The crypto mining market has seen many ups and downs over the years. In bitcoin’s early days, mining could be done profitably with nothing but a PC and special software installed on it. The rewards were high and could cover the costs of electricity consumed. With the increasing mining difficulty rate, the demands for computational power have increased immensely while the reward has been halved twice.
Crypto-mining is so important because it brings new cryptocurrency coins into existence. The algorithm automatically regulates the rate of issuance of the new units while the total supply of bitcoins (and some other cryptocurrencies) is pre-determined upon its design.
Today, cryptocurrency mining is done in several ways: with specialized hardware and software, individually or in pools, by using CPU, GPU, FPGA or ASIC. You can also mine crypto from a ‘cloud’.
Hardware Mining Profitability
Hardware mining is very costly either on an individual basis or on an industrial scale. It requires enormous investments in graphic cards, immense amounts of energy and is only profitable if you live in an area where large amounts of electricity are available at a low price.
The all-time leader in industrial-scale hardware mining is China. As of now, it has most of the profitability factors at its disposal and the largest concentration of mining farms compared to the rest of the world. The factors that determine profitability include cheap electricity, hardware equipment availability and the high market price for mined tokens. At the same time, it comes with a devastating impact on the environment. The by-product of running a mining farm is heat and CO2 emissions.
Cloud Mining Is King
Cloud mining represents a combination of several methods. From the user end, it is done online through a hosting service. The service provider offers you a mining contract that determines its length and profitability.
This mining method has several significant advantages over all the others….