Mining is crypto currency: how are cryptonyms produced?

About ten years ago, when no one had heard of the crypto currency, the word "mining" was correlated with the extraction of money, it would have occurred only to an outstanding dreamer. When bitcoin arose, and after him all the brothers of other countries crypto, then the term denoting the extraction of minerals smoothly flowed into the dictionary of IT people. If today you try to score a "mining" in Google, then the search for fossils will not give you a single article - hundreds of thousands of users went into the process of mining the crypto currency, which does not lose its relevance in our days. We also offer you to learn about the popular direction, perhaps the extraction of crypto currency will be another item of your income?

What is the mining of crypto currency in simple words?

In the world there was a real financial revolution and now all progressive society is looking towards virtual money. But not everyone is in a hurry to buy cryptoons - why, if you can just get them? At the same time, you will not need any effort - everything will be done by computer technology, and you will only have to catch coins in your wallet. But do not rush to rejoice, everything is far from as rosy and simple as one would like.

What is the meaning of mining crypto currency? To begin with, the Crypto-currency is a decentralized monetary unit, the issue of which is not dealt with by any bank. All coins arise by generating digital codes (hence the explanation of why crypto currency is digital money). These very codes are nothing more than a collection of zeros and ones in a unique sequence. To get new coins, it is necessary to generate new codes, but, unfortunately, our brain is not able to form long chains of non-repeating characters, so the mission of extracting coins is assigned to computer technology.

The principle of cryptocurrency mining is that a miner using a certain device (for example, a PC) solves new blocks of information that build the whole blockchain chain. For the solution, he receives a reward in the form of coins, and everyone is satisfied - the system with each new block and the number of miners becomes more secure, users receive confirmation of transactions (operations fit into new blocks), and the earner himself receives cryptocurrency.  

It would seem that this is a freebie, a computer can earn money itself! But, if everything was so simple, then we would all begin to actively mine and become fabulously rich. The catch of mining is that the more coins are extracted and the more those who want to mine, the harder it is to get coins and lower the reward for unraveling the block. Earlier, the mining of crypto-currency bitcoins was so simple that the miners collected thousands and tens of thousands of coins on an ordinary PC, while its creator Satoshi Nakamoto lured 2 million cues, improving his computer a little, but today there is simply no sense in mining on the processor. The complexity of obtaining coins has increased so much that if the first block could be calculated in manual mode with a pencil, then today the generation of blocks is so complicated that your PC will rather burn in attempts to mine than something will get.

Mining equipment

To extract coins, you need two components - hardware and software. If you do not need to use special software - it's enough to just download it in the public domain, then there may be various options with the computer engine, on which your earnings depend. First, decide what kind of coin you want to earn and what amounts are ready to invest in this good cause: if you plan the mining of ether or bitcoin, you will need modern technology in the form of an asik-miner, the cost of which by far not everyone can afford. But there are no other options in this case, because mining of popular crypto-currencies without investments will not bring any income. No, it certainly can - just download the free program, run on the PC and wait. But this expectation can last for a month, a year, and five years, and coins in your wallet will not appear.

Mining Crypto-currency on the PC

Initially, coins could be mined only on the CPU - there was nothing else, and there was no need for more powerful hardware. When the bitcoin rate increased rapidly and the public realized that with the help of mining you can earn substantial money, the era of the development of computing power began. Leading companies have begun to actively develop ASICs that meet the needs of the time - this "arms race" is ongoing today.

If we talk about the cases when mining on the processor is effective, it only concerns the extraction of young coins that have just started, and at the time of their mining the price fluctuates around zero. You can consider this as a kind of earnings in the future: if the coin ever rises in price, then you will get rich, if not, then spend your time and money on electricity. But again, at the moment of launch it is rather difficult to say that in the future there will be one or another crypto currency.

Mining of crypto currency on the video card

Where CPU mining does not work, coin extraction on the GPU is effective. A video processing unit or graphics card has a high processing power - imagine how many digital tasks per second you need to convert to display PC images of a modern video game on the screen. Solving non-graphical tasks in the form of generating digital codes allows the miners to produce coins much more productive than on the processor.

Some video cards for mining may not be suitable, today they advise using:

• AMD Fury X;
• Nvidia Geforce GTX 1060;
• AMD Radeon RX 470;
• Nvidia Geforce GTX 1070.

For coins, which are more difficult to extract, the miners use several video cards at once, which increases the computer's performance. But even this method does not work to "hunt" for bits, but the extraction of coins of the second generation on video cards can bring profit.

Extraction of crypto-currency with ASIC miner

If you really seriously approach the issue of mining, it is advisable to use a special technique that is designed to generate codes and decrypt blocks, called asik-miner. This powerful machine is worth a lot of money and, unfortunately, not everyone can afford it. Often, the owners of the miners are large data centers, but not individual characters, and they collect under their heads a large number of asiks and extract large amounts of coins. We can say that these are some kind of monopolists in the production of crypts, which have more opportunities, and therefore more profit.

Such miners, which are associations with a large amount of computer technology, are called farms for the mining of crypto-currency. Such farms are very often equipped with the latest technology, with modern cooling systems and in places with low energy costs. This allows production to be carried out with minimal costs and good profitability.

What is cloud mining and pools?

And it would seem that there is absolutely nothing shining for a single miner or a man who wants to attempt to mine, as the sharks of the market were captured by the shark of the market in the form of solid mining farms. Nevertheless, single loners do not despair, there are two options for how to make productive productive. For example, if you want to earn coins, but you do not have the equipment, then you can not spend money to buy it. The matter is that some data centers are ready to lease their capacities to users. All that is required of you is to rent and receive profits, while the owners of the company will themselves worry about cooling equipment and paying bills, as well as repairing it. In this case, you must be extremely cautious, because in fact, you buy a cat in a poke - often under the services for cloud-mining disguise impure financial pyramids and the risks of losing funds are much higher.

It is extremely difficult to get a crypto currency alone, so it's better to unite with other miners and solve blocks by joint efforts. This is why there are pools that are intermediary services that unite users and share the reward depending on the effort spent. There are a lot of Pulovs, but before you trust one of them, you should carefully study the reviews - otherwise your reward may swim into the fraudster's pocket.

Profitability of mining криптовалют

Profitableness of mining криптовалют in 2017 year has considerably decreased, after all becomes more and more willing to earn on extraction of coins. Solo mining has gone to the distant past, because once one of the new coins is recognized as promising, powerful miners immediately begin to be developed, which do not leave small champions the chance to get coins. Today you can not earn on the production of bitcoin, air and other TOPs, using your own PC, as it was before - the compensation received will not pay even the cost of electricity if you even at least get something.

It can not be said that the mining of crypto-currency is not profitable - it is profitable and even very, but with large amounts of investment. If you do not own these amounts or are not ready to invest in equipment, you will not get popular coins. Nevertheless, it can not be said that the earnings of some new crypto currency on the video card will not bring profit. This is quite realistic, but in this case it is better to participate in the pool, because you will get such a deserved reward much faster.

Mining of crypto-currencies: reviews

Many newcomers note that the extraction of crypto-currency is a complex process that requires not only understanding of various technical nuances, but also serious material costs. As practice shows, free mining has gone to the distant past and, if you really want to earn, it is possible only with cash injections. Individual coins that are in the stage of their launch can be extracted and the efforts of your computer, but whether it will be profitable, time will tell. In general, it can be noted that the era of industrial mining began, in which alone it will be extremely difficult to earn something, but this does not allow us to say that there is no mining and it has lost relevance - everything is appropriate and cost-effective with a competent approach.