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How to Mine CKB Crypto, Where to Buy

How to Mine CKB Crypto, Where to Buy

Due to the impact of the recent price slump, the mining profit of mainstream cryptocurrencies has plummeted. Despite the drop in nervos network hash rate and mining difficulty, miners find it difficult to recover the cost of many mining machines at the current token price and electricity fees. Recently, the mining of lesser-known cryptocurrencies has entered the spotlight. In addition to the booming HNS and TRB, the recent transition from FPGA to ASIC in CKB crypto mining has also has attracted much attention.

What is CKB Crypto


CKB is a Layer 1 cryptocurrency under the prominent Chinese crypto project Nervos. As a technology partner of the Huobi Eco Chain, the project was rated as one of the three public blockchain projects to watch in 2019 by Bloomberg. Jan Xie, the founder of Nervos, used to be the only Chinese member of the core ETH developers. He also started ETHFans. Daniel Lv is the former CTO and founder of imToken and the former CTO of Yunbi. Nervos raised 2.8 billion yuan ($433.1 million), which exceeded EOS. The project gathered plenty of mainstream Chinese mining pools, mining software, and mining OS during the testnet phase. Nervos has made mining easier and created convenient access to mining for miners. The R&D and manufacturing of specialized CKB mining machines is a key signal of crypto market recognition.

CKB is replacing the mining hardware. As CKB mining transitions to ASIC miners, FPGA miners and high-end GPU miners have gradually been replaced. The current CKB mining revenue stands at 0.16 yuan ($0.025) (1GH/s ≈ 5.89118632 CKB). The hash rates of specialized CKB mining machines, FPGA miners, and 8-GPU high-end GPU miners are about 1130GH/s-3000GH/s, 15GH/s-30GH/s, and 9GH/s, respectively. After the electricity fee is deducted, FPGA and GPU miners make little profit. On the other hand, ASIC miners now make three-digit CKB profits. We should bear in mind that each hardware upgrade will bring the nervos network hash rate and mining difficulty to a whole new level. In such a context, if miners can obtain more advanced equipment and start mining at the beginning of the hardware replacement, the short-term profits would be huge. This is also why some say the cost of an ASIC miner used for CKB mining is recovered in less than two weeks.

The nervos network hash rate has registered a tenfold increase, rising from 200TH/s in early March to around 2,118TH/s. The primary reason for this shocking growth is that the ASIC miners for CKB mining were shipped at the beginning of March, and as they entered the market, the hash rate soared. Apart from the C1 miner that is now available on the market, two more ASIC models (K5 and C1 Pro) will be shipped in early April. According to the shipment of CKB miners, in terms of hash rate, K5 miners will account for 4PH/s, Todd miners will contribute 4PH/s, PAminers will provide 1.5PH/s, and the nervos network hash rate is expected to reach 10PH/s.

Is it too late for miners to mine CKB Coin?


The answer is no, not yet. For example, the daily revenue of C1 Pro (3000 Gh/s) now stands at 447 yuan ($69.14). Assuming the electricity fee is calculated at 0.4 yuan/kWh ($0.062/kWh) and 25.92 yuan ($4.01) per day, the net profit of C1 Pro will be 421 yuan ($65.11). However, as mentioned earlier, other ASIC models are gradually entering the market, and the increase in hash rate will make mining more difficult. Hence, the high profits will eventually be reduced to two digits. Miners should keep track of the mining machine cost and consider dynamic factors when calculating the payback period. Therefore, timing has once become the key. The earlier you select a high-quality machine and start mining, the more profits you will make.

OXBTC, a world-leading cloud mining platform, is cooperating with ToddMiner for the exclusive offering of CKB Contract backed by C1 Pro. At the moment, OXBTC is the only channel left for users to receive the benefits of C1 Pro.

The CKB Contract is a real perpetual contract. What this means is that when the user purchases the Contract, he is buying the actual hashing power of a mining machine that is real and traceable. Relying on OXBTC, the user can receive the mining revenue that a mining machine generates during its service life, without having to wait in lines for popular mining machines or purchase hash rates with high premiums. On OXBTC, buying hash rates is equivalent to buying mining machines. During the service period, the user can also choose to trade the hash rate or withdraw from the mining machine.

In terms of cloud mining service, CKB Contract has the highest cost performance in CKB hash rates, which is evident from the price, mining revenue, and payback period. Should the user purchase mining machines or hash rates? In this regard, the price difference between buying a mining machine and choosing the CKB Contract is negligible. By comparing the CKB Contract backed by C1 Pro with another popular mining machine, we can tell that the CKB Contract is superior in terms of both price and power consumption.

How long is the payback period of the CKB Contract?


Let us assume that the user now buys 1TH/s of CKB crypto hashing power, and the nervos network hash rate is 2,100TH/s. At the moment, the actual daily supply of CKB is about 12 million at 0.027 yuan ($0.004) each. Assuming that the service fees and electricity fees account for 6% of the mining revenue and that the electricity fee is 8.6 yuan ($1.33) a day. Using the formula we envisioned, the user’s mining revenue, in this case, is 145 yuan ($22.43) a day. With the electricity fee (8.6yuan or $1.33) subtracted, the daily net mining profit of the user is 136.4 yuan ($21.1). Based on the unit price of 8,100 yuan ($1,252.8)/Terahash, the static payback period is approximately 59-61 days.

Another point that should be stressed is that as the ASIC models start mining CKB coin, all miners will be trying to seize the first-mover advantage, and the hashing power will continue to increase in the short term. As such, estimation of future profits cannot rely on the short-term static revenue alone. However, even if the nervos network hash rate reaches 4PH/s or even 6PH/s in April as predicted, the payback period will still be around 150-180 days, which is way shorter than that of mining machines for mainstream cryptocurrencies. Plus, recently, the CKB price has kept rising. All of these factors have allowed CKB to usher in a golden period.

In the context of mining, the difference between the lesser-known tokens and mainstream tokens lies in the fact that the former comes with greater risks and higher returns. In addition to the short payback period, with the CKB Contract, the user can still mine, sell, and withdraw cryptos. Moreover, the user owns the mining machine and can trade its scrap value at his own discretion. All these features make the CKB Contract highly cost-effective.