There is only one way to become part of the crypto world – you need to own some coins. But there are two ways you can acquire them: the easy way and the better way. The easy way is to open an account on the exchange and buy cryptocurrency. The better way is to start mining. That way you are not just an owner but also part of the network. With your involvement, the crypto world becomes more stable and secure. The only problem is how to find a profitable mining opportunity.
That is why I’m writing this article. The main goal here is to encourage you to become a miner, but also to show you what to mine. As a miner, you are doing good by supporting the network, but it doesn’t mean you should lose money. Mining needs to be profitable for you as it is good for the whole community. That is the power of decentralized systems.
Why can’t I mine any coin? A brief history of Bitcoin mining
When the Bitcoin network appeared in 2009 there was only one way to acquire coins – by mining. Satoshi Nakamoto, the anonymous creator of bitcoin, was the first miner but soon others joined in. They were all collecting coins and maintaining the network with their laptops using CPU.
Then a software architect from Florida Laszlo Hanyecz discovered that GPU is a much better chip for mining. He started to gather more coins than anybody else, so Satoshi told him to stop. But the genie was out of the box.
Soon people started using GPU instead of CPU, and the network started to grow. With that growth, the difficulty of mining also increased. To overcome that, miners started to connect more and more graphics cards together creating rigs. By the end of 2012, there were 11,000 GPUs supporting the network.
The next step was Slush’s pool, the first publicly available mining pool. The idea was to share processing power over a network and split coins according to the contribution. The more power you gave the more coins you got. But then something even more powerful emerged.
Someone created an ASIC miner, a hardware which specific purpose was to mine bitcoins. This technology is 100 times faster than a GPU so it generates 100 times more coins. Given that it has better performance and uses less power, it is now a dominant way of mining bitcoins.
Just to give a perspective, Bitcoin network is over 100,000 times faster than the top 500 supercomputers combined. If you were to connect your laptop to the network, it would be like a drop in the ocean.
Problems with large coins
Mining large coins such as bitcoin is not an option if you are a small player. The competition is just too big for you to make an impact. Even if you can afford to buy an ASIC miner and become a bigger player there are still other issues. Given that the price of bitcoin has dropped significantly compared to December 2017, it is questionable if it is still profitable. It mostly depends on the price of electricity in your country. Other coins such as Ether are not ASIC dominant yet, but the competition is still huge for a beginner. You would need a few thousand dollars just to start and it’s not certain that it would pay off.
New coins have better potential
There is a better option. Find a coin whose network is still in development and become one of the first miners. That way there aren’t any competitors stopping you from claiming an important place in the network and the community. But don’t choose just any coin, try to find one that has a real use. Read white papers, research the project and development team, join their forum and social media and follow new updates. The price of the project based on a promising idea with a good developing team should rise. Even if it is new. The best thing is that you don’t need substantial investment in the mining infrastructure. Basically, you can mine with your laptop at home, given that most new coins are eligible for CPU mining.
Are there any coins like that?
This is the main question. There are many new coins but the problem is to find one that has the potential for profitable mining. I have done research and found one coin which fits perfectly into the previous category. It is called Safex Cash. The main net came out a few days ago so the network is still to be established. This coin is going to be used for trading on a special blockchain platform that is being built as you read this. It is a crypto-commerce marketplace where you can buy and sell goods and services in exchange for their coin.
Imagine something like E-bay and UpWork combined, but you pay with Safex Cash instead of fiat. This is because the marketplace is on a blockchain that ensures that your transactions are secure and anonymous. No one can know what you have bought and sold. So, you will use your computer to generate money and buy things online.
Profitable mining with Safex Cash?
One more good thing is that the development team created a Monero-like algorithm for mining. That means the network is going to be ASIC resistant and you can easily mine even with CPU. So, the first request for profitable mining is fulfilled. You don’t need a big investment in mining equipment, just a simple laptop will do for you to start. The second thing you need to know to determine the profitability is the price of the cryptocurrency. Given that Safex Cash isn’t listed on exchange yet, we do not know how much it is valued at. However, people are going to use it on a marketplace so there is going to be a demand for it in the future. As you know, the higher the demand, the greater the price. So, it is possible for this coin to be highly profitable. And you can always use it on a marketplace, you don’t have anything to lose. Only to gain.
Next article is going to show you how to get involved in the Safex Cash network. Step by step. But for now, you can check this out: Set Up Safex Mining Pool
Have you done a research of your own and found another coin which meets the requirements? Please submit it in the comments.