Cryptocurrency miners – who are they

Cryptocurrency miners – who are they

Contents of this article:

The Bitcoin mining industry generates tens of millions of dollars every day. However, it is not so easy to become a part of it today. If 10 years ago it was possible to use a home computer for mining, this requires special expensive equipment today. We will tell you who are cryptocurrency miners, how they make money, and whether it is worth starting mining in 2022.

What is cryptocurrency mining?

A cryptocurrency miner is a person who mines virtual currency on the blockchain network. Computers check data about transactions with crypto save and archive them, for which miners receive coins. They not only mine a new crypt, but also maintain the security of already issued assets, ensuring the activity and performance of the blockchain.

Action algorithm is:

  • cryptocurrency miners maintain a high level of blockchain security;
  • blockchain gives coins to miners;
  • earnings in the form of new cryptocurrency coins motivate miners to work harder.

Mining requires specialized hardware that performs certain computational operations. Cryptocurrency mining cannot be carried out without large computing power capable of processing millions of combinations. Computers connected to the blockchain network process the data and guess the 64-digit hash code. Whoever generates the code faster gets the reward.

What equipment does the miner use to mine cryptocurrency?

A mining farm or equipment for earning crypto is called an ASIC. Back in 2009, it was possible to mine virtual currencies on a regular PC, but the power of home computers is not enough today. ASICs are designed specifically for mining – this is a microcircuit with a powerful cooling system. The equipment is expensive, consumes a lot of electricity and requires constant maintenance.

What is the miner farm made of:

  • motherboard;
  • video card;
  • power unit;
  • processor;
  • cooling system.

Mining farms operate around the clock, as computational operations take several minutes or even several weeks. The speed of mining an asset depends on the performance of computers, the higher the power of the farm, the faster the equipment will generate crypto blocks in the blockchain.

Solo miners or cryptocurrency miner pools: who earns more?

Mining on your own is expensive and not as efficient as team mining. Cryptocurrency miner pools are teams of specialists who combine computing power into a single network, increasing the chances of success.

The pool receives a reward in the form of a cryptocurrency, which is divided among all team members in proportions corresponding to the power provided having mined a new block in the blockchain network. But the miners must pay interest for the use of the pool, usually 1-3% of the reward of each team member. Pool members earn many times more than solo miners.

There are also cloud pools – this is the extraction of cryptocurrency on rented equipment. Cloud pool participants do not have to assemble or buy a ready-made farm on their own; they rent hashing power and earn a reward for mining a coin in proportion to the amount of rented power.

Cloud mining companies allow you to create accounts and work remotely. You have to pay for the use of capacity, but this is more profitable than maintaining your own farm and paying for electricity.

Should I start mining in 2022?

Blockchain technology is constantly evolving, every year it requires large computing power from miners. Therefore, computers for mining cryptocurrencies are improving, and their price is growing. Because of this, mining at an amateur level is unprofitable, this way of earning crypto is still relevant for professionals who are ready to invest thousands and even tens of thousands of dollars in special equipment. Today, almost all cryptocurrency miners are specialists working in pools or large companies.

Study at Crypto Crew to earn on crypto in 2022 successfully! You will learn more about who a miner is for mining cryptocurrencies, understand the prospects for this and other ways to make money on cryptocurrencies.