What is mining cryptocurrency with simple words

What is mining cryptocurrency with simple words

Work on the farm is back in fashion. Only now it is not land plots and cucumber seeds with tomatoes, and the mining farms are cryptocurrencies and superconduble to earn a fortune. Nevertheless, these concepts for many sound just like long incomprehensible terms. Let's deal with everything in order.

This article will not be any increasing terms, information about which cryptocurrency is better when and at what period of time is better than a miner or what a video card or motherboard will better cope with its task. Let's not go into the details of the mining, only a few words about such a phenomenon in general terms, its advantages and minuses.



1
What is mining cryptocurrency and how it works

So, what does this are the popular word "mining" now and what lies? First of all, this is the use of computer devices. And depending on the technical device, which is used, distinguish:

  • CPU mining - processors are used;
  • GPU - video cards;
  • ASIC - special integral chips designed specifically for mining;
  • FPGA - programmable valve matrices.

The bottom line is that you provide a specific program with the computing power of your video card, for example, this video card works practically to wear, at the limit of its capabilities, and you get money for it. Only this is not the money for which you can go and buy products in the store, but so-called cryptocurrency.

But there will be no sense from one video card, therefore several video cards are used to achieve maximum efficiency and profits. This is a massive use and is called the MayNinogging Farm. Such a farm usually looks like this: you have a motherboard, processor, and, through special adapters connected from four to six video cards.



2
Is it profitable?

And now, perhaps, the information that is most interesting at the present time. Is it possible to get rich, doing cryptocurrency mining? It seems that everything is very simple: I bought all the necessary devices, I connected and riches in front of my eyes, while doing nothing.

You can argue about the profitability of the mining farms. Some say that this golden lived, and you can earn a decent money. Other experts argue that it is now profitable to engage in mining only to those who began to deal with this case at the very beginning, that is, about 2008-2010, and if the mining farm pays off, then on average you will need from year to year and a half No matter how there it was, there are many pitfalls, which not every "farmer" takes into account:

  • Electricity. It is clear that the 24-hour use of devices connected to the outlet using a lot of electricity, the cost of which should also be considered.
  • Service price. The whole technique is short-lived, and if you use it at the limit of opportunities and all twenty-four hours seven days a week, then the "life" of video cards decreases several times, regardless of its quality. And every such breakdown, the "death" of the video card and its replacement move the moment when the farm pays off, a few months ahead.
  • Unpredictability. The behavior of cryptocurrencies is still mysterious and incomprehensible than ordinary currencies. For several years, no one remembered about them, now they are at the peak of popularity, and what will happen next - it remains only to guess.

3
The legality of the issue

By the way, I would like to say a few words about the legality of such "private entrepreneurship". Deputies want to limit the freedom of miners and cryptocurrency movement in the market at all. However, the conversations about the ban on mining have been going for the last five years exactly and with a high probability of ambiguity in this matter and the next five years will remain.

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