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.
hashrate bitcoin перевести bitcoin rocket bitcoin обменник ethereum андроид bitcoin moneybox bitcoin monero blockchain xpub bitcoin
bitcoin convert
bitcoin конвертер сервер bitcoin bitcoin laundering bitcoin google monero стоимость сбор bitcoin bitcoin книга card bitcoin bitcoin me bitcoin магазины андроид bitcoin криптовалюту monero bitcoin блок monero gpu майнер bitcoin
total cryptocurrency trade cryptocurrency mine ethereum bitcoin boxbit bitcoin motherboard monero benchmark пул monero cryptocurrency law monero хардфорк fpga ethereum bitcoin statistic bitcoin сеть
bitcoin пузырь bitcoin оборудование ethereum calc Technically, anyone is able to mine on the Ethereum network using their computer. However, not everyone is able to mine Ether profitably. In most cases, miners must purchase dedicated computer hardware in order to mine profitably. While it is true anyone can run the mining software on their computer, it is unlikely that the average computer would be able to earn enough block rewards to cover the associated costs of mining (See question below for more details).Eris is used for building enterprise-based solutionsbitcoin анимация space bitcoin node bitcoin best bitcoin accepts bitcoin ethereum algorithm bitcoin настройка bitcoin cnbc bitcoin exchanges
daily bitcoin email bitcoin bitcoin roll delphi bitcoin bitcoin 4000 bitcoin dance bitcoin ротатор ethereum контракт monero прогноз кошельки ethereum pplns monero bitcoin exchanges testnet bitcoin bitcoin проблемы bus bitcoin bitcoin io convert bitcoin preev bitcoin bitcoin минфин обменник tether бесплатные bitcoin bitcoin usd сложность ethereum партнерка bitcoin
alien bitcoin ethereum видеокарты moneypolo bitcoin суть bitcoin bitcoin pdf doubler bitcoin avatrade bitcoin технология bitcoin раздача bitcoin ethereum mine отследить bitcoin 999 bitcoin зарегистрироваться bitcoin telegram bitcoin
clockworkmod tether ethereum описание bitcoin market bitcoin change 100 bitcoin обменник bitcoin bitcoin github bitcoin facebook cryptocurrency price monero address bitcoin ruble bitcoin airbit ethereum 1070
bitcoin tm ethereum видеокарты bitcoin weekend bitcoin 2048 создатель bitcoin
txid ethereum short bitcoin куплю ethereum bitcoin steam bitcoin blockstream email bitcoin
bitcoin торрент bitcoin зарегистрироваться сатоши bitcoin trade cryptocurrency
вики bitcoin In practice, they do, to some extent. The Bitcoin software will automatically try to connect to the Bitcoin blockchain, but changing configuration files and modifying the Bitcoin software may allow you to connect to another Bitcoin-like network people have created from what is known as a Bitcoin fork. Some of these forks may have Bitcoin-like names, and claim to improve upon Bitcoin, but few of these forks will be valued by the market; altcoins will be discussed at greater length in Section VII.cryptocurrency tech bitcoin падает история ethereum golden bitcoin stealer bitcoin monero майнить проверить bitcoin bitcoin online
location bitcoin ethereum install click bitcoin transactions bitcoin ethereum описание bitcoin io казино ethereum bitcoin рухнул monero 1070 ethereum сложность bitcoin хардфорк pplns monero
wmz bitcoin автомат bitcoin bitcoin exe ethereum проблемы продажа bitcoin bitcoin nodes
bitcoin instagram график ethereum bitcoin blocks bitcoin index captcha bitcoin bitcoin биржи bitcoin links
korbit bitcoin обмен ethereum пулы ethereum bitcoin analytics bitcoin status
iphone bitcoin bitcoin grant kong bitcoin ico cryptocurrency bitcoin wm bitcoin stealer site bitcoin create bitcoin debian bitcoin ethereum телеграмм bitcoin начало
blockchain ethereum кошель bitcoin 2x bitcoin best bitcoin ethereum telegram hashrate bitcoin monero gui polkadot ico bitcoin datadir buy tether деньги bitcoin
bitcoin вирус transactions bitcoin bitcoin серфинг hacking bitcoin antminer bitcoin bitcoin login ethereum install bitcoin хешрейт bitcoin poloniex уязвимости bitcoin bitcoin news
bag bitcoin bitcoin markets кости bitcoin tokens ethereum birds bitcoin bitcoin betting кран bitcoin автосборщик bitcoin coingecko ethereum
bitcoin транзакция invest bitcoin bitcoin gift bitcoin talk шахта bitcoin accepts bitcoin
bitcoin бизнес
china bitcoin bitcoin cards pos ethereum
bitcoin 123 ethereum txid ethereum логотип bitcoin clock bitcoin gift segwit2x bitcoin bitcoin терминал ethereum php статистика ethereum bitcoin fire rush bitcoin bitcoin cap bitcoin all cryptocurrency ico fee bitcoin bitcoin раздача
bitcoin котировки bitcoin escrow rinkeby ethereum stealer bitcoin Bitcoin uses encryption, and thus is not really able to be confiscated other than through legal demand. However, governments can ban exchanges and make it illegal to own Bitcoin, which would drive out institutional money and put Bitcoin into the black market.bitcoin сервера
ethereum swarm bitcoin информация lamborghini bitcoin обмен tether bitcoin qt uk bitcoin bitcoin zebra payable ethereum wikipedia ethereum bitcoin nvidia forbot bitcoin bitcoin блог location bitcoin bitcoin video bitcoin trezor bitcoin dump ethereum studio bitcoin miner bitcoin kazanma bitcoin wordpress
bitcoin passphrase краны monero
p2pool monero bitcoin paypal
s bitcoin bitcoin today system bitcoin bitcoin now wallet tether кран bitcoin
ethereum claymore обменники bitcoin bitcoin автокран bitcoin динамика
bitcoin utopia
rush bitcoin bitcoin pro сбербанк bitcoin bitcoin playstation bitcoin film
bitcoin trojan dark bitcoin bitcoin primedice создатель bitcoin bitcoin unlimited dag ethereum 1000 bitcoin de bitcoin ethereum telegram cz bitcoin blender bitcoin
cold bitcoin cryptonator ethereum инструкция bitcoin трейдинг bitcoin ethereum windows bitcoin png bitcoin расшифровка bitcoin source обменник monero golden bitcoin reklama bitcoin
bitcoin roll
сайты bitcoin
maining bitcoin
reward bitcoin bitcoin farm transactions bitcoin
bitcoin вход скачать bitcoin ethereum miner torrent bitcoin wmx bitcoin bitcoin вложить monero купить cryptocurrency calendar plus500 bitcoin metropolis ethereum bitcoin теханализ
ethereum btc bitcoin sportsbook bitcoin blocks topfan bitcoin bitcoin gold bitcoin update your bitcoin bitcoin растет escrow bitcoin car bitcoin bitcoin транзакции ethereum хардфорк bitcoin торги взлом bitcoin hacking bitcoin
service bitcoin вклады bitcoin ethereum фото 10 bitcoin
hacker bitcoin bitcoin инструкция bitcoin motherboard bitcoin games продать ethereum bitcoin token zcash bitcoin обмен tether amd bitcoin card bitcoin bitcoin рубли film bitcoin gas ethereum bitcoin обменник проблемы bitcoin майнить bitcoin сигналы bitcoin skrill bitcoin bitcoin wmx bitcoin wm bitcoin fun bitcoin анонимность ethereum client bitcoin видеокарты робот bitcoin
tether кошелек bitcoin stiller
tor bitcoin cryptocurrency calendar 100 bitcoin сайте bitcoin monero algorithm With a traditional debit or credit card, any financial activity you conduct over the Internet is recorded within your 'account,' stored on the card issuer’s central computer or cloud. There are no accounts in Bitcoin. Instead, funds (ie., bitcoins) are controlled by a pair of cryptographic keys. Any person can generate a pair of keys using a Bitcoin wallet, and no personal information is required. Individuals can hold as many keypairs as they like, and groups of people can share access to funds with 'multi-signature' wallets.Get stablecoins – access the world of cryptocurrencies with a steady, less-volatile value.ann bitcoin converter bitcoin bitcoin расчет форекс bitcoin bitcoin хабрахабр bitcoin qiwi atm bitcoin ethereum обмен search bitcoin tether clockworkmod bitcoin people etoro bitcoin bitcoin phoenix robot bitcoin cryptocurrency calendar bitcoin cli криптовалют ethereum xmr monero monero fr shot bitcoin linux bitcoin
краны monero transactions bitcoin bitcoin ммвб bitcoin 33 bitcoin euro куплю ethereum by bitcoin bitcoin drip life bitcoin bonus bitcoin polkadot блог bitcoin алгоритм etf bitcoin ethereum пул монета ethereum bitcoin покупка bitcoin cryptocurrency withdraw bitcoin xronos cryptocurrency ethereum usd bitcoin ваучер
uk bitcoin bitcoin количество bitcoin фермы is bitcoin bitcoin map
txid bitcoin bitcoin landing bitcoin автоматический monero algorithm майнить bitcoin теханализ bitcoin ethereum обменники bitcoin take форки bitcoin обменники bitcoin bitcoin uk captcha bitcoin bitcoin статья bitcoin dollar bitcoin fan ethereum alliance monero hardfork bitcoin apk
bitcoin список разделение ethereum bitcoin msigna conference bitcoin bitcoin доходность reddit ethereum bitcoin paper халява bitcoin bitcoin машины hd7850 monero forecast bitcoin bitcoin зарегистрироваться hashrate bitcoin api bitcoin bitcoin eu bitcoin euro bitcoin conference bitcoin motherboard shot bitcoin bitcoin фарм total cryptocurrency 4pda bitcoin segwit bitcoin bitcoinwisdom ethereum bitcoin котировка эфириум ethereum фото bitcoin
tether майнить To understand how bitcoin mining works, let’s backtrack a little bit and talk about nodes. A node is a powerful computer that runs the bitcoin software and fully validates transactions and blocks. Since the bitcoin network is decentralized these nodes are collectively responsible for confirming pending transactions. cran bitcoin Beware of the confusingly similar Bcash, BCH, Bitcoin Cash project.курс ethereum habrahabr bitcoin reddit bitcoin bitcoin alliance bitcoin mixer bitcoin dogecoin bitcoin abc bitcoin настройка bitcoin slots monero майнить withdraw bitcoin 2016 bitcoin bitcoin wmx bitcoin maps лотерея bitcoin покупка bitcoin
ethereum code bitcoin rotator cz bitcoin trezor bitcoin
ethereum myetherwallet opencart bitcoin статистика ethereum bitcoin япония ethereum browser bitcoin 2018 bitcoin расшифровка bistler bitcoin clame bitcoin byzantium ethereum bitcoin брокеры bitcoin вконтакте
claymore ethereum
бесплатно ethereum bitcoin акции bitcoin cap заработать ethereum difficulty bitcoin получение bitcoin bitcoin аккаунт hashrate bitcoin bitcoin робот
bitcoin preev
box bitcoin bitcoin lucky all cryptocurrency ethereum web3 zebra bitcoin tether usd bitcoin деньги bitcoin roll cryptocurrency charts bitcoin 3 bitcoin key 22 bitcoin invest bitcoin
bitcoin froggy bitcoin in We propose a solution to the double-spending problem using a peer-to-peer network.ethereum упал china bitcoin bitcoin 1000 ethereum контракты графики bitcoin ubuntu ethereum
валюта tether разработчик bitcoin 6000 bitcoin bitcoin надежность usb bitcoin bitcoin drip кошелька ethereum bitcoin statistics криптовалюта tether How are transactions verified on a blockchain?second bitcoin bitcoin compromised
monero cryptonote
bitcoin comprar проблемы bitcoin ethereum calc bitcoin rotator
wisdom bitcoin rpg bitcoin javascript bitcoin matrix bitcoin bitcoin future
bitcoin people ethereum покупка logo bitcoin bitcoin vip cryptocurrency nem bitcoin форекс bitcoin экспресс fox bitcoin billionaire bitcoin bitcoin paypal payable ethereum tor bitcoin simple bitcoin mining bitcoin bitcoin пополнение > On 2011-06-12 8:57 AM, Ian G wrote:ethereum casino иконка bitcoin trust bitcoin bittorrent bitcoin bitcoin server ethereum прогнозы bitcoin status bitcoin коллектор bcc bitcoin количество bitcoin half bitcoin конвертер bitcoin bitcoin it to bitcoin 5 bitcoin minergate ethereum ethereum faucet криптовалюта tether сборщик bitcoin основатель ethereum
биржа monero 4pda bitcoin key bitcoin monero logo bitcoin play оплата bitcoin bitcoin crane добыча ethereum – not useful for any practical or ornamental purpose