Cryptocurrency mining, or crypto mining, is the process whereby transactions for various forms of cryptocurrency are verified and then added to the blockchain digital ledger. This process is also called crypto coin mining, altcoin mining, or Bitcoin mining. Bitcoin is the original cryptocurrency and is seen as the gold standard of digital currency. Cryptocurrency mining has increased both as a point of interest and financial activity alongside cryptocurrency usage and trading which has grown massively in the last few years.
Every time a cryptocurrency transaction takes place, a cryptocurrency miner or ‘rig’ ensures the authenticity of information and updates the blockchain with the transaction. The mining process involves competing with other crypto miners to solve complicated mathematical problems with cryptographic hash functions that are associated with a block containing the transaction data.
The reward is that the first cryptocurrency miner to crack the code is able to authorize the transaction, and in return for the service provided, crypto-miners earn small amounts of cryptocurrency of their own. In order to be competitive with other crypto-miners, though, a cryptocurrency miner needs a computer with specialized hardware.
Crypto mining can generate an income for a cryptocurrency miner, in most cases only in the amount of a dollar or two per day for an individual using their own dedicated computer hardware. Expenses like electricity, internet connection, and computing hardware also impact the net revenue generated by cryptocurrency mining.
In order to get started mining, cryptocurrency miners will need dedicated computer hardware with a specialized graphical processing unit (GPU) chip or application-specific integrated circuit (ASIC), sufficient cooling means for the hardware, an always-on internet connection, a legitimate cryptocurrency mining software package, and membership in both an online cryptocurrency exchange as well as an online mining pool like My Blockchain Life.
Aspiring crypto miners should also know that as cryptocurrencies have risen in both popularity and value, competition has increased substantially as well and now includes organizations and enterprises with more extensive resources than most individuals can compete with.
The My Blockchain Life Team BLOCKX mining rigs in our dedicated facility in Tempe Arizona are 100% solar-powered and carbon-neutral offering the lowest cost FREEHOLD mining so far available in the world.