Crypto-mining — is it difficult?

Electrominer
Apr 17, 2018 · 3 min read

What is crypto mining?

First of all, some of you will ask: what is crypto-mining? According to BitcoinWiki, mining is the process of adding transaction records to Bitcoin’s public ledger of past transactions. This ledger of past transactions is called the block chain as it is a chain of blocks[1]. To put it simply, people who do cryptocurrency mining use special software to find the solution to mathematical problems and in exchange they get cryptocurrency. By approving transactions, miners help keep the crypto network at a secure level[2].

Brief history of cryptocurrency mining

It is well-known that bitcoin mining back in 2009 required nothing but a single computer with standard multi-core CPUs (Central Processing Units) to produce BTC (Bitcoin) at a rate of 50 per block. Mining difficulty is a measure of how difficult it is to find a hash below a given target; the higher the difficulty is, the lower the chance to find a random hash rate (measuring unit of the processing power of the Bitcoin network[3]) to accept the block and obtain the reward. Mining difficulty was so low in 2009 that everyone could participate in this process. However, what has changed for the past 9 years? Today, mining difficulty is around 3.8T which is million times higher than in 2009 (see Bitcoin Difficulty historical chart). It means that the possibility of finding a hash rate by a block decreased by more than a million times.

Bitcoin Difficulty historical chart[4]

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However, what does it tell us? This tells us that today you need to have really powerful mining equipment like ASICs (Application-specific integrated circuit chips), technical skills and a lot of electricity to generate 1BTC.

From hobby to professional industry

Constantly rising mining hash rate (measuring unit of the processing power of the Bitcoin network) highlights more powerful mining equipment and higher demand for it. Bitcoin hash rate historical chart is presented below.

Bitcoin Hashrate historical chart[5]

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As a result, this hobby turned into a professional industry which requires technical skills, constant market research and hardware update with high initial investment.

We can see that nowadays it is quite unprofitable and time-consuming to do individual cryptocurrency mining. We can also see the emerge of companies which constitute professional mining industry nowadays. What Electrominer wants to do is to provide the access of mining for everyone who is interested in it. It won’t require any technical skills and knowledge of the industry, neither will it require purchase of mining hardware. Individuals will be able to get access to Electrominer cloud-mining platform with the purchase of the company’s tokens which will be available for sale in June 15th, 2018 (www.electrominer.io). Every token represents a share of Electrominer hashing capacity. The more tokens users have, the more mining capacity they can rent out.

Electrominer dashboard

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To sum it up, cryptocurrency-mining is a rapidly growing industry which requires more and more initial investment and resources therefore making it less accessible for individuals. However, Electrominer will change that and will make mining accessible for everyone again!

[1] https://en.bitcoin.it/wiki/Mining

[2] https://www.bitcoinmining.com/

[3] https://bitcoin.org/en/vocabulary

[4] https://bitinfocharts.com/comparison/bitcoin-difficulty.html

[5] https://bitinfocharts.com/comparison/bitcoin-hashrate.html

Electrominer Journal

Blockchain Project

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