Crypto mining 2021 is expected to face many challenges, in addition to requiring capable crypto mining software, also related to prohibition by the government can affect the development of cryptocurrency.
However, if crypto mining 2021 is still profitable, you may need a crypto mining calculator to make calculations. Or choose a cloud mining method that allows mining to be more profitable.
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Mining cryptocurrency meaning
Bitcoin mining means the process of verifying transactions on the blockchain, where the process will add new blocks to the network.
To complete a transaction, miners must find a 64 digit hexadecimal number called a ‘hash’. The first miner who succeeds in adding a new block to the network after breaking the hash is then rewarded with a number of crypto units.
In solving hashes in crypto transactions, the difficulty level of calculating the hash function is 1 in 16 trillion. The hashing problem is set up such that a new block can be mined every 10 minutes. In addition, if the computing power spent on the network exceeds the estimated value, its complexity increases, and vice versa.
Can crypto mining be profitable?
When referring to the growth of cryptocurrency with Defi and other development projects in the fintech world. Mining cryptocurrency still provides hope for profitable.
But it also depends on the crypto coins that are mined, because not all cryptocurrencies go through the mining process. Some use staking to solve a single transaction.
Currently, Bitcoin being the oldest cryptocurrency, the miner’s reward has been lowered to 6.25 BTC since the 2020 halving. Miners must compete for rewards that decrease while the probability of transactions increases.
As a result, it is possible that the value of BTC will increase, due to its scarcity compared to demand.
Crypto mining machine
Being a crypto-miner requires a mining machine that can work continuously every day. Of course, this requires a reliable machine because the engine will overheat, which if you only use a normal computer, will speed up the breakdown of the machine.
Mining machines are specially designed by development companies like Bitmain. When you decide to buy a mining machine, of course, also adjust to your budget. Because bitcoin mining machines like Antminer cost around $ 550 for one machine.
Mining cryptocurrency on phone
Even though mining using an Android smartphone is quite difficult to compete with giant miners who use sophisticated machines and require a large space.
However, for crypto enthusiasts, mining using a smartphone is an interesting option that is worth checking out.
Some applications such as Minergate, Crypto miner, AA miner, Neonneon miner, Droid miner are some examples of mining applications using android.
The threat of hackers mining via smartphones.
If you have a crypto wallet installed on your smartphone, you should be careful when installing new applications.
Because there are reports that hackers can embed malware that can mine crypto on users’ phones in seemingly harmless applications.
As reported by security company ESET, they found the popular game Bug Smasher, which was installed from Google Play between one and five million times, secretly mining the cryptocurrency Monero on users’ devices.
Mining cryptocurrency on a laptop
Apart from mining with smartphones, another alternative is to mine crypto using a laptop. Like the application developed by Honeyminer, this allows you to mine using a laptop that will be connected collectively in the Honeyminer pool.
This allows your low-power laptop with the support of all the computers in the pool to be even more powerful. Users simply need to run the Honeyminer application on a computer to have an idle graphics processor to start contributing energy.
Mining crypto browser
It turns out that the developer does not only offer to mine with smartphones or computers. There is even a browser named Crypto Tab Browser which claims can to mine crypto as long as the user activates the mining feature.
Besides being available for computer or laptop browsers, the crypto tab browser can also be downloaded on the Google Play Store. While it is unlikely that you will get a lot of cryptos, it is also an interesting way to mine crypto by 2021.
Does mining crypto use a lot of bandwidth?
Citing answer from Quora, that bandwidth is not a problem in crypto mining, because the data sent is only small, it does not burden the computer.
But the problem is latency, the greater the latency value, the better for the mining process. Even though your CPU may be weak, but when the ping time test has a high speed, you can still mine. Well even though the results may not satisfy you.
Can crypto mining damage GPU?
Is it possible that mining crypto can damage your GPU engine or computer device? In general, no device is perfect without breaking down. But the durability of the device also depends on how the user is set up.
The correct setting will increase the useful life of the device. As with playing games, the mining process can also cause the engine to overheat.
Therefore, miners are very concerned about this condition, so that there are crypto mining companies setting up devices on the banks of the river. It has cooler air which helps prevent the engine from overheating.
Does crypto mining require the internet?
Crypto transactions on the blockchain use networked computers that are connected to each other, this requires the internet to connect between computers in the network.
However, internet speed is not a fundamental problem, even 15 Mbps is considered sufficient in the mining process.
Internet speed is calculated in Megabytes per second or Mbps and depending on needs, for example, video rendering requires 15-25 Mbps. More fast speed is better.
Does mining crypto use a lot of electricity?
Operating a mining device requires electrical power, this is certain, but how much electrical power is consumed for mining activities?
According to the CNBC daily citing the results of research by Michael Rauchs, a researcher at the Cambridge Center for Alternative Finance.
That the electricity consumption to mine Bitcoin reaches 121.36 terawatt-hours (TWh) a year. The electricity consumption is stable every year. Except when the price of Bitcoin drops which makes the miners stop mining.
According to a report in Cambridge research, that consumption of Bitcoin is equivalent to Argentina which spends 121TWh per year. Meanwhile the Netherlands spends 108.8 TWh a year. Saudi Arabia 113.2 TWh, and Norway 112.2 TWh
How to mining cryptocurrency 2021?
To start mining cryptocurrency 2021, the first to choose a crypto coin to mine, for example, is Bitcoin. The price of Bitcoin which has gone up and even surpasses gold is still the talk of crypto enthusiasts.
To start with, there are five important things that need to be prepared.
- Get a Mining Rig.
- You need to create a crypto wallet.
- Join a mining pool.
- Have a Mining Program.
- Start mining.
Get a mining Rig
Cryptocurrency mining requires a special device based on the same algorithm, this is usually called an application-specific integrated circuit (ASIC) chip. Rig mining machines’ prices are quite expensive, and you also need to pay attention to the availability of electricity in your place.
You need to create a crypto wallet
The crypto wallet that you create will be the secret key where the coins you mine will be stored. This crypto wallet is like an account card, which can later receive Bitcoin from someone by mentioning the wallet’s unique address code.
Join mining pool
There are many large miners around the world and mining Bitcoin itself is not always profitable. Therefore, a solution for beginners who want to own Bitcoin should work with other miners in multiple mining pools.
After successfully getting a crypto coin, it will usually be divided among members according to the strength given. On this principle, members have to pay a fee of around 0% to 2% to the mining operator for every Bitcoin earned.
Have a Mining program
This mining program serves to connect you to the Blockchain and crypto coin network. In general, there are many free programs used to mine cryptocurrency.
This program can be run on almost any operating system with its respective advantages and disadvantages.
If you have these four important things, you can immediately start mining. This requires the machine to run 24 hours, so electricity costs are also a miner’s concern.
Is mining cryptocurrency legal in Malaysia?
Cryptocurrency regulations in Malaysia have a questionable approach, not friendly to Japanese and Singaporean Cryptocurrency regulations but similar to those in India.
In January 2019, Malaysia’s cryptocurrency regulation came into effect that Cryptocurrencies are not considered legal in the country but that doesn’t mean they are illegal.
In January 2020, the Malaysian Government made it clear that cryptocurrency would not be banned but regulated.
The Malaysian government does not restrict mining or trading activities, nor does the Central Bank regulate mining activities. Mining in Malaysia receives stiff competition from China and Eastern Europe.
Large investments in mining equipment, heavy use of electricity plus a lot of heat and noise generated have made mining a low-profile job in Malaysia. On the other hand, the difficult maintenance of the mining machines and the long ROI plan make mining unlikely to be a means of investment in Malaysia.
Taxes imposed on Cryptocurrencies
Another issue with cryptocurrency taxes. The Inland Revenue Board of Malaysia (IRBM) is an institution that plays a role in state revenue and taxes. They have cryptocurrency regulations that do not exempt taxes on merchants. They will be subject to Malaysian income tax laws. Normal income tax or GST is implied on cryptocurrency activity. However, there is no capital gains tax in Malaysia.
Is mining crypto still profitable? Crypto mining 2021
The simple answer is that mining cryptocurrency is still profitable if the value of cryptocurrency is high so that operational costs such as electricity needs and procurement of mining rigs can be met.
Bitcoin mining is currently having a higher level of difficulty than in previous years. This is because the number of blocks remaining is not so large that mining machines compete with each other to solve a single transaction.
Other obstacles, such as government bans, such as that happening in China. Several Bitcoin mining companies were threatened with being closed due to adverse environmental impacts.
How to make profitable mining? Crypto mining 2021
Due to increasingly intense competition, miners need to consider several factors to be able to make a profit.
There are several factors that need to be considered include.
This is a very important factor, high electricity costs will increase operating costs, and cheap electricity costs provide an advantage because it reduces operating costs.
Countries that include in the category of developing countries may still have low electricity costs. So the miner needs to pay attention to where he will build the crypto mining machine.
Mining machine hardware is also very influential on mining results. Mining machines that require high electrical power, is not a guarantee that the software is better. Old machines may not be relevant to compete with new, more sophisticated machines.
The price of a mining machine may be more expensive but if the result is efficient it is a long-term investment.
Reliable mining pool
This is the third factor that is important for miners to pay attention to, a reliable pool of miners is more likely to have a high level of competition to generate more cryptocurrency rewards.
The cost of selling cryptocurrency
There are many cryptocurrency exchanges where cryptocurrency owners can sell the reward coins they earn from mining.
But you also need to pay attention to the cost of selling the cryptocurrency. Large costs can reduce the amount of profit, but low costs will benefit miners.
Which crypto mining is most profitable?
Mining Bitcoin may be getting more and more difficult, so some miners are less interested in mining Bitcoin with the current reward of 6.25 BTC. Some other cryptocurrency alternatives that are still worth considering include.
- Monero, with a market capitalization of more than 3 billion dollars, can be an alternative coin worth mining in 2021. Monero’s price is currently $ 219.47, and may still strengthen later this year.
- ZCash (ZEC) is also worth considering, with a current price of $ 138.78 and a market capitalization of over $ 2 billion making it an attractive option to mine.
- Ethereum Classic (ETC), maybe this cryptocurrency is also interesting to mine, even though the current ETC price is still quite low, $ 12.6, with a market capitalization of nearly 1.5 billion USD.
Is mining cryptocurrency legal?
Crypto mining 2021. Cryptocurrency grows and develops from the grassroots, not the government that started the idea of cryptocurrency emergence. It started with the idea of Satoshi Nakamoto who later appeared Bitcoin.
After that, the developer continues to innovate by creating other cryptocurrencies with a similar or different concept but on the same basis.
As long as the government does not prohibit the mining of cryptocurrencies, mining is neither legal nor illegal.
In India, there may be more restrictive regulations on the use of cryptocurrency so that it is a threat to cryptocurrency owners and the industry involved.
In the United States, even though it is a polemic, it seems that cryptocurrency is not yet banned. So the mining process is still allowed. And more, there are several companies in the world that support cryptocurrency. This could be a wave emerging from the bottom sociality that the government cannot control.
Crypto mining 2021. The emergence of cryptocurrency offers advantages over the current monetary system. But on the other hand, there will be parties who feel aggrieved by the cryptocurrency financial system.
In terms of security and the value of crypto itself is fluctuating so that it is impossible to become an official currency.
Those who feel aggrieved will try to prevent the growth of cryptocurrency and its use because it threatens the existing system.
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