A Los Angeles-based maker, Idan Abada, has captured the internet's attention with his homemade USB Bitcoin mining rig. His goal? To make Bitcoin mining more accessible to the average person. He even took his laptop and portable miner to a local Starbucks to save on electricity costs, sharing the entire experiment in a TikTok video that quickly went viral, amassing over 2.6 million views.
The centerpiece of this story is Abada's creation: the "NewPac" USB mini miner. Unlike industrial ASIC miners, this device is compact and user-friendly. It consists of a USB hub, a small cooling fan, and ten USB sticks, each containing two Bitmain ASIC chips. Priced at $875, the NewPac is designed for simplicity. As Abada explains:
This is the easiest miner to set up and run. You just need a computer or laptop, and it’s powered entirely by USB. Anyone can become a miner and join the cryptocurrency world.
The Reality of Mining with a USB Miner
Idan Abada entered the Bitcoin mining scene in 2015. Frustrated by the difficulty of acquiring mining hardware, he launched his online store, BitcoinMerch, in 2017. Initially selling cables and basic components, his business has expanded to offer a wide range of mining equipment. The popularity of cryptocurrencies has driven exponential growth, with sales reaching $428,000 year-to-date—a 355% increase from 2020.
The NewPac miner is one of BitcoinMerch’s bestsellers, with thousands of units sold. Its appeal lies in its convenience: it’s quiet enough to run on a desk, unlike industrial ASIC miners that require dedicated spaces, extensive wiring, and cooling systems. However, this convenience comes at a cost.
Profitability: A Major Hurdle
The NewPac miner’s hash rate is minimal compared to industrial ASIC miners. While it can mine Bitcoin using software like NiceHash, Abada admits that turning a profit is nearly impossible without free electricity.
Here’s a breakdown of the numbers:
- The miner produces approximately 0.0002478 BTC per month.
- After a 5% pool fee, this translates to about $9.35 per month at current Bitcoin prices.
- However, in Los Angeles, where electricity costs $0.22 per kWh, running the miner 24/7 adds $15.84 to the monthly electricity bill.
The result? A net loss of $5.88 per month, excluding the initial equipment cost. These figures fluctuate based on Bitcoin’s price, mining difficulty, and network hash rate.
Bitcoin mining engineer Brandon Arvanaghi emphasizes that buying Bitcoin directly is more cost-effective than mining with such devices unless you have access to extremely cheap electricity or operate at a large scale. He notes:
This USB miner might appeal to those who don’t pay for electricity—like college students in dorms or employees mining at work.
Educational Value Over Profit
So, what is the practical use of a USB miner? For many, it serves as an educational tool. Whit Gibbs, CEO of mining service provider Compass, sees it as a novel way to introduce people to Bitcoin mining:
I think it’s a cool novelty product that helps educate people about Bitcoin mining.
While the NewPac may not be profitable, it offers a hands-on way to learn about blockchain technology and cryptocurrency mining without a significant upfront investment.
Frequently Asked Questions
What is a USB Bitcoin miner?
A USB Bitcoin miner is a compact device that allows individuals to mine Bitcoin using a computer’s USB port. It’s designed for ease of use and low power consumption but offers minimal hash rates compared to professional equipment.
Can you profit from USB Bitcoin mining?
Profiting is challenging due to high electricity costs and low mining output. Without free or very cheap electricity, these miners often operate at a loss. For most, 👉 exploring more strategies for cryptocurrency investment is more viable.
Who should consider using a USB miner?
USB miners are best suited for educational purposes or hobbyists interested in learning about cryptocurrency mining. They are not recommended for anyone seeking significant profits.
How does mining difficulty affect USB miners?
As Bitcoin’s network difficulty increases, USB miners become even less profitable. Their low hash rates make it hard to compete with industrial mining operations, reducing potential earnings over time.
Are there alternatives to USB mining?
Yes, cloud mining and purchasing Bitcoin directly are popular alternatives. These methods avoid the high hardware and electricity costs associated with home mining. For those interested in hands-on learning, 👉 view real-time tools to compare options.
What is the environmental impact of USB mining?
While USB miners consume less power than industrial rigs, they still contribute to energy usage. Mining profitability often depends on electricity costs, so using renewable energy sources can mitigate environmental concerns.
Conclusion
The DIY USB Bitcoin miner is a fascinating innovation that demonstrates the growing interest in cryptocurrency. While it may not be a profitable venture for most, it serves as an accessible entry point for those curious about Bitcoin mining. As with any investment, it’s essential to weigh the costs and benefits carefully. For many, buying Bitcoin directly or exploring other crypto strategies may be more rewarding than investing in hobbyist mining gear.