Today we are talking about how easy it is to mine cryptocurrencies in 2022, that operation that consists of putting hardware (miners) at the disposal of a blockchain to validate transactions and secure the network.
Cryptocurrency mining is profitable. In fact, miners receive transaction fees and a number of newly created cryptocurrencies after the validation of each block. So, are you interested in cryptocurrency mining? In this guide we explain how to get started.
What is cryptomining?
As you already know, cryptocurrencies allow transactions to be made without going through trusted third parties. But how is this possible? How is it verified that a cryptocurrency user really owns the money he wants to send? Is it possible to avoid double spending by an entity? How are transactions secured? If cryptocurrencies are decentralized, what are transaction fees for? Who perceives them?
The answer to these questions is very simple: cryptocurrency mining makes it possible to verify the validity of transactions while ensuring their journey from point A to point B. This is crucial for the integrity of the network (blockchain). It is for this reason that the computer (the miner) validating a block is rewarded with the transaction fees paid by users.
Mining a cryptocurrency is also, in most cases, participating in the creation of money. For Bitcoin, for example, every 10 minutes, after the validation of a block, 6.25 BTC are created and paid to the validators who participated in the confirmation of the block.
How does mining work?
Cryptocurrencies are mined using extremely powerful specialized computers, to process each of the transactions that take place on their network. How do they get there? In short, they must solve complex mathematical problems, inaccessible to a human brain.
Solving these problems allows the creation of new blocks of transactions within the blockchain. In order for a block to be secure, you need to find a key that “seals” the block and create a new one. The network user who manages to find this key will be rewarded. This process is called “proof of work”.
How easy is it to mine cryptocurrencies in 2022?
Since mining is about implementing the hashing power to solve computer calculations, the miner with the most capable hardware has the most chances of finding a block. That’s why mining has become a frenzied race behind GPU processors.
The battle has been such that a GPU is no longer useful for mining Bitcoin, and it is due to the requirements of this robust network. BTC can only be mined with more powerful and therefore more energy-consuming chips – ASICs.
For now, mining with ASICs remains at the forefront, but new and more powerful models are regularly released on the market, which makes the old versions obsolete.
Viewed from this angle, it becomes increasingly difficult to mine cryptocurrencies because the computing power of blockchains continues to increase, which, in fact, makes the calculation difficulty explode.
However, the opposite is happening in the mining hardware market. Supercomputers are becoming more and more optimized in terms of computing power and energy consumption.
But also, with recent developments, you don’t necessarily have to have a very technical background to run a miner, which makes the job less complicated than before.
How can a beginner get started?
Mining with a mining equipment is the most ideal way to enter this world; however, it is also the most difficult, because you should have some technical knowledge to get the equipment up and running.
In addition, the price of a miner can be quite high, which could be an obstacle for the beginner. In case of opting for this method, you must follow the instructions of the manufacturer of your miner, and the mining pool to which you are going to join.
However, we must tell you that for a beginner, the easiest way to mine cryptocurrencies in 2022, is to use cloud mining; since it allows users to mine cryptocurrencies without having to own the necessary hardware. More importantly, it allows them to participate in mining no matter how much or how little they may contribute.
Cloud mining is suitable for investors who do not want to get the necessary computer equipment for mining. Whether it is Bitcoin, Ethereum, Litecoin and even Dogecoin, they are possible to mine with this method.
When choosing cloud mining, one should also beware of fraudulent sites that offer exorbitant profits. As far as we know, several reliable companies offer to mine cryptocurrencies in the cloud.
Advantages and disadvantages of cloud mining
- You benefit from state-of-the-art and well-maintained equipment.
- You don’t have to buy any hardware. With just a few clicks, your contract is sealed and you start mining.
- You do not suffer from the disadvantages of mining at home, in particular the noise of ventilation, electricity costs, and cumbersome installations.
- The initial investment is sometimes significant without physical compensation.
- There are a lot of scams and it is difficult to find a reliable operator.
- Legal vagueness is important. For example, most contracts leave the cloud mining company the prerogative to suspend its activities almost arbitrarily if it no longer manages to generate profits.