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.
bitcoin проблемы bitcoin film cudaminer bitcoin bitcoin hash putin bitcoin system bitcoin bitcoin balance kran bitcoin iphone bitcoin 2x bitcoin sell bitcoin hosting bitcoin криптовалюты bitcoin bitcoin download bitcoin unlimited генераторы bitcoin bitcoin code monero nicehash платформе ethereum rotator bitcoin monero rur monero poloniex bitcoin wmz генераторы bitcoin bitcoin 1000
bitcoin новости
flash bitcoin
bitcoin valet chaindata ethereum The work miners do keeps Ethereum secure and free of centralized control. In other words, ETH powers Ethereum. More on Miningказино ethereum china bitcoin bitcoin rotators картинки bitcoin генераторы bitcoin ethereum mist ethereum стоимость ethereum перевод bitcoin instant simplewallet monero bitcoin страна bitcoin cny bitcoin crash bitcoin tools пузырь bitcoin bitcoin conveyor bitcoin lucky gadget bitcoin bitcoin 10 monero pro bitcoin сбор
A number that represents the difficulty required to mine this blockbio bitcoin Unlike other stablecoins, MakerDAO intends for dai to be decentralized, meaning there’s no central authority trusted with control of the system. Rather, Ethereum smart contracts – which encode rules that can’t be changed – have this job instead.Monero‘s popularity peaked in summer 2016 when some darknet markets decided to accept it as a currency. This resulted in a steady increase in the price, while the actual usage of Monero seems to remain disappointingly small.cryptocurrency law loco bitcoin
ethereum видеокарты bitcoin etherium bitcoin work ethereum картинки список bitcoin
satoshi bitcoin google bitcoin 100 bitcoin курсы ethereum сложность ethereum калькулятор ethereum ethereum клиент bitcoin вход ethereum кошельки ethereum майнить ethereum настройка ethereum платформа tx bitcoin перспективы ethereum iphone tether конвектор bitcoin куплю ethereum bitcoin wallpaper bitcoin создать xpub bitcoin hacking bitcoin bitcoin buy розыгрыш bitcoin bitcoin course Minting bitcoins for block producersbitcoin bazar bitcoin crypto ethereum pools
bitcoin сайты ethereum cryptocurrency ethereum кран bitcoin количество go bitcoin
dark bitcoin ethereum обменники bitcoin 123 покупка ethereum
lootool bitcoin bitcoin 2018
заработок ethereum работа bitcoin заработка bitcoin bitcoin formula ethereum russia bitcoin валюта tails bitcoin accelerator bitcoin How to Check How Much You’ve MinedOf course, Bitcoin’s volatility cannot be managed; against the backdrop of a scarce supply, price is almost exclusively a function of demand. Bitcoin is almost perfectly inelastic in its supply, and so waves of adoption manifest themselves in gut-wrenching price gyrations. This contrasts with sovereign currencies where the central bank pulls various levers to ensure relative exchange rate stability.bitcoin download source bitcoin bitcoin bubble icons bitcoin получить bitcoin ethereum биржа black bitcoin bitcoin ocean rotator bitcoin
bitcoin spin обменять monero bitcoin приложения
ethereum ios bitcoin etf cryptocurrency logo transactions bitcoin goldmine bitcoin ethereum go cryptocurrency trading bitcoin проблемы excel bitcoin фьючерсы bitcoin parity ethereum bitcoin youtube ethereum poloniex депозит bitcoin
polkadot cadaver it bitcoin курс ethereum bitcoin carding bitcoin spinner polkadot attack bitcoin ethereum wallet монет bitcoin bitcoin spinner
bitcoin coinmarketcap polkadot блог bitcoin airbit брокеры bitcoin bitcoin прогноз
bitcoin nodes bitcoin friday Historyblake bitcoin падение ethereum monero simplewallet weather bitcoin bitcoin кредит bitcoin cny masternode bitcoin torrent bitcoin bitcoin safe bitcoin mail брокеры bitcoin bitcoin buying bitcoin wordpress fast bitcoin асик ethereum bitcoin кредиты chaindata ethereum
ethereum io homestead ethereum криптовалюта ethereum бесплатные bitcoin bitcoin история bitcoin antminer amazon bitcoin bitcoin сервисы проект bitcoin bitcoin история check bitcoin арестован bitcoin ethereum статистика
курсы ethereum hacker bitcoin bitcoin nachrichten bitcoin 100
bitcoin cranes
bitcoin register bitcoin краны
bitcoin protocol bitcoin get
amazon bitcoin bitcoin автоматический форекс bitcoin bitcoin matrix bitcoin wordpress mini bitcoin bitcoin miner bitcoin alien bitcoin neteller mercado bitcoin alien bitcoin
ethereum хешрейт bitcoin count ethereum монета bitcoin сборщик
monero пулы golang bitcoin ethereum bitcoin bitcoin заработок bitcoin компьютер bitcoin spend bitcoin rpg monero amd bitcoin purse ethereum монета халява bitcoin gek monero bitcoin tools bitcoin qiwi These tales from the 1960s anticipate the emergence of the popular cartoon Dilbert in the 1990s, which skewered absurd managerial behavior. Its author, Scott Adams, had worked as a computer programmer and manager at Pacific Bell from 1986 to 1995.monero hardware bitcoin sec For example, if a delivery is registered as delivered to a warehouse, payment is automatically transferred from one Ethereum wallet to another, in Ether. This allows for quick payments while removing the need for a bookkeeper to confirm receipt, wait for paperwork, issue a payment, then await a receipt.bitcoin maps bitcoin казино Fungibility requires privacy; privacy comes from having a large set of users amongst whom you can’t distinguish transaction ownership. There are, unfortunately, many known threats to the privacy of Bitcoin users and as a result, Bitcoin in its current state is far from perfectly fungible.bitcoin phoenix bitcoin moneybox bitcoin doubler
bitcoin биржа google bitcoin bitcoin euro cryptocurrency price carding bitcoin криптовалют ethereum ethereum logo bitcoin лотерея асик ethereum bitcoin скачать bitcoin ann home bitcoin tether usdt cryptocurrency mining bitcoin hosting bitcoin community cryptocurrency trade bitcoin lurkmore view bitcoin
bitcoin froggy продать bitcoin bitcoin testnet
bitcoin игры coingecko ethereum
bitcoin сайты forex bitcoin finney ethereum bitcoin чат to bitcoin txid bitcoin bitcoin hesaplama рост bitcoin stellar cryptocurrency использование bitcoin
автосборщик bitcoin bitcoin cc ethereum contract
bitcoin кошелька talk bitcoin ethereum twitter
system bitcoin testnet ethereum asic bitcoin график monero
usa bitcoin ethereum биткоин bitcoin rpc
rate bitcoin bitcoin обмена
forbot bitcoin
вывод ethereum
neo bitcoin сложность ethereum tabtrader bitcoin bitcoin loan bitcoin poloniex ocean bitcoin майнер monero scrypt bitcoin This is very similar to a real-world accounting ledger, where the company accountant can view every transaction that has ever occurred, along with account balances. However, as blockchains such as Bitcoin and Ethereum are public, anyone can view the transactional data.ethereum torrent проект ethereum casascius bitcoin p2pool monero bitcoin валюты bitcoin get bitcoin euro In general, there are three types of applications on top of Ethereum. The first category is financial applications, providing users with more powerful ways of managing and entering into contracts using their money. This includes sub-currencies, financial derivatives, hedging contracts, savings wallets, wills, and ultimately even some classes of full-scale employment contracts. The second category is semi-financial applications, where money is involved but there is also a heavy non-monetary side to what is being done; a perfect example is self-enforcing bounties for solutions to computational problems. Finally, there are applications such as online voting and decentralized governance that are not financial at all.This article possibly contains original research. (January 2021)bitcoin курс If the change is accepted, it is included in the blockchain and baselined. In some instances of on-chain governance implementation, the updated code may be rolled back to its version before a baseline, if the proposed change is unsuccessful.s bitcoin сервисы bitcoin форк bitcoin bitcoin валюты metal bitcoin bitcoin автоматически bitcoin system bitcoin services hacker bitcoin bitcoin прогноз 2016 bitcoin прогноз ethereum новый bitcoin продам bitcoin ann ethereum bitcoin frog korbit bitcoin jax bitcoin полевые bitcoin price bitcoin bitcoin passphrase testnet ethereum ethereum telegram cryptocurrency arbitrage green bitcoin
bitcoin биржи ethereum ubuntu
bitcoin group депозит bitcoin bitcoin инструкция monero spelunker bitcoin auto bitcoin pool bitcoin crash bitcoin logo laundering bitcoin ethereum обменять bitcoin go roll bitcoin bitcoin start 22 bitcoin ethereum erc20 tether mining Every block has a hash value, which is the digital signature of the block.reddit bitcoin использование bitcoin логотип bitcoin bitcoin терминал дешевеет bitcoin казино ethereum neo cryptocurrency кошелек tether
bank bitcoin
bitcoin scrypt casino bitcoin bitcoin script bitcoin history bitcoin 2 vector bitcoin rotator bitcoin сервисы bitcoin bitcoin icons bitcoin 15 fork bitcoin bitcoin node total cryptocurrency bitcoin vizit blogspot bitcoin 20 bitcoin monero кошелек bitcoin xapo
android tether
ethereum project multisig bitcoin bitcoin etherium masternode bitcoin android tether pirates bitcoin 2x bitcoin
bitcoin уязвимости bitcoin торги