Benefits of Cryptocurrency Mining
Cryptocurrency mining is a process that involves verifying transactions and adding these to the block chain or the public ledger. Additionally, it is a means by which new cryptocurrency is released
In the process, new transactions are compiled into blocks and a computationally tough puzzle is solved. The miner who solves the puzzle first will be able to place the next block on the block chain and get the rewards, which may be newly released cryptocurrency and transaction fees from the compiled transactions.
If you’ve done some research lately, you’ve probably read about cryptocurrency becoming quite a hot commodity now. The values of various cryptocurrencies skyrocketed in 2017 and are now several times more than what they were in December 2016. This is clearly the reason behind the industry’s rapid expansion, with an increasing number of people now wanting their part of it.
If you’re one of those who are interested in cryptocurrency, there are two ways you can get your hands on it – buy it or mine it. Purchasing cryptocurrency is fairly straightforward, but the mining process can be complex.
Cryptocurrency mining is essentially what makes the industry go around. You see, there are no central banks or banking systems that control them, so it’s crucial to find other ways of validating transactions.
In the industry, validations are performed through a series of complex mathematical equations that ultimately complete what is called the blockchain. But this causes one big issue.
Without people solving such equations, the blockchain would practically disintegrate. Hence, those who would like to work on these equations may be paid using the cryptocurrency they validate. This is how cryptocurrency mining becomes profitable.
Below are the other benefits of cryptocurrency mining:
Those who take cryptocurrency mining seriously find that it is quite a profitable activity. If you can do it properly, you can even quit your full-time job.
Unlike more commonly used currencies, cryptocurrencies can never be stolen. Thus, you can have peace of mind, knowing that the money you’re mining for will remain in your account for as long as you want to.
Advantage over Faucets
Faucets are apps or websites that solve the mathematical equations for you, instead of you, the miner, solving them using your own equipment. Though there are lots of safe cryptocurrency faucets out there, scams also pollute the industry. If you do the mining yourself, you can avoid these scams totally.
Defying Centralized Regulation
Lastly, cryptocurrency may well be considered a defiance of the concept of centralized monetary regulation. A lot of people ask whether cryptocurrency exchanges are regulated, and the answer is no. While some regulations exist in certain countries in which cryptocurrencies are considered as a commodity, they are very different from those that cover regular currencies.