Despite the crypto market facing a lot of turmoil over the course of the past 12-16 months, the altcoin mining industry has continued to thrive. In this article, we will take a look at some of the most important facets of this sector which crypto enthusiasts ought to be educated about.
(i) Crypto Mining is Not Just Limited to BTC and ETH
Many of our regular readers may be under the impression that in order to be a successful crypto miner, they need to either be working with Ether or Bitcoin. However, as per a number of experts associated with this domain, the best way to proceed with one’s mining activities is by keeping a close tab on the market and seeing which digital assets have the most promising financial future.
(ii) New Tokens Come With Their Own Set of Problems
When mining freshly created alt-coins, we need to understand that the risks involved are much greater than when dealing with established cryptos because “untrusted individuals” are essentially running the asset’s native mining pools — and thus some issues may arise in the future if the project’s dev team decides to go rogue.
(iii) HODLing is an Art that Needs to be Learnt
HODLing is a term that describes the process of accumulating alt-assets and then holding on to them for a certain period of time (in the hope that their value will rise sharply).
However, in this regard, crypto expert Zach Hildreth says that the most efficient way of making money when dealing with digital currencies is by “facilitating sells” on a weekly basis. Also, he says that users need to make educated choices when investing in cryptocurrencies since most of them do not have any long-term monetary potential.
(iv) Choosing a Mining Pool
When looking to join a mining pool, investors need to understand that the bigger the pool, the more computing power it possesses. However, in the same vein, the bigger the mining team, the more one’s overall profits are reduced. Therefore, some time’s one can also choose to go with a smaller pool since it can deliver investors with returns that are comparatively larger.
(v) GPUs are Multi-Faceted
Traditionally, crypto enthusiasts have assumed that the use of a GPU is limited solely to mining altcoins. However, over the course of the past 6-8 months, more and more people are beginning to realize that these machines can also be used for a number of other activities such as:
- High-Level data entry
- Facilitation of commercial deep-learning tasks
- AI optimization
Also, it should also be pointed out that firms such as Golem and Run.ai have been allowing their clients to “rent out their GPUs for work-intensive tasks” over the past few months.
(vi) Mining Rigs Have Become Insanely Advanced these Days
Many from within the global crypto community have been saying for some time now that Ethereum’s upcoming ProgPoW update will help usher in a new era of GPU mining.
In this regard, one expert recently went on record to state the following:
“I think we’ll see a very positive price reaction when they [introduce it.] It will kind of hit the reset button for Ethereum and make it a community-driven project.”
(vii) Mining is a Long-Term Activity
It should be understood that a whole host of popular altcoins have been designed in such a way that they can be mined for many years to come. For example, even though 80 percent of BTC’s native token supply pool has now been depleted, the currency’s treasure chest won’t dry up for another 120 years.