In April 2021, a study showed that the most mining pools across the globe came from China. You might be new to the world of bitcoin but we’re here to explain what bitcoin mining is, and why it is important to have an uninterrupted power supply (UPS) and other equipment you need.
The man said to be behind the creation of Bitcoin is Satoshi Nakamoto. Although he has never revealed himself as there are many other names linked to cryptocurrency and he apparently did not work alone. The mystery still lives on today. Many more people are coming forward claiming to have started bitcoin.
What is Bitcoin?
A cryptocurrency is an electric form of money and Bitcoin is a type of cryptocurrency. Bitcoin is distributed and used as payment through a computer. You can withdraw and send payments through your smartphones and credit cards. Digital money can also be withdrawn as cash.
The difference between physical money and Bitcoin is that it is not a government-issued currency, instead, it is operated by a decentralized authority. Bitcoin is kept on a public ledger on a computer. Since Bitcoin was created in 2009 its popularity encouraged more cryptocurrencies.
Bitcoin (Cryptocurrency) Mining
Cryptocurrency mining is a term that refers to the process of gathering cryptocurrency as a reward for work that you complete. Computers solve cryptographic equations by authenticating data blocks and transactions that are added to the blockchain. These transactions made are put on a public ledger, this process is called mining.
For every transaction made on a ledger, a bitcoin is rewarded to the miner. It is easy to mine and many people can become a moneymaker. But of course, you need the right equipment to avoid destroying your hardware.
Importance of a UPS when mining
Many people do not understand the importance of purchasing the right hardware to mine, especially as you will be mining 24/7. You will be needing good-quality PCs, servers, and other electronic devices. For example, if you experience a sudden power surge or a blackout your equipment can be wrecked and you will lose all your progress.
Start with an uninterruptible power supply (UPS). Here is a list of things it can offer you:
- Protects against power interruption
- Provide adequate power during short-term interruptions
- Refine the quality of the power as it reaches your building, office, and equipment
- Include a backup source for long-term outages, such as generators
Types of UPS
There are three main types of UPS’ you can choose from standby, line-interactive, and double conversion.
A standby UPS gives you the basic features. It has battery backup and surge protection. This type of UPS helps in switching on the inverter to provide power to the load. You should choose this is if all you need is a short-term power source that can safeguard data and your valuable equipment from power surges, spikes, and dips. This kind of UPS is the most preferred option for those whose priority is to protect your computers, modems, VoIP equipment, and other hardware.
Second is the line-interactive, which is best for those who don’t have power outages often. They monitor the voltage levels and balances under and overvoltages. It is the most affordable UPS that provides a decent amount of protection. This UPS operates from the mains during normal operations. It incorporates different filters to give you stable voltage and helps suppress spikes and transients.
Lastly, a double-conversion UPS filters and converts incoming utility power to DC power. It converts incoming alternating current (AC) power to direct current (DC), and back to AC. This type of UPS is best suited for high-end equipment, such as corporate, labs and other critical or sensitive electronic devices
Other Equipment Needed for Mining
When you start mining your monitors will never be turned off. To prevent your mining area from overheating your room should have rack cabinets for installation and cooling. Cable management systems allow each cable to be routed in an industry-standard method.
A rack cabinet can be a two-post, four-post, enclosed cabinet, or open-frame rack. It can allow airflow through your servers and help keep them organized.
There are many sizes of rack cabinets depending on how much equipment you have in one room. It helps save space as it allows multiple devices to be held in one place and can even hold heavy hardware units. A server rack offers your equipment maximum protection as it helps you manage your network infrastructure.
All your equipment needs to be well taken care of. Your servers could probably cost you a lot of money and so a server rack makes sure that they are secure to avoid anyone stealing or tampering with them.
It is very convenient to have your servers easily accessible so that if there are any problems your technician can locate wires from behind while on the rack.
Switches & Routers
Switches are an important piece of equipment for any type of business. It connects everything you use in your everyday lives, PCs, printers, access points, phones, lights servers, and so on. A great switch will enable you to send and receive things in a secure way. You can choose a switch that best fits your business to provide you the quality of service your business demands.
Routers connect switches to pave way for communication across multiple devices. It delivers internet to all devices depending on its capabilities. You can choose from wireless or wired routers. A wireless router allows multiple devices to connect without a cable using a built-in antenna instead. A wired router uses a port or ports to connect devices to the internet.
If you want a more stable connection a wired router is better as it offers a consistent connection. Whereas you can use your devices anywhere in the room the connections can sometimes be sensitive if you try to connect from a distance.
You can now build your mining rig to efficiently mine and start earning bitcoin. There are tons of brands to choose from but knowing what equipment you need and why you need them is a great start. It is important to maximize your investment to reach your goals and enjoy what you are doing.
Ardent Networks Inc. is an IT solution and distributor that can help you solve any of your IT challenges. In regards to UPS systems, they have a selection of each type of UPS’ that are mentioned above. You can take a look at Vertiv and Delta on Ardent’s website for more information.
For further solutions, Ardent also has wireless routers from Fiberhome, switches from Cisco, and cabinet racks from Panduit to help you succeed in mining.