What is a USB Bitcoin miner, and how does it work?

Key takeaways: 

• USB Bitcoin miners are compact, low-power devices that plug into a computer’s USB port and perform Bitcoin mining on a small scale. They are often used by hobbyists.
• They work by participating in the Bitcoin network’s hashing process, but due to their limited power, they are typically used in mining pools to increase the chances of earning Bitcoin.
• Profitability with USB miners is very low, making them more suitable for learning and experimentation rather than serious income generation.
• USB miners still require careful setup, including proper cooling, power management and reliable software, to function effectively.

If you’re looking to mine Bitcoin, you’ve got options. 

Let’s start with the old-school way of doing things: solo mining. Solo miners compete against everyone else on the Bitcoin network. You’ll need serious hardware, usually in the form of application-specific integrated circuit (ASIC) machines.

While it’s possible to strike gold and earn an entire block reward, it’s becoming increasingly rare. With the network’s difficulty constantly rising, solo miners face huge odds, and it often takes a long time before you see any returns.

That’s why pool mining is a more sensible option for those with a modest amount of hardware in the 2020s. You combine your mining power with others, increasing your chances of earning Bitcoin (BTC). While the rewards are shared among all the pool members — meaning smaller rewards — you’ll see more consistent returns. Pools charge a participation fee, but they help balance out the risk and make mining more accessible to people without top-tier hardware.

Next, for those who don’t want to deal with hardware or electricity costs, there’s cloud mining. This method involves renting mining power from a company that owns and operates mining hardware. You pay a fee upfront or as part of a contract, and it handles the rest.

What you may not know, however, is that hidden away, deep down at the bottom of the budget bucket, there’s an unconventional route into mining known as USB mining. This method has gained some interest, especially among hobbyists. You won’t get rich quickly with it, but it’s an intriguing option that we’ll explore in detail today.

How USB Bitcoin miners work

USB Bitcoin miners are compact devices that plug directly into your computer’s USB port. They’re essentially scaled-down versions of the larger ASIC miners used in traditional setups but with much lower power and processing capabilities.

Connecting a USB miner to your computer begins a trial-and-error process to encode transaction data into a hash that meets specific length requirements — the same task larger miners perform. Once a suitable hash is found, other miners on the network validate it, and a new block is added to the blockchain. In return, the miner earns a Bitcoin reward.

Although USB miners contribute to the Bitcoin network, their impact is relatively small. For any chance of profitability, they’re typically used as part of a mining pool. In a pool, your USB miner works alongside others, combining processing power to increase the likelihood of earning Bitcoin. The rewards are then shared among all participants based on their contributions.

USB miners are more of a hobbyist’s tool in the broader Bitcoin mining ecosystem. They provide a hands-on way to learn about mining without the need for expensive hardware or high electricity costs. There’s also a slim chance that your USB miner could mine the next block purely by luck, which could lead to a substantial reward. 

This is why USB mining is often referred to colloquially as “lottery mining.”

So, even though you’re unlikely to make significant profits with a USB miner, it’s an excellent entry point for anyone curious about the technical side of Bitcoin mining, offering a small but exciting chance of striking it lucky.

Did you know? When you engage in lottery mining with a USB Bitcoin miner, your odds of winning are about as slim as hitting the jackpot in a state lottery — yet some miners keep trying for the thrill of possibly striking digital gold with just a tiny piece of hardware! It’s like playing the crypto lottery but with a much nerdier twist.

Profitability of USB Bitcoin miners

When considering USB Bitcoin miners, it’s important to dive into the numbers to understand just how feasible — or infeasible — profitability is.

One of the more popular USB Bitcoin miners you’ll find today is the GekkoScience Compac F. It’s a small device with a hashrate of around 200 gigahashes per second (GH/s) and typically costs around $120 to $150, depending on where you purchase it.

Let’s break down the profitability of using the GekkoScience Compac F:

• Hashrate: 200 GH/s
• Electricity usage: Approximately 10 watts
• Cost: $130
• Bitcoin price: $55,000 per BTC
• Electricity cost: $0.10 per kilowatt hour (kWh)

Using an online mining calculator, you can estimate the daily earnings:

• Daily Bitcoin earnings: approximately $0.275
• Daily electricity cost: about $0.024
• Net daily profit: $0.251

In case you’re wondering how long it would take to recoup the cost of the miner, according to these calculations, it would take nearly one and a half years.

This assumes that the difficulty of mining doesn’t increase (it will) and that Bitcoin’s price remains stable, which is unlikely given its volatility.

When compared to ASIC miners like the Antminer S19, which costs thousands of dollars but has a hashrate of over 100 terahashes per second (TH/s), USB miners clearly lag behind.

The S19 might earn hundreds of dollars in Bitcoin per month, making the payback period much shorter — often under a year, depending on electricity costs and Bitcoin’s price.

If you’re entranced by the idea of lottery mining on the GekkoScience Compac F, you might think twice. After all, the probability of successfully mining a Bitcoin block solo with the GekkoScience Compac F over the course of a year is approximately 0.000002628%. In other words, the chances are astronomically low — essentially zero.

The conclusion? For most, USB mining is more of a hobby or educational tool than a serious profit-making venture.

Best practices for using USB Bitcoin miners

Aside from joining a mining pool, you might consider the following best practices, which are relevant not just to USB Bitcoin mining but to the industry as a whole.

• Run multiple USB miners: To increase your overall hash power, consider running multiple USB miners simultaneously. This won’t drastically improve your profitability, but it can slightly increase your earnings. Ensure your computer or USB hub can handle the power and cooling needs of multiple devices.
• Optimize electricity costs: USB miners consume very little power, but every watt counts. Run your miners during off-peak hours if you have variable electricity rates. If possible, power your miners with renewable energy sources, which could reduce or eliminate electricity costs.
• Ensure adequate cooling: USB miners can get surprisingly hot, especially when running continuously. To avoid overheating, ensure that they have proper airflow and aren’t crowded. You might consider using a USB fan or a cooling pad to help keep the temperature down, which can prolong the life of your miners.
• Regularly update firmware: Manufacturers occasionally release firmware updates that can improve the performance or stability of your USB miner. Check the manufacturer’s website periodically for updates and apply them as needed.
• Use a quality USB hub: If you’re running multiple USB miners, invest in a high-quality, powered USB hub that can deliver sufficient power to each miner. Avoid cheap hubs, as they can be unreliable and may not provide the necessary power, leading to reduced performance or even hardware failure.
• Be aware of security risks: Only use trusted, well-known mining software to control your USB miners, stay cautious of phishing attempts, and ensure your computer is protected by up-to-date antivirus software and a firewall, no matter how big or small your mining operation will be.

Did you know? A company called Heatbit has created a smart heater that doubles as a Bitcoin miner. It’s designed to warm up your room while quietly mining Bitcoin in the background. It’s a unique example of how cryptocurrency technology is being integrated into everyday household appliances. 

Buying and setting up a USB Bitcoin miner

Perhaps at this stage, you’re ready to dip your toe in the bountiful beauty of Bitcoin mining. 

Here’s a quick step-by-step guide to help you get a USB Bitcoin miner up and running.

Choosing the right miner for you

When shopping for a USB Bitcoin miner, stick to reputable retailers and platforms like Amazon, eBay and specialty crypto shops. These sources usually offer a range of models, often with customer reviews that can help you make an informed decision.

USB miners are generally affordable, but prices vary based on performance. Don’t just go for the cheapest option; balance the cost with what you expect to mine. And, of course, a warranty can be a lifesaver if your device has any defects or malfunctions. Check the warranty terms before buying.

Below are some popular models, but remember to evaluate your options thoroughly. Check reviews and look for miners with solid ratings. Look out for ease of use, performance and any potential issues. You might also consider watching some setup tutorials online that are specific to your choice.

Popular USB miners in 2024

• GekkoScience NewPac: This model is an upgraded version of the GekkoScience Compac F. It offers a higher hashrate and is known for its efficiency. It’s a solid choice for those looking to get a bit more power out of their USB miner without a significant price jump.

 

• Avalon Nano 3: A simple and beginner-friendly miner, the Avalon Nano 3 is a popular option for those new to Bitcoin mining. It has a lower hashrate than others but is reliable and easy to set up.

• Bitmain Antminer U2: Although older, the Bitmain Antminer U2 is still a popular model due to its affordability and decent performance. It’s a good entry-level miner if you’re on a budget.

• FutureBit Apollo BTC: While not strictly a USB miner, the FutureBit Apollo BTC is a compact and quiet miner that connects via USB and offers a higher hashrate than most USB-only models. It’s a great option if you want something small but powerful.

Setting up a USB miner

Once you’ve got your miner, setting it up is straightforward. Here’s how:

• Hardware: Plug the USB miner into an available USB port on your computer. Using a powered USB hub if you’re using multiple miners is a good idea, as they can draw significant power.
• Software: You’ll need mining software like CGMiner or BFGMiner. Download and install the software that’s compatible with your miner. Most miners come with instructions on which software to use.
• Configuration: After installing the software, configure it to connect to your chosen mining pool. You’ll need the pool’s URL, worker ID and password. The software will also ask for settings like your miner’s hashrate. Refer to your device’s specs for this info.
• Cooling: USB miners can get hot. Consider adding a small fan to keep temperatures down and maintain performance.
• Overclocking: Some miners allow overclocking for better performance, but this can increase heat output, so proceed with caution.

Did you know? Some USB miners face issues with not being recognized or underperforming. To avoid this, ensure your USB port or hub is working properly. Try plugging the miner directly into your computer to rule out hub problems. If the hashrate is lower than expected, double-check your settings and make sure your computer isn’t overloaded with other tasks.

The future of USB Bitcoin mining

As explored, USB Bitcoin mining is a niche within the broader cryptocurrency landscape, appealing mostly to hobbyists and those curious about the technical aspects of mining. As technology evolves, USB miners will likely see incremental efficiency and hashrate improvements. However, their role in the overall mining ecosystem will probably remain limited due to their lower power than larger ASIC miners and the ever-increasing network difficulty.

Looking ahead, USB miners may continue to serve as educational tools, offering a hands-on introduction to the world of Bitcoin mining. Whether they become more integrated with other devices — perhaps even serving as add-ons for existing technology, like smart home systems — remains to be seen.

So, while USB Bitcoin mining won’t make you rich, it offers a fascinating glimpse into the world of cryptocurrency and a chance to participate in the Bitcoin network, no matter how small your contribution might be.

Written by Bradley Peak