Coin Mining

Coin Mining

Mining explained

How are Crypto currencies created? How controls them? How are they made?

Crypto currencies such as Bitcoin are produced through a concept called mining. This means, computers are actually using code to calculate the next Bitcoin and extend the blockchain. They also process each transaction.

This also ensure the blockchain integrity and every transaction is recorded in a public ledger.

While you can do that with your computer, keep in mind that you need to purchase a lot of expensive hardware. In order to successfully mine, you need new modern powerful CPU or GPU devices.

Also, you need to pay for a lot of electricity to power those hardware, i.e. your mining rig. Moreover, if it breaks down, you need to buy a new one.

Furthermore, it gets increasingly difficult to mine. That is why miners have created mining pools to accumulate enough processing power to successfully mine.

In addition, manufacturers have created ASIC miners, which are specialized computers with high hashing power. With these you can mine Altcoins such as Dogecoin & Litecoin using the algorithm Scrypt. Bitcoin uses the algorithm sha-256. While other coins use X11, such as Darkcoin.

 

However, it has become a race, and in order to be profitable, it helps to have the latest hardware setup the most efficient way. This is where Cloud Miners come in.