@bitmama888
MINING
Cryptocurrency mining is a business related to the purchase and maintenance of equipment, rental of premises, and so on. There are risks in this area at each stage. 10 rules that will allow you to minimize possible losses:

You shouldn't buy equipment based on exotic, new algorithms. Such equipment becomes outdated too quickly, and the price of a coin can be tenfold.
You cannot buy equipment imported into gray, you can lose everything at the very first check.
You should not spend all your savings on mining at once, it is better to gradually buy equipment and adjust your strategy.
It is not worth connecting the equipment to expensive electricity, it is not profitable.
You cannot steal electricity, and it is also better to avoid unrecognized republics.
You can not mine coins and postpone their sale, counting on the growth of the exchange rate. Otherwise, instead of mining, you will be trading. And this is a completely different profession.
You shouldn't buy equipment with delivery after 6 months. Until it comes, the complexity will grow.
You cannot store large amounts in online wallets.
You cannot exchange cryptocurrencies on the Internet.

Mining is not magic, it is a business. Like any business, it can be effective or not. Choose reliable partners to make your mining efficient
Mining, like the "gold rush" of the 21st century, is sweeping across the planet, capturing ever new spheres and territories. For the needs of the cryptocurrency, they decided to start up associated petroleum gas (APG), which for one reason or another is not used by the Russian petrochemical industry. Even Naftogaz is already being "accustomed" to bitcoin. To implement the project, it is planned to launch in Russia the production of its own power plants with the possibility of exporting them. APG mining may be of interest to foreign investors, primarily from China, due to the fact that on September 24, 2021, the People's Bank of China declared illegal all activities related to cryptocurrency, which includes its production, storage and sale.

In Russia, the attitude to mining is completely different; it is viewed as a promising direction for business. Although large companies rarely admit this so far. In particular, among the Russian oil and gas sector, only Gazprom Neft spoke about its "exercises" in the field of mining. The company launched a mining farm in 2020 at the Alexander Zhagrin field in the Khanty-Mansi Autonomous Okrug. For the direct extraction of bitcoins, electricity is used there, generated during the utilization of APG. Energy from APG can power data centers and mining farms. This will increase the percentage of rational use of raw materials. This is especially true for remote regions of Siberia and the Arctic, where the transportation of associated gas from the fields is unprofitable. Gazprom Neft is considering the possibility of expanding the pilot project to other fields.

Russia ranks third in the world after the United States and Kazakhstan in bitcoin mining. The country's share in total computing power has reached 11%.
At the end of 2020, the largest single batch of mining equipment in the history of the country was imported to Russia. Its total capacity is 70 MW, and the cost is $ 40-60 million. We are talking about 20 thousand devices. After the delivery, a separate Tier-III data center was launched in Bratsk, Irkutsk. Such equipment can provide three months of operation for the entire retail mining market in the country.


After the USA, Kazakhstan suddenly took the second place in mining. It accounts for 18.1% of the world's mining. Electricity consumption there has already increased by 7%. Back in the summer of 2021, the President of the country signed a law that introduces additional taxation for enterprises engaged in the extraction of cryptocurrencies - 1 tenge ($ 0.0023 at the current exchange rate as of June 29) for 1 kW * h of electricity.
In Australia, cryptocurrencies are considered a form of ownership, their owners pay capital gains tax.
Crito-money occupied a special place in Venezuela. With their help, local residents are trying to cope with inflation. Miners are licensed by the National Committee for Digital Assets.
In Iran, the mining of cryptocurrencies is considered part of the industrial activity. To work, miners need to obtain licenses, which are issued by the Ministry of Industry.
Even in Afghanistan, before the change of government in 2021, bitcoin was actively used as an alternative to international payment systems that did not work in the country.
Tax holidays on income from cryptocurrencies have been introduced in Singapore, Malaysia, Portugal, Slovenia, Luxembourg, Belarus, Germany and Malta.


Switzerland was one step ahead of all, where they offered citizens to pay taxes in bitcoins. In France, where the legal business with digital assets is very developed, a cryptocurrency miner was developed that heats the house. At the same time, European legislation is still trying to protect the EU from money laundering. In particular, EU regulators required crypto exchanges to provide open access to centralized registers of beneficiaries. As a result, Europe-based Deribit quickly moved to Panama.


It is worth noting that in Russia, literally a few days after the American investment fund, they opened their fund for investments in the blockchain. Therefore, we can safely assume that the World Wide Web of mining is acting quite synchronously.
Hashrate left China for the USA and Russia.

Contact us to find out our investment opportunities
Principle of operation
For processing information, the owner of a computer resource receives a reward in the form of a commission assigned by the owner of virtual money, or a reward in the form of a part of the cryptocurrency issued in the process of mining. It is on this that one of the main principles of operation of payment systems is based, providing for the use of bitcoins and some other virtual money. First of all, those transactions are processed and carried out where the highest commission is set. Therefore, transactions with zero commission can take a very long time.

Why does Bitcoin need miners?
It is important to understand that the widespread opinion that the need for mining and, as a result, miners will disappear after the release of the last bitcoin is extremely far from the truth. As already mentioned, no less important functions of mining are information processing, transactions and ensuring the security of the payment system. Obviously, this kind of work will always be required.

Bitcoin mining
By far the most popular cryptocurrency today is bitcoin (in the English spelling - bitcoin), created in 2008-2009 by Satoshi Nakamoto. That is why, most often, a decision is made to mine this particular type of virtual money. However, it is necessary to understand that the flip side of popularity is the huge amount of resources involved for information processing. Therefore, today, in order to really make money on mining bitcoins, extremely large computing power is required.

Mining schemes
The simplest mining scheme involves installing special software on a computer, after which its resources are connected to the payment system.


State mining programs
Currently, interest in various cryptocurrencies has begun to manifest itself in some countries at the state level. It should be noted that in most developed countries this sector of the economy is left to the mercy of entrepreneurs. At the same time, in the DPRK, cryptocurrency mining is one of the important measures to support the national currency.
In recent months, there has been a serious interest in virtual money, primarily bitcoin, and the process of their mining among the heads of domestic government bodies. Some high-ranking officials have repeatedly understood the issue of developing government mining programs. However, it is still somewhat premature to talk about the actual implementation of these plans.

Mining Pools
An important principle of the most popular virtual payment system is the random distribution of issued bitcoins. In order to make this process more predictable and even, special online services were created, which are called mining pools.
Individual users put available computing power at their disposal. Ultimately, the bitcoins received as an emission reward are distributed among the members of the pool, based on its rules. The features of the software allow users to work in the pool much more efficiently than on their own, which has led to the widespread use of this type of mining.

Cloud pools
Today, in order to effectively mine, you need serious computing power. Obviously, the acquisition of such powerful computers requires considerable financial resources, the availability of which is unlikely for an individual person. As a result, a new type of pool has appeared, called cloud. It provides for the purchase or lease of computing power from specialized companies that have the appropriate equipment.
In this case, all operations are carried out via the Internet, and the interaction scheme is as follows. A specialized company receives in the form of profit the funds from the client, which it needs for further development and the acquisition of new, more powerful computers; the user has the result of mining on the most modern and progressive equipment at his disposal.


Hidden mining
Hidden mining refers to the use of other people's computing power to generate cryptocurrencies, first of all, bitcoin. This can be, for example, the launch by an employee of the appropriate services on a work computer belonging to the company, or the use of special programs that are introduced in the form of viruses on third-party computers.
Recently, quite often there have been reports that on some popular sites, elements of programs were also found that allow mining by using the resources of visitors' computers. Obviously, such activities can hardly be called legal. Nevertheless, given the complexity of the issue, it is far from easy to deal with such manifestations.


Mining farm
A mining farm is a number of computers or servers combined into one system. At the same time, at different times and for different cryptocurrencies, different equipment is used. In particular, for the "mining" of bitcoin a few years ago, mainly video cards were used, then they were replaced by specially designed processors (ASIC). At the same time, mining of some cryptocurrencies, for example, the second most popular Ethereum, is still most effective when using productive video cards.

Mining equipment
Simple mining schemes, which were effective several years ago, provided for the following equipment: 2-3 video cards, a motherboard, a processor, RAM and permanent memory, and a power supply. Naturally, to connect to the system, it was required to install the appropriate software, which is freely available. An important resource that is consumed in large quantities in the mining process is electricity.

Mining software
Currently, many different programs have been developed that can be used to mine cryptocurrencies. The choice of a specific product is primarily determined by the capabilities of the user's computer. Obviously, for different configurations and computing power, the efficiency of different programs will not be the same.
The simplest mining option is using a cloud pool. In this case, the capacities of a specialized company are rented or bought together with the software installed on them. However, in most cases, the cost of renting or acquiring resources is quite high.


Mining other cryptocurrencies
The popularity of Bitcoin that it has gained in recent years does not mean that this cryptocurrency will retain its leading position forever. On the contrary, many experts predict the emergence of new virtual money or the allocation of any of the existing cryptocurrencies. An additional argument in favor of this is the fact that any virtual payment system is based, first of all, on the trust of users. Obviously, this is an extremely subjective factor that currently favors bitcoin, but it may well turn against it.


Ethereum mining
In recent years, the Ethereum rate (in Russia it is called Ethereum or, even more simply, Ether) has been growing at a fairly rapid pace, certainly yielding to Bitcoin, but at the same time being the second most popular cryptocurrency. For ether mining, special programs are used. It is important to understand that this process today is much more efficient than "mining" bitcoins, since a noticeably smaller number of users participate in it. The most effective is the use of equipment in the form of high-performance video cards.


Ripple mining
Ripple (XRP) is quite different from most cryptocurrencies, including Bitcoin. Currently, this virtual currency is popular, competing on equal terms with Ethereum. The main feature of Ripple is the impossibility of mining. This is due to the fact that the developers immediately issued 100 billion units of XRP, leaving about 2/3 for themselves, and distributing one third among users. As a result, additional emission of cryptocurrency is not provided, and mining is also not required for the system to function.


Litecoin
The Litecoin cryptocurrency (LTC) was created in 2011 and is a derivative (also called a fork) of Bitcoin. Currently, its development is carried out completely independently and has several fundamental differences from the most popular type of virtual money. These include:
Greater mining efficiency using powerful processors;
The need for a large amount of free memory;
Wide distribution of pools, including cloud ones.
LTC is much less popular and in demand than Bitcoin. Therefore, mining of this cryptocurrency is currently available and quite effective even for individual miners. However, it is much more profitable for the user to become a member of the pool, which significantly increases the profitability of mining.

NEM
Based on the NEM blockchain technology, a cryptocurrency called XEM was created. She enjoys serious popularity in the Asian market, primarily in Japan. Features of this type of virtual money became the release of the entire amount of cryptocurrency at once. However, mining XEM is quite possible. It is necessary to generate new blocks required for transactions, the formation of appropriate records in the databases and to ensure the security of the operations performed. At the same time, XEM mining is considered one of the most democratic processes, since it does not require large computing power.

Dash
The capitalization of the Dash cryptocurrency, created in 2014, has exceeded at the moment the amount of $ 2 billion. Of course, its popularity today cannot be compared with Bitcoin, however, the virtual currency is showing stable growth. Almost any computer equipment can be used for mining, however, the most effective is the use of ASIC technology and various cloud services.


Iota
The IOTA cryptocurrency, which appeared on the market at the end of 2015, quickly became widespread. This is due to the peculiarities of this payment system, the main of which are: the absence of a commission in the implementation of transactions and the speed of their execution. The principle of operation of IOTA does not provide for the possibility of special mining, since in fact the user of the system becomes a miner when making any transaction, because this requires confirmation of the previous two.


ZCASH
The developers of the ZCash cryptocurrency declare it as the first anonymous virtual currency. This payment system provides a standard mining opportunity, for which you need to have the appropriate equipment, first of all, a powerful video card, appropriate software and connection to the pool. It is in this case that mining will be most effective.


Monero
Mining a relatively new cryptocurrency called Monero can be very profitable today, even for single users. The fact is that the payment system service does not allow the use of specialized ASIC processors. As a result, even having an ordinary, but at the same time sufficiently productive computer, you can mine Monero.


Stratis
The Stratis cryptocurrency (abbreviated as STRAT) appeared in 2016 and is one of the last such developments that have already managed to loudly declare themselves in the financial market. The creators took into account the experience of using previously issued virtual money, which allowed the newbie to become one of the ten largest cryptocurrencies in terms of capitalization almost immediately after its appearance. However, the excitement soon subsided and today Stratis is ranked 16th in this indicator, which is an undoubted success, given the short period of time on the market.


Cryptocurrency mining is carried out in traditional ways. For the process to be efficient, either the purchase of productive computer equipment or participation in cloud pools is required. Considering the opinion of experts, the investment in Stratis can be very profitable even in the short term.


Which cryptocurrency to choose for mining?
It is quite difficult to find an answer to the question of which e-currency is the most profitable to mine. The fact is that the cryptocurrency market has been formed only in recent years. It is constantly changing, in addition, new types of virtual money appear regularly. All this makes more or less accurate forecasting of the further development of the market situation extremely unlikely.
Nevertheless, every year it becomes more and more difficult for single miners to make a profit by "mining" the most popular cryptocurrencies, for example, bitcoins or ether. Therefore, it makes sense to pay attention to the equally popular types of virtual currency.

Mining prospects
It is important to understand that with the growing popularity of virtual money, making profit from mining becomes more problematic. This is explained not only by an increase in the number of participants, but also by the arrival of significant financial resources in this market segment. As a result, mining individually becomes simply unprofitable and unprofitable.
Another potential danger is the fact that some cryptocurrencies that have appeared recently do not provide for the possibility of mining. Such virtual money includes, for example, Ripple or IOTA, which have shown stable growth in recent years.


How much can you earn?
It is almost impossible to give an unambiguous answer to the question about the potential earnings from mining. This is due to the fact that it is determined taking into account many difficultly predictable factors, including the current rate of a particular cryptocurrency and the dynamics of its change, the amount of investment in mining, the number of participants in the "mining" process, etc.
At the same time, it is necessary to understand the following: the growth of the total capitalization of the virtual money market leads to the fact that the average payback period of investments is constantly increasing.
For example, not long ago, investments in bitcoin mining returned within 2-3 months, bringing further profit, and the entry threshold was quite low. Today, in order to start effectively mining the most popular cryptocurrency, a serious amount of funds is required, amounting to at least several thousand dollars. At the same time, the payback period is 9-12 months, and in some cases even more.



Investment risks
The cryptocurrency market is one of the most volatile. Even bitcoin, whose value has risen very strongly, has repeatedly fallen in value. There is no guarantee that the growth of the rate will resume after another collapse, which may occur at any time.







© 2021 Bitmama. All rights reserved
Финансовые рынки от TradingView