What is a Mining Rig?

A machine/computer specifically designed to solve the PoW puzzle in the most power efficient way. Mining rigs these days are equipped with a specialized ASIC chip that has been designed specifically for the task of mining Bitcoin.

Other coins that support ASIC mining also have chips specifically designed for that coin type. Some coins are considered ASIC resistant and can still be mined using the computer’s CPU or GPU. In these cases the mining rig may be no more than a person’s home computer or laptop. When large groups of mining rigs are combined in a central location this is known as a mining farm.

In the cryptocurrency industry, many blockchain networks run on the concept of self-sufficiency and without the control of any executive staff. But this independence still requires the human touch for verifying transactions, preventing fraud, and keeping the network performing according to the latest technology standards.

Cryptocurrency mining rigs are a part of this process, where they allow programmers to volunteer their time and skills to keep cryptocurrency networks running with verified transactions. In return, they virtually mint or mine new cryptocurrency tokens, which they can keep as a reward for their effort. At the same time, these tokens also add to the existing circulation of the cryptocurrency in question.

To help you learn what is a mining rig and how to mine cryptocurrency with it, here’s a lowdown on this crucial part of cryptocurrency industry.

What is a Mining Rig?

A mining rig is a heavy duty computer system that allows cryptocurrency network programmers to verify transactions over their chosen network. Once these individuals have completed a string or certain “blocks” of verifications, they can mint or mine new cryptocurrency tokens in the process. Due to this reason, the processing unit gets the moniker of a mining rig.

For all intents and purposes, a mining rig is essentially a computer that has been upgraded and customized to perform highly demanding processes. It is because blockchain programming and verification demands intense computing resources that cannot be fulfilled via a run of the mill PC or even a high performance laptop. In order to work on a cryptocurrency network and earn cryptocurrency, miners have to use these purpose-built computers that can handle such requirements.

Due to these reasons, whenever someone is learning how to mine cryptocurrency and build a small fortune for themselves, it is important for them to know what is a mining rig and what does it do. If you fall under the same category, familiarizing yourself with the making and expenses of a mining rig is highly crucial.

What is a Mining Rig Made From?

As a purpose-built computer that has to fulfill the high system requirements of blockchain networks, a mining rig is made from various sturdy, cutting-edge, and performance-based hardware components.

Typically, mining rigs are distributed into two categories.

  • Graphics processing unit (GPU) based mining rigs.
  • Application-specific integrated circuit (ASIC) based mining rigs.

Both GPU and ASIC-based mining rigs are excellent at performing the intense computations that are required by blockchain networks. With that being said, the ASIC systems go a step ahead in terms of performance and efficiency.

GPU Mining Rig

A GPU mining rig can be perceived as an ultra-performance gaming PC in many cases. But the equipment that goes into building this system goes beyond what usual gaming PCs hold within their offerings. For instance, where usual gaming PCs use a single GPU, mining rigs may use multiple of such components.

ASIC Mining Rig

An ASIC mining rig uses heavily-specialized hardware that harnesses extensive power and computation speed in a purpose-built computer system. These systems are made to approach cryptocurrency mining from the get go, which makes them capable of running intense processes with comparatively less energy usage than GPUs. This ensures that you can get the most out of these hardware solutions.

But as you learn how to mine cryptocurrency, it becomes clear that mining rigs are not just about putting a bunch of GPUs or ASICs together and calling it a day. Since these systems have to fulfill excruciating performance demands, every bit of their crucial hardware is elevated for top-notch durability and speed alike. This also factors in the use of intensive thermal and power supply unit (PSU) components.

What Type of Components Are in a Mining Rig?

Understanding what is a mining rig or what sets it apart goes beyond terming the machine as an abundance of graphics cards or special chips thrown together. To help you understand this further, a mining rig can be made from the following components.

  • Motherboard
  • CPU
  • RAM
  • Storage Disk
  • PSU
  • Thermal Solutions

By taking one look at the components, you can once again determine that a mining rig is essentially a PC. But as mentioned above, the use of specialized and multiple GPUs and ASICs easily sets a mining rig apart from normal PCs. This also affects the appearance of these rigs and makes them look like futuristic machines rather than good old computer systems.

How Much Does a Mining Rig Cost?

A mining rig can cost you a pretty penny. The market price of these solutions also keeps jumping every few days, which makes it difficult to note down a number that does not become obsolete in a few days. As a general rule of thumb, you can expect a basic mining rig to cost around $3,000 and an advanced mining rig to take around $10,000 from your wallet.

The energy costs of running these rigs is also high and puts a large dent in your bank account. The thermal effects of these rigs can also make things difficult for you, especially if you are operating them within a smaller room.

Due to these factors, it is important that you not only understand what is a mining rig at the surface level, but also grasp the topic beyond learning how to mine cryptocurrency. This ensures that your investment of time and money doesn’t leave you stranded in a financial dead-end.

If you are in doubt about using a mining rig from the get go, you can look into the operations of experienced miners or mining farm solutions to get an idea of what type of dedication is involved with these systems. Afterwards, you can make an informed decision on whether to dedicate your time and money to these approaches at all.