Cryptocurrency mining is a term that you might have heard a lot online these days.
The increasing graphic chipsets (GPU) prices are one of the reasons for the increased popularization of the word crypto mining.
As you know, crypto mining is one of the leading reasons laptops are seriously damaging across the globe. But do you ever wondered what exactly this crypto mining is?
Let me bifurcate certain things for you through this article. We will be covering ‘meaning of crypto mining?’, ‘importance of crypto mining’ and ‘demerits of crypto mining.’ Let’s begin.
Understanding crypto mining.
Crypto mining may sound like a procedure to extract new coins. But it is not that straightforward. First, let us have a quick look at how cryptocurrency transactions work.
Cryptocurrency is like digital money having no records about the ownership and transactions in the physical world. It is decentralized – no centralized body to control its operations; Indian rupees, so to say, is a centralized currency of India.
There is no physical book to track records, who owns how much, or details of transactions among crypto owners or crypto-accepting businesses. However, all cryptocurrency transactions are maintained via a blockchain network and added to a digital ledger.
Importance of crypto mining.
Suppose that if you have created the mining RIG to mine cryptos, you can make money in so many ways. How?
- A good crypto mining setup would make good returns through mining cryptos.
- One can also lend the mining setup, which will reward him a part of the total cryptocurrency mined using the same mining setup.
- If you are mining Bitcoin, you will also get some coins as compensation for your troubles.
That is how miners make money through mining.
Demerits of crypto mining
Another demerit of mining crypto is on the environment. Mining cryptocurrency requires a lot of computing power – also known as hash rate power, which consumes a lot of electricity. This much energy consumption on a global level would do more harm than good.
Finally, Bitcoin mining generated about 96 million tons of carbon dioxide emissions every year. For context, this is equal to the carbon footprint of some smaller countries. Also, Ethereum mining recorded approximately 47 million tons of carbon dioxide emissions annually.
Conclusion
We hope that you have accumulated some good information from this article. Furthermore, you can find other articles on Stockative. Let’s meet with another piece of content. Thank you, and keep reading.
