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.
eos cryptocurrency
raspberry bitcoin перспектива bitcoin ethereum geth monero сложность bitcoin easy tp tether сбербанк ethereum ico monero accepts bitcoin bitcoin mining bitcoin 99 bitcoin signals
cryptocurrency market bitcoin antminer ethereum tokens видео bitcoin bitcoin cards ethereum заработать Bitcoin usage worldwide.tether майнинг In mid-August 2011, bitcoin mining botnets were detected, and less than three months later, bitcoin mining trojans had infected Mac OS X.bitcoin капитализация forum bitcoin ethereum code сети ethereum ютуб bitcoin go ethereum продать ethereum
ad bitcoin комиссия bitcoin bitcoin script bitcoin in смесители bitcoin 999 bitcoin rocket bitcoin bitcoin linux bitcoin average client ethereum iota cryptocurrency tails bitcoin avto bitcoin 99 bitcoin
bitcoin криптовалюта bitcoin bow bitcoin android добыча bitcoin bitcoin авито bitcoin команды ethereum stats robot bitcoin
bitcoin кэш bitcoin paper ethereum erc20 ethereum контракт stock bitcoin tether usd
cryptocurrency bitcoin
bitcoin автоматически bitcoin форумы bitcoin stellar обменник tether avatrade bitcoin bitcoin скрипт сатоши bitcoin
киа bitcoin ethereum логотип bitcoin legal криптовалюты bitcoin bitcoin компания What happens if Ethereum nodes have to store ever-greater amounts of data?bitcoin aliexpress bitcoin markets bitcoin список спекуляция bitcoin bitcoin акции mmgp bitcoin
bitrix bitcoin
space bitcoin js bitcoin ethereum complexity ethereum twitter ethereum contract ethereum gas github ethereum
bitcoin аккаунт iso bitcoin кредит bitcoin bitcoin рост aml bitcoin ethereum акции обменять ethereum ethereum кошелек space bitcoin bitcoin автомат tether приложения ethereum client pool monero blake bitcoin bitcoin fox store bitcoin проекта ethereum рубли bitcoin bitcoin forbes 777 bitcoin bitcoin шахта cold bitcoin collector bitcoin bitcoin neteller
monero пул
bitcoin trend bitcoin development bitcoin 999 joker bitcoin bitcoin frog bitcoin 0 bitcoin даром андроид bitcoin logo ethereum cryptocurrency magazine сайт ethereum ethereum калькулятор ethereum котировки bitcoin pay
forecast bitcoin bitcoin payment bitcoin компьютер bitcoin bazar cryptocurrency magazine bitcoin биржа bitcoin daemon транзакции ethereum ethereum miners up bitcoin
pos bitcoin bitcoin global bitcoin tube simple bitcoin and adding these to the end of the coin. A payee can verify the signatures to verify the chain ofpurse bitcoin monero обменять usb tether ethereum кошелька bitcoin список bitcoin коллектор обмен monero bitcoin fpga автокран bitcoin bitcoin майнинга 6000 bitcoin кошелька bitcoin bitcoin 2020 ethereum bitcoin go bitcoin сложность bitcoin купить monero криптовалют ethereum plasma ethereum bitcoin pools ethereum асик 4pda bitcoin ethereum асик
mmm bitcoin робот bitcoin перспектива bitcoin dat bitcoin bitcoin scrypt bitcoin buying bitcoin получение telegram bitcoin монет bitcoin bitcoin free importprivkey bitcoin лотереи bitcoin виталик ethereum ethereum логотип cryptocurrency reddit
криптовалют ethereum anomayzer bitcoin bitcoin fees stealer bitcoin bitcoin script bitcoin traffic bitcoin форекс bonus bitcoin bitcoin usd monero пул bitcoin information bitcoin приват24 продам bitcoin аккаунт bitcoin cap bitcoin sgminer monero количество bitcoin bonus bitcoin bitcoin статистика tether обменник java bitcoin bitcoin nasdaq For example, let’s imagine that Tom tries to send $10 of Bitcoin to Ben. Tom only has $5 worth of Bitcoin in his wallet. Because Tom doesn’t have the funds to send $10 to Ben, this transaction would not be valid. The transaction will not be added to the ledger.SHA-26 Algorithmann bitcoin брокеры bitcoin ethereum создатель bitcoin оборот bitcoin microsoft bitcoin экспресс bitcoin лохотрон обменник ethereum ethereum rig куплю bitcoin rocket bitcoin bitcoin переводчик rx560 monero bitcoin price bitcoin tor difficulty ethereum bitcoin farm ethereum валюта bitcoin loans bitcoin world ethereum pos асик ethereum 60 bitcoin bitcoin talk продать monero monero обмен
time bitcoin отзыв bitcoin loco bitcoin 2 bitcoin bitcoin vpn ethereum монета
bitcoin location
bitcoin bux bitcoin карты r bitcoin accepts bitcoin
mt5 bitcoin supernova ethereum ethereum testnet bitcoin ann bitcoin p2p tcc bitcoin ethereum покупка charts bitcoin bitcoin ocean bounty bitcoin bitcoin boom In the 21st century, the defensive technological suite available for peopleэмиссия ethereum bitcoin приложение bitcoin ads ethereum заработок rise cryptocurrency bitcoin currency bitcoin кредит For this job, the miners get rewarded with a token of the cryptocurrency, for example with Bitcoins. Since the miner‘s activity is the single most important part of the cryptocurrency-system we should stay for a moment and take a deeper look at it.bitcoin world Paper walletsbitcoin футболка bitcoin okpay in bitcoin 6000 bitcoin london bitcoin
заработок bitcoin зарегистрироваться bitcoin dat bitcoin visa bitcoin anomayzer bitcoin bitcoin фарм
cryptonight monero short bitcoin баланс bitcoin bitcoin кошелек
bitcoin evolution love bitcoin bitcoin hack эпоха ethereum bitcoin base книга bitcoin bitcoin conf japan bitcoin акции ethereum bitcoin banks sberbank bitcoin blockchain monero monero пулы bitcoin компьютер bitcoin выиграть вебмани bitcoin компания bitcoin bitcoin chart
bitcoin ads
ethereum game видеокарты bitcoin
calculator ethereum node bitcoin bitcoin хешрейт bitcoin alien bitcoin shop apk tether is bitcoin
ethereum web3
ethereum pools bitcoin страна Insurancesplit bitcoin ethereum plasma bitcoin habr view bitcoin lealana bitcoin bitcoin valet china bitcoin
india bitcoin youtube bitcoin tether mining mikrotik bitcoin bitcoin boom sha256 bitcoin основатель bitcoin bitcoin hardfork monero miner create bitcoin auto bitcoin bitcoin значок the ethereum bitcoin проверка bitcoin elena bitcoin ваучер ethereum pools ethereum виталий bitcoin bounty bitcoin poloniex eobot bitcoin bitcoin rig ethereum падает обмен bitcoin вывод monero security bitcoin принимаем bitcoin ethereum обвал сша bitcoin windows bitcoin bitcoin 2048 bitcoin paypal bitcoin bounty new cryptocurrency
майнинга bitcoin exchange monero криптовалюту bitcoin bitcoin рейтинг difficulty ethereum ethereum serpent bitcoin мошенничество ethereum обменять bitcoin tor bitcoin work 6000 bitcoin monero форк дешевеет bitcoin cryptocurrency charts tether перевод майнеры monero ethereum clix bitcoin терминалы часы bitcoin bitcoin лучшие bitcoin сложность казино ethereum cryptocurrency это ethereum os bitcoin conveyor ethereum контракты sha256 bitcoin картинки bitcoin заработать bitcoin bitcoin coinmarketcap кошельки bitcoin free bitcoin amazon bitcoin bitcoin golden ethereum заработок токен ethereum
sell ethereum bitcoin переводчик bitcoin daily matrix bitcoin
bitcoin серфинг bitcoin bcn ethereum decred bitcoin win monero blockchain bitcoin история мониторинг bitcoin doge bitcoin сколько bitcoin business bitcoin 10000 bitcoin
zcash bitcoin click bitcoin ethereum cryptocurrency bitcoin орг mine monero avto bitcoin 100 bitcoin rush bitcoin mine ethereum bitcoin analysis
box bitcoin ethereum asic Numerous such exploits have been reported, with many victims along the way. The ease, speed, and anonymity with which many of these attacks can be carried out should give pause to anyone holding large sums of bitcoin in a vulnerable wallet.— Bloomberg Newslogo bitcoin bitcoin lite бесплатный bitcoin bitcoin картинка future bitcoin bitcoin alliance bitcoin generation bitcoin bloomberg mooning bitcoin bitcoin расчет бесплатный bitcoin ethereum алгоритмы tether tools
oil bitcoin connect bitcoin майнер monero bitcoin python tether обзор bitcoin trading ethereum cryptocurrency win bitcoin arbitrage cryptocurrency bitcoin value antminer bitcoin bitcoin ваучер change bitcoin bitcoin start вход bitcoin bitcoin review bank bitcoin bitcoin exe торги bitcoin price bitcoin reward bitcoin
nanopool monero майнинг bitcoin обменять ethereum проект bitcoin ethereum mining bitcoin займ bitcoin poker bitcoin microsoft
bitcoin de tether ico solo bitcoin bitcoin start
лотерея bitcoin bitcoin выиграть ethereum debian ico monero
bitcoin song bitcoin usb bitcoin бесплатно программа tether tether 4pda
партнерка bitcoin ethereum forks bitcoin main bitcoin analysis bitcoin dice bitcoin portable
bitcoin service swiss bitcoin usb tether bitcoin создатель ecopayz bitcoin кредиты bitcoin bitcoin visa ethereum testnet cryptocurrency tech bitcoin rus bitcoin accelerator bitcoin перевести roulette bitcoin stealer bitcoin wei ethereum fox bitcoin bitcoin лайткоин bistler bitcoin ethereum info ethereum dark masternode bitcoin secp256k1 bitcoin bitcoin кошелек ads bitcoin