Recently, cryptocurrencies came into the spotlight, more specifically with Bitcoin reaching amazingly high prices. That made a lot of people excited about the promises of this technology and what it can bring to the table. That’s when people realized that cryptocurrency isn’t just “printed” like regular money. Instead, you acquire it via a process named “mining”.
What is cryptocurrency mining?
Mining is an act designed to compute the correct value in order to satisfy the hash function from the blockchain. It involves the computation of many complex algorithm in order to find the right solution. Once the correct value is found, a reward is provided and that’s how you can get the cryptocurrency. The thing to note is that it takes a lot of time to find the correct value, and that’s what makes mining cryptocurrency extremely expensive.
In order to mine cryptocurrency, a lot of people chose to pool their computing power together or they just create a massive pool of computers themselves. There are also entire botnets focused on nothing but mining cryptocurrency. When the cryptocurrency values started to go up, there was more and more interest in mining. While that died out a bit, the truth is that cryptocurrency mining is still very popular, and with many cryptocurrencies out there, it’s really popular to mine, trade and exchange cryptocurrency in the online world.
Who can do it?
The truth is that anyone can do it, but you need to invest in cryptocurrency mining machines that do nothing but mine crypto 24/7. The more crypto was mined, the harder it is to generate new cryptocurrency, and that means it’s more expensive now than ever to mine Bitcoin for example. You now need dedicated machines and powerful computers to even attempt the idea of mining crypto. But it can still be worth the effort.
What cryptocurrency should you mine right now?
There are multiple cryptocurrencies that have a very good market value at this time. Bitcoin is one of them, then you have Ethereum and Litecoin for example. But you don’t have to limit yourself just to them. There are many other cryptocurrency options that you can pursue, and mining those can be easier.
Is it profitable to mine cryptocurrency?
One thing to consider about cryptocurrency mining is that whatever costs you less than $0.12 per KW consumed in an hour will be profitable. If you really want the best profitability, go for those currencies that will cost you $0.06 per KW consumed in an hour. That’s where you gain the best profits, and you need to take that into consideration as much as possible.
As you can see, cryptocurrency mining does come with its own unique challenges. But the truth is that people still do it, and they are making quite a bit of money. Mining cryptocurrency is not for everyone, it involves a lot of planning and calculations, but if you get past that and you set up a proper mining system, you have the opportunity to make some serious cash.