CRYPTOCURRENCIES ARE BEING TALKED ABOUT MORE AND MORE AND IT’S DEFINITELY NOT JUST A PASTIME FOR COMPUTER NERDS ANYMORE. THE ECONOMIC MEDIA TALKS OF DIGITAL CURRENCIES AND THE MAINSTREAM MEDIA FREQUENTLY MENTIONS THEM. FOR A PERSON TO UNDERSTAND “WHAT EVERYONE SEES IN IT,” IT IS NECESSARY TO BRIEFLY INTRODUCE CRYPTOCURRENCIES AS SUCH, BUT ALSO HOW THEY WORK.
A cryptocurrency is a type of digital currency that is created electronically. Even though you often come across an appealing picture of Bitcoin, you will never physically touch the currency, and you won’t put it into your wallet at all – at least not the one that you put your “normal” money, payment cards, IDs, and other necessities into. Cryptocurrencies are kept in a digital wallet, which we will introduce later. The cryptocurrency system is mathematical and the software is highly sophisticated and engages the user in the process. Cryptocurrencies were created to offer safer, more transparent, and quicker payments.
Cryptocurrencies offer an alternative to ordinary payments, but for someone to start using it at all, naturally there must be some benefits. Cryptocurrencies have several pluses right away; thanks to this, they have a wider base of users. One of the biggest advantages is the decentralization of the system – one institution doesn’t have an overview of payments, but practically all users of the system do, which guarantees the transparency of payments. Cryptocurrencies get by without an intermediary, which with money, for example, can be a bank, and so cryptocurrency payments go straight from the sender to the payee, which is not only much quicker, but also cheaper. Costs of transfers are minimal, due to no fees from banks and other institutions. Cryptocurrency users also value the anonymity, since payments are sent without personal or sensitive data. That doesn’t mean that the transaction can’t be traced. Of course, when we are dealing with money, very thorough security is necessary. It’s no different with digital currency – thanks to strong encryptions, it’s virtually impossible to crack the system.
As was already mentioned, the cryptocurrency system is a highly sophisticated and thoroughly secure system. Individual cryptocurrencies work differently, so we will introduce the best-known cryptocurrency and explain how Bitcoin works. Simply put, the system operates like this: the transactions that are taking place in the given cryptocurrency are verified by users with the help of their hardware. This verification happens with the help of software that solves mathematical problems and the verification isn’t done by just one person, but by a large number of users who call themselves miners. For successfully solving these problems and thus confirming the payment, the miner has a certain profit in units of the cryptocurrency.
Transactions that are made with individual cryptocurrencies are written in what’s called a blockchain, which is basically a digital accounting book where all transactions of the given cryptocurrency are made. And since the whole system is decentralized, one user doesn’t have the blockchain, but thousands of computers around the world have a copy. So it isn’t possible to erase data about payments from the mutually shared database. Transactions made by the cryptocurrency are written in the blockchain in blocks. The blocks are connected to one another and each is sealed with a digital signature. All of this prevents forging payments.
Everything sounds quite simple – cryptocurrency is earned by confirming the transactions of other people. But there’s a catch of course. And it’s the large amount of electric energy that the computer uses for solving mathematical problems and confirming payments during cryptocurrency mining. The mining itself can get very expensive, so it isn’t always profitable. The high energy usage, on the other hand, prevents the system, that is based on as many users as possible taking part in the confirmation, from being misused.
Most people associate the term cryptocurrency with the best known one – Bitcoin. Nevertheless, many, many more cryptocurrencies exist. The number of cryptocurrencies is definitely in the hundreds; some sources even state that there are thousands. Not all cryptocurrencies “survive” and are stable on the market. When mining, it is good to choose ones that are already verified. Amongst the best known cryptocurrencies, aside from the aforementioned Bitcoin, are Ethereum, Litecoin, Cardano, Solana, Dogecoin, Tron, Monero, or Polkadot.
Since so many cryptocurrencies exist, it is logical that there are differences between them. Each cryptocurrency has unique characteristics that differentiate it from the others. Primarily, each individual cryptocurrency has a different system of use and ways of mining. We can also find differences in the technologies of the individual cryptocurrencies. The speed of the transaction or the level of anonymity during payments is also different.
The goal of mining and trading cryptocurrencies is primarily profit. The price of cryptocurrencies is frequently written about in the media, usually in a negative context. We frequently read about the price of Bitcoin and other cryptocurrencies falling. However, from a long-term view, the value of cryptocurrencies, other than small fluctuations, is practically continually growing. Like everything else on the market, the cost of cryptocurrencies is determined by supply and demand. The value of cryptocurrencies is rising thanks to the growing popularity of cryptocurrencies, the spreading network of places where you can pay with them, and their potential in the future.
ONE OF THE WAYS TO GET CRYPTOCURRENCY IS BY MINING IT. MINING CRYPTOCURRENCY, LIKE MINING MINERALS, IS AN ENERGETICALLY DEMANDING UNDERTAKING. IT IS NECESSARY TO TAKE INTO ACCOUNT THE NEED TO INVEST IN HARDWARE FOR MINING AND ALSO TAKE INTO CONSIDERATION THE HIGH ENERGY USAGE. BEFORE YOU BEGIN CRYPTOCURRENCY MINING, IT IS IMPORTANT TO CALCULATE IF IT IS WORTH IT.
The main reason why thousands of miners around the world start mining Bitcoin and other digital currencies is, of course, profit. Aside from personal enrichment, cryptocurrencies can be used for other purposes. It can be used for immediate transactions anywhere in the world – when using cryptocurrency, it isn’t necessary to wait for the bank to process the payment; transactions are very rapid. Users also use cryptocurrency due to the low fees and anonymity.
If you have a pickaxe prepared for cryptocurrency mining, you can go put it back in your basement. Mining happens on the computer of the miner, but first, it’s necessary to make sure that the computer is equipped with the appropriate hardware. The user must also be able to install and run the mining software, which can be quite complicated. If everything goes well, the program runs on the miner’s computer and solves mathematical problems, which confirm transactions in the given cryptocurrency. After successfully confirming a transaction, a reward ensues in the form of units of the given cryptocurrency. Mining for yourself is essentially checking and confirming transactions of other users and integrating these payments into blocks.
In the blockchain, the virtual accounting book, users create cryptocurrency entries by making payments with cryptocurrency. Then the miners come into play by creating the blocks, which are entries that confirm that the transaction is valid. Using special software, miners verify that the payments in question have the right electronic signature, that they are being carried out between valid electronic wallets, etc.
The goal of the miners is to create blocks that correctly confirm the transaction that took place and subsequently integrate them into the blockchain, for which they receive a reward in the form of units of the given cryptocurrency.
As has been mentioned, mining requires special equipment. What hardware is needed for mining cryptocurrencies? The foundation is, of course, a computer. Unfortunately, it is not possible to mine cryptocurrency on a regular computer, so it needs to be upgraded a bit. This upgrade entails acquiring high-performance graphics cards that were originally meant for playing computer games. Graphics cards are used for solving mathematical problems during cryptocurrency mining. The more graphics cards connected to the computer, the more efficient the mining system will be. A computer with a higher number of graphics cards is called a mining rig. Next, it is necessary to choose an appropriate motherboard for the mining computer, which depends on the number of graphics cards that will be used for mining. We must not forget the other details such as the CPU or RAM.
The cost of hardware, especially graphics cards, has been rising quickly recently, and so the initial expenses of mining are rising. It’s necessary to calculate if cryptocurrency mining will be profitable, considering the high usage of electricity.
The digital currency system isn’t totally bulletproof, so there are some things to look out for. The largest risk of cryptocurrency is the theft of the account where the cryptocurrency is deposited. Each user deposits their cryptocurrency into a digital wallet. They exist either online, or in the form of a hardware digital wallet that connects to the computer like a flash disk. The riskiest part is storing cryptocurrency and securing the account so that the user doesn’t lose their digital wallet. The mining itself doesn’t come with many risks, unless you count the scare after receiving the electric bill.
A SECOND OPTION TO GET CRYPTOCURRENCY AND INCREASE THE NUMBER OF USERS IS TRADING WITH CRYPTOCURRENCY. THE PRINCIPLE IS THE SAME WITH ANY OTHER TRADING – BUY AS CHEAP AS POSSIBLE AND SELL AS EXPENSIVE AS POSSIBLE. BESIDES THE FACT THAT CRYPTOCURRENCY CAN BE USED SIMILARLY TO STOCK, IT CAN ALSO BE USED LIKE NORMAL MONEY TO BUY GOODS AND SERVICES. THEY ARE ALSO USED AS LONG-TERM INVESTMENTS.
You can get cryptocurrency in a simpler way than mining, and that’s by buying. You can buy cryptocurrency on the market, in money exchanges, or in special machines. Buying on the market is the most action-filled way of trading cryptocurrency. Just like on the regular stock market, trading is driven by supply and demand and the price of cryptocurrency isn’t firmly set. Instead, like a money exchange, the rate is driven by the exchange rate of the cryptocurrency. So just as you can buy euros, dollars, or other currencies for a certain price, you do the same with purchasing Bitcoin or other currencies. The last option to get cryptocurrency are automated machines; their network, primarily in larger cities, is growing. The ideal thing is to have a digital wallet prepared on your phone and then you just pick the amount you want to buy from the machine and the machine will guide you through the whole process.
More and more stores here are allowing payments with cryptocurrency. It is possible now to pay with cryptocurrency in more than 400 places in CZ and the network is continually growing. Cryptocurrency payments are accepted, for example, by Alza, Bitcoin Coffee in Prague, or the Brno DJ Captain Sound. Of course, the number of stores where you can pay with Bitcoin and other currencies is much larger. The crypto map coinmap.org shows all the places where it’s possible to pay with cryptocurrency.
And how does the cryptocurrency payment take place? It’s quite simple and isn’t too different from regular payments online with a payment card. For example, if you want to buy with Bitcoin on Alza, just pick pay with Bitcoin and the page will redirect you to the payment gate BitcoinPay. There will be a Bitcoin address shown where the payment, which comes straight from your Bitcoin wallet, is sent.
You can mine cryptocurrency, buy goods and services, trade with them, and also speculate. The goal in this case is to buy cryptocurrency cheap, sell for a higher price, and generate profit. Trading cryptocurrency can be done in several places, for example, eToro or XTB. It’s not even necessary to really own cryptocurrency to trade with it.
MINING CRYPTOCURRENCY REQUIRES NOT ONLY THE INITIAL EXPENSES FOR THE NECESSARY HARDWARE AND THE KNOWLEDGE TO CONNECT IT, BUT IT’S ALSO NECESSARY TO COUNT ON THE HIGH USAGE OF ELECTRIC ENERGY THAT IS LINKED WITH MINING CRYPTOCURRENCY. THESE CAN BE FACTORS THAT DISCOURAGE BEGINNERS FROM ENTERING THE WORLD OF CRYPTOCURRENCY. IT’S IDEAL TO HAVE AN EXPERIENCED AND VERIFIED PARTNER BY YOUR SIDE WHO CAN HELP YOU AND GIVE YOU ADVICE, SO THAT YOU CAN MAKE PROFITS FROM CRYPTOCURRENCY AND NOT END UP IN THE RED. FUTURE MINING IS EXACTLY THAT PARTNER WHO TRIES TO BRING THE WORLD OF DIGITAL GOLD CLOSER TO THE GENERAL PUBLIC.
Future Mining is an experienced and trustworthy partner for mining cryptocurrency. They have been associated with the world of cryptocurrency for many years. Thanks to a decade of experience with building mining computers, they can build high-performance computers to order for their customers and will offer not only their knowledge, but also their facilities and servicing for mining systems. Future Mining makes top-class hardware for mining from only the highest quality and most modern components.
The maintenance of the facilities is a given – the mining machines are under constant surveillance by our team of IT specialists, who make sure that everything is working as it should, and that the mining machines are working optimally. Future Mining also monitors the security of the mining machines. That goes beyond securing the area thanks to our camera system.
Besides the hardware itself, we offer favorable prices for energy. We signed a multi-year agreement with an energy supplier, so the price of energy doesn’t fluctuate, and we can always offer our clients the best possible price of energy on the market.
As was mentioned, a large amount of cryptocurrencies exist; nevertheless, Future Mining carefully chooses cryptocurrencies that are traditional and have a stable position on the market. It is important to us that the mined currency has a potential to grow in the future and thus be beneficial for our clients. Besides the best-known Bitcoin, we also mine Ethereum, the second largest cryptocurrency. We also mine Litecoin, Monero, Ravencoin, Classic, and Ergo.
Besides mining digital currencies, Future Mining also makes investments. Although investing in cryptocurrencies is less risky than mining, it still requires a knowledge of the significance and system of cryptocurrency, so that the activity can be guaranteed to generate a profit. Thanks to our many years of experience, we offer our clients investments with a fixed deadline for receiving dividends and returning the initial investment.
Future Mining offers expert consulting. You can contact us if you need advice on connecting your mining computer; we will also give you advice on cryptocurrency mining or investments in cryptocurrency.
We also offer consultation on legislation regarding cryptocurrencies. We will tell you what your responsibilities are in this area, so that you don’t get into trouble with the law and can avoid large fines.
If you want to dive into the world of digital currencies and want to start mining with Future Mining, you definitely want to know how it all works. The whole process can be summarized in these five steps:
It is very important to us to explain everything to you from the beginning. During our meeting, which can be in-person, online, or by telephone, we will explain to you how mining works or fill in gaps in your existing knowledge. Of course, we will answer all your questions, and we will discover what expectations you have from cryptocurrency mining.
After discovering your expectations, we will put together a mining package that will contain a proposal for a mining machine with the settings of the computing performance. We will determine what amount of electric energy is needed. Machine maintenance and other necessities are also included.
When we approve the mining package and agree upon conditions that satisfy both parties, then comes the signing of the contract.
As soon as the first payment arrives, the mining machine is connected within 14 days and the digital wallet, where the mined coins will be kept, is set up. The client will also have access to the application and will see information in it about the ongoing mining.
After connecting the machines and finishing the setup comes the mining itself. We will care for your mining equipment and you only have to watch how it works. You can watch the growth of the mined coins as you go along. There is a monthly service fee plus payment for electrical energy.