Also known as XMR mining, Monero mining is one simple
cryptocurrency mining. Just like you can do with Zcash, and Ethereum, you can
mine Monero with your CPU, which simply means that your laptop can also mine
this crypto coin. There are a lot of software for the mining of this coin and
to make it better, most of these software are free. Two of the best include Minergate
and Claymore, and the downloading, configuration, and setting up of these
software usually do not take up to twenty minutes.
Monero is a cryptocurrency that has a strong focus on privacy. It
has amassed a lot of followers over the years and lately, it has been enjoying
incredible spikes. Instead of putting all of your money on the Big Four of the
cryptocurrency world (Bitcoin, Ethereum, Bitcoin Cash, and Litecoin), it is
best that you diversify and invest in other small crypto coins like Monero. And
since Monero mining is quite easy, you won't be risking much, and you might be
earning more on the long run.
There are a lot of good reasons why you should be mining Monero. We have listed some of these reasons below:
REASONS TO MINE MONERO
· Since you can use your
laptop for the mining of Monero, you can easily use it to subsidize the
purchase of a high-end, new GPU.
· Monero can be easily
exchanged for Bitcoin. Mining Monero will provide you with a better holding
position in BTC.
· Traders love Monero. This is
why a lot of exchanges have it on their platform. If you are good with trading,
you can maximize your profit, most especially when the cryptocurrency is
undergoing its huge spike. So mining Monero can also provide you with benefits
even if you are a trader.
· You can use Monero to fill
up your bank account with cash. All you have to do is mine the coin, exchange
for BTC on an exchange, and sell off the BTC at a higher price.
· Monero is also one of the
highest-priced altcoins on the market. Ever since it gained massive acceptance
in the darknet market back in 2016, the coin has continued to gain popularity,
thereby making it one of the best cryptocurrencies to invest in.
· Monero is a really
beneficial coin. When you mine Monero, you won't be using a lot of electricity
like when you are mining other cryptos. This is because it uses the CryptoNote
algorithm for mining, which uses less electricity than Equihash coins (Hush,
Zencash, Zcash) and Ethash Dagger Hashimoto coins (UBQ, Ethereum Classic, and
Ethereum). This simply means that your GPU cards can have a longer life range,
and you can enjoy lower temperatures.
· The last benefit a lot of
people enjoy from Monero mining is the fact that you will enjoy a lot of future
gains. The Monero GPUs you buy can be sold in future, thereby providing you
with awesome ROI. Besides that, you can hold on to the coins you have been able
to generate and sell them when the price spike on the market.
THE DIFFERENCE BETWEEN THE MONERO BLOCKCHAIN AND THE BITCOIN
BLOCKCHAIN
In order to understand the mining of Monero, you need to
understand how the blockchain works. Monero does not use the same hashing
algorithm as Bitcoin. This makes it impossible to use those specialized
hardware used for Bitcoin mining for the mining of Monero.
Monero's hashing algorithm is called CryptoNight. This algorithm
was designed in such a way that there will be no need for the development of
Monero-mining hardware. The memory-hard algorithm was created majorly for CPU
and GPUs. This means that you can only mine through the use of CPUs and GPUs.
Another noteworthy difference between the Monero and Bitcoin blockchain is the
fact that Monero is endowed with a privacy protocol known as ring signatures.
This protocol was created in order to make the cryptocurrency a leader in the
market as it's based on privacy. Also, while blocks on the Bitcoin blockchain
are mined in ten minutes, those of Monero are mined with just two minutes
intervals.
MINING FACTORS THAT DETERMINE THE SUCCESS OF MONERO
Difficulty - Ever since the fourth
quarter of 2016, the network hash rate of Monero has seen huge spikes. But the
thing is, if people are increasingly mining the cryptocurrency, why then is it
that the two minutes block interval has not changed? Why are blocks not being
mined faster than the 2-minute interval? The answer to these questions is
difficulty. The Monero blockchain can automatically increase the computational
difficulty of getting a blockchain solved. This way the Monero blockchain is
able to maintain its 2-minute interval time.
The question now is why is despite the fact that the difficulty is
consistent and getting harder, why then is the hash rate going up? The answer
to this question is price. The price didn't have any effect until late 2017
when the whole cryptocurrency market surged. That's when the price of Monero
skyrocketed and got people's attention, which has led to more hash rate.
Profitability - The other factor you
need to consider is profitability. Now that you have a little understanding of
what the Monero blockchain is all about and the role of things like difficulty,
making some economic calculations is the next thing. In order to know how
profitable you'd be when you start mining Monero, you need to log on to
whattomine.com; this website will provide you with the current figures on block
time, price, and network hash rate (this will be measured in KH/s).
Once you've logged onto the website, plug in your cards, click on
the model number, and you'll be provided with the corresponding profitability
and hashing info. Ensure that you tick the CryptoNight box so as to get your
calculations.
Hardware - The next factor you'll
want to consider is your hardware. In order to get the right hardware that will
meet your specifications and budget, you need to experiment with the different
GPU selections you'll find in the calculator above. Note that when it comes to
Monero mining, AMD cards outperform NVidia cards.
SUMMARY
Mining Monero can be very advantageous. The mining process is
quite simple and if you are going to mine the currency, it’s best that you
start now as a lot of people are still yet to get on the low altcoin train.
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