Is Cryptocurrency Mining on Azure N-Series Profitable? And How To Do It Anyway

The cryptocurrency craze is real, with BitCoin and other currencies surging ter latest months. While the long-term viability of thesis are questioned by some, cryptocurrency mining has bot going on for years and is the catalyst for how coins are distributed. Personally, I’ve mined cryptocurrency at huis with my own ASIC and GPU equipment, but I’ve always dreamed to test the viability of mining te the cloud. There are already several sites that sell out hashing power to buyers looking to mine cryptocurrency, and there are slew of sellers willing to lease out their compute power to do so.

BitCoin and several other cryptocurrencies can be mined through varying methods, but ASIC mining is most efficient when available for a particular coin. GPU mining can be especially profitable on cryptocurrencies that are ASIC-resistant (where ASIC mining is not permitted ter an effort to avoid a hardware arms wedren). CPU mining is slightly a blip on the radar, spil it is the least efficient method for cryptocurrency mining.

So how does this tie into Azure? About a year ago, Microsoft announced N-series virtual machines that actually have a healthy amount of GPU power. Thesis instances are particularly useful for certain applications like 3D rendering, artificial intelligence, medical research, and CUDA-intensive computing. GPU’s are much more powerful than what CPU’s can do ter thesis screenplays because of the type of algorithms they can run. Thesis same algorithms can be used for hashing power to mine cryptocurrency fairly well. Running this ter Azure isn’t particularly difficult and is exactly the same method spil running it in-house, but I do want to test the best case script to evaluate the profitability of running mining operations ter Azure.

Very first, wij need to look at what GPU’s are available ter Azure. At the time of this posting, there are two GPU’s available to use with N-series instances ter Azure – NVIDIA Tesla K80 and Tesla M60. Since the M60 (NV SKU) is the more latest generation, wij will be testing with those. The NV instances include the following SKU’s:

Spinning up thesis instances ter Azure is elementary enough, but what cryptocurrency variation will be most profitable? I like to use a webpagina called whattomine.com, which actually compares the mining profitability of cryptocurrencies by factoring te several variables like market value, mining difficulty, power consumption, and your specific hardware. This is exceptionally useful informatie when looking for what to mine. For this test, wij will evaluate two of the most profitable cryptocurrencies available (at the time of this postbode) that use two different mining algorithms – MonaCoin, which uses the Lyra2RE2 algorithm, and Zencash, which uses the Equihash algorithm. Both of thesis algorithms are designed for NVIDIA hardware, which suit our Azure instances well. To mine MonaCoin, wij will use a miner called CCMiner, for Zencash, wij will use a different miner called Zec Miner. Tho’ thesis cryptocurrencies may provide little value to you, they can always be traded for your coin of your choice on several online exchanges. And yes, USD is included if fiat money is more your style.

Te Azure, wij will deploy a Windows Server VM ter the Westelijk US Two region. You can find regions that support N-Series instances through Microsoft’s regional availability webpagina. If you have trouble finding the NV SKU, attempt switching your storage type from SSD to HDD. Be sure to monitor your usage closely since this SKU gets rather expensive.

I have deployed a ordinary NV6 Windows Server 2016 example for this test. This size has one M60 GPU linked, so it should be straightforward to gauge spectacle. SKU’s with numerous GPU’s are available but scale up pretty evenly te mining spectacle.

Once the VM is deployed, download and install the latest NVIDIA drivers for the Tesla M60 – they do not come installed by default.

From here, you simply run your cryptocurrency miner using the same string you would use normally. This string will vary depending on your mining pool, algorithm, and username, but they generally look something like this:

  • CCMiner: ccminer -a lyra2v2 -o stratum+tcp://miningpool.com:2995 -u username -p password
  • Zec Miner: miner.exe –server miningpool.coim –user username –pass password –port 3618

And now… the results.

For the MonaCoin/Lyra2RE2/CCMiner test, the NV6 SKU wasgoed able to mine at a respectable 21Mh/S.

At current market rates, this would result ter a payout of around Four.8 MonaCoins/month, or about $66/month – far below the $1004/month for the Azure VM.

Comparatively, a single NVIDIA GTX 1080 TI GPU would mine MonaCoin at around 63MH/s.

At current market rates, the 1080 TI GPU would result ter a payout of around 14 MonaCoins/month, or about $202/month.

For the ZenCash/Equihash/Zec Miner test, the NV6 SKU wasgoed able to mine at 285 Sol/s.

At current market rates, this would result ter a payout of around Two.Two Zen/month, or about $71/month – again, far below the $1004/month for the Azure VM.

Comparatively, a single NVIDIA GTX 1080 TI GPU would mine ZenCash at around 730 Sol/s.

At current market rates, the 1080 TI GPU would result te a payout of around Five.6 Zen/month, or about $182.44/month.

Here’s all the results neatly compiled into a table.

Spil expected, the hash rate of the NVIDIA Tesla M60 running ter Azure is far too low to pay for the NV6 example size – you would lose around 80-90% of your investment to the Azure subscription cost. This could be due partly to mining algorithms being optimized more towards consumer GPU’s, spil the M60 and K80 are designed for workstation fountains. Unless you have some free compute to burn through ter Azure, I wouldn’t recommend using thesis SKU’s for *profitable* cryptocurrency mining. A better investment would be to buy hashing power directly from those willing to sell it, acquire your own mining hardware, or just buy the cryptocurrency instead te hopes of future gains.

But hey, it wasgoed joy to set up!

One thought on &ldquo, Is Cryptocurrency Mining on Azure N-Series Profitable? And How To Do It Anyway &rdquo,

Does Azure even permit using VMs for mining? I figured they would catch on and you would get banned?

Related movie: BITCOIN MINING….BITCOIN MINER METHODS WITHOUT HARDWARE


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