Crypto mining, also known as cryptocurrency mining or cryptocoin mining, is the process where transactions are verified and added to the blockchain public LEDGER as cryptocurrency. The most popular form of crypto mining is Bitcoin mining. However, other forms of cryptocurrency are slowly becoming popular as the use of cryptocurrencies as a medium of exchange is being embraced across the globe. Crypto mining can serve as an additional source of income for some people. However, the only way that an individual or corporation can maximize their earnings from crypto mining is through the use of dedicated hardware with high computational power.
How crypto mining works
Crypto mining involves two major functions, and these are securing and verifying transactions and the creation of a new cryptocurrency. To become a miner, one needs to be in possession of a computer and other specialized software that will help them to solve complex mathematical problems faster than their peers. As such, this process requires adequate resources that will help miners to maximize their earnings.
Miners usually audit and verify the transactions that have taken place previously, and this makes sure that there is no double-spending. The process of crypto mining involves the calculation of a 64-digit hash. A miner is required to use their computational power to narrow in on a hash value, which is below the target, and they should do this faster than their peers to earn the reward. This principle is known as the Proof of Work (POW). The reward for mining one block of transactions as from 11 May 2020 is 6.25 Bitcoins, and this value will again be halved after a specific time. The next halving of this reward will take place in 2024 to equate to 3.125 Bitcoins.
The high cost of crypto mining
The problem that surrounds crypto mining is the high computational power that it needs, as well as high budgetary allocations and other resources. For this reason, most people are usually limited from crypto mining, and this leaves such a lucrative industry only to those who are capital endowed.
When Bitcoin was invented in 2009, the process of mining was quite easy because few people understood the concept and who rushed to solve the transactions. However, as more and more people started indulging in crypto mining, the mathematical problems that needed to be solved to create a new currency became more complex, and this has made mining very difficult. Due to the increased complexity, miners have been forced to upgrade their resources and invest in a high computational power if they wish to beat other miners in solving the mathematical puzzles and earning the reward.
With the complexity that now surrounds crypto mining, this lucrative business has been left to large corporations and wealthy individuals with adequate resources. These individuals and corporations have set aside huge budgetary allocations to create mining rigs that possess a high computational power to earn huge profits from block rewards. It has become tough for miners who do not have the required capital and equipment investment to earn reasonable profits from crypto mining.
How to reduce the high cost of crypto mining
To make crypto mining a profitable business for everyone, miners need to have access to the resources that are required easily. This can be done through Pool mining and Cloud mining. Pool mining involves different miners coming together and combining their resources and share their computational power to solve the transactions faster. Cloud mining, on the other hand, involves a miner leasing computational power, and they then mine without having to purchase hardware.
At MINY platform, miners are offered with two significant ways that will help them to reduce costs:
- Cloud Mining Pool
To increase the chances of profitability, MINY uses its high computational power to join mining pools and therefore increase their profits. The profits realized are shared proportionately among users depending on the balance that the users have in their Mining pool.
- MINY AI
To further increase your profits through crypto mining, MINY has adopted the use of Artificial Intelligence. The MINY AI algorithm that has been developed by their professional IT team analyzes the current market conditions to give an accurate prediction of the future market. As such, this AI algorithm helps to increase efficiency through mining cryptocurrencies that are more valuable presently and in the near future.
Cryptomining is a business that can help to create a passive income for a lot of people, but those who need the income are locked out because of the high cost of mining. To reduce the cost, Miners with inadequate resources need to pool together their resources and adopt cloud computing. The MINY platform looks at ways that every miner will have an equal chance of reaping reasonable profits through crypto mining. It has then come up with ways that these miners will not be limited from mining to help them earn an income through better profits.
