Hi everyone, In this modern era Cryptocurrency trading holds a very important place in the financial market. So, now I’ll be sharing all the things you need to know about Cryptocurrency mining rigs.
Therefore, let’s dive right in,
Cryptocurrency mining can be a subject of controversy. Whether it is mining benefits or environmental impacts, there are always different views.
With the recent Bitcoin price problem, there are many suggestions that it will enter a “mining death spiral” where there will be little profit in mining. So many companies will only shut down their mining rigs.
But this thing had never happened. More positive notes soon appear that profitability in mining is increasing. With that, this is what you need to know about the cryptocurrency mining rig and its history.
Bitmain and Jihan Wu
As an individual, it is very difficult to mine Bitcoin and make a profit. This is due to the increase in large companies dedicated to mining Bitcoin. The length of time is a day where you can mine Bitcoin on your CPU.
Conversely, companies like Bitmain or even CoinGeek have tried to make a large mining structure. Bitmain is known for its cryptocurrency mining rig called Antminer.
Bitmain is probably the largest of such mining companies, even though it is currently experiencing a difficult time. The main advantage is creating a special ASIC – only to mine cryptocurrency.
Being one of the first and best cryptocurrency mining companies, Bitmain dominates most of the market. Fear soon arose about how big the Bitcoin hash level was controlled by Bitmain. This fear subsided with the hard forks of Bitcoin and Bitcoin Cash in 2017.
Even though prices are depressed in 2018, Bitmain can still make $ 742 million in the first half of this year. This is apart from the company that holds 30% of its assets in cryptocurrency and bets big on Bitcoin Cash.
But since then, rumors have spread that Bitmain is in turmoil, with Jihan Wu allegedly given boots and the company’s IPO looks unstable. Despite an impressive 2018 profit in the first half of this year, the Q3 report showed a loss of $ 500 million.
Resistance from the cryptocurrency community
Some cryptocurrency has since made blockchains they hold ASIC. Their fear is that without this, Bitmain or other large mining companies can control too much of their cryptocurrency hash level, giving them undue influence.
Monero and Siacoin are two cryptocurrency that are difficult to branch out to stop the possibility of mining ASIC.
Siacoin is a very interesting case because responsible developers choose to invest in making their own mining rigs for public sales. According to the Obelisk website, they made three different versions.
Two to mine their original Siacoin currency and one to mine Decred even though none were sold anymore. However, there are other miners in the pipeline who are expected to send in October 2019 specifically to mine Grin.
Some cryptocurrency avoids mining at all. Instead, they prioritize cryptocurrency before being released. While this can stop centralization of mining, it can also lead to the centralization of crypto currency holders.
XRP is one of the cryptocurrency digital currencies where Ripple (parent company) has a large holding of XRP tokens. Some believe this is proof of centralization, allegations that #XRParmy always wants to argue.
Nation and citizens
With the competitive nature of the mining industry, it will seem difficult for individuals to become miners themselves. All hopes are not lost, but still difficult. Many individual miners now choose to mine low market capitalization coins.
Because of their size, they usually have small hash levels and algorithmic difficulties, which means mining is still possible for anyone. While profits may be minimal in the early days, the hope is that you can mine hidden gems that can pump prices in the future.
Mining costs depend on your location and your electricity costs. Initially, China became one of the Bitcoin mining centers, although research showed that it was not the cheapest country.
Apparently, Venezuela is the cheapest country if you want to mine Bitcoin. On the other end of the spectrum, South Korea, a country known for its cryptocurrency fans, is one of the most expensive.
If you are interested in mining possibilities, then pursuing your initial idea as a hobby while you study the rope is a wise idea. Just like cryptocurrency trading, there is no guarantee of profit.
With the mining landscape becoming much more competitive because the popularity of cryptocurrency has increased, the task of entering the mining market is far more difficult and expensive.
Competing with big boys will not be possible as individuals, but if you can mine hidden gems, there is an opportunity to get healthy profits. As with everything related to cryptocurrency, do your own research and never bet more than you can afford to lose is important.
So, was it helpful ? Now, I would like to hear it from you.