You need computer technology to mine cryptocurrencies. Cryptocurrency mining is basically the confirmation of transactions in the blockchain network. We will explain it to you with a simple example.
Tomas wants to send 1 BTC from America to his sister Monica in the Czech Republic. The moment Tomas opens his wallet on the phone, enters his sister’s BTC address and confirms the sending of the transaction, the transaction is sent to the network and it goes through several hundred thousand mining machines. These machines then verify, by performing mathematical tasks, whether Tomas really has 1 BTC which he can send to Monica together with other information such as the amount, or the address of the recipient and sender. For different cryptocurrencies, the block sizes vary. As soon as the
machines confirm the transactions, they include it in the block of several other transactions and they are entered in the Public Ledger as completed. At this point, Monika already has 1 BTC in her BTC address, and miners who have confirmed this entire transaction are rewarded for „mined“ (in fact, „verified“) one whole block of confirmed transactions.
We mine cryptocurrencies (with the exception of bitcoin) on specially adapted computers with one to six high-performance graphics cards (GPUs) called „Rig“.
Rig consists of one construction, motherboard, RAM memory, PC power supply, processor, „x“ number of graphic cards and SSD Disk with mining software. We connect all these components correctly, install software, optimize the performance and consumption of graphics cards and the machine can start mining optimally.
The advantages of rigs over ASIC machines (Machines designed solely and only for the purpose of extracting a given cryptocurrency, e.g. Bitcoin) are the following:
- 1. With rigs you can mine many cryptocurrencies with different algorithms.
Over time, you can always either add or subtract Graphics Cards and affect the performance
of the entire mining rig.
- Rigs have a longer service life, lower failure rates and higher reliability.
- The rigs have also a very good aftersales value, as they consist of classic
- PC components and therefore have a wide range of uses, and most importantly, especially at
this time, there is an extreme demand for these components that will only grow.
- 1. With rigs you can mine many cryptocurrencies with different algorithms.
Yes and no. There is no definite answer to this question, as profitability depends on several factors that need to be considered.
The most important factor is the price for electricity consumption in CZK per 1 kWh. So, the less you pay for electricity, the more you can earn by mining.
Other factors include machine cooling, the cost of the cryptocurrency you are mining, power consumption, rent, and GPU optimization.
If you decide to have your machines managed by us, you will not have to deal with these factors and you will be able to focus only on the current rate of cryptocurrencies and watch your cryptocurrency portfolio grow.
Bitcoin is the first cryptocurrency to see the light of day on August 31, 2008, when it was introduced by an unknown creator or group of creators under the pseudonym Satoshi Nakamoto.
It is a virtual currency that is decentralized and therefore no state, bank, corporation or individual has control over it. It works on a system called Blockchain, which collects transactions into so-called blocks and then confirms them using the enormous computing power supplied by computing units (computers) located around the world.
The price of Bitcoin is influenced purely by supply and demand.
The advantages of using Bitcoin are:
- Fast payment
- Significant anonymity of users
- The cheapest and fastest way to send large and small amounts of money across continents.
- Growth potential of Bitcoin value.
- Secure storage of value for money.
Cryptocurrencies arose as an attempt to create a state-independent monetary system. Such a system, which has clearly set rules – it can´t be influenced by a central authority, is safe and accessible to all without distinction. The first fully decentralized cryptocurrency is bitcoin, created by an alias Satoshi Nakamoto. In January 2009 the first bitcoin was extracted and the first bitcoin transaction took place. We do not know whether Satoshi Nakamoto is an individual or a group of people. One way or another, it was not just about the currency itself, but about creating a reliable electronic payment system that is immune to the centralization of states. In 2011, many experts in the field of economics have already noticed the potential of Bitcoin. It was at a time when the euro, as a currency, was going through major crises and people were searching for an alternative. The price of Bitcoin began to rise significantly. The year 2013 set itself as the year of Bitcoin, which also proved to be opportunity for large investments and asset appreciation. Bitcoin initiated, or rather resumed, its bull run already in the autumn of 2016, the attention of the mainstream media was attracted by the second break of valuation of 1 Bitcoin = USD 1,000.
Not at all. There are already a lot of wallets that you can have directly on your mobile, so you pay
at a rate comparable to paying with a debit or credit card. The advantage is that, unlike a payment card, you will not need a PIN and your transaction will be anonymous.
Yes. Stores that accept Bitcoin and other cryptocurrencies are still growing. In the Czech Republic, for example, you can pay for anything on the Alza e-shop with it. You can pay with it on the internet and in stone shops. You can forward bitcoins very easily between your family or friends.
There is no clear answer to this question. Buying bitcoin directly is a one-time and quick affair. In order for your investment to be worthwhile, you must monitor the development of the price of bitcoin on the stock exchange and, ideally, sell it the moment when the price of bitcoin on the stock exchange has risen.
However, the price may go lower than what you bought the bitcoin for, and the return of the investment will be prolonged at best and lost at worst.
Mining cryptocurrencies is a longer-term investment. It earns you passive income each month and thus builds your portfolio gradually over time. So, your investment is constantly working and producing new resources.
We at MasterMiner are of the opinion that combining both options is the best way to capitalize on the investment made.
If you decide to invest through our company, then here we offer you a summary of how to do it, step by step, effectively and efficiently. You contact us, either by phone or email, to discuss what type of investment is the right one for you. Then, we will send you a draft contract, and if it works for you, then we sign it together.Following that, you send us money (amount according to the type of investment), we will buy all the components necessary and get to work. We guarantee you the construction, optimization and placement of the rig within 2 weeks of signing the contract. We will send you documentation and payment of your mined cryptocurrency every month. Your rig is under constant surveillance, and we make sure it mines optimally 24/7. If the cooperation aftera certain amount of time doesn´t fit you, we can mediate the sale of the rig and terminate the contract with you. If you have any questions, do not hesitate to contact us. We are here for you.
Mining cryptocurrencies is a rather expensive activity, with a not entirely certain result. If you do it by yourself, you certainly need a large space with expensive hardware, and the investment will most definetely climb to millions of czech crowns. But then, a Czech programmer Marek „Slush“ Palatinus, who created the first pool, came up with a solution to this problem.A pool is basically a group of miners who put together enough powerful computing power, to keep up in the environment of all the otherminers, thus managing to successfully extract a block. The remuneration is then divided equally according to the provided computing power. This reduces the risk for miners, because the rewards are more stable and with greater certainty of profit. The pool operator gets paid in fees, that range between 1.5-2.5% of the total value mined.