Affordable Cryptocurrency Mining: Arweave (AR)

Updated: Mar 31

When most people think of cryptocurrency (crypto) mining, they think of mining equipment worth tens (or hundreds) of thousands of dollars and an electricity bill of few thousand dollars per month. And to be honest, this is still true for a lot of first and second generation cryptos, however, the industry has started to move away from these resource intensive proof-of-work consensus mechanisms.

In 2022, a lot of emerging crypto with sustainable foundations and heaps of utility operate on modified proof-of-stake, proof-of-space, and proof of access consensus mechanisms. These forms of consensus are less resource intensive and therefore less expensive for the mining operations of associated crypto. The crypto industry has been undergoing this miner decentralization for some time (due to sustainability concerns) and it has allowed the "little guy" to make decent monthly profits on new and emerging cryptocurrencies.

Arweave (AR) Mining

This brings us to Arweave (AR), a blockchain that enables you to store documents and applications forever. Arweave is a type of storage that backs data with sustainable and perpetual endowments. Arweave is powered by blockweave technology which is a set of blocks that contain data and link to multiple previous blocks from the network. Basically, it allows the network to enforce that miners provide proof-of-access to old data in order to add new blocks.

"Unlike in a traditional blockchain, where miners are forced to expend electricity in order to earn tokens, in the Arweave network miners are also encouraged to replicate valuable data (the information stored in the network) in order to gain tokens. This mechanism offsets the value that is normally wasted in blockchain networks, with useful, energy efficient storage of data."

What does it all mean?

It means that the 3 most important factors for mining Arweave (AR) are disk throughput, amount of synchronized data, and processing power. A simple high-end $357/USD 2TB solid state drive (SSD) will help you satisfy half of those requirements. Throw in an AMD Ryzen 9 5950X CPU for $787/USD and 32GB of DDR4 RAM for $152/USD and you're 90% complete for your mining rig. How do we know? Because at Banting Court, we set up an Arweave mining rig with these components and a few others for a total of $1,653/USD and it's averaging $311/month (CAD) in profits (with AR @ $44/token).

To put this into perspective, if we spent $15,000/USD on one decent ASIC miner to mine Bitcoin, we wouldn't even see $100/month in profits because of the low computational power and high electricity costs. This makes mining Arweave (AR) one of the most cost effective cryptos to mine in 2022 for the time being.

This article was written for informational purposes only. Banting Court Capital Management Inc. accepts no liability for any losses suffered from acting on what is written in this article.

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