Cryptocurrency Mining and Its Benefits
Cryptocurrency mining is a process involving the verification of transactions and the addition of these to the public ledger known as the block chain. 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. 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 obviously why the industry has expanded rapidly, with more and more people wanting to get involved.
If you’re interested in cryptocurrency, you can get your hands on it by either buying it or mining it. While buying cryptocurrency is a fairly straightforward process, mining it is far from that.
Cryptocurrency mining is basically the lifeblood of the industry. 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 drives in one major problem.
Without anyone solving these equations, the blockchain would virtually crumble. Therefore, if someone is willing to complete the equations, he will be paid in the cryptocurrency he validates. This explains the profitability behind cryptocurrency mining.
Below are the other benefits of cryptocurrency mining:
Those who take cryptocurrency mining seriously find that it is quite a profitable activity. If you do it right, it can even replace your full-time job.
As opposed to mainstream currencies, cryptocurrencies cannot be corrupted or stolen. This will give you peace of mind, knowing that the money you have in your account will be safe and secure.
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. 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.
Defying Centralized Regulation
Finally, cryptocurrency is considered a resistance against the idea of centralized monetary regulation. People are always asking whether cryptocurrencies are regulated, and they’re happy with the answer – 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.