What is crypto mining?
Mining cryptocurrency such as Bitcoin, Ethereum, FYDcoin or Litecoin is apparently a new way to generate an additional revenue stream on the internet. Supporters call it “transforming energy into money”, it sounds too good to be true but it caught my attention. Join me in my quest to learn everything about mining crypto.
Crypto mining rig
Crypto mining stocks are offered by multiple companies, and I can find countless advertisements about “mining rigs”. But how exactly crypto mining works is not known by many, or it is at least not explained in a way that a newcomer into crypto (which I consider myself) can understand. Where does the term mining cryptocurrency comes from and what is crypto mining?
How does crypto mining work?
After countless Youtube video’s from self-proclaimed cryptocurrency guru’s, and website’s with questionable content, I still could not find a clear- simple and understandable video or article about mining crypto. As my interest dwindled a good friend recommended a website for newcomers into crypto mining which I decided to give a shot.
Mining cryptocurrency explained
Crypto mining has since been something I can wrap my head around. If you are looking for an easy way to understand mining crypto for beginners, but also would like to learn about cryptocurrency in general, staking crypto, masternodes or nft’s I recommend you visit FYDwiki. For this article, and to save you time, I have embedded the video about mining cryptocurrency. If you like the content, and it helped you understand mining better consider subscribing to their channel.
Mining crypto is the backbone of Proof of Work blockchains such as Bitcoin and Litecoin. By competing with other crypto miners, users can “find” blocks. The stronger your computer is, the more chance you have of mining a blockreward. This ties the popularity of Bitcoin, to the energy consumption. Currently the proof of work blockchain of Bitcoin, requires more energy to mine cryptocurrency than the entire country of Argentina.
How much energy does mining take?
One Bitcoin transaction takes about 1,544 kWh to complete the transaction, this is comparable with about 2 months of power from an average US or European household. Cryptocurrency mining as a whole consumes as much energy as the number 30 country in the world. This is one of the reasons Elon Musk has voiced concerns over the impact of cryptocurrency mining on the planet.
Crypto mining ROI
Mining crypto is the reason Proof-of-Work blockchains such as Bitcoin and Litecoin are decentralized. Anyone in the world can mine crypto, at least that was the initial thought. Because of the rising popularity in mining cryptocurrencies worldwide the mining industry is highly competitive with decreasing margins.
Mining crypto profitability
To find out exactly how profitable cryptocurrency mining is depends on multiple factors. For example the energy costs of the country you live in and the amount of others mining the same crypto as you can have influence on the profitability of mining cryptocurrency.
Alternatives for mining cryptocurrency
Crypto mining is not something you can start with? Lack the funds to purchase a mining rig or live in a country where cryptocurrency mining is not profitable due to the high energy costs to mine cryptocurrency. Not to worry there are alternatives to mining crypto. For example staking cryptocurrency or masternode minting.
My personal recommendation if you are looking for an alternative to mining, want to learn about cryptocurrency and don’t want to spend too much to get started. FYDcoin staking is similar to mining crypto currency, the difference being that FYD requires you to have an active balance of FYDcoin to be able to mine.
If you are looking to learn more about mining cryptocurrency, or got interested in staking FYDcoin you can go to to the FYD