Pros and Cons of Cryptocurrency Mining

by admin | August 13, 2018 11:02 am

Cryptocurrency mining is something that more and more people are trying now that Cryptocurrencies Blockchain[1], especially Bitcoin, are making waves in the market.  Indeed, there’s no sign yet that the cryptocurrency craze will die down soon.  Therefore, it’s important to know the pros and cons of cryptocurrency mining, before you think of joining the hype.

Advantages of Cryptocurrency Mining

Miners have a lot to get when it comes to mining digital currencies.  Here are some of the top benefits they get from mining.

Earning Money

Cryptocurrency mining is very lucrative for many miners who have chosen to make it their career.   If done right, it can be huge source of income.  Some say that it could even replace a full time job. That means that the biggest appeal of cryptocurrency is that miners can make some money while they’re doing it.

Digital Currencies Cannot Be Stolen

At present, it is considered next to impossible to steal a cryptocurrency, unlike other forms of currencies like fiat ones.   Consequently, you can be sure that the currency you’re mining will not be stolen from you.

Safer than Apps

Apps and websites that are used to run the mathematical equations for people, the so-called faucets, let individuals to use such apps rather than their own equipment when mining.  However, even if there is a multitude of cryptocurrency faucets that are considered safe, there are also countless scams out there.  if you mine the cryptocurrency by yourself, you can safely avoid such scams based on faucets.

Your Boss is Yourself

Once you get the hang of it, you would definitely want to replace your day job with it.  In the process, you become your own boss.  You can set your own hours and your own rules, which sounds really good for many cryptocurrency miners.

Disadvantages of Cryptocurrency Mining

Even though cryptocurrency mining sounds as though it has no flaws, there are still inherent risks that can be found in it.

Risk of Depreciation

Similar with any other assets with value, cryptocurrencies are also facing the risk of losing their value.  It can happen through the plummeting of the value of the cryptocurrency in which you have invested in.  Therefore, cryptocurrency mining can also become a non-profitable activity for the miner.

Power

This is perhaps the largest issue challenging the cryptocurrency mining industry today.  The cost of power needed to do the mining is quite huge.  For practical examples, what you earn from mining can be eaten away by the amount you have to pay for the electricity bill.

Losing the Cryptocurrency Wallet

It’s possible for you to get locked out of your account, like when you unfortunately forget you wallet’s password.   Another instance is when the wallet provider happens to go bankrupt.  Unfortunately, you cannot recover you wallet once you get locked out.  There is also the problem of highly sophisticated hackers breaking in and draining your wallet.

Fraud

Fraudulent organizers are not really News Site[2].  There will always be dishonest organizers managing mining pools.  When you’re dealing with them, you’re putting your earnings at risk.  As a precaution, you must engage with a mining company that’s already reputable and established in this sector.

Endnotes:
  1. Cryptocurrencies Blockchain: https://www.financebrokerage.com/cryptocurrencies/blockchain/
  2. News Site: https://www.financebrokerage.com/

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