What is mining?
Mining is done to gain rewards while investing in cryptocurrency. So, mining profitability provides tokens and rewards to the miners. Miners are the investors who have rewarded the tokens for their work with the cryptocurrency and crypto tokens.
Mining lets you earn cryptocurrency without extra investment. It is done by completing blocks that keep adding to the blockchain. Blocks are the verified transactions.
What is a mining rig?
Mining rig refers to automated computer software. Mining rig requires a computer system with the motherboard, graphic cards, CPU.
Types of mining rigs –
- CPU – CPU or Central processing unit is the main component of a computer or you can also call it the brain of the computer. It consists of a microprocessor, control unit, etc. The CPU rigs mine the data from blocks.
- GPU – GPU or Graphic Processing Unit is one of the most popular rigs. It is a circuit used for altering the memory and is used in electronic devices
- ASIC – ASIC or Application-Specific Integrated Circuits, this circuit is used for specialized purposes rather than for general usage. The name already suggests that it is for specific applications. The ASIC is becoming popular recently to be used as mining rigs. The powerful computer equipment smoothens the rig mining process. The rewards with mining are reduced to half in a time tenure of four years. So it has been reducing.
While considering to by a mining ring one must consider the –
- Hash rate – it is used to measure the processing power of cryptocurrency. It is very fast and makes around trillions of equations and calculations per second
- Energy consumption – Energy consumption is necessary to consider as the rig is going to be used constantly. So, lower energy consumption would be better for mining profitability.
About Bitcoin –
Bitcoin is one of the most popular and well-known cryptocurrencies. It was started in the year 2009. It offers a decentralized and secure crypto industry to the investors which makes the whole process safe and independent and this is the reason why it became so popular in the first place.