Is it risky to be a crypto miner? Can you earn more than you can lose? Is it a profitable job? And why do we really need crypto miners? The purpose of this article is to give you a comprehensive understanding of crypto mining and its miners, as well as determining if you would be a good crypto miner.
What is crypto mining?
There are fewer people who have never heard of crypto mining, but let’s begin by defining crypto mining, and what a crypto miner is.
9]Crypto currency dates back to 2008, when Satoshi Nakamoto created bitcoin, the precursor of cryptocurrencies. A public record of transactions, blockchain, states the basis for the decentralised system of bitcoin and other currencies. High-powered computers perform complex mathematical calculations, and that’s how the transactions work. A crypto miner is responsible for handling transactions and storing related information. Then they verify transactions to the public register and put new cryptocurrencies into circulation. The process is called crypto cloud mining.
The importance of a crypto miner
The job of each crypto miner is considered to be quite difficult, as it is defined as solving difficult mathematical problems. In reality, the job is not difficult due to the math involved, but because a crypto miner tries to be the first one to come up with a 64-digit hexadecimal number, called hash, less or equal to the target hash. And the more miners are in game, the bigger number of possible solutions they have.
Is it payable to be a crypto miner?
Establishing a Bitcoin mining rig is quite a complex process, and may require both lots of money, time and skills. According to the analysis published by Poolin, a mining rig may cost $1,767, generating $ 4.56 per day. The profits in this case will be visible after 387 days. When calculating the price of a mining rig, a potential crypto miner mustremember about the price of the facilities for achieving high-computing power, its maintenance, and the electricity costs.
The rewards for Bitcoin mining are lower every four years, with 50 BTC in 2009, and only 6.25 BTC in 2020.
A safer solution for a person who dreams of being a crypto miner is leasing crypto mining facilites from a company that is a cloud mining provider. It’s enough to select a contract, buy it and wait for the proifts.