Cryptocurrency mining in 2018 features and prospects
Mining is the only one way to mine cryptocoins, like Bitcoin or other cryptocurrencies, and the essence of this process consists in solving of specific tasks on decoding of the chain blocks. For successful execution of such tasks, the miners get a reward in the form of certain number of virtual coins.
Topicality of the mining today is proved by resounding talks about digital currencies worldwide and the fact that more and more users want to join cryptocommunity to get profit. Though, unlike the situation in the recent years, today ordinary Internet users take great interest in mining too and aim to “catch the success train”, especially taking into account the fact that cryptoccurency exchange rates grow daily. So what are the prospects of mining in 2018 and the following years?
Reality of cryptocurrency coins mining
Profit-making is the main objective of any miner. Several years ago only owners of powerful PCs could start the mining, while today’s situation is absolutely different. Mining of virtual coins is simply impossible without significant investments.
The ways of cryptocurrency mining which were relevant in the previous years have lost their efficiency for today. In the modern mining, special-purpose equipment is the earnest of success. At the same time, the mining racks offered by many manufacturers outdate quickly due to complication of the mining process. From time to time the equipment should be updated, which requires additional expenses.
In the current conditions in a niche, many “single” miners unite with the others and create special pools, with the result that capacities of separate systems get integrated into one cryptocoins mining center. This kind of associations enable to achieve the desired goal; though, gradually the requirements to users willing to join the pool get stricter due to rapid rates of the branch development.
This all forms a bit ambiguous opinion of the beginning miners on prospects of mining in the next year. However experienced miners and experts have no doubts about it.
Вest cryptocurrency cloud mining in 2018?
All experts of in the field of the virtual money share unanimous opinion about mining prospects for the next years: the need for it will only grow. Thus, the share of private users will quickly decrease.
The main point of the today’s situation is that boom of virtual money leads to rise in mining equipment price and complicates the mining of new coins. As a result, the payback of mining rig purchase worsens. It goes without saying that the currency chosen for mining and features of its ecosystem have great importance. But if we look at the example of Ethereum which is the second cryptocurrency by popularity and prospects we’ll have to admit that despite profitability of mining equipment purchase, its payback period has grown essentially, while the profit has decreased. And this tendency is almost the same in the other cryptocurrency systems.
Many people compare the current situation in crypto sphere with the boom around computer equipment at the end of the previous century. At that time many private entrepreneurs have rushed to this business and many of them managed to gather wealth. But gradually this business became less and less profitable for private entrepreneurs, as the large corporation won the market. Mining will go through the same plan of development.
As it has been already mentioned private users can unite in pools and make quite a good profit. But requirements to join the pool will inevitably grow in the future, the equipment will rise in price, or there will be other external factors which will force “singles” to leave the market.
Very many users prefer to mine new cryptocurrencies, the complexity of calculation of which is not so high yet, while the process profitability is good. If such cryptocurrency succeeds the users who have mined the coins will get a great profit. But how high is the probability that the chosen cryptocurrency can “grow”? If we look at the history of virtual currencies and the modern situation we’ll see that only a few of such assets manage to develop significantly.
Besides, it should be considered that the current situation may change as a result of special-purpose equipment manufacturers who will offer more powerful models of graphic adapters at low price. But this scenario is unlikely to happen, since manufacture of video cards requires constantly growing expenses, even without the respect to mining.
Summarizing all the above stated we can stress the following prospects of mining in 2018: private users will yield to mining racks soon, as profitability of mining will become insignificant or even negligible for them. There is always a probability of sharp change of the currency exchange rate; though, this event cannot be foreseen in advance.