Mining is the production of cryptocurrencies through hardware and software, as well as the registration and approval of crypto money transfers.
Digital assets produced using cryptography, also known as cryptography, are called cryptocurrencies. Blockchain technology is used in the production of these coins. Another method used in the production of these cryptocurrencies is cryptocurrency mining. Mining means mining in Turkish. Users who earn crypto money by mining are also called miners. In theory, anyone with a computer and internet can mine.
Transfers between wallets are transferred to a transaction pool (mempool) before being confirmed on most blockchains. Then, these transactions are combined to form a block. These blocks are written to the blockchain after being verified and approved by the devices connected to the network.
Cryptocurrency miners verify and confirm transfer transactions and keep a copy of the blockchain.
How Is Mining Made?
Mining can be done in more than one way, these are; It is CPU, GPU, ASIC and cloud mining.
- CPU mining: It is the oldest mining method that can be done with hardware and high processor computers. It consumes a lot of energy and carries risks in proportion to the life of the machines.
- GPU mining: It is a more developed, efficient and economical version of the CPU and is the most preferred type of mining. It is implemented with equipment such as more than one video card, one equipped processor.
- Cloud mining: It can be defined as the latest technology in mining. In this method, an agreement is reached with the person or organizations engaged in GPU mining, and their mining functions are leased. In the mining system, which is rented for the specified time period, a certain amount of crypto money is earned by reducing the costs of the transaction at the end of the period.
- ASIC mining: It is the most powerful mining method. Anyone who uses this method can generate huge amounts of cryptocurrencies and as a result, the decentralization principle may suffer. For this reason, it is not preferred and even banned.
How Much Does Cryptocurrency Mining Earn?
It takes time to profit from cryptocurrency mining, depending on the mining type, cryptocurrency and prices to be chosen. It is necessary to buy a hardware and wait for it to pay off or pay for the fees paid for cloud mining. Although the probability of income increases as the processor power increases, the electricity consumption increases, it becomes difficult to operate more devices together and to cool these devices. As the number of devices increases, so does the time spent operating, controlling and maintaining the devices.
In order to profit from cryptocurrency mining, it is necessary to have sufficient hardware and infrastructure, space to house and cool devices, and technical knowledge to operate the devices.
