To Generate Crypto Assets and Bitcoins by Data Mining | Asset Management with PC Effective Use
“We earn 100 usd a month by mining!” “Asset management” using such cryptographic assets is now starting to attract attention. Because currencies such as Bitcoin and Ethereum are volatile, it is no surprise that they move to stable operations rather than direct trading gains.
Well, it’s also difficult if you start mining and you always get a profit. Mining is also a good investment, so we have the knowledge we want to keep at a minimum. This time, let’s talk in detail about the basic knowledge of such mining.
What is Cryptographic Asset Mining?
An increasing number of investors are focusing on mining for cryptographic assets. People who do mining are called “minors”, but by becoming minors, it is possible to obtain a specific currency, such as bitcoin or ethereal.
If you are trading encryption assets, a fee will be incurred. In fact, part of this fee is being returned as a “reward” to such minors. In other words, by becoming minor, you will be able to increase investment efficiency because you will receive these benefits as well as the benefits of cryptographic asset trading.
Not long ago, large-scale capital investment was required to perform mining. Mining uses a computer such as a PC to solve complex formulas. In this mining calculation, the machine called “ASIC (ASIC)” is the fastest, and the faster this calculation is, the more money is paid to minors.
However, although the price of ASIC is low, it costs 1000 usd, and those with high specs also cost about 2000 usd. This has been a major obstacle to mining. For example, even if you can earn about 100 usd a month by mining, it takes 20 months to recover the initial investment amount (ASIC purchase cost) of 2000 usd.
However, various mining methods are now available, and these initial investments have been eliminated. Recently, smartphones have become able to participate in mining, and there is no need for special opportunities.
Now let’s talk more about what kind of mining there are, in the next section.
Types of mining and recommended asset management methods
There are three major types of mining:
・ Solo mining
・ Pool mining
・ Cloud mining
Some time ago, the method of solo mining was common. In other words, it is a way to buy the expensive equipment of 2000 usd that we introduced earlier, and to do mining by yourself (solo).
However, the methods of pool mining and cloud mining were created, and now everyone can join mining easily. We will tell you how to do that below.
Solo mining is mining that is performed alone (solo). This is a method of purchasing dedicated equipment (such as ASIC) and mining directly.
However, with the advent of Chinese mining firms, this solo mining has also become practically difficult to monetize. A mining farm is a company that purchases a large number of dedicated equipment such as ASICs at 10 or 100 and performs calculation work in a large factory.
Earlier I mentioned that mining is important to solve calculations faster. Only the person who solves the formula the fastest can receive a reward in mining. And, in order to solve the formula quickly, it is the case that you have a higher-performance (high-performance computing) computer or have a large amount of such equipment.
A mining farm has many ASICs with fast computations, so you can solve formulas faster. On the other hand, if you are a solo mining person, purchasing 10 or 100 ASICs would be practically difficult (about 10 million yen initial investment).
As a result, those who were doing solo mining could not compete with the “calculation ability” of such mining farms, and they could not receive any rewards.
Pool mining is a way to improve overall computing power by multiple minors working together. For example, if there are multiple minors, such as two rather than one alone, or three rather than two, you can use multiple devices, and the computations will be faster.
There is always a “representative” in pool mining. Individual minors who participate in pool mining are characterized by lending their representative computing devices (such as PCs) to their representatives. Then, a lot of computing power gathers from the world under the representative. As a result, it will be easier to win the first place in the mining competition, and you will receive a reward.
This reward is distributed to the individual minors who participated. The rate of distribution is proportional to the specifications (computing capacity) of the loaned equipment.
Recently, this representative is often handled by a pool mining specialist. The vendor provides calculation software dedicated to mining, and each minor installs that software. When the software is launched, the calculation starts automatically, and part of the reward will be received later.
Cloud mining is similar in structure to pool mining. It is a method of concentrating calculation processing power to representatives such as specific vendors, and aiming for the first place in the mining competition on that scale.
However, for cloud mining, individual minors do not provide computing power. That means you don’t have to install the software and keep it running for 24 hours.
Instead, individual minors “invest” in cloud miners. It means to provide funds.
With the funds gathered, cloud miners buy large amounts of dedicated equipment such as ASICs and use their computing capabilities to aim for the top spot in the mining competition. It is a form of distributing profits to each of the minors who made the investment if it is superbly ranked first and receives a reward.
How to get cryptographic assets in mining
When you start mining, we do not recommend the first solo mining listed. Under the current environment, solo mining cannot receive any rewards, so an ASIC fee of 1000 to 2000 usd will be completely wasted.
Therefore, let’s use pool mining and cloud mining that anyone can start.
In pool mining, if you install software from a vendor and then keep running the software on that PC, you will automatically get part of the reward. The world’s leading vendors are typically “Antpool”.
Cloud mining, on the other hand, does not require any software installation, nor does it place a burden on machines. Just register with a specialized vendor and invest. Among famous companies, ” Genesis Mining” will be typical.
When private investors do mining, it is now common to use the services of specialized vendors. Not long ago, it was common to buy ASICs and participate in the mining market on their own, but recently, a method has been established in which several minors work together to aim at the top.
With pool mining and cloud mining, if you don’t need complicated knowledge of dedicated devices, you can feel free to join with just one computer. However, there is a risk in mining as well as in investing in cryptographic assets, so make sure to plan well before doing this.