How a teenager and his sister earn $ 35,000 a month mining bitcoin

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Siblings Ishaan and Aanya Thakur first learned about cryptocurrencies from their father Manish Raj, a former Wall Street investment banker, who told them about alt coins during dinner and at bedtime. The stories piqued their curiosity, leading them to learn more about how to mine digital tokens.

After making just $ 3 on the first day of cryptocurrency mining in April of this year, the Texas, US-based sibling has made huge strides since then and now earns over 35,000. $ per month by mining three digital tokens.

“We started mining just to learn more about the technology, but it’s more fun if we can make some money along the way as well,” says nine-year-old Aanya. “Mining seems complicated at first, but it’s actually simple,” adds the fourth grader.

Most mining work involves the initial setup and fine-tuning of computers, says 14-year-old Ishaan. The duo learned to exploit by watching YouTube videos and reading articles on Reddit.

“Once the computers are installed, the machines run on their own with just a little extra work. Since school started, we’ve only been able to do crypto mining work on weekends, ”says the grade 9 student.

“My parents make sure that we focus on school first. We hired technicians at a Dallas data center to help us out if needed. Since we have been in school, the technicians have been monitoring the machines to make sure they are working well, ”he adds.

Cryptocurrency mining uses sophisticated computers that solve complex mathematical problems, according to Investopedia.com. Mining has a magnetic appeal to many investors interested in cryptocurrency, as they are rewarded for their work with crypto tokens, the website says.

For example, Bitcoin miners receive Bitcoin as a reward for completing “blocks” of verified transactions, which are added to the blockchain. Miners need a graphics processing unit (GPU) or application-specific integrated circuit (ASIC) to set up a mining rig, depending on Investopedia.com.

Previously, mining cryptocurrency was relatively easy and could have been done with the central processing unit of a computer, says Devesh Mamtani, chief market strategist at Century Financial. However, mining has seen an increase in difficulty levels and miners need the latest technology, he adds.

“A layman can do crypto mining with a decent gaming system. Then they just have to plug their details into a mining website / hash broker, which will provide them with a digital wallet where the cryptocurrencies will be credited, ”Mr. Mamtani said.

A hash power broker is an integrated marketplace that connects sellers and buyers using the sharing economy approach, he explains. Hash power is the power that your computer or hardware uses to run and solve different hash algorithms. These algorithms are used to generate new cryptocurrencies.

“We mainly mine Ethereum, but also Bitcoin and Ravencoin,” Ishaan explains. “We choose what to mine based on what’s optimal for each chip we have. Most of our chips are Nvidia RTX 3090 which is great for Ethereum. But when we get other tokens, we mine other currencies.

We mainly mine Ethereum, but also Bitcoin and Ravencoin. We choose what to extract based on what is optimal for each chip we have

Ishaan Thakur, 14-year-old crypto miner in Texas

Siblings use the Coinbase cryptocurrency exchange to store the digital tokens they mine.

On September 7, cryptocurrencies plunged amid the difficult rollout of Bitcoin, the world’s largest cryptocurrency, as legal tender.

Bitcoin is currently trading above $ 44,000, according to CoinDesk, after falling 17% on September 7 before cutting some of its loss. The downdraft has swept through other digital tokens as well, such as Ether and Dogecoin.

Bitcoin hit a record high of around $ 65,000 in April, driven by a tide of liquidity, quick cash bets and optimism about growing demand from institutional investors. But critical comments emerged later, including the environmental cost of the energy consumed by the computers that underpin Bitcoin.

The escalating crackdown on cryptocurrency in China has also soured the mood. Bitcoin fell below $ 30,000 after the rout in May.

The siblings made no initial investment to mine digital tokens. Instead, they converted two gaming computers to mining rigs using graphics cards, which can perform high volume of mining calculations. Their father took out a personal loan to help them buy more equipment.

“On the first day of mining on our gaming computer in April, we made $ 3. As we added more processors, we made $ 1,000 in the first month of May, ”says Ishaan. “Four months later, we now have 105 GPUs and a few more ASIC chips. We can process more than 10 gigahash per second, or more than 10 billion algorithms per second.

To formalize their business, the siblings created their own mining company, Flifer Technologies, on April 30.

Crypto activity has been good, so “we ended up making $ 36,691 in the last 30 days,” according to Aanya.

“But making money is not our main focus, we want to learn more about the technology,” she said, adding that they plan to reinvest their profits to buy more equipment to develop further.

“Our goal is to use the money we make from mining to pay for our school fees.”

The brother and sister are now working to create their own cryptocurrency, the Flifer Coin, and plan to launch it later this year.

The mining process requires a lot of energy and computing power. However, the siblings’ electricity bill was less than 10 percent of their mining income.

Mining is not environmentally friendly as it is an intense computer process, in which the GPU often heats up to around 80-90 degrees Celsius. This means there is a need for air conditioning and exhaust fans in tropical countries, says Mamtani.

“The cost of electricity is a big factor in mining, and countries with the cheapest cost of electricity tend to be the best for mining. Due to their cold climate, Scandinavian countries and countries close to the Arctic are popular with miners, ”he says.

“Home mining was good when our facility was small. Now that we have so many computers, the house cannot handle the heat and noise. That’s why we rented an air-conditioned business data center in Dallas. We build and test the computers at home, then send them to the data center, ”says Ishaan.

A big challenge for the siblings, however, has been the global shortage of computer chips. “We can’t grow our business as quickly as we want to just because the chips aren’t available. “

The cost of electricity is a big factor in mining, and countries with the cheapest cost of electricity tend to be the best for mining.

Devesh Mamtani, Chief Markets Strategist, Century Financial

The brother and sister say they will continue to mine cryptocurrencies because they love the process.

Ishaan hopes to attend the University of Pennsylvania, where he would like to study medicine and become a doctor.

“All of my friends love to play games on their computers. I guess we like to build computers more, ”he says. “We have received a lot of media attention because of mining, so I want to use our moment of glory to tell other kids that they too can create something great if they think about it. am just an ordinary kid and i love to play saxophone and watch movies.

Her sister also wants to study medicine, but would like to go to Cornell University medical school in New York.

“When I’m not in mining, I love watching Disney, Unicorn and Pony videos on YouTube,” says Aanya.

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Updated: September 20, 2021 08:21


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