This is an opinion editorial Barnminer, a bitcoiner focused on improving self-sovereignty, on-boarding home miners and a contributor to Bitcoin Magazine.
Having access to a borrowed ASIC for a day, week or month will provide ample learning for the ins-and-outs of domestic mining, including some fundamental challenges. This allows a low-risk entry to participate in the backbone of the bitcoin network. One will learn about set up, noise suppression, heating, electricity and home networking. An Antminer S9 can operate underclocked on a 120-volt circuit. After the experience, one can make a long-term decision about whether to pursue mining bitcoins in their home country.
- Is this too much work or do I want to go ahead with mining?
- Do I need to reduce noise and/or heat?
- Does it make sense to mine bitcoins at home in the long run, given my lightning rate?
Even if someone decides that mining bitcoins is not their thing, they have learned a lot about the bitcoin network.
I started an Antminer S9 lending program with my local bitcoin meetup group. Thoughts a. came from good friend who gets credit for the concept. someone donated The Antminer S9, which is a . was inspired by Twitter conversation, I wanted to share this program with others in the hope that we can reproduce this program around the world.
I would not have been at this point without the help of other bitcoiners who took the time out of their day to teach me. I am grateful for this. Creating a local S9 lender program is a good way to give back. It has enhanced my own learning by teaching others. The program provides the opportunity to take a quick dive into proof of work. You learn to deal with three main obstacles related to mining in the home: electricity, heat and sound. Additionally, you get a better understanding of how mining pools operate and how miners are rewarded for their hash rate.
The program is simple. The goal is to teach people about proof-of-work consensus mechanisms and learn the basics of mining at home. It offers local bitcoiners an opportunity to try their hand at mining without the ASIC capital outlay. A used S9 can cost $500. In addition, people are at risk of being scammed if they do not know how to navigate the difficulties of obtaining a used piece of equipment. I’ve heard stories of scams or buyers receiving bad hardware. A safe way to get your hands on hardware with local support is to rent one from a trusted Playb.
If the intended user has a 240-volt circuit available in the garage, setup costs may be minimal. Additionally, the Antminer S9 can run on 120 volts if underclocked properly. If you have a 240 volt dryer receptacle, you’re halfway there. If not, the cost of an electrician wire up circuit in a garage is between $125 and $175. The person borrowing the miner has to understand that this is an educational experience. This is not an opportunity to make money. In my local service area, the residential electricity rate that powers the Antminer S9 is break-even – at best. It’s an opportunity to plug in an ASIC, connect it to a pool, and let it go”brrrThere’s a lot to be said about learning by getting your hands dirty.
The first taker in the lender program had an available dryer receptacle. His cost to swap out the receptacle was minimal as he had a relative who was an electrician. Needless to say, this was the perfect first-taker. The time frame of the program can be one to three months or more. This is enough time to get an idea of how the process comes together and to remove any hurdles that may be faced. With my borrower, I didn’t set any deadline. I wanted it to be an opportunity for them to dip their toes in the pool (pun intended).
The next borrower will set up two of three MultiSig wallets to pay the deposits on the miners. This process will explain how easy it is to set up a multisig wallet and get them started thinking about what they can be made for wallets, private keys, and their cold storage setup. This is not to earn any money for the person leasing the equipment, but to educate the participants and provide some protection against damage or theft.
It is recommended that the borrower, the lender, and a trusted third-party perform a two-to-three multisig each with a private key. The third person could be a meetup host or a mutual friend in space. If a problem arises, i.e. they go missing with the ASIC or they misuse the hardware, the borrower will post a few meetings with the lender as collateral. The third key holder of the Multisig Wallet must be an active member in the group or an independent third party who may need to mitigate any disagreements that may arise.
If you run a bitcoin meetup, consider creating a lending program. Find a sponsor to donate or put together a group pitch for hardware.
In short, an S9 lending program will help spread the knowledge of bitcoin mining and multisig setups. Participants can learn by doing more than by reading or watching. Give the gift of education and consider building your own lender program locally. The benefits of giving back to the community can be rewarding.
The latest bitcoin meetup to feature this event is nwa bitcoin, If you’re in the Bentonville, Arkansas, area, consider going to an event. You may have the opportunity to get in line to borrow the S9. Let’s get hashing.
This is a guest post by BarnMiner. The opinions expressed are solely their own and do not necessarily reflect those of BTC Inc. or Bitcoin Magazine.