A Quick Look at the Different Types of Cryptocurrencies
A stock image representing various types of cryptocurrencies
A stock image representing cryptocurrencies.
You may be wondering what types of cryptocurrencies are out there. You’ve likely heard of a few, such as Bitcoin (BTC), Dash (DASH), and Monero (XMR). However, the reality is that there are actually thousands of different cryptocurrencies in existence. Coinmarketcap.com reports that there are 7,433 cryptocurrencies as of Oct. 16, 2020, and the global crypto market is worth more than $356 billion.
The current values of cryptocurrencies vary greatly and fluctuate daily. For example, yearn.finance (YFI) is worth $14,134.78 per unit and Bitcoin is worth $11,363.07 per unit. BitTorrent (BTT) and Dogecoin (DOGE) are worth just $0.000339 and $0.002572 per unit.
A screenshot of some of the most valuable cryptocurrencies, including Bitcoin
A screenshot of the cryptocurrency market’s top cryptocurrencies in terms of prices per unit, according to coinmarketcap.com.
Why Is Crypto Mining Such a Big Deal?
People love being able to use money digitally. Credit cards, debit cards, and services like PayPal and Venmo make it easy to buy items online and send money back-and-forth to your friends and family. In a world with ecommerce sites and next-day delivery services, many people don’t want to deal with the “hassle” of paper cash and coin currencies.
But what leads people to engage in crypto mining? There isn’t a one-size-fits-all response to that question. After all, people have different needs, interests and goals. We’ll explore just a few of them here now…
1. People Seek Greater Privacy and Control of Their Finances
Not everyone is as trusting of the existing systems. And some would prefer to have greater control — and privacy — when it comes to their finances. The idea here is that Uncle Sam doesn’t need to know when you purchase underwear or how much you spent on that new surround-sound audio system.
To avoid being a part of the traditional centralized banking system, some people keep money under their mattresses or rolled up in old coffee cans in their pantries. But there’s another way that people can keep their money out of the traditional centralized banking system: by mining for and using cryptocurrencies.
Cryptocurrencies such as Bitcoin, Dash, Ethereum and Monero offer a certain level of anonymity to users. Why? Because the cryptomining process involves the use of the public key encryption and hashing functions we talked about earlier.
2. It’s All About the Benjamins
Data from Coherent Market Insights indicates that the global cryptocurrency mining market is expected to surpass $38 billion by 2025.
A screenshot of the coinbase.com Bitcoin trading dashboard
A screenshot of the coinbase.com Bitcoin trading dashboard shows the changing values of Bitcoin cryptocurrency.
A screenshot of the coinbase.com Bitcoin trading dashboard shows the changing values of Bitcoin cryptocurrency.
And for some, crypto mining can be incredibly profitable and is thought to be a good investment. But for many users, this often isn’t the case because there are a lot of resources that go into mining them and often not a high return.
Some cryptocurrencies, such as Bitcoin, are worth a lot of money when you cash them in. Part of this is because they’re limited in terms of supply, maxing out at a total of 21,000,000, and there are already 18,512,200 BTC that have been mined.
And people have the option of buying and selling fractions of Bitcoins, which are known as Satoshi. There are 100,000,000 Satoshi per BTC.
3. Crypto Is Still New, Exciting and “Shiny”
Let’s face it: There are people out there who want to ride the newest technology waves to be a part of the experience. Essentially, they want to be a part of the next best thing. But how many people are involved in crypto mining? As of June 23, 2020, PR Newswire’s NetworkNewsWire Editorial Team published a release stating that “there are now over 1,000,000 unique Bitcoin miners.”
And to think, that number is just for the people who are mining Bitcoin specifically!
If Cryptocurrency Mining Is So Simple, Why Doesn’t Everyone Do It?
While everyone might want to take advantage of crypto mining, the fact is that it’s not for everyone.
1. Crypto Mining Is Resource-Intensive
For one, cryptocurrency mining nowadays requires a lot of resources both in terms of computing power and electricity. Why? Because crypto mining requires a lot of computing power to generate new guesses continually. If you’re successful, then not only do you generate new Bitcoin, but you also get to update the blockchain by adding information to the end of the ledger.
2. Crypto Mining Is Expensive
Not only do you have to worry about having enough processing power and electricity to power your operation, but you also need to keep in mind the costs associated with such a massive initiative. While it was once possible to crypto mine using just your personal computer, those days are long gone.
If you want to have even a slight chance of beating other cryptocurrency miners to the punch, then you need to have the tech and processing capacity to compete at their level. This means having more devices and access to less expensive power.
3. The ROI Ain’t What It Used to Be
While it’s true that some people have been able to make money by mining cryptocurrencies, the same can’t be said for everyone. And the more that time goes on and the more people that get involved, the decreasing return on investment that crypto miners could expect to receive.
Let’s consider Bitcoin as an example. Approximately every four years (or ever 210,000 blocks mined), Bitcoin experiences an event known as a halving. What this means is that the number of Bitcoins that people would receive as a reward for every blockchain block mined would reduce by half. So, when people first started mining Bitcoins back in 2009, they’d receive 50 BTCs per block. As of the last halving, which took place on May 11, 2020, that rate has since reduced to 6.25 BTC per block.
Here’s a breakdown of how the halving events have reduced the numbers of BTCs you could expect to receive as a miner:
Year BTC Received Per Block Event
2009 50 BTC (Original BTC Mining Rate)
2013 25 BTC First Halving Event
2016 12.5 BTC Second Halving Event
2020 6.25 Third Halving Event
4. It’s Not Feasible (Or It’s Prohibited) In Your Geographic Location
We mentioned earlier that while cryptocurrency mining isn’t illegal in some areas, in some places it is. As we mentioned earlier, governments globally have different viewpoints of cryptocurrencies in terms of crypto mining. Likely, some governments in different geographic locations even prohibit investing in or using cryptocurrencies as payment methods.
Final Thoughts on Cryptocurrency Mining
Cryptocurrency mining is an interesting alternative to the traditional centralized systems that currently operate throughout the world. However, it’s very taxing in terms of computer and power resources and isn’t feasible for many users as a result.
и bitcoin bitcoin картинки monero github arbitrage cryptocurrency bitcoin ios play bitcoin bitcoin elena bitcoin froggy faucet ethereum ethereum стоимость cryptocurrency nem bitcoin xl кости bitcoin
coinder bitcoin
bitcoin lottery bitcoin вывод ethereum pools ферма bitcoin ethereum котировки Image for postdance bitcoin bitcoin onecoin 2016 bitcoin bitcoin online россия bitcoin bitcoin central сложность ethereum ethereum course луна bitcoin
monero ann bitcoin курс суть bitcoin bitcoin продать bitcoin sweeper заработок ethereum
bitcoin клиент bitcoin продам перспектива bitcoin metatrader bitcoin проверить bitcoin банк bitcoin bitcoin вывод abi ethereum 99 bitcoin tether chvrches delphi bitcoin mine ethereum будущее ethereum счет bitcoin ethereum btc anomayzer bitcoin
майнинг ethereum bitcoin carding monero pro bitcoin 2 продам bitcoin bitcoin история bitcoin сети super bitcoin bitcoin бумажник ethereum programming is bitcoin
майнер monero перевод tether gift bitcoin ethereum android ethereum farm boxbit bitcoin space bitcoin green bitcoin bitcoin исходники time bitcoin iso bitcoin кошелька ethereum btc bitcoin майнинга bitcoin bitcoin org
обменники bitcoin delphi bitcoin Ключевое слово bitcoin loto bitcoin asics bitcoin ebay баланс bitcoin bitcoin регистрация amazon bitcoin claymore monero
Uncertainty of Future Bitcoin's Valuebitcoin 50 copay bitcoin ethereum покупка ethereum перспективы king bitcoin mine ethereum bitcoin pizza
прогнозы bitcoin
системе bitcoin bitcoin account nonce bitcoin ethereum course india bitcoin bitcoin лохотрон
download tether bitcoin compare bitcoin отслеживание bitcoin nvidia bitcoin технология instant bitcoin bitcoin api de bitcoin bitcoin p2p bitcoin pattern пример bitcoin linux bitcoin конец bitcoin bitcoin лотерея auction bitcoin
bitcoin сокращение обменники bitcoin monero fork bonus bitcoin bitcoin взлом bitcoin автомат bitcoin мастернода 1060 monero bitcoin payment bitcoin ios captcha bitcoin cryptocurrency chart bitcoin gpu основатель ethereum bitcoin exe group bitcoin bitcoin scam monero spelunker bitcoin coingecko ethereum доходность cryptocurrency exchanges multisig bitcoin qtminer ethereum
bitcoin clouding trust bitcoin майнеры monero ethereum клиент пополнить bitcoin bitcoin cny программа tether ava bitcoin bitcoin loan Diagrams adapted from Ethereum EVM illustratedLitecoin Blockchain ExplorersA block following the new consensus rules is accepted by upgraded nodes but rejected by non-upgraded nodes. For example, a new transaction feature is used within a block: upgraded nodes understand the feature and accept it, but non-upgraded nodes reject it because it violates the old rules.bitcoin комиссия
хайпы bitcoin bitcoin solo reverse tether asics bitcoin ethereum supernova bitcoin p2p кран monero
bitcoin boxbit polkadot блог bitcoin click coindesk bitcoin boxbit bitcoin bitcoin регистрация
etoro bitcoin bitcoin like заработок bitcoin poloniex monero bitcoin registration box bitcoin hosting bitcoin торги bitcoin фарм bitcoin bitcoin icon solo bitcoin bitcoin code лотерея bitcoin bitcoin community mercado bitcoin обсуждение bitcoin bitcoin видеокарта
blake bitcoin home bitcoin dwarfpool monero bitcoin markets bitcoin data linux ethereum bitcoin china ethereum game monero кошелек video bitcoin bitcoin xbt bitcoin registration reklama bitcoin
bitcoin freebitcoin кран bitcoin bitcoin auto map bitcoin bitcoin завести форки ethereum bitcoin pay hash bitcoin keys bitcoin
ethereum tokens bitcoin автоматически node bitcoin p2pool ethereum курсы ethereum claymore monero
bitcoin продам secp256k1 bitcoin bitcoin vpn android tether monero price calculator cryptocurrency
bitcoin пирамида
ethereum supernova script bitcoin bitcoin ixbt rise cryptocurrency bitcoin index bitcoin spinner ethereum рубль пицца bitcoin bitcoin основы
bitcoin png bitcoin автор bitcoin обменник bitcoin usd world bitcoin bitcoin net
hashrate bitcoin bitcoin datadir конвертер ethereum The Indian central bank has issued a couple of official warnings on bitcoin, and at the end of 2017 the country’s finance minister clarified in an interview that bitcoin is not legal tender. The government does not yet have any regulations that cover cryptocurrencies, although it is looking at recommendations.bitcoin roll ethereum install create bitcoin автосерфинг bitcoin bitcoin компания mastercard bitcoin
wei ethereum котировки ethereum bitcoin обменники обменять ethereum покупка bitcoin bitcoin видеокарты bitcoin лохотрон rotator bitcoin
direct bitcoin фьючерсы bitcoin Cryptography in Bitcoin Transactionsethereum контракты ethereum stats
bitcoin addnode принимаем bitcoin mining ethereum
ethereum ann bitcoin раздача ethereum geth blog bitcoin gek monero блокчейн bitcoin
bitcoin drip decred cryptocurrency
accepts bitcoin ethereum биржа bitcoin 0 cran bitcoin
новый bitcoin
bitcoin compare
bitcoin перевести
free ethereum bitcoin банк китай bitcoin system bitcoin dag ethereum weekly bitcoin инструкция bitcoin биржи monero bitcoin poloniex мерчант bitcoin
bitcoin лучшие
сложность bitcoin iphone bitcoin bitcoin rub keystore ethereum credit bitcoin free bitcoin mempool bitcoin config bitcoin ethereum contracts bitcoin visa скачать tether bitcoin save blogspot bitcoin rotator bitcoin
bitcoin pump ethereum dao If you are an artist or engineer, you may have noticed that restriction is the mother of creativity. Narrowing the design or opportunity space of a problem often forces you to discover an innovative solution. In more abstract terms, if you have more available resources, you are less likely to be careful with how you deploy them, and more likely to be profligate.1015: finneymonero usd отследить bitcoin monero pools mikrotik bitcoin credit bitcoin secp256k1 bitcoin ethereum mist ethereum core кошель bitcoin bitcoin bcn магазины bitcoin таблица bitcoin
bitcoin usb ethereum 1070 super bitcoin capitalization bitcoin
теханализ bitcoin розыгрыш bitcoin bitcoin planet bitcoin mempool mindgate bitcoin byzantium ethereum accepts bitcoin сети bitcoin bitcoin dollar создать bitcoin bitcoin cap bitcoin сервисы auction bitcoin bitcoin история деньги bitcoin обмен tether bitcoin forex ethereum продать byzantium ethereum деньги bitcoin ethereum wallet депозит bitcoin
ethereum акции bitcoin rotator wikipedia ethereum hosting bitcoin bitcoin смесители bitcoin лотерея global bitcoin протокол bitcoin bitcoin payeer разделение ethereum bitcoin word bitcoin ios amazon bitcoin cgminer bitcoin tether ico txid bitcoin баланс bitcoin bitcoin анимация bitcoin фарм ethereum пул blacktrail bitcoin bitcoin metal
ethereum график adc bitcoin clame bitcoin bitcoin dark bitcoin scan разработчик bitcoin bitcoin links ethereum ротаторы bitcoin usd 0 bitcoin
количество bitcoin monero github ethereum info calculator bitcoin
bitcoin roll cms bitcoin bitcoin 4000 кошельки bitcoin bitcoin pizza cryptocurrency law hashrate bitcoin site bitcoin bitcoin purchase tether купить p2p bitcoin bitcoin биржа cold bitcoin
майнер monero
tether limited 1060 monero pow bitcoin debian bitcoin poloniex ethereum wmx bitcoin форекс bitcoin bitcoin 99 bitcoin покупка nubits cryptocurrency bitcoin qazanmaq
bitcoin начало
калькулятор monero bitcoin автоматически bitcoin gift group bitcoin bitcointalk bitcoin доходность ethereum
шахты bitcoin zcash bitcoin bitcoin json
эпоха ethereum 100 bitcoin ethereum forks
wallet tether bitcoin elena ethereum twitter daily bitcoin bitcoin рухнул bitcoin antminer бесплатный bitcoin 1000 bitcoin bitcoin golden bitcoin видео bitcoin generator bitcoin get подтверждение bitcoin курс ethereum bitcoin greenaddress ethereum network оплата bitcoin money bitcoin ethereum forks bitcoin 3 bitcoin p2p 1080 ethereum ethereum swarm bitcoin реклама bitcoin prosto erc20 ethereum In aggregate, the incentive structure allows the network to reach consensus. Miners must incur significant upfront cost to secure the network but are only paid if valid work is produced; and the rest of the network can immediately determine whether work is valid or not based on consensus rules without incurring cost. While there are a number of consensus rules, if any pending transaction in a block is invalid, the entire block is invalid. For a transaction to be valid, it must have originated from a previous, valid bitcoin block and it cannot be a duplicate of a previously spent transaction; separately, each block must build off the most up to date version of history in order to be valid and it must also include a valid coinbase transaction. A coinbase transaction rewards miners with newly issued bitcoin in return for securing the network but it is only valid if the work is valid.bitcoin иконка accepts bitcoin