You've probably heard a lot about cryptocurrency mining. So much so that you have come across statements such as that this form of income is incredible and that the maker is rich. So is it really like that? Let's take a closer look at what is this cryptocurrency mining and how to mine cryptocurrency.
What is Crypto Money Mining?
To define briefly; All of the mathematical verification processes for crypto money production and transfers on the blockchain are called crypto money mining. The hardware / system used in performing these operations is also called a miner.
To elaborate with a little example; Imagine that you are trading on the stock exchange for an Ethereum investment. In order to perform these transactions, you need to deposit fiat, ie fiat money (such as US Dollars, Turkish Lira) into the account and convert your money to Ether (ETH). While you instruct it to happen, the miners verify that the Ether investment and transfer you made will take place. Regardless of the cryptocurrency, if there is a mining process there, no transfer can be made without the verification and approval of the miners.
The mining type and miner density of each cryptocurrency is different. Many things such as the technology it uses, the type of cryptocurrency, and the details in the software directly affect mining. Of course, this also affects the processing speed of the network.
How is Crypto Money Mining Done?
There are multiple ways to mine crypto money. Let's continue by taking them briefly.
CPU Mining
We can say that this mining method is one of the oldest known methods. It is a type of mining that anyone with a high processor desktop computer can do. Therefore, it was very preferred, but we can say that it remains old now.
Why does it stay old? Because it is a high consumption type of mining and it is very slow. However, it should be said that it is one of the easiest ways to learn mining.
GPU Mining
One of the best known and most preferred mining methods is GPU mining. If you ask why it is so known and preferred, the answer is quite clear: it is extremely efficient and the investment cost is very low.
You can prepare the necessary environment for mining with equipment such as processor, motherboard, multiple graphics cards, rig frames and cooling. The return on the investment made is very high and satisfactory.
Cloud Mining
Cloud mining is a type of mining that suits the technology of our age and is very popular. In this mining method, it is evident that our discourse befitting the technology is that it can be done without tiring and tiring.
What actually happens with the cloud mining method is that a GPU mining company or person leases the mining owned to you. You start the lease for a period of time you want and the money that remains after deducting the expenses from the earnings obtained during that process is the crypto money wallet. transferred to your . Trust and reliability are very important here. For this reason, you should carefully research the person or company you work with while doing cloud mining. You should definitely stay away from cloud mining companies that can be described as under the stairs. You should carefully examine and examine what is the commitment made. You have to be extremely selective in cloud mining so that the investment you make to make money is not wasted and you are not the money you invested while you are hoping to make money.
Mining Challenges and Hash Rate
At this point in the guide, you're probably wondering who changed the difficulty of the network and why. To understand the reasons behind the difficulty adjustment, we first need to find the concept of hashrate.
We already know that in order to create a block, a miner must hash the title of the last block until it gets a value lower than the target number. To do this, a miner needs a machine with CPUs that can do this. The hash rate that the computer can do in one second is called the hash rate.
Remember that mining is more of a lottery than a race, so a higher hash does not mean that a given miner will generate every block. However, the more transactions a miner can do, the better the chances of finding a suitable hash than others. Hash rate is specified by the hash value per second. Most commonly, the processing power of miner machines is measured in Mega Hashes (MH, one million hashes), Giga Hashes (GH, one billion hashes), and Tera Hashes (TH, one trillion hashes).
What are the challenges for crypto currency miners ?
- It is now impossible to produce Bitcoin at home with the computers we use in daily life. Because the CPU era is long over in Bitcoin mining.
- Bitcoin miners receive Bitcoin as a reward for completing "blocks" of verified transactions added to the blockchain.
- Miners compete fiercely with each other for the Bitcoin prize.
- Mining rewards are paid to the miner who first finds a solution to a complex puzzle, and the probability of a participant to discover the solution is related to the ratio of the total mining power in the network.
- To install a mining rig, a GPU (graphics processing unit) or an application-specific integrated circuit (ASIC) is needed.
- However, before investing time and equipment, you must do a thorough research to see if mining is really for you.
To wrap up in general, miners earn a block reward for their contribution to the Bitcoin network. With the halving of the block reward in May 2020, the block reward won by miners decreased from 12.5 BTC to 6.25 BTC. However, you don't need to be a miner to own Bitcoin. You can buy cryptocurrencies using fiat currencies.
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