoretically mine Bitcoin Gold on your computer’s processor. Additionally, you probably won’t be able to mine any BTG using the PC alone because it lacks the processing speed necessary to compete with strong video cards.
Give your home-grade processor a boost by adding dedicated GPU power if you want to utilize it to mint BTG and maybe earn more money than just energy.
Six video cards, a solid hard drive, RAM (4 GB or more), a motherboard, a power supply, and a cooling system are required, as was previously described.
Once they are set up, you may put together a basic yet sufficiently strong GPU mining rig to use with your PC. If you are unable to maintain the aforementioned configuration, considering mining on your home computer is akin to testing the rate at which harm can be inflicted upon it.
Technical Expertise Needed to Produce Bitcoin Gold
Mining can be a challenging hobby, particularly for a novice who is unfamiliar with the technical jargon employed in the industry. To start mining, you’ll need the appropriate equipment, but knowing how mining operates will help you get started even more quickly.
We have provided a short explanation of crypto mining vocabulary to assist you understand some of the terms.
Consensus algorithm: A collection of network guidelines that permit decentralized agreement on the legitimacy of blocks. Proof of Work consensus algorithms come in various forms, one of which facilitates mining on blockchains such as Bitcoin Gold. A few particular examples include CryptoNight, Equihash, Scrypt, and SHA-256.
ASIC-resistant: An algorithm is resistant if it doesn’t allow the usage of ASIC miners that are expressly made for it. Because network developers have made mining on the network memory-intensive, miners need more memory than an ASIC device can hold.
Block: An area of the blockchain where a list of confirmed transactions is kept. The network’s expanding chain can add additional blocks only through the mining process.
Block time: The approximate amount of time that miners need to calculate a block’s hash and add it to the blockchain. Bitcoin and Bitcoin Gold both have a block generation duration of ten minutes.
Miners receive this as their block reward when they successfully locate a new, legitimate block. The block reward for Bitcoin Gold decreases every four years. Miners currently make 6.25 BTG.
A measure of mining difficulty is the amount of labor that miners must do in order to locate a valid block. The difficulty might rise or fall on a regular basis to maintain block time within the approximate 10-minute window.
Hash rate: The amount of processing power a miner needs to solve the block puzzle and calculate the hash function. It’s just your hardware’s processing speed expressed in hashes per second. Higher hash rates and faster block reward discovery are associated with greater power.
Mining profitability is the amount of money you can make with the specified hash rate after deducting expenses for hardware, electricity, and the price of the coin. It is simple to calculate the profitability of well-known BTG mining rigs using mining calculators.
Now that your hardware is configured and operational, all you have to do is download the appropriate mining program. However, remember to set up your Bitcoin Gold wallet first. The mining program will require a valid wallet address from you because the earnings will be paid out in BTG.
The most widely used mining software programs that support the Equihash Proof of Work algorithm are GMiner and MinerGate. The program is available for download, and you can set it up on your PC. When your GPU device is detected, the mining software will launch the necessary algorithm to mine BTG.
By joining a mining pool, you may always raise your chances of making money. These pools, which aggregate the hashrates of miners worldwide, have a far greater chance of winning the block rewards. If pool mining interests you, you can look into 2Miners and MinerGate.
Services & Solutions for Mining
Pools are a good way to increase your mining profits, as was previously discussed. Pools provide you the opportunity to fight with the top players and advance in the game by combining the hardware power of several machines. However, there are several disadvantages to pools.
First off, everyone in the pool will get a portion of the profits as you won’t be the only one to stake a claim on the recently discovered block. Your hashrate contribution to the pool determines how much of the rewards you will receive. Because of this, pooling will increase the likelihood of a payment, but the amount will be much reduced and could not be sufficient to pay for your rigs’ operating expenses.
Keep in mind that a bigger pool may increase the possibility of a block reward claim but decrease your payout because your portion of the pool will be smaller. There are pools that mine more than one coin, so you can make money from more than simply BTG.
Take a look at their payment schedule as well. Mining pools typically offer four different options for you to benefit. Pay Per Share (PPS) is a simple technique in which pools distribute a predetermined sum whether or not a team mines a block.
Many miners find that this is a smart way to guarantee a consistent income stream despite the low payment because there is no risk involved. Full Pay Per Share (FPPS) is a variant that follows the same idea but adds transaction fees that are paid to the miners to the block rewards.
Pay Per Last N Share (PPLNS), an additional payment option, is a sophisticated way to calculate your portion of the rewards; it is only paid out in the event that a block is mined. This implies that although you might not always get anything, you will always get more when the pool mines a block successfully.
One well-known Bitcoin Gold pool is MinerGate. All you have to do is sign up on the site and use the supplied server URL to connect your mining program. MinerGate is simple to set up, operates on the Pay Per Last N Share concept, and charges a 1% pool fee.
Another pool supported by BTG that employs the similar PPLNS mechanism is called 2Miners. It takes a little more work to connect to the pool because you have to change the BAT file on your GPU. Fortunately, they have a thorough lesson with a video on how to go about it for anyone who are not familiar with it.
If you discover that purchasing and managing a mining operation isn’t your thing, cloud mining is a viable option. By using an online marketplace to rent out other people’s GPU capacity, you can avoid investing in hardware altogether and have someone else do the mining.
Even while cloud mining saves you a lot of money, you still incur charges and can pay more than you should in the long run. To determine which profitability calculator is best for you, search for and evaluate many of them.
A nice site to start cloud mining is MiningRigRentals. Prospective miners that are ready to rent out their processing power can be found on their sizable marketplace.
Details like the hashrate you will receive, the fee per day, and the minimum and maximum number of hours you can rent it out are all included in the marketplace. We accept Bitcoin, Ethereum, Litecoin, and Bitcoin Cash.
Good rates are also available from NiceHash, which divides the markets based on regions. You may observe the speed allocated for the contract, as well as the number of miners in the cloud pool, the maximum rental amount, and the cost of the contract, by looking through the various rental options.
There are several other sites that provide cloud mining service for Bitcoin Gold; nevertheless, you must exercise caution while choosing them. Payment is always required up ahead, and there’s a good potential that scammers will take your money if the service isn’t dependable. Examining Trustpilot evaluations might assist shield you from fraudsters and con artists.
How Much Money Can Be Made Mining Bitcoin Gold?
A crucial factor to take into account when mining any cryptocurrency, including Bitcoin Gold, is profitability. Even though mining BTG can be profitable right now, your success rate will rely on a number of variables, such as your initial outlay and administrative expenses.
Use a Bitcoin Gold mining calculator to find out how profitable mining BTG will be at the time of your investment plans. Based on the following characteristics, you may then determine how much money mining BTG will bring you in a day, a week, a month, or a year:
After mining, where should I store my coins?
No matter if you mine BTG alone, in a pool, or on the cloud, you’ll need somewhere to keep your profits. You should first set up your wallet address because every software program or service will ask for it in order to process payouts.
You have three options for managing your BTG: utilize a smartphone wallet for convenience and accessibility, buy a hardware wallet for long-term, secure coin storage, or set up a wallet on a cryptocurrency exchange for trading or liquidating.
Disclaimer : This article was created for informational purposes only and should not be taken as investment advice. An asset’s past performance does not predict its future returns. Before making an investment, please conduct your own research, as digital assets like cryptocurrencies are highly risky and volatile financial instruments.
