Introduction
Bitcoin mining can prove to be one of the most rewarding activities on the face of the Earth during one of the most resource-draining activities. Since you are spending your precious time reading my article, I presume you are a crypto miner. If you indeed are a crypto miner, you must know what I am talking about.
Apart from the huge amount of computational resources it eats up, it is painstaking and immensely expensive. But mining cryptocurrency is slowly becoming a trend among investors.
If you are ready to invest your time, money, and energy into mining, then keep reading this article; throughout this article, I will be explaining to you the top 3 challenges that miners face and how to overcome them.
I would also suggest you to visit Immediate Edge login page to create your trading account. But for the people who are not aware of what mining is, let me clarify what Bitcoin mining is.
Bitcoin 101
This is the only way in which you can earn a Bitcoin without having to invest or purchase cryptocurrencies at a crypto exchange. The reason why rewards are provided after mining is because it motivates miners to carry on with mining.
You are probably aware of the fact that Bitcoin is decentralized, which effectively means it is free from any sort of regulatory body. As a result, the job of mining is spread across the world.
It is a very heavy process that involves solving complicated mathematical equations. Previously mining could be performed in normal computers, but since Bitcoins gained popularity, mining started to become more resource-draining and complicated. Now you need a supercomputer, and it takes about 10 minutes to mine just a block. A whole Bitcoin can take up to a few days.
Challenges faced by Bitcoin miners
There are quite a few challenges for Bitcoin miners
1.Risk of Cryptojacking
Crypto Jacking is quite similar to hacking. It is when other miners with the intention of stealing your rewards get into your Blockchain network. Just like technology has advanced, the hackers have also kept up with the trend and found new ways to steal your Bitcoins.
For now, no permanent solution has been found to solve this problem. But the stakeholders of the mining industry are always looking for new ways to make the mining process safer. Credit goes to DigiByte for adopting PoS. This technology lets miners use five protocols that are hybrid in nature on the blockchain. This can prevent cryptojacking to a large extent.
2.Plans to Centralise
The stakeholders of ASICs mining rigs have already announced that they will make this equipment in such a way that it becomes crypto-specific. In simpler words, it means this equipment will only be able to mine one cryptocurrency.
It is a problem since a crypto-specific ASIC is brought into the market. The problem is there are only a few makers of ASICs mining rigs in the market, and the supporters of each cryptocurrency are trying to make it a coin specific mining rig so that they can benefit the most out of it.
3.Excessive Power Cost
Be ready to get your mind blown with your power bill. Mining takes up a ridiculous amount of electricity. Also, for solving one problem, you will need a hundred ASIC mining rigs in order to solve just one problem.
According to a new report by CBS, the amount of energy that Bitcoins mining takes is equivalent to the power consumed by more than 150 countries.
Final Thoughts on Bitcoin Mining
There are a few ways in which the challenges can be solved. Firstly as a crypto miner, you can always opt for less power consuming devices, and secondly, you can conduct your mining activities in places that are specially meant for such resource-intense activities.
There are a couple of mining companies like Hydrominers and Burency that reduce electricity consumption by using hydroelectricity.
