All about cryptocurrency mining

You hesitate to embark on cryptocurrency mining, but would you like to know how it works? No problem, we offer this guide that tells you everything.

The mining of cryptocurrencies is an activity that is spreading more and more. While this was a very marginal phenomenon during the launch of Bitcoin, it has now become a full-fledged business. But how does this industry work? This is the question we will answer.

Presentation of Cryptocurrency Mining

Mining is a paid service that consists of checking transactions or performing calculations to create new copies of cryptocurrency that is mined. For this, we must find a code consisting of numbers and letters, which is called a hash, and which generates the next block of the chain of transactions. However, this calculation is too complex to be done by hand and it is therefore necessary to use the computer calculation.



However, to limit the speed of creating new coins, each currency uses the same principle. The more cryptocurrency is mined, the more complex the calculations for finding the hashes are. This meant that the miners had to find new ways of working to keep a good performance. So now, to be able to efficiently mine the most complex crypto-currencies, and therefore those that require the greatest computing power, mining pools have opened.

Mining pools

A mining pool is a community site in which different contributors combine their computing power to be able to mine more efficiently. This makes it possible to find the hashes, which is highly rewarded. However, the gains are also divided according to the size of the contribution of each. In addition, some pools offer to rent computing power, which allows you to avoid investing in expensive hardware. It will usually be necessary to subscribe to a subscription of twenty euros per month, to which will be added operating costs of about 3 cents per day. Another advantage of this method is that you can use this computing power to undermine the cryptocurrency you want. You can even change it if you find another crypto-currency more profitable. Here are the most interesting mining pools:

• Minergate is the most popular mining pool for independent miners. It is very effective and can mine about twenty cryptocurrencies. It also has its own software, very simple and intuitive.
• Cryptotia is an exchange platform that can also be used to mine cryptocurrency. Its big advantage is to offer crypto-currencies little known that will be easier to undermine and can represent a great opportunity.
• Genesis Mining (3% discount on your GENESIS MINING contract with the code: 8D7cYP) is another pool that allows you not only to mine using your own graphics card but also allows you to rent computing power using the cloud.
• NiceHash and MiningRigRentals are two mining pools that work in a similar way, as they allow you to rent mining power to mine your own cryptocurrency.

2017 innovations in mining

Since mining is a fast-growing sector, it is relatively logical to see a large number of innovations come onto the market. So here is what these innovations propose ...

• The first of these innovations is energy rental. This is a process that allows you to invest by renting a portion of the power consumption of a mining plant. Once the plant is operational, you receive what the plant produces with the portion of the consumption you rent. The main benefit of this innovation is that if the plant is able to lower its power consumption or invest in more efficient equipment, your income will increase. You only pay once and you will receive profits for 50 years. This principle was launched in June 2017 with Chryptonomos. However, although you can no longer invest in this project, we can easily imagine that other similar projects will emerge. To see the advantages of energy rental, here is a table in which it is compared to the power calculation rental:
• The other major innovation of 2017 in mining is Unity Ingot. It's like a cryptocurrency that undermines you. Although this may seem unrealistic at first, it is based on a fairly simple principle. Thanks to the opening of the currency on the market places, funds are generated. This money is used to buy mining equipment that will be used to undermine the widest possible variety of cryptocurrency. These crypto-currencies are then divided into two parts: those that are likely to gain value are kept while the others are exchanged for Bitcoin.

This will create a cryptocurrency that will follow the same evolution as that of all crypto-currencies. As a result, if the overall value of cryptocurrencies increases, the value of Unity Ingot will also increase. For simplicity, it's a bit like buying a little bit of each cryptocurrency.