Mining is essentially the process by which transactions on a blockchain network are validated and aggregated. In this way, it provides security to the network while allowing the generation of new coins, which basically makes it possible for cryptocurrencies like Bitcoin to work.
So, just because Ethereum stops using this verification and security format to secure its own network, it does not mean that the business has come to an end. It is important to differentiate between the different types of mining to understand the problem.
What are the types of cryptocurrency mining
Cryptocurrency mining is achieved by solving mathematical (hashing) problems with powerful computing equipment, be it ASIC, GPU or CPU and specialized software.
ASICs are equipment created specifically for mining, they have more computing power and are much more efficient than CPUs and GPUs. In the beginning, mining was done with a CPU and then it was executed with a GPU, which are the same video cards used by gamers and designers, in this case to verify transactions. It was from 2013 when ASICs displaced these two methods and began to gain relevance, although GPUs are still necessary, considering that some cryptocurrencies are resistant to these specialized systems.
GPUs began to be used for Bitcoin mining, but they stopped being implemented a long time ago, not because it is not possible, but because of the wide difference that exists with miners that use ASICs. Currently, GPUs are used for mining Ethereum, Ravencoin or ERGO, among other cryptocurrencies.
Cryptocurrency mining as a service
Once the various types of cryptocurrency mining have been differentiated, it is possible to reaffirm that the business continues to be profitable over time and the performance of Bitcoin over the years proves it. What is essential when entering the cryptocurrency mining business is not to consider it only as a source of income, because that would imply simplifying it too much.
As cryptocurrency mining consists of the validation of transactions to maintain a secure blockchain and obtain the cryptocurrencies of the blockchain that is being mined as a reward, it ultimately implies providing a service to the community. Therefore, deciding to which community this service is going to be provided is very important.
There are many coins to mine and the investment has to be designed not only to get money in exchange, but to provide a service to a network that receives it and for as long as possible. It is necessary to study the project well before entering the market and evaluate with which currency to make the investment, always with the aim of giving others a solution that improves their day-to-day life, as is the case of the Bitcoin network that , mining is approving the transactions of a large community that has been in operation for 14 years.
If we see it in time, when Bitcoin stops being able to be issued, that is, when it reaches 21 million bitcoins, miners will continue to have a place in the Bitcoin blockchain, because in addition to issuing, there are the commissions that are received in each block for the transactions that people make when sending Bitcoin from one side to the other. Those commissions are going to be the reward of the miners when it stops being issued. So thinking of a blockchain that is keeping miners in mind is a good choice that is still profitable.
In short, the cryptocurrency mining business has not yet come to an end, on the contrary, it continues to occupy a central place to provide security to the network and generate new coins, it is only a matter of choosing to mine a profitable blockchain, which does not show be reticent to miners or have a usability in the day to day of your community.
CEO of South American Miners (SAM).
Source: Ambito
