Crypto enthusiasts may never forget the rapid increase in the price for cryptocurrency since 2015 and its peak in 2017. If only it had been possible to predict such a fortune before!
However, this jump gives hope for a possible increase in who knows what time. It is quite simple to buy cryptocurrency in the exchange and become the owner of digital assets. At the same time, there is a great alternative for those who are not eager to make purchases. A great part of crypto fans prefers to mine coins taking into account all the specifics of this process.
The brief glance at the evolution of mining equipment
At the first sight, mining process looks simple; you have some special installations, the computers solve complicated calculations and then you get a reward. Although the period of the existence of digital money covers comparatively a short period of time, the evolution of mining devices is simply amazing.
The story of mining starts with common computers working on usual processors and video cards. Later on, users watch the launch of the first mining farm on GPU that starts the period of manufacturing mining. The greatest disadvantage of it was a high level of power consumption and then appeared FPGA chips. The last ones were far more power efficient, but cost a good deal of money. In a while FPGA vanished from the market and their developments were useful for manufactured of ASIC miners as software was quite similar.
What we have today is the process of constant improvement and development of ASIC miners with its fierce competition, bankruptcy and enrichment, and new and risky opportunities.
In reality mining is not that an easy deal. Crypto enthusiasts have to be aware of all the costs for mining equipment and its functionality. Setup costs, efficient video cards and expenses on power consumption are the first in the list of necessary mining calculations. There is no doubt that the expenses can vary due to the type of equipment or the electricity rates according to the place of residence.
Yet still, the initial investment into crypto mining will be recouped in several months and it goes without saying that the crypto currency should save its price during this period and give no reductions. Other crypto fans will persuade to use cloud mining. This process makes users participants in a mining pool and requires buying a certain amount of hash rate. In some cases, users need to sign a year contract; thus in case of the value reduction, users are a part of the unprofitable agreement. The good side of it is that users at least do not think about power consumption costs and other expenses related to mining. Cloud hashing services advert themselves as the best cloud mining solutions, but do not find support in the majority of crypto supporters.
Prospects of crypto mining
Crypto mining leads to benefits if the price for Bitcoin rises. Crypto analysts predict different scenarios for Bitcoin’s future; the matter is that it has two main ways of its existence for its crypto followers: the way to enrichment and the way to bankruptcy. Bitcoins and other cryptocurrencies remain the type of investment with high risk, but still investment.
Bitcoin mining is profitable with specialized and high-powered machinery. In addition, generating digital coins is now technically possible for anybody. The process of improvement in mining equipment does not keep us waiting long. ASIC mining hardware innovations may reach the point of more democratic prices and together with cheap and sustainable power solutions mining can have a greater picture. If the splash of 2017 comes again, decisive crypto fans will never regret.