How does the so-called mining of cryptocurrencies actually work? What does a miner do all day, Sitting in front of the computer for 24 hours?
Mining is primarily found in Bitcoin, Ethereum, and some other cryptocurrencies. In the future, however, it will also play a more crucial role in Bitcoin.
In principle, many computer processors calculate operations according to a certain technical protocol. As a result, all processors compete with each other and solve mathematical puzzles by guessing. The processor that solves a puzzle first receives newly mined bitcoins and can then sell them on the market.
You can compare that to gold. In a gold mine, there are different areas where digging occurs. But in the end, nobody knows where the gold really is.
In principle, the digging is more or less random. But if you search long enough, you will ultimately find gold or, in this case, bitcoins with good technology. At the end of the day, you must make a profit to cover your own costs.
Next, we answer 10 recurrent questions about mining cryptocurrencies in South Africa.
What does the daily routine of a South African miner look like?
This differs from miner to miner, but mining the Best Crypto South Africa is completely automated. Once the computers are set up and running, you don’t have to do anything else except updating them from time to time or replace old hardware.
Of course, it all depends on the size of the mining company. However, active monitoring is worthwhile when you have thousands of computers mining.
1. Is crypto mining still worth it in 2022?
Mining could still be worthwhile for the following cryptocurrencies in 2022: Bitcoin, Ethereum, Monero, Litecoin, and Ravencoin. These currencies have a high chance of being profitable.
While laypeople doubt the profitability of mining, miners are already looking forward to monthly profits and good future prospects. It could just be that it will become more difficult to obtain suitable mining hardware in a few years due to increased demand.
2. How long does it take for 1 Ethereum?
This process takes quite a while, and it depends on many factors. In our case, it was around four hours.
3. How long does it take for 1 bitcoin?
On average, it takes about 10 minutes to discover a block. Of course, 10 minutes is ideal if you have the perfect software and hardware, but few have the means and luxury to afford the equipment. Consequently, most users can mine one bitcoin in 30 days.
4. How much electricity does mining consume?
According to Statista, the total electricity consumption to mine Bitcoins and Ethereum in 2019 was already 176 terawatts (TWh). Thus, the Bitcoin and Ethereum blockchains need more than what the whole country of Poland needs in a year.
5. How Much Tax on Crypto Mining?
In principle, profits from crypto mining are always taxable if the mined coins are converted into a “real” currency (euro, dollar, etc.). There is no set limit – the first euro is already taxable.
6. When will mining stop?
Marathon Digital, a listed mining company from the USA, even ordered mining hardware with a total value of 900 million US dollars at the end of 2021. However, since Bitmain did not have the estimated 78,000 Antminers in stock, they agreed on a delivery period between August and December 2022.
7. What is the best miner?
The brand new Bitmain Antminer S19 Pro and S19 offer the greatest results by far. Their efficiency beats that of the MicroBT Whatsminer. However, depending on the manufacturer, these are also pricier. So, you should carefully consider whether your bank account won’t suffer from buying such a pricey miner.
8. Which PC is best for mining?
In order to mine bitcoins and other cryptocurrencies such as ether, you need a very fast computer with a suitable graphics card. Popular graphics card examples are Geforce RTX cards and Geforce RTX 3080.
9. Can you build a helium miner yourself?
Theoretically, it is also possible to build a helium miner yourself. However, this should not be an option for most people. It, therefore, seems much easier to buy a ready-made miner. This can then be used immediately.
10. How much do you earn from mining?
You can expect to earn up to €68,500 in your dream job as a miner. However, you can count on a salary of at least €49,600. The average salary of a miner is €56,900. There is a particularly large number of offers for a job as a miner. You just need to look.