I explain on my fingers what Mining is and what they pay money for?

Today, I want to talk about mining, which everyone wants to do now, because it can make a fortune.

It is quite difficult to explain the definition of Mining in simple words. Mining is the extraction of cryptocurrency. For example, there is such a cryptocurrency – Bitcoin. In order for it to exist and be able to exchange these bitcoins, computing power (powerful ASIC computers, video cards, etc.) is needed that calculates the blocks in the chain.

The platform on which all these calculations and the transfer of cryptocurrency take place is called Blockchain. And, each chain of blocks has an individual hash.

A hash is the result of converting an array of input data of arbitrary length into a bit string of a specified length.

It turns out that to calculate one block in the chain is to find the hash from the previous block. For a computer, this task is not easy, since it is necessary to calculate many such blocks that are interconnected.

The more blocks are calculated over the past period of time, the higher the complexity of calculating subsequent blocks will be. That is, the complexity of the network grows with the increase in computing power. With increasing difficulty, you will receive less cryptocurrency, but for that, the rate of this cryptocurrency also grows.

Blockchain scheme

Computing Award

You receive cryptocurrency in the form of a reward for computing a block. You need to open a special wallet for the cryptocurrency you want to mine, and your calculation reward will go there.

After that, exchange cryptocurrency from your wallet for rubles, using special exchangers or through an exchange, by selling it.

Pools for mining

A pool is, one might say, a server that combines the power (asics) of each user included in this pool to distribute tasks between them.

The pool is needed for more efficient mining, but its disadvantage is that it takes a commission. But there are more pluses, since a huge farm mines much more productively than many individual farms, that is, the income is higher here.

The best mining pool in my opinion ViaBTC is the world's leading cryptocurrency mining pool.

ASIC is a powerful computer

Let's take a closer look at what Asiki are. This is a computer designed specifically for mining.

Before the advent of ASICs, bitcoin and other cryptocurrencies were mined using video cards and conventional processors. But, due to the increase in capacity and spending on electricity, they became unprofitable. After that, the Asiki appeared .

Asics are produced for the extraction of certain cryptocurrencies. You can't use, for example, Bitcoin ASIC to mine another cryptocurrency.

There is nothing more powerful than Asikov yet, it is more powerful than any video card and other devices. And now, these machines are in short supply due to the hype.

How to start mining for a beginner?

After we have collected the farm, we create a cryptocurrency wallet, download a special program or connect to the pool and start mining.

About income

Many video cards currently pay off in just 4 months. This is due to the surge in the rate of almost all cryptocurrencies. So, after, roughly speaking, half a year, you can safely go into a plus, unless, of course, the rate does not fall. No one canceled the risks.

For example, this is what my friend ‘s mining farm looks like.

Cryptocurrencies do not have a printing press, hence their number of coins is limited. If we consider bitcoin, then it has only 21 million coins, with 18 million already mined.

At the moment, the cryptocurrency is very volatile. But, it is growing, albeit with big failures. I think that as the society recognizes the cryptocurrency, its volatility will decrease.