Types of crypto mining
by Maryna Trifonova, Head of Content at Jax.Network
Cryptocurrency mining is often associated with Bitcoin being mined by means of several video cards somewhere in a garage. However, crypto mining has evolved a lot over the years, with difficulty going up to the new all-time high of over 36 T, as large-scale players join the industry and encourage manufacturers to invent more efficient machines. Let’s find out what types of cryptocurrency mining are popular nowadays and which one is used for mining our network.
CPU mining
The first type of crypto mining is CPU mining. A central processing unit (CPU) is a part of the computer that is responsible for powering any action carried out by a computer. CPU was one of the most popular methods to mine cryptocurrency at the beginning of crypto development, as it allowed mining cryptos using a regular personal computer. Nowadays, it’s not that widespread due to the high hashrate of the Bitcoin network.
GPU mining
A graphics processing unit (GPU) is generally considered more powerful than CPU and often used to reinforce the existing CPU equipment. To assemble a cost-effective and most productive GPU mining rig, it’s required to get a processor, cooling system, a mining rig frame, and a motherboard in addition to several graphic cards. This type of mining had been quite profitable for a long time and perhaps graphic cards can still be efficient in the jurisdictions with low electricity cost; but given the current bear market more and more people suffer losses and turn their rigs off.
ASIC mining
As the name suggests, application-specific integrated circuits (ASICs) utilize a range of processors united in a circuit that is used for a specific purpose, in our case, mining Bitcoin and other cryptocurrencies. Certainly, they are more powerful than CPUs and GPUs in terms of computing power or so-called hashrate. ASIC mining is the most expensive type of mining, as an average miner may cost up to $10–12k during a bull market. However, the cost tends to vary in correlation with the BTC price and it’s down to around $3–4k per single worker now.
Cloud mining
For those who don’t want to invest a lot of money into mining equipment and manage it on their own, there is another option. Cloud mining allows everyone who wants to earn cryptocurrency to do that via a third party who runs a big mining farm as a business service. Clients get their cryptocurrencies of choice for a fee that varies depending on the size of your investment. However, the field is full of fraudulent websites and inexperienced users should do a thorough research prior to giving their money away.
Mining requirements for Jax.Network
Jax.Network is merge-mined with Bitcoin, so it utilizes the same hash function (SHA256d) and can be mined with the same equipment that is traditionally applied for Bitcoin mining. To make your mining process as easy as possible, you can join our JaxPool and our representatives will help to set up your mining account within no time. If you are tech-savvy, feel free to use this quick guide. For more detailed information, please contact us at sales@jaxpool.io.
Conclusion
Depending on the goals and budget, miners can pay attention to both ASIC mining and cloud mining, as they produce higher profits, compared to CPU and GPU workers. Those who are interested in mining Bitcoin together with our network, are recommended to join our JaxPool and enjoy the benefits of a tailored approach to your mining needs.
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