• eur/usd 1.1862

    0.18

    BTC/usd 15.674.99

    8.60

    ETH/usd 674.99

    13.60

  • eur/usd 1.1862

    0.18

    BTC/usd 15.674.99

    8.60

    ETH/usd 674.99

    13.60

  • eur/usd 1.1862

    3.95

    BTC/usd 15.674.99

    4.78

    ETH/usd 674.99

    11.37

Mining Cryptocurrencies

Mining cryptocurrency is the process that came about because of the nature of decentralised finance space. There are no centralised intermediate bodies that validate transactions or control people’s balances. This created a gap that had to be filled. Someone had to come in between and validate these transactions or they would cease to be worth anything because people would still resend cryptocurrencies that they had sent before. This gap is open to everyone and for simplicity let me talk precisely about the mining of bitcoin. Mining becomes then validating these transactions using the processing power of your personal device and getting rewarded by the system in bitcoin.

Hashrate

Hashrate is the processing power of the bitcoin network. This is the accumulated processing power of all the computers on the bitcoin network. The bitcoin network was designed in such a way that the higher the participants in the system, the harder it is for an individual to mine bitcoin. This is why back in the day one could actually mine even 5 bitcoins in a short space of time using a computer. This is no longer possible because the bitcoin network hash rate is now high and the artificial scarcity is also kicking in.

Going Commercial

If you ever want to make significant profits through mining bitcoins then there are a number of things you can do to your plan to improve your profitability. The first thing you can do if you are tight on a budget is to join a mining pool. This will ensure that you will always get something in every period regardless of the performance of the devices you use. The amount, of course, differs depending on your individual hash rate but you will be certain to get something. If you do have a couple of dollars to spare you can buy graphics cards or even just a mining rig to improve your hash rate.

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