Why Using a Hashrate Marketplace Makes More Sense Than Mining Crypto Directly
The post Why Using a Hashrate Marketplace Makes More Sense Than Mining Crypto Directly appeared on BitcoinEthereumNews.com.
Advertisement     Although Proof-of-Stake (PoS) has gradually become the most prevalent consensus mechanism in blockchain, mining – the process used in Proof-of-Work (PoW) systems like Bitcoin – remains a popular and profitable endeavor. In March, when the price of bitcoin blew past $70k, BTC miner revenue hit this year’s peak – a cool $1.93 billion. Nevertheless, as the visibility of Bitcoin and other PoW coins has increased, mining has gotten tougher – particularly with the rising cost of electricity and hardware. With the prospect of significant payoffs for block subsidies, the mining game is now dominated by extremely powerful pools that wield enormous computational power. Luckily, though, would-be miners can still earn a crust at the crypto coal-face. Renting a Rig: The Rise of Hashrate Marketplaces The concept of the hashrate marketplace is simple yet revolutionary. Instead of investing heavily in mining equipment and infrastructure, users can tap into a global network of miners and rent their hashpower as easily as 90s kids rented videotapes. This ingenious approach – to connect sellers of hashing power with buyers seeking to profit from mining without incurring the hefty upfront costs and ongoing maintenance that goes along with it – has found growing favor in recent years, particularly as mightier mining organizations have entered the ASIC arms race. The appeal of hashrate marketplaces becomes clear when contemplating the challenges of mining crypto directly. Spinning up a mining rig – especially for the most competitive and valuable digital assets like BTC – is more than a little daunting: forget the technical expertise required, the financial costs of acquiring high-powered ASIC hardware, coupled with the attendant electricity bills, equipment maintenance, and the need for regular upgrades to stay competitive, is eye-watering. Advertisement   For many, such barriers to entry means the juice (in the…
Filed under: News - @ September 20, 2024 5:23 pm