Cryptocurrency mining is considered one of the most profitable companies of the modern era. Bitcoin is the most fascinating virtual currency that has existed for ten years. Bitcoin mining is the most popular mining cryptocurrency, with more than 1,000,000 individuals who mine bitcoins. It is important to know for cryptography lovers that not all virtual currencies are profitable for mine. Before going to cryptocurrency mining. it would be advisable to consider only those cryptocurrencies that have a potential for profit.
The history of digital currency mining begins with the advent of bitcoin. Bitcoin is the first cryptocurrency to be exploited in 2009. The concept of cryptocurrency mining began after the success of Bitcoin. Since then, many investors began to show interest in investing funds in cryptographic mining.
Blockchain technology is the main key player in the success of cryptocurrencies, as it allows secure blocks of information to be recorded in a blockchain by solving complex mathematical equations. This article will give you an overview of cryptocurrencies that are profitable for me.
Main costs related to cryptocurrency mining
The world of cryptographic mining is heavily affected by the cost of electricity. In countries where electricity is as cheap as Ukraine, there would be less cost to exploit virtual currency compared to those countries where electricity is expensive like Australia. This is the only cost related to cryptographic mining that could be accurately calculated.
The second most important cost related to cryptomine includes the maintenance costs of the mining farm, refrigeration facilities and infrastructure cost. The cost of maintenance depends on several factors such as the design, location and size of the installation.
The cost of buying hardware is also one of the direct costs related to digital currency mining. The selling price of mining hardware does not remain the same, as it varies over time due to the increasing rate of evolution of the industry. It is possible that the new mining hardware has improved the hash rate, but renovation costs make it very expensive and therefore there would be very few miners who would switch to the latest version of the hardware right after its release.
There are many cryptocurrencies that have the potential to make the miner get a great return. Some of these digital currencies are mentioned below.
Zcash is a virtual currency that was launched in 2016. Zcash is one of the most famous and relevant cryptocurrencies in terms of privacy as it achieves the use of cryptography to provide maximum privacy. Many crypto users consider Zcash a much more advanced and refined cryptocurrency while comparing privacy with bitcoin. Another fact is that it is based on a bitcoin code base and that the use of mining graphics cards is possible thanks to its unique mining algorithm. The supply of ZCash coins is the same as bitcoins, 21 million.
In 2016, when the Ethereum network faced a DAO attack, the network split into two parts and the original is Ethereum classic, which is a blockchain-based computing platform that supports a refined version of the Nakamoto consensus. The most mining reward in 2020, when the block was reduced to 3.2 ETC.
Although there are two aspects related to the Ethereum classic that need to be considered before moving on. First, it opposes Ethereum and second, it is a bit confusing for new users, but the best part is that its mining hardware hashrate of 400.00 MH / s
Litecoin is an open source software project and a peer-to-peer cryptocurrency. Launched in 2011, just after two years of Bitcoin’s existence, Litecoin was one of the first altcoins.
Litecoin is one of the most popular virtual currencies in the business and has a good reputation in the cryptocurrency market. It has a high demand and strong functionality. The Scypt protocol and GPU are used in Litecoin mining.
There are over 4000 digital currencies in the world and most of them are lucrative. The element of profitability varies from one currency to another. You can also determine the position of the digital currency in the market through trading platforms such as “Bitpal”To know if it would be worth investing in the mining of a specific cryptocurrency or not. There are several factors that determine the profitability of the cryptographic mining project, such as the reward of block mining and the summary function.