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It’s cryptocurrency mining’ ninth year in 2018.
Yet the process of mining is still a very new and complicated system to understand to most people. The average person has to invest time in knowledge about the currency before they invest money or services in it.
The people who are most knowledgeable of mining these coins are the economists and gamers.
Cryptocurrency is very popular with people who don’t want to be caught up in the bank’s restrictions on money flow.
How Cryptocurrency Works
The cryptocurrency model is designed in a manner that makes it independent of centralization- there is no authority behind this currency. No one knows who is behind the process of adding the money to the blockchain or even where the money goes.
To understand the mining- you must first understand how the blockchain works. This is a chain of the certain type of transactions that are collected around a certain algorithm(the block) that continue to add in value as more transactions
happen and reach a fixed amount. Once this is reached, it becomes the blockchain- which is then publicized to everyone to get involved in.
What Is Cryptocurrency Mining
How do you mine cryptocurrency? Mining is basically the solving of the blockchains complex algorithm. A software is available for you to download for free to mine any coin of your choosing.
This is in addition to a machine connected to a wallet- this is a provision that allows you to facilitate the distribution of money.
Most have the option to both buy and sell cryptocurrency, with some going the extra mile to let you convert cryptocurrencies on their interface. This wallet stores your money in a profile.
which you can access through your wallet number. This software is available on most operating systems, it is much easier to install and operate on Windows supportive systems
This software generates coins by solving mathematical algorithms all on its own while you leave it running throughout the day. Her is what happens when you mine cryptocurrency with machines.
What Happens In GPU Mining
Mining cryptocurrency through computer hardware is very demanding. The computers system has to be very advanced, the memory, processor and storage space must match the same specification of a high-end gaming system. ASIC
(application-specific integrated circuit) devices are the best fit to oversee this process. They are developed specifically to mine cryptocurrency.
It is the graphics cards capable of regulating hash rates that make these systems highly functional in the mining process. These are very costly.
What Happens In CPU Mining
You can opt to optimize your system on your own. The power supplied to your machine, and the processor power of your machinery will determine how many cryptocurrencies you get, this is called your ’hash rate’’.
You need to have a very powerful computer- or more than one machine operating to stand a chance to solve the math problems that generate the coins. The collective effort of machines working together to solve the problem is very helpful.
This computer mining option is highly likely to work when you have
* A high-end graphics card
* A powerful RAM
* A CPU that is at least an i5
Other Options Besides Machines
Mining pools are peoples shared resources to generate enough power to generate cryptocurrency. This is done by sharing information through a network that maximizes the chance of them striking a win in a certain block. When one miner wins, the proceeds are shared with other people- only 1 to 3% or how much a miner contributes to the acquisition.
Proof Of Stake
This is done by having actual coins that you can physically hold to leverage cryptocurrency. The age and popularity of your coin can add a small percentage to the coins. This has the lowest earning potential in cryptocurrency.