There are lots of search related Crypto mining and you would possibly have seen plenty of videos, articles associated with it. But you would possibly be wandering what's Crypto mining ?, what are the various ways to mine Bitcoin, Ethereum, Dogecoin and other Cryptos, does it require high end Graphics Processing Unit (GPU) and extra expensive hardware setups?. So during this blog you'll get basic idea about Crypto mining.
Mining is an activity that's required by a symptom of labor blockchain to hold out its operations. It involves making complex calculations to unravel a mathematical puzzle, which miners compete so as to earn a Crypto as reward (Source : CoinMarketCap).
In simple words, Crypto mining is nothing but generating or collecting Cryptocurrency by running complex algorithms and codes in your computer with the assistance of special hardware, as an award for completing this process, you may receive Crypto's like Bitcoin, Ethereum, Cardano in your wallet.
For some, it's sort of a source of income and for others, it’s about gaining greater financial freedom without the intervention of governments and banks.
What is Crypto Mining ?
To define it technically, Crypto mining is a process during which transactions for various forms of cryptocurrency are verified and added to the blockchain digital ledger. In simple words, it's the method during which a machine nothing but a computer, executes complex algorithms/tasks to get portion of Cryptocurrency.
For an improved visual understanding of how Crypto mining works, try this video from The New York Times that explains about Cryptocurrency and the way Crypto mining works :
Crypto Mining Methods
1). GPU Mining :
GPU mining is a process of solving complex math problems/algorithms to verify electronic transaction using graphic card (preferably an external card). Miners will receive digital token or get paid for their participation in mining of a cryptocurrency.
This is often one in all the foremost popular way of Crypto mining, if you browse in any program you may find GPU rigs within the search results. But many cannot afford these expensive GPU cards, so there are few legit cloud mining services that provide you the way to mine Cryptos with their GPU rigs.
2). CPU Mining :
Because the name suggests, during this method we use our computer/PC processor to mine Cryptocurrency. If you're employing a low end computer then I would like to recommend you to not choose this method because it burns out your processor capacity
This method is not used much now because CPU mining is mostly slower compared to GPU mining because a CPU can't output the identical raw hash power that a GPU produces.
3). ASIC Mining :
An Application Specific computer circuit (ASIC) could be a sort of circuit that has been designed for a particular purpose. An ASIC Miner is nothing but a tool that uses microprocessors for the precise purpose of mining Cryptocurrency. So, a Bitcoin ASIC miner can mine only bitcoin. this can be because each digital currency has its own cryptographic hash algorithm, which ASIC devices are intended to match particular Cryptocurrency. Bitcoin, for example, uses the SHA-256, while Litecoin uses Scrypt.
ASIC method of mining is that the most used and popular way, because ASICs, compared to GPU and CPU, have high computation powers and efficiency. it's the foremost profitable method compared to the opposite two. ASIC Mining of cryptocurrency could appear like a straightforward thanks to generate crypto, but it needs lots of investment and also a partnership together with your Power Supplier company.
4). Cloud Mining :
Cloud mining is that the process of mining Crypto by renting the Hardware and Software required for mining from cloud service provider (CSP). This method is more suitable if you would like reduce the upfront cost of putting in the Hardware and far more. you'll buy a subscription for a selected period of your time and renew it accordingly, so you'll minimize the overhead of managing hardware and its configuration.
Cloud mining has become so popular mainly because it offers the possibility to participate within the world of cryptocurrencies for folks that won't have enough money to shop for their own rigs. But, Some cloud mining functions tend to commit fraud when the miners or users also share information regarding their keys and digital wallet address. In cloud mining, the operations of miners become vulnerable and transparent.
Note :
I see many question related to Bitcoin mining like how much time it takes to mine one Bitcoin, what is the hash rate, power and much more. Firstly a single Bitcoin block (6.25 BTC per block) can be generated in 10 minutes (If number of miners are less then may be little quicker).
Since you are mining in a pool , lets assume you contribute 1% of the pool so you need 150 PH/s of hash rate to get 1 BTC . It is possible for individual miners to start mining by on their own but it requires bit of investment to buy the required hardware like GPU, Motherboard or may ASIC mining device.
Things to keep in Mind
Cryptocurrency mining isn't a simple job, don't think you'll unlimited number of Crypto's in brief period of your time, mainly if you're choosing CPU, GPU and ASIC mining. However, it’s very taxing in terms of computer and power resources and isn’t feasible for several users as a result. And Crypto mining consumes lots of Electricity, causing a adverse effect on our nature. Recently there was a news regarding shortage of GPU cards and every one started blaming Crypto miners.
So keeping all of these in mind, one last word for our fellow Crypto lovers...
- " Happy Investing "
