Mining is the Task to get cryptocurrency by solving complex mathematical functions which are mainly the hash values of the cryptocurrency.
Hmm, more precisely I guess it depends on you and what gear do u use to mining. And sometimes it really may charge you a lot instead of getting paid you should pay it. But what actual things do we need to consider before getting started in mining. let's dive in then
CryptoCurrency
Crypto Currencies are decentralized Money. Which doesn't have any central authority has Banks etc. Everyone has information about the transactions happening in the network and changing any value in the transaction is highly impossible. This can be understood by a simple example of how cryptocurrencies are hard to break. Cryptos have different parameters difficulty, no of a miner, address, hash values. For changing any values we need to get the hash value. Here every transaction has a unique address which is calculated by many factors and previous address. This address is known as Blocks. And then there are connected in such a way that to get the address of one block you need to know the hash values of the previous block which becomes a chain of values. That's where the name Block Chain came into the picture. This is how BlockChain makes CryptoCurrency Unbreakable and Un-hackable.
All the Currencies are based on Blockchain technology. Just differ by some implementations of it. By the way, mining is also considered to be illegal in some countries because some countries have banned cryptocurrencies for the reason that they can cause economic issues to banks and other corporate industries. So if countries have Banned Crypto Currency please don't try to mine. Some countries where crypto is banned are Iran, Vietnam, Bolivia, Columbia, and Ecuador
What Does a Mining Software Do?
To get a coin, we need to do complex mathematical calculations. Which are nothing but the hash values of the address and transactions and other factors. If there is a large no of Miners then the difficulty of the Hash function also increases and the time to get a coin also increases. The reward we get mining a block can differ in currencies ex we get around 4 - 6 coins in bitcoin and even more in Ethereum.
So all the mining software has a centralized server that sells the hash power to the highest bidder. And the bidder uses the hash power to mine coins. The money which he gave to buy the hash power is given to us. We can also buy hash power but it sometimes might not be profitable. For example, if we buy around some 200Mh/s and we mine some 1 bitcoin in 1 week but we have paid 2 bitcoins which is a loss. So we should also buy hash power correctly and also choose proper mining pools and also see Algorithms which the crypto's use. Bitcoin uses the Sha algorithm.
Crypto-Currency Mining...
For all of you out there you might know that the bitcoin price today is approximately 35,000$ and it's going up and down during the last few days due to covid and all other reasons. But How to get a bitcoin.
Getting a whole bitcoin might take a lot more time than u except it may take up to 2-3 years 2-3 weeks are also there are people out there with massive machines dedicated to mining and earn up to 4-5 bitcoins a day. But here is the question what are we losing for the mining. In most cases, bitcoin mining takes a lot of power usage you might even get 100-1000$ of power usage bills depending on the machines you. Wait a sec what does machines mean here. They are the GPUs to get a bitcoin the GPUs need to perform complex mathematical calculations. Which increases the wear and tear of the GPU. I have seen some people who also mine with CPU.
Should we care about mining
Unless you have a good GPU and you are ready to take the cost or efficiently manage the prices surely yes. Or if you a guy with an intel core duo started mining all day not seeing the power bills not seeing the device conditions then it's absolutely No.
Even if mine a whole 7 days you can see the profits and losses of the mining.
I guess having a good GPU or maybe having 2-3 dedicated GPUs for the mining is a good start.
But you can also start if you have a good GPU and
can earn up to 4-5$ a day but take care of the heat issues. because mining your device can have long-term heating issues. I surely say mining is not good in laptops. Or if you want to overlock and start mining I recommend you to read this
article
Let us see the things which we need to consider while mining
- Proper dedicated hardware
- Low-cost power supply
- Dedicated cooling system for the devices
- Good mining pool and proper knowledge about pools and mining
- good mining software
- pool fees and pool taxes
