Guide to Home Bitcoin Mining in Pakistan

This document offers a guide to setting up Bitcoin mining operations at home in Pakistan, focusing on the technical aspects and equipment required. It details the components of a mining rig, explaining how graphics processing units (GPUs), motherboards, power supplies, and other computer parts work together to facilitate the mining process. The text provides insights into selecting suitable GPUs based on hash rate and power consumption, particularly highlighting the distinction between mining-capable and non-mining GPUs. Additionally, it touches upon the financial considerations of mining, such as estimating electricity costs and potential revenue through online calculators, and briefly addresses the legality of home mining in Pakistan.

Building a Bitcoin Mining Rig

Based on the sources, setting up a Bitcoin mining rig involves assembling a specialized computer system primarily focused on graphics processing power.

Here’s a breakdown of the components and setup process described in the sources:

• Basic Rig Structure: A mining machine is essentially a computer, often built on a frame or “rig”. This frame holds the components together.
• Core Computer Components: Like a regular computer, a mining rig includes a motherboard, processor (CPU), hard drive, and power supply (PSU).
• Unlike typical computers, you don’t need high-end components for the CPU or RAM. A minimum setup with a Pentium processor and 4GB of RAM is sufficient, as the mining output primarily comes from the graphics cards.
• Graphics Cards (GPUs): These are the most critical components for mining,
  as they perform the heavy computational work.
• A key difference from a standard computer is the ability to connect multiple graphics cards to the motherboard.
• Graphics cards are connected to the motherboard using risers. These are typically made up of a USB cable and a riser board that plugs into the motherboard’s PCIe slot.
• Connectivity:
• The graphics cards are connected to the power supply.
• The risers connect the cards to the motherboard for data transfer.
• A display is helpful for initial setup and monitoring; onboard motherboard display can suffice.
• Power Supply: An adequate power supply is crucial, especially when using multiple cards. The amount of power needed depends on the number and type of graphics cards used. Rigs with many cards may require multiple power supplies.
• Graphics Card Selection and Hashrate:
• The hashrate (mining output) depends on the graphics card.
• The total hashrate of the rig is the sum of the hashrates of the individual cards.
• The sources mention several cards suitable for mining:
• Minimum or entry-level cards: RX 580 (8GB) and 1660 Super, both providing around 30 MH/s.
• Other working cards: RX 570, 1070, 1080 TI are also mentioned as suitable.
• Higher hashrate cards: 3060 TI (60 MH/s), 3070 (60 MH/s), 3080 (90 MH/s), and 3090 (120 MH/s) are listed as providing higher hashrates.
• Cards not suitable for mining: The sources explicitly state that 3070ti and 3080ti will not work for mining. A crucial point highlighted is that companies have launched newer cards with NHR (Non-Hash Rate) or NR features (also referred to as NHR or NR cards) that do not provide full hashrate for mining. These were introduced partly because the demand for graphics cards for mining affected the supply for gamers. Therefore, when buying new cards for mining, it’s important to choose non-NHR cards.
• While 4GB cards were previously used for mining coins like Ethereum when difficulty was low, the sources state that due to increased difficulty, you would typically start with a minimum of 4GB+ cards like the RX 580 or 1660 Super for coins like Ethereum (at the time the source was created). For other “smaller” coins, 4GB cards might still be usable.
• Scaling and Budget:
• You can start with a full rig setup but only one graphics card if your budget is limited.
• You can add more cards later to increase your hashrate, and this doesn’t require major configuration changes.
• Starting with one card allows you to learn about mining.
• Your budget dictates the type and number of cards you can buy, which directly impacts your hashrate.
• Motherboards are available with more slots (e.g., 19 slots) to accommodate a large number of cards.
• Software and Internet: Software is required to run the mining operation. The internet requirement is minimal, only needing a small amount of MB data.
• Mining Different Coins: While the query is about Bitcoin mining, the sources discuss GPU mining in a broader sense, mentioning that you can mine various coins such as Ether Classic, Ravencoin, and others. They also mention Ethereum, though its mineability by GPUs has changed since the source was created. The minimum card requirements can vary depending on the coin and its mining difficulty.
• Profitability Calculation: Your potential revenue can be calculated using online calculators. You input your total hashrate for the specific coin you are mining, and the calculator provides an estimated revenue.
• Receiving Revenue: Mined coins are deposited into a cryptocurrency account you generate on platforms like Binance or Coinbase. These coins can then be converted to other cryptocurrencies (like Bitcoin) or fiat currency.
• Power Consumption and Cost: Power consumption varies by card and setup. A rig with six RX 580 cards might consume around 700 watts (600W for cards + 100W for system). The monthly electricity bill depends on your consumption and local rates. The sources estimate a bill of up to 25-30,000 PKR per month for a continuously running 700W rig, noting that the revenue in dollars is significantly higher (3-4 times more).
• Legal Status (in Pakistan): According to the sources, mining for personal use is considered legal in Pakistan because it has not been specifically banned. It is compared to using a computer at home for work.
• Further Information: The source provides a physical location for more information: 6th Road, Rawalpindi, Center, First Floor.

Building a Bitcoin Mining Rig

Based on the sources, a Bitcoin mining rig is essentially a specialized computer setup designed to handle the intensive computational tasks required for cryptocurrency mining.

Here are the key components that make up a mining rig:

• Rig Frame: The setup is often built on a physical frame or ‘rig’ that holds all the components together.
• Core Computer Components: Like a standard computer, a mining rig includes essential parts such as a motherboard, a processor (CPU), a hard drive, and a power supply (PSU).
• Unlike typical gaming or work computers, the CPU and RAM don’t need to be high-end. A minimum setup with a Pentium processor and 4GB of RAM is considered sufficient, as the main mining output comes from the graphics cards.
• Graphics Cards (GPUs): These are the most crucial and expensive components. They perform the heavy computational work that generates the mining output (hashrate).
• A key characteristic of a mining rig is its ability to connect multiple graphics cards to a single motherboard.
• Graphics cards are connected to the motherboard using risers, which typically consist of a USB cable and a small board that plugs into the motherboard’s PCIe slots.
• Power Supply (PSU): A powerful and reliable power supply is essential to provide sufficient power to all the components, especially the power-hungry graphics cards. Rigs with many cards may require multiple power supplies. The power consumption varies depending on the type and number of cards. For example, a rig with six RX 580 cards plus the system components might consume around 700 watts.
• Connectivity: Graphics cards are connected to the power supply for power and to the motherboard via risers for data. A display is useful for initial setup and monitoring; an onboard motherboard display can suffice.
• Graphics Card Selection: The hashrate (mining output) of the rig is the sum of the hashrates of the individual graphics cards.
• Several cards are mentioned as suitable for mining: RX 580 (8GB), 1660 Super, RX 570, 1070, and 1080 TI. The RX 580 and 1660 Super are noted as providing around 30 MH/s.
• Higher hashrate cards mentioned include the 3060 TI (60 MH/s), 3070 (60 MH/s), and 3090 (120 MH/s).
• However, the sources specifically state that newer cards like the 3070ti and 3080ti will not work for mining. This is because companies have launched cards with NHR (Non-Hash Rate) or NR features that intentionally limit their mining performance. When purchasing new cards for mining, it is crucial to select non-NHR cards. Older models do not have this NHR restriction.
• While 4GB cards were previously viable for mining certain coins when difficulty was low, the sources indicate that for coins like Ethereum (at the time the source was created), a minimum of 4GB+ cards like the RX 580 or 1660 Super were needed due to increased difficulty. For smaller coins, 4GB cards might still be usable.
• Scalability: You can start with a complete rig structure but only install one graphics card to begin, especially if on a limited budget. More cards can be added later to increase the hashrate without requiring major configuration changes, driver updates, or software setup. Motherboards are available with many slots (e.g., 19) to accommodate numerous cards.

Software is required to run the mining operation, and the internet requirement is minimal, only needing a small amount of data.

Your budget primarily influences the type and number of graphics cards you can acquire, which directly determines your potential mining output (hashrate).

Bitcoin Mining Graphics Cards Performance

Based on the sources, the performance of a Bitcoin mining rig is primarily determined by its graphics cards (GPUs). The key metric for mining performance is the hashrate, which represents the computational power the card can contribute to the mining process.

Here’s a breakdown of graphics card performance for mining, as described in the sources:

• Hashrate: This is the output metric for a graphics card’s mining capability. The total hashrate of a mining rig is the sum of the hashrates of all the connected graphics cards. For example, if one card gives 30 MH/s, a rig with six such cards would provide a total hashrate of 180 MH/s.
• Suitable Graphics Card Models and Their Hashrates: The sources mention several card models suitable for mining, along with their approximate hashrates:
• Entry-Level/Minimum: The RX 580 (8GB) and 1660 Super are mentioned as good starting points, both providing around 30 MH/s.
• Other Working Cards: RX 570, 1070, and 1080 TI are also listed as cards on which mining can be done.
• Higher Hashrate Cards: For greater performance, the sources mention:
• 3060 TI: Provides 60 MH/s.
• 3070: Also provides 60 MH/s.
• 3080: Provides 90 MH/s.
• 3090: Provides 120 MH/s.
• Cards Not Suitable for Mining: It is explicitly stated that some newer card models are not suitable for mining due to built-in restrictions. Specifically, the 3070ti and 3080ti will not work for mining. This is because companies have launched cards with NHR (Non-Hash Rate) or NR features that intentionally limit their mining performance. This was done, in part, because high demand for mining cards reduced the supply available for gamers. Therefore, when buying new graphics cards for mining, it is crucial to select non-NHR cards. Older card models, such as the RX 580 or 1070, do not have this NHR restriction.
• Minimum Card Memory (GB): While 4GB cards were previously viable for mining certain coins like Ethereum when the difficulty was lower, the sources indicate that due to increased difficulty, a minimum of 4GB+ cards like the RX 580 or 1660 Super were required for coins like Ethereum (at the time the source was created). However, for other “smaller” coins, 4GB cards might still be usable, especially for those with a lower budget.
• Scaling Performance: The performance of your rig scales directly with the number and type of graphics cards you install. You can start with a rig setup and just one card to learn and begin mining, then add more cards later to increase your total hashrate without needing significant configuration changes. Motherboards are available with numerous slots (e.g., 19 slots) to accommodate a large number of cards, allowing for significant scaling of hashrate.

The hashrate provided by your graphics cards directly impacts your potential mining revenue. You can use online calculators, entering your total hashrate for a specific coin, to get an estimated revenue. Your budget primarily determines the type and number of cards you can buy, thus dictating your hashrate and potential revenue.

Cryptocurrency Mining Revenue Calculation

Based on the sources, the calculation of mining revenue is primarily tied to the total hashrate of your mining rig. Here’s how it’s discussed:

• The mining output, or hashrate, is the sum of the hashrates provided by each individual graphics card in your rig. If one card provides 30 MH/s, a rig with six such cards will provide a total hashrate of 180 MH/s.
• To determine the potential revenue from your mining operation, you need to use an online calculator specifically for the cryptocurrency you are mining.
• You open the calculator on Google for the coin you want to mine (e.g., Ethereum).
• You then enter your total hashrate into this calculator.
• The calculator will then show you your estimated revenue.
• The sources mention that the mined coins accumulate in an account you have set up. These coins can later be converted into other currencies, such as dollars or Bitcoin (BTC), using exchange platforms like Binance or Coinbase.
• While the sources emphasize the revenue side, they also briefly mention the cost, specifically the electricity bill. They suggest considering the power consumption (e.g., a good rig might consume around 1000W running 24/7) and using a calculator to estimate the monthly bill. Although the electricity cost in Pakistani Rupees is mentioned (around 20,000-30,000 PKR per month), the revenue generated in dollars is noted as being significantly higher (3-4 times more), suggesting a potentially good net revenue.

In essence, the core method described for calculating or estimating revenue is based on your rig’s hashrate and using online cryptocurrency mining calculators.

Bitcoin Mining Legality in Pakistan

Based on the sources and our conversation history, the topic of Bitcoin mining legality is addressed, specifically concerning Pakistan.

According to the sources, the legality of mining in Pakistan is a question that many people ask. The speaker in Source states that mining is definitely not illegal in Pakistan. The reason given for this is that it has not been banned.

The act of mining is compared to simply using a computer at home for personal use. While the sources briefly mention the electricity consumption as a potential consideration, they do not present the mining activity itself as illegal due to power usage, rather as a normal home computer activity.

Therefore, within the context of the provided sources focusing on Pakistan, Bitcoin mining is considered legal because there is no specific ban in place.

By Amjad Izhar
Contact: amjad.izhar@gmail.com
https://amjadizhar.blog

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