The topic of today’s material mining is less profitable than speculation on the cryptocurrency rate, a way to earn money (but more profitable than Bitcoin taps), but it is much more popular and not as risky as trading on crypto-exchanges to replenish bitcoin wallets.
Cryptocurrency is the information money existing on the network due to the active work of a certain algorithm. It can also be called crypto-gold or a virtual analogue of gold. Like gold, the amount of cryptocurrency is strictly limited and it can be obtained either by purchase or by mining. The latter is called Mining.
The extraction of cryptocurrencies (and bitcoins in particular) is carried out by sorting numbers, for each of which the so-called hash is calculated. If it (the hash) matches the given pattern (for example, there will be so many zeros in front), then a new cryptocurrency unit will be released (in essence, its production).
The complexity of the template is set so that the probability of production matches the plan (there is a plan until 2033 for bitcoin). This complexity is constantly adjusted so that the next coin is mined approximately every ten minutes (at the same time, confirmation of all transactions completed during this time also passes).
Over time, mining will only be more difficult. For each block (found number), the miner receives a reward. The probability of receiving a reward is the higher, the greater the computing power of the system used by him.
For the algorithm to run successfully, a computer of tremendous power is needed (GPU video cards that support a huge number of parallel pipelines are best suited for calculations). The popularity of bitcoins is constantly growing (as well as the number of miners), which means that the complexity of the information operations associated with this is increasing.
Mining alone is now almost pointless, because the probability of obtaining a coin is almost zero. Therefore, people are united in pools (out of thousands of participants), which share the rewards received among all participants in proportion to the capacities involved. The remuneration here will be less, but it will be.
Cryptocurrency mining options
Through a regular PC – you download a program to your computer, donate some of the power of your video card to mining and successfully make money just sitting at the computer and doing your own thing.
No additional investments will be required from you in this case, but you won’t be able to earn a lot of bitcoins in this way either.
Mining through special equipment – you buy an ASIC device (“special purpose integrated circuit”, translated literally) and create a “farm” that works actively and brings you very large amounts.
It goes without saying that in this case you will first have to spend a considerable amount of real money (from $ 1,000) to start making virtual money (cryptocurrency) on an industrial scale.
Due to the fact that lately, bitcoin has risen in price, cryptocurrency mining is gaining more and more popularity, because the cost of equipment and electricity is more than paying off. The rate of bitcoin against the dollar after a sharp rise to the top is in no hurry to decline.