Hats off as bitcoin formally enters the Central African Republic
25.05.2022
262 Views
Even as cryptocurrencies keep growing both in variety and use, there has always been uncertainty…
This is how crypto mining works
Cryptomining is the extraction of cryptocurrencies using its computing power. Cryptocurrency secures its entire network using cryptography, and an important part of ensuring the integrity of the blockchain is by using as much computing power as possible to verify transactions that take place on the blockchain by letting users fight to solve the cryptographic tasks .
Cryptomining uses computing power
In practice, cryptomining works by running a computer program on your computer. Then you use either the processor or the graphics card to solve cryptographic tasks, and in this way help to operate the blockchain. At the same time, those who correctly solve the cryptographic tasks get a reward in the form of cryptocurrency, and that’s how cryptocurrency mining works. In 2019, those who solve the task on the Bitcoin blockchain will receive 12.5 BTC (around NOK 500,000), but the prize will gradually decrease in value via halves when the network has solved a certain number of blocks .
When cryptocurrency was new, you could actually earn a decent penny by using a regular computer, but the more that mines, the smaller piece of the pie it becomes for each. Today, there is generally very little cryptocurrency to be gained from mining, and those who do it often use professional ASIC miners to solve the cryptographic tasks. These machines are specially designed to solve Bitcoin’s cryptographic tasks, and are expensive to purchase, and a machine can quickly cost several thousand dollars.
Requires large investments to make a lot of money
Despite the fact that it is almost impossible to make big money on cryptocurrency without investing hefty sums, you can still mine on your computer to get some small change. If nothing else, it’s a fun way to get some money for nothing. If you want some money, you should consider mining a cryptocurrency other than Bitcoin, and websites such as whattomine.com are a good starting point for finding the cryptocurrency that is most profitable to mine on that particular day. Ethereum is often a good choice as it is protected against ASICs miners, so the professional Bitcoin miners cannot mine Ethereum easily.
When you want to start mining cryptocurrencies with your computer, you need a program that solves the tasks for you. Exactly which program to use depends on which cryptocurrency to mine, but if you are going to mine Ethereum, Ethminer is a good program. Another good option is the Claymore Dual Miner. It takes a lot of effort to get started with real crypto mining, but spend a few hours reading about the various features of the program, and you will probably be able to mine it on your computer.
Recommended graphics cards for mining
- Nvidia RTX 3090 .
- Nvidia RTX 3080.
- AMD RX 6900 XT .
- Nvidia RTX 3070 .
It should be said that cryptocurrency mining is a very complicated topic that takes a long time to really understand, but fortunately you do not have to understand how everything works as long as you can get the miner to run on your computer.
Pool Mining – a less expensive option
Pool mining is a form of crypto mining where you contribute computing power. Then you will get a share of (for example) a Bitcoin, which corresponds to the share you have contributed of computing power. This was a method that was very popular in the past, and which still has something to offer. There are some players that offer Pool Mining where you can dispose of the dividend via the marketplace.
Is it profitable to mine cryptocurrencies?
There are many around the corner when it comes to crypto mining, and with today’s market it is very unprofitable to mine, especially from Great Britain where there is expensive electricity. You can plot your electricity prices on mycryptobuddy.com ‘s mining calculator to see when or if you will go in the red, but with Norwegian electricity prices you can almost count on always going in the red.
The electricity that is “wasted” on mining is converted into heat, so in a way a miner can function as a decent heater in the winter, and probably the only heater that makes money for you. If you can not find a sensible way to use the heat, mining in Great Britain will be a pure loss project almost no matter what you do, and it is much more sensible to invest the money in buying cryptocurrency instead of buying mines.
