Cryptocurrency Mining and Its Benefits
Cryptocurrency mining is the process of verifying transactions and adding them to the public ledger called the block chain. Also, it is a method of releasing new cryptocurrency.
In the process, new transactions are compiled into blocks and a computationally tough puzzle is solved. Whoever solves the puzzle first gets to put the next block on the block chain and claims the rewards, which can be newly released cryptocurrency and fees related to the compiled transactions.
If you’ve been reading recently, you may have read about cryptocurrency now becoming such a hot commodity. 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, cryptocurrencies do not come under any central banks or banking systems, so validation of transactions has to be done through another means.
In the industry, these validations are carried out by solving a number of complex mathematical equations leading to the completion of what is known as the blockchain. But this drives in one major problem.
Without people spending time to solve these equations, the blockchain would basically collapse. 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.
Here are the other benefits of mining cryptocurrency:
If you take cryptocurrency mining seriously, you will find that it can be quite a profitable venture. If you do it right, it can even replace your full-time job.
As opposed to mainstream currencies, cryptocurrencies cannot be corrupted or 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.
Better than Faucets
Faucets are apps or websites that solve the mathematical equations for you, instead of you, the miner, solving them using your own equipment. While you will find lots of safe cryptocurrency faucets out there, scams are not to be outnumbered. If you do the mining yourself, you can avoid these scams totally.
Fighting Centralized Regulation
Finally, cryptocurrency is considered a resistance against the idea of centralized monetary regulation. Many people want to know whether cryptocurrency exchanges are regulated, and they are happy to hear that it’s not. Some regulations do exist in some countries where cryptocurrencies are viewed as a commodity, but these are still unique from those regulations that affect regular currencies.