Crypto currency has moved from being nothing more than a passing trend into a fully functioning form of currency. Many stores around the world, both online and in-person, now accept many major crypto currencies as a form of payment. Many people have made a career out of crypto investments.
But a lot of people don’t know that buying crypto isn’t the only way to acquire it. In fact nearly every coin that is on the market didn’t just appear out of nowhere. The way crypto currencies work is the coins need to be mined first. But what exactly is crypto mining? And do you need a good computer to do it?
Crypto Mining Explained
Whenever you read a guide to starting crypto investing they will always make some mention of Bitcoin. And going further than that they will talk about Bitcoin mining. Bitcoin isn’t the only crypto that can be mined, but it is the prime example of it. But what is it?
Cypro currencies exist on the blockchain. This is a complex system designed to ensure that coins can’t just be created or copied, which was a problem with a lot of digital products in the past. The complex nature of a coin or token proves it is unique. And to acquire them someone first needs to solve a complex computation problem which then unlocks the token. This is the mining process.
The process isn’t quick or easy, to stop mass inflation of the market. But it isn’t impossible either, to ensure the market receives a steady influx of new tokens to replace ones that have been lost or burnt. Technically anyone can mine for crypto currencies. So why isn’t it more common?
The Technical Requirements
As we said before, the computational process to solve mathematical equations is tough. It requires a lot of time and a lot of processing power. To that end someone will need a good computer to effectively mine for crypto. The main components that need to be top quality are the processor and the graphics card. This caused an issue recently where crypto miners were buying out the new generation of GTX graphics cards causing a huge inflation of the secondary market and stock shortage.
But just because it is most effective to have a good computer to mine crypto, doesn’t make it a necessity. The truth is nearly any machine can mine crypto. It will just take a lot longer. And since you will need to keep your computer running 24/7 until it has completed the computations it can rack up quite a lot of electricity usage. So it isn’t recommended for anyone struggling to pay their bills.
The Environmental Impact
One of the biggest issues surrounding crypto mining right now is the environmental impact it is having. You might be wondering how this makes any sense if it’s all digital? But ever since crypto mining became a thing many companies have been doing it on an industrial scale. There are whole warehouses dedicated to mining crypto.
It is estimated that between 2021 and 2022, crypto mining operations in the US were responsible for producing more CO2 emissions than the largest coal plant in the US. This is an astronomical feat and is very dangerous. Because as we move further into a digital society and crypto becomes the main form of currency we will see more and more people start crypto mining. Which will have a devastating knock on effect on our environment. So if you are considering starting crypto mining, just keep all this in mind.
