RIOT continues to work on increasing the hash rate and reducing energy consumption
Bitcoin was developed by Satoshi Nakamoto in 2009 as a peer-to-peer payment system. It has captured the minds of millions of people and many people have been fortunate enough to get their hands on these precious coins without even buying them. But how exactly did people get their hands on such a valuable asset?
People have used a process called mining which involves processing recent transactions by using computing power to solve complex equations and add new blocks to the blockchain. When these complex equations are solved, new bitcoins will be released as a reward.
In the early days, when Bitcoin was just gaining traction, it was as easy as using a standard computer as the difficulty for me was so minor that it didn’t use as much energy. Because cryptocurrency is so popular these days, it requires special devices that can deliver large amounts of electricity over a long period of time.
Some of the specific hardware a person would need include:
- Graphics Cards: This is what the hard work will do in solving the complex equations
- Power Supply: It is important that you invest in the right power supply as you will need one that can deliver a large amount of energy over a long period of time (often 24 hours).
- Motherboard: If you are looking for a dedicated motherboard, it is recommended that you get one with as many PCI slots as possible, as these will give you more slots for graphics cards.
Even if you have all of the hardware required to mine Bitcoin, it doesn’t mean you are profitable. What if there was a way to be profitable and not even have to mine Bitcoin yourself? Let us introduce Riot Blockchain Inc (NASDAQ: RIOT), a bitcoin mining company that backs the bitcoin blockchain through its fast growing industrial-scale mining focused on the U.S. riot blockchain, is always looking to improve and increase the hash rate of bitcoin mining and at the same time to reduce production costs.
The main problem with mining these days is that it is incredibly expensive, not to mention that the profit margins are extremely low. This is especially true for mining popular cryptocurrencies like Bitcoin. The amount of energy needed to mine Bitcoin is significantly higher than that of physical. The Bitcoin network consumes 80% more energy today than it did in early 2020, 128 terawatt hours per year. Weighing up the cost of electricity is a serious question to consider before committing to mining Bitcoin.
Instead of investing all that money in expensive hardware to mine something that you won’t get a viable return on investment for in a long time, you could instead invest that money in RIOT stock and focus on a company that has the potential to earn Bitcoin has required hardware at an affordable price while maintaining profitability. Riot Blockchain has a strong leadership role aimed at increasing the hash rate and reducing energy consumption to make the company even more profitable in the future.