Mining farms look very attractive for beginners, and it was so for the time being. But, unfortunately, in 2018, mining is not relevant, since it will pay off only after 8-10 months of use.
Mining is an alternative way of buying a coin. It is not an investment strategy. The profitability of the mining itself in isolation from the growth of the coin, as a rule, is very low.
What are mining farms?
Mining, in fact, is the provision of computing resources that the owner a farm owns. These are the tasks that cryptocurrencies need to provide for their livelihood, for their security, for making transactions, for recording blocks and for all other technical needs of cryptocurrency.
The owner has some technical resources, whether it’s a computer processor, video card or specialized equipment created exclusively for mining – this is the main subspecies of mining.
Mining on video cards is very common today. More specialized is the mining that takes place on the equipment, which only works for mining and cannot do anything else. That is, if you can play games on a video card and just use it with a regular operating system, then the specialized equipment cannot do anything except one single function – to mine certain cryptocurrencies more efficiently.
It all works very easily. You must initially purchase equipment, which the user plans to mine on later. Then you need to install specialized software that is engaged in mining. After you need to configure it to the so-called pool. A pool is a special server that combines the computing power of more miners into one team. This team then works together to solve the problems that the cryptocurrency network sets for the computing resources.
After a successful calculation of the task, the user is awarded. It consists of a certain number of coins of the same currency that the user rakes plus commissions that the user was able to confirm within the framework of this mining.
Mining in 2018
Mining is an alternative way of buying a coin. It is not an investment strategy. The profitability of the mining itself in isolation from the growth of the coin, as a rule, is very low, it can be 20-30%. All real profit in mining depends on the growth of the rate of the asset that the user mines.
On a larger account, one must compare: a coin was purchased or equipment was purchased that produced this coin. The difference between these two campaigns is not very high in money, but the user has a new risk. Nevertheless, the forecasting of the risk of the coin itself is at least more or less understandable: it is known what to track, as well as on what sites. And if you take mining, then there is added a new risk – the risk of increasing complexity. This is an unpredictable phenomenon for the general public of new miners.
The principle of mining is very simple – one reward for all, so if there is competition, the earnings are significantly reduced. And the main problem is that it is impossible to accurately predict, such things as the price of the cryptocurrency in the near future.
Experts said that the real payback of mining farms today is a period of one and a half years so that it is not profitable to engage in mining in 2018.
