What is a mining rig?
Essentially a mining rig is a computer composed of several graphics cards (GPU's) that work together using their VRAM memory and CPU to validate transfers within the network of a cryptocurrency to obtain a reward.
The number of graphics cards and their power are limited by the other components of the rig: motherboard, power supplies. Allowing to make rigs with up to 13 graphics cards.
Their main advantages over ASICs are: lower power consumption, lower noise level which allows them to be installed at home and the possibility of mining a variety of cryptocurrencies.
Where and under what conditions to install a mining rig?
Before installing a rig we must take into account in which conditions it should be. A mining rig is based on several graphic cards and other computer components that generate heat, the more graphic cards we install, the greater the heat generation.
It is necessary to take into account that a rig if it is in an apartment or house must be in a room with a temperature between 9º and 27º and have an internet cable with a stable connection directly to the router or a switch.
The heat given off by the rig can be used in part to heat an apartment or house as it is a heat source equivalent to a stove of between 1500W to 2500w.
What cryptocurrencies and algorithms can I mine with Minando Voy rigs?
You can mine these cryptocurrencies among others:
- RVN - RavenCOIN
- ERGO
- Bitcoin Gold.
- Ethereum and Ethereum Classic.
- Zcash
- Monero
- ZenClass and ZClassic
- Pascal Coin.
- Decred
- Pirl
- Ellaism
- Ubiq
- Expanse
- Musicoin
- Metaverse
- Zencash
- Electroneum
- Bytecoin
- Siacoin
- LBRY
And algorithms:
- NeoScrypt
- CryptoNight
- Equihash
- Ethash
- Pascal
- Lyra2REv2
- Blake
Should I become self-employed to mine cryptocurrencies?
The purchase of cryptocurrencies does not imply the obligation to declare them. on income. They should only be declared when they are sold, so if no movement is made with the acquired currencies, there is no tax to be paid, since there are no gains or losses.
Cryptocurrency transactions are to be included in the box 389 of the income tax return.
The losses in the sale of cryptocurrencies will be able to offset up to 25%. If the sale of cryptocurrencies involves a loss, these are offset against gains derived from other transfers, and if the overall result is a loss, it may be offset up to 25% against capital gains (if there were no gains it could not be offset).
The mining cryptocurrencies does not imply registration as a self-employed person. Mining cryptocurrencies is to provide the processing power of the computer, helping to perform calculations and verifying the transactions of digital currencies. As it is an economic activity that is assimilated to any other paid work, even if it is paid in cryptocurrencies, it is mandatory to comply with the obligations that apply to this type of workers and to declare the earnings by filing the 720 model.
It is recommended to file Form 720 in the event that the value of cryptocurrencies (or the sum of cryptocurrencies with funds or securities deposited in financial institutions located abroad) exceeds 50,000 euros.
In the case of being obliged to declare the wealth tax, the value of the cryptocurrencies must be included at the time of the tax declaration and pay according to the applicable rate. This tax has a minimum exemption from 500,000 euros (changes by autonomous community), which means that you do not have to file it unless you have a higher net worth.What is after the entry of Etherum 2.0 ?
When Etherum makes the change from proof of work (PoW) to proof of stake (PoS),
will have no consequence other than a simple change in the rig configuration.
Since the mining operation of other cryptos is identical and their performance is sometimes even superior.
There are many alternatives to Etherum mining and its end should not affect us when viewing a rig as a long-term investment.
Some of the examples are mining: TonCoin, Alephium, Ergo, Ravencoin, Flux etc.
In addition to the Dual Mining options.
What is Dual Mining?
The name dual mining speaks for itself: it is a form of parallel mining of two different cryptocurrencies. A miner has to choose the first, the main coin and a secondary one. The increased load makes the workload for GPU's higher, but the gains increase very noticeably between a 25% and a 40%. Which greatly decreases the payback time (ROI) of the Rig in addition to diversifying our bet in the crypto world.
There is the possibility of obtaining two different currencies at the same time using a single Rig, and it is the main advantage of this method that makes it very attractive for maximizing the performance of the Rigs.
The most profitable combinations are currently dual mining of Etherum+Toncoin and Etherum+Alephium.