With the rise in the cost of cryptocurrencies, mining has become a lucrative business. And if a few years ago many were engaged in the extraction of bitcoin or ETH at home or in the garage, today this sector is becoming industrial and is pushing out retail players from the market.
An alternative to home mining can be a mining pool or cloud mining. This type of cryptocurrency mining does not require the participant to install a large amount of computing equipment, such as ASICs, and the return on investment does not exceed a year.
Investments in mining pay off within a year, and the profitability can reach 160%.
Russia has a huge potential for the development of industrial mining.
Home mining has already outlived its usefulness and will not bring the miner anything but losses.
About mining pools
A mining pool is a network of servers and software that individual miners can connect to. The pool issues tasks to devices and pays rewards for submitted solutions. If you mine on your own, then the probability of finding the right solution is negligible, but you will in any case incur the cost of electricity and equipment.
“The mining pool is more profitable, since home mining does not guarantee anything to the investor. You can mine for years, but not find solutions for which the miner receives a reward. And now you are about to find him, and the electricity at home is cut off. There are no guarantees, ”explains EMCD CEO Michael Jerlis.
In a mining pool, even if you didn’t solve the problem, you will still receive a reward for a joint search for a solution in proportion to the contribution. The benefits of co-mining are to reduce overall maintenance costs and keep mining farms running smoothly. Today, mining pools include tens of thousands of miners from all over the world who compete in the speed of solving problems and generating new blocks.
“There are about 55,000 registered users on our platform. In the third quarter of 2021, the world will see new EMCD products and market growth, which will significantly increase the size of our audience, ”says Michael Jerlis.
However, you can become a member of the mining pool at any time. To do this, you need to send an application to join the mining pool, receive the appropriate instructions, connect your computing equipment. The power of each device will be integrated into a common pool and will be directed towards finding a solution to generate a new blog of coins.
About investments and profitability
The initial investment for integration into the mining pool starts at several thousand dollars. This includes payments for placing mining equipment at the site, the cost of the equipment itself, electricity bills, maintenance during the operation period, and repair of faulty equipment. Despite such large numbers, the return on investment is 10 to 15 months.
“In terms of profit, it looks like 160-200% per annum and depends on the cost of the coins. At the end of the project (10-15 months of payback), the investor remains in the hands of the equipment, which continues to mine cryptocurrencies, ”explains Michael Jerlis.
In addition, as the expert says, after leaving the mining pool, computing equipment can always be sold in the secondary market and receive additional income.
About mining in Russia
Russia has long attracted miners from all over the world for its cold climate and relatively cheap electricity. It is for this reason that most of the EMCD mining farms are located in the CIS countries and in Russia in particular.
“Our mining farms are located in the CIS. Most of them are ASIC, FPGA and GPU devices. Bitcoin mining requires a lot of electricity, but this can be solved by renewable energy sources, for example, hydroelectric power plants. Russia has a very large number of hydroelectric power plants, rivers and a cold climate, in terms of green mining, our country has great potential, ”said Michael Jerlis.
Most often, miners focus their efforts on mining bitcoin and ETH, since these coins remain the most valuable in the market.
Cloud mining is the best option for mining cryptocurrency
Cloud mining is a model for earning cryptocurrency by renting equipment (hash), mining is carried out due to equipment management by a contractor who solves all issues related to technical and software components.
Setting up cloud mining does not require a productive computer or knowledge of blockchain and cryptocurrencies in general. Setting up in this case consists in going through the standard registration procedure on the service website, choosing a tariff plan and paying for the contract. Then the user specifies the address (personal wallet) where the mined cryptocurrency will be withdrawn.