What is mining?

Date: 12 August 2018, 22:08

What is mining?

We have already learned what crypt, bitcoin, blockchain and examined various crypto-currencies. It's time to learn the meaning of the word linked with some of them. Mining - what is it and why it is possible to earn on mining?

Earlier this definition could be heard by people who worked or worked in the field of mining, and at the moment it means working with crypt. Mine - to provide the resources of your equipment, which has computing capabilities, to the needs of crypto currency.

Many could hear the term "mining farm", naturally, the first thing that comes to mind is a house with lambs and cows or some kind of mine (from the English one-root word mine), but in fact this definition has a completely different meaning. The farm for mining, in fact, is a high-performance powerful gadget that provides its memory, processor or graphics card for the crypto currency. The equipment will store information that allows the currency to function, namely - blocks, transactions, time intervals of operations and other technical records. With the help of the ministers, a crypto-exchange system of connections can guarantee users safety and speed. They provide the network with a large number of repositories for the operational and reliable operation of the blockchain system.

A step-by-step mining analysis

Every person who would like to earn this way should purchase equipment, most often expensive. It is also necessary to install special software, adapted for mining, to configure it for a specific server, combining many of the same miners as you. This server is engaged in the unification of all devices, and it is he who passes them some tasks for calculation. One task can deal with a lot of gadgets and gadgets for mining, that's how the speed of their solution increases. If your device participated in the calculation, then you get a bonus in the form of a certain amount of coins of the currency that you mine. The possibility of issuing such bonuses in principle exists because of commission fees from user transactions, which, I recall, are minimal.

Thus, mining is the extraction of a digital currency, which can then be withdrawn, for example, in ordinary paper money - fiat.

Mining is divided into subspecies depending on the equipment or its capacity. Now the most profitable gadget for mining is a video card. Because of this, many people who wish to engage in mining have difficulties or even problems with their purchase. The prices for video cards have risen dramatically, perhaps now, it is no longer profitable to invest in a farm based on video cards. On the other hand, if you slow down a bit, you can wait for more take-off of the cost of video cards or processors. What will happen to the market of video cards on, it is very difficult to predict.

True, there are special devices (devices) that are sharpened only for mining and nothing else but minig. Naturally, the efficiency, efficiency and strength of such devices is higher, but in daily life their applicability is null.

Before choosing something like this it is worth consulting with someone already working in this field, or deep enough to plunge into the topic yourself. Particular care should be taken when choosing new and incomprehensible special devices for you, as this can really be a risky investment.

For sure, the easiest way to get into the subject of mining was for gamers who already bought powerful gadgets for games. On the other hand, those who wanted to update their computer during the period of popularity of mining - was badly affected. Miners organized a very high demand. Some time ago, there were no video cards at all.

Mining risks

With the increasing popularity of crypto-currencies, and correspondingly, mining, the danger has increased that unscrupulous individuals will be able to present us with some kind of fictitious, incomplete information. Some adventurers, themselves incapable of contributing to something like this. For example, you can be told only about the myriad of wealth that can be obtained through mining, bypassing the entire section with purchases of the necessary equipment of computer accessories and expensive components.

In general, it is not surprising that such a method attracted the attention of such people, because it looks simple, and it is really simple, but it has its own nuances. If you decide to invest in it, first of all, study thoroughly additional material, preferably from different sources. We, in turn, will reveal the topic of mining more and more in a number of articles.

Pros of Mining

  • the constant development of this segment of earnings
  • passive income with a reasonable amount of initial deposit
  • a variety of crypto currency for mining
  • Permanent payments tied not to the deadlines, but the number of devices completed by the device
  • different types of mining, including without binding to the capacity of equipment

If we sum up all of the above with a simple language, it becomes clear that mining has enabled everyone to invest their money in buying the necessary devices and after some time to begin to profit from it. This is one of the most interesting and profitable ways to earn money on crypto-currencies. Undoubtedly, it will be further developed. We just touched on the topic, then we will continue to cover it in more detail.

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