When you mine a block, you become part of the blockchain process of verification of transaction, and you have a role in the creation of the new blocks. Of course, you do not this out of pure sympathy and kindness, there will be a retribution for your efforts (well, mostly for your computer’s effort so to speak) and you will be granted a fraction of the reward from finding a block (in a classic PPLNS system, which is different from a PPS system like Cruxpool where you get rewarded more often)
This reward consists in fraction of cryptocurrencies; that depends on many factors will talk about in a later article. But once the job is done those cryptos will go to your wallet, and you can exchange them right away, let them take some value for future trading purposes, buy the cool stuff you want etc. It is worth something and depending the country you live in, it might also worth a LOT!
The notion of boundary and frontier becomes blurred thanks to the use of cryptocurrencies. Sure, you can accumulate loads and loads of crypto on multiple wallets here and there. But then what? What’s the point if you are not really well-versed in the world of trading (Psst! Here’s a quick guide to help you get comfortable with trading basics), well why don’t you simply use these cryptos?
Imagine a world in which you can buy in bitcoin everything from your latte macchiato in NYC, while you buy a brand-new camera on a German website, book an all-inclusive stay in Japan over the summer. And all of this without the change and transaction fees we know.
You’ve been reading Tim Ferriss’ 4-hour workweek and you dream of creating passive income scheme in order to help you find the money you need to travel the world or support your family? Well good news! Crypto mining is actually a good fit for your plan.
In exchange of a starting investment (whether it’s a rig, an asic or via cloud mining on NiceHash for example) you get a ROI quite rapidly without having to do anything, since your computer is doing all the complex work. You simply need to monitor a bit for the performance, and expected profits: which would be less time-consuming than managing your standard dropshipping business!
You see, I picture the blockchain as the next great revolution after the internet break in the 90’s, because it has the power to transform the way we interact with each other, make transactions, access and verify information, and this without having to place our trust with a third party we know nothing about.
Miners are at the center of this system, because they become a part of the decentralization, of the verification process and of course they are the one who share their hash power in order to create new blocks that will be added to the chain. The blockchain is tied to the mining activity. Could this mean that “the more the merrier” can be applied to this principle?
One thing is for sure, the more miners we are, the more secure the blockchain will become. This could decrease the chances for 51% attacks.
Mining Cryptocurrencies is all about being part of a system that aims at more decentralization.
I might seem to be some sort of unattainable utopic ideal that we could live in a world where banks and uber-structures would not have control over our finances – especially when you live in a country where the state money is stable and strong – yet ask someone living in developing countries where their money is devaluated, consequence to a major crisis of uncontrolled inflation. They would tell you that when they need to buy something like a coffee they would be glad to have cryptocurrencies.
I am not preaching for anarchism right here but we all know that money depends on the nation and central banks, and that it is their mean to support their credibility but that also forces upon us their sovereignty. Nonetheless cryptocurrencies could be a valuable mean of reappropriation of purchasing, and stop being impacted by unwanted inflation. Of course, cryptocurrencies are not in a state of maturity at the present moment, and some major issues prevent this technology to be adopted by the greater number, for instance the question of environment should be raised in order to gain scalability without having a huge negative footprint over Earth, but crypto currencies have, without a doubt, a game-changing potential.
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