Bitcoin can be purchased using dollars or other currencies, by selling goods or servicesand receiving payments via bitcoin or by mining. Bitcoin mining is performed using dedicated electronic devices called miners that have high computing capacity. In the early- to mid-2010s, USB connection type mining devices were developed to allow ease of use, seamless connectivity, and lower power consumption at a lower price. But network hashing rates rose too quickly for these devices to keep up, so they were quickly abandoned by users for faster equipment.
Key Takeaways
- Bitcoin mining requires a lot of computational power, as your hardware is required to generate trillions of hashes per second.
- For being the first to solve one for the correct hash, you are awarded cryptocurrency.
- These units could be "stacked" to achieve greater hashing power, but they still couldn't keep up with the ever-increasing hash rate of the network or ASICs.
How Do USB Bitcoin Miners Work?
A USB Bitcoin miner, when connected to a computer with suitable software, performs the mining function at a certain hashing speed. To enhance the hashing output, multiple miners could be plugged in together. When they first came out, a stack of six USB miners that offered 335 megahashes per second (MH/s) could generate a cumulative two gigahashes of mining power.
Since a standard computer usually has only two to six USB ports, USB hubs are required to be used to plug in the multiple USB miners. The USB hubs would be connected to a computer with software capable of controlling the USB miners and their mining operations.
Instead of connecting to a standard PC or laptop, the USB Bitcoin miner setup could alsobe connected to other smaller, low-cost computer devices like Raspberry Pi, which offered suitable capacity to run the miners at the time. However, they were still not fast enough to keep up with other miners.
In 2023, you can purchase a USB miner that hashes at 220 gigahashes per second. You would need to stack more than 61 of these USB miners (at $198 per unit) to equal the hashing rate of an older Antminer S9 mining at 13.5 terahashes per second (found used on eBay for about $100). And that's only if your USB connection speeds and multiple hubs can handle the amount of information being processed.
Historical Developments
Bitcoin mining started with the standard Central Processing Unit (CPU), an integral part of a standard computer. The mining efficiency was enhanced with the use of comparatively faster Graphic Processing Units (GPUs).
Then camethe Field Programmable Gate Arrays (FPGAs), which scored better than both CPUs and GPUs at performing the hashing function, an essential element ofblockchain management in cryptocurrency.
FPGAs turnedthe concept of concentrated mining farms into reality and were also the first kind of mining devices that supported USB connectivity. FPGAs are now superseded by Application-Specific Integrated Circuits (ASICs), which consume lesspower and offer faster processing speeds compared to the former three.
The rapidly evolving technology has made Bitcoin mining nearly non-profitable on home computers. However, it is possible to use top-of-the-line graphics cards and processors to net a few dollars per month.
Can You Mine Bitcoin With a USB?
A USB miner can be used to assist the network, but these devices barely do enough work to earn rewards in a mining pool.
Are USB Bitcoin Miners Worth It?
USB Bitcoin miners do not have the computational capacity to effectively mine or even generate any profit as of November 2023, so they are not worth it if you want to mine for income. If you want to participate in the network and learn more about it, they can be a good purchase, albeit an expensive one.
Are Bitcoin Mining Machines Legal?
In many jurisdictions, Bitcoin mining machines are legal, but some countries have made it illegal. There are regulations being discussed globally that might eventually put restraints on the practice because it uses energy extensively when the world is attempting to become more aware of energy use and sources.
The Bottom Line
With lower setup costs, USB miners offered an easy and fun way to learn thenuances of cryptocurrency mining. However, it is currently financially unfeasible to use these devices, as it would take several decades to recoup their cost if a computer could even make the entire setup work.
The comments, opinions, and analyses expressed on Investopedia are for informational purposes only. Read ourwarranty and liability disclaimerfor more info. As of the date this article was written, the author does not own cryptocurrency.
FAQs
A USB Bitcoin miner, when connected to a computer with suitable software, performs the mining function at a certain hashing speed. To enhance the hashing output, multiple miners could be plugged in together.
How do USB bitcoin miners work? ›
A USB Bitcoin Miner is a small device that can be plugged into the USB port of a PC or laptop to mine bitcoin. It is possible to plug multiple USB miners into a USB hub to boost the collective mining power of the computer.
What does a Bitcoin miner actually do? ›
Bitcoin mining is the process of creating new bitcoins by solving extremely complicated math problems that verify transactions in the currency. When a bitcoin is successfully mined, the miner receives a predetermined amount of bitcoin.
How do you get paid from a Bitcoin miner? ›
Bitcoin miners receive bitcoin as a reward for creating new blocks which are added to the blockchain. Mining rewards can be hard to come by due to the intense competition. The probability that a participant will discover the solution is related to the network's total mining capacity.
How long does it take to mine 1 Bitcoin with a Bitcoin miner? ›
The shortest amount of time it can take to mine at least 1 bitcoin is about 10 minutes. However, the actual time it can take you depends on several factors such as the hashing power of your mining hardware, the overall network hash rate, and the Bitcoin mining difficulty.
Is USB Bitcoin mining profitable? ›
Are USB Bitcoin Miners Worth It? USB Bitcoin miners do not have the computational capacity to effectively mine or even generate any profit as of November 2023, so they are not worth it if you want to mine for income.
How to withdraw money from Bitcoin mining? ›
How to cash out your crypto or Bitcoin
- Use an exchange to sell crypto.
- Use your broker to sell crypto.
- Go with a peer-to-peer trade.
- Cash out at a Bitcoin ATM.
- Trade one crypto for another and then cash out.
Bitcoin mining does pay, although amounts are smaller than you might hope because you have to join large mining pools to even have a chance to earn.
Where does money from Bitcoin mining come from? ›
High-powered computers compete to be the first to validate a series of transactions called a block, and add the block to the blockchain. Miners are paid transaction fees and 6.25 BTC per block for their efforts (if they solve the block correctly).
How much money will a Bitcoin miner make? ›
How much does a Crypto Mining make? As of May 18, 2024, the average hourly pay for a Crypto Mining in the United States is $26.84 an hour.
In addition to rewards, miners also receive fees from any transactions contained in that block. When Bitcoin reaches its planned limit of 21 million (expected around 2140), miners will be rewarded with fees for processing transactions that network users will pay.
Is Bitcoin mining legal in the US? ›
According to TheStreet, reporting on a November 2021 Law Library of Congress report, bitcoin mining is banned in various countries, such as Bangladesh, China, Egypt, Iraq, Morocco, Nepal, Qatar, and more. However, it is legal in the US, and most countries, but not all US states allow the same.
How many bitcoins are left to mine? ›
According to the Bitcoin protocol, the maximum number of bitcoins that can be created is 21 million. As of March 2023, approximately 18.9 million bitcoins have been mined, meaning there are around 2.1 million bitcoins left to be mined.
What are bitcoin miners actually doing? ›
Bitcoin mining is a process by which computers can generate new Bitcoins by doing work that validates transactions and keeps the network secure. The current Bitcoin mining reward is 3.125 BTC per block, and it shrinks by half roughly every four years.
How much electricity does Bitcoin mining use? ›
The U.S. Energy Information Administration estimates that mining for bitcoin and other digital currencies accounts for 0.6 to 2.3 percent of the nation's electricity use.
Can Bitcoin be mined for free? ›
Mining Bitcoin for free is a bit tricky. It typically requires specialized hardware and consumes a significant amount of electricity. While there are some apps and websites that claim to offer free Bitcoin mining, they often turn out to be scams or not very effective.
How does a crypto USB work? ›
Cryptocurrency hardware wallets work by generating private keys and providing a user with an offline, “cold”, physical space to store and protect these private keys. They are small pieces of hardware with a few essential functions, a couple of buttons and maybe a small screen, much like a very basic computer.
Is Bitcoin safe on USB? ›
Cold storage, like USB drives, is considered to be one of the safest storage for cryptocurrency in the modern digital world. Why, you may wonder? There are several reasons to confirm this viewpoint.
How do I use Bitcoin USB? ›
How To Put Crypto on a USB in 5 Easy Steps
- Set up a bootable flash drive. ...
- Choose your favorite Crypto wallet and download it. ...
- Turn off your computer's internet connection. ...
- Download the wallet software to the USB drive. ...
- Move the crypto keys from the hot wallet to the flash drive.
Cryptocurrency mining can be detected in the network. Machine learning can be employed to detect mining services automatically. Dedicated web application collects IP addresses and service availability of various mining pool servers.
