The concept of cryptocurrency has already become more relevant than the price of bread on the market. The rapid development of technology has led to the fact that virtual money has become the norm for modern people. If earlier we were taught how to extract ore and other mineral resources, today people have already faced another problem: cryptocurrency mining or, in other words, mining. A new word that is already becoming popular in everyday life among residents of many countries.
What is mining originally?
Mining is essentially the provision of computing resources of system participants for the tasks that cryptocurrencies need for their life, for their security, for confirming transactions, for recording blocks and other technical needs of cryptocurrencies. Depending on what computing resources the user uses for mining, whether it is the processor of his computer, or a video card or specialized equipment created exclusively for mining, mining is divided according to this principle. The most universal, today is considered to be mining on video cards - the so-called GPU mining, more specialized is mining on equipment that is created exclusively for mining and can do nothing else. That is, if you can play games on a video card, use it together with your operating system, then specialized equipment can do nothing except one single function - effectively mine certain cryptocurrencies.
How does this work?
The user purchases the equipment on which he intends to mine (a video card, specialized equipment - the so-called ASIC, a laptop processor), installs specialized software that does mining and configures it for the so-called pool.
A pool is a special server that combines the computing power of a large number of miners into one team.
The team works together to solve problems that the cryptocurrency network sets for these computing resources. Every time the team solves a problem successfully, the system participants are awarded a bonus for this, and this bonus consists of a certain number of coins of the very currency that they mine, plus the fees that users were able to confirm as part of this mining. In other words, when other system participants send transactions and pay fees for this, they accumulate, and the one who first solves the problem set by the cryptocurrency will be able to take all the fees from all the transactions that he was able to include in the so-called block, as well as all the coins that were issued along with this block.
Thus, mining itself does not present any particular difficulties, the user needs to connect the equipment once, configure it to the pool, and start participating in solving problems. For each problem solved by him, or an attempt at such, the pool awards the participants a reward.
Let's consider one of the most interesting questions of beginners about mining the most common cryptocurrency Bitcoin on video cards. In fact, mining Bitcoin on a video card has long been unprofitable. High complexity of calculations, low efficiency of mining forces the investor to spend a lot of electricity and use expensive equipment, which often does not pay off. Now a fork of Bitcoin has been released - the division of the Bitcoin network into two coins. The original Bitcoin, which can continue to be mined on specialized equipment (ASIC) and the new Bitcoin, which is called Bitcoin Gold. This Bitcoin can be mined on a video card.
Today, the prospects of this coin are not fully clear. But if you want to try yourself in Bitcoin mining on a video card, then this is the only option.
In fact, the process itself looks quite simple for both the entrepreneur and the investor. Mining is one of the most used and popular strategies for earning on cryptocurrency and therefore it makes sense to get acquainted with it in more detail.
