Cryptocurrency 101

Cryptocurrency is the worlds most innovative technology that has ever been available to anyone. The most important piece of this technology is the blockchain technology that incorporates an “ ANTI-TRUST” foundation. In other words,there is no Government agency stealing a percentage, or a crooked bank skimming a percentage. This technology verifies all transactions in order to promote a secure and efficient ledger,which is open source so that transactions are publicly recorded.

The very idea was to actually have self-ownership of your money. This is done by mining and staking. This is the ONLY way to have self ownership of your currency. POW(Proof Of Work) and POS (Proof Of Stake). Many people are still going the wrong way of investing. While Investing may be fine, it is the wrong way of doing this. First of all you no longer have self ownership of your money. Your currency is now invested with a third party, which is the very thing crypto currency was trying to eliminate. Second it becomes counter productive because as less Bitcoins, per say, are left to be actually mined, the whales will not be able to lower the price down that drastically because of the less coins available. Making them more valuable and increasing the price.

Proof of this stems from two years ago when the Bitcoin price was steady at a value of $200.00. People were investing ten of thousands of dollars world wide, but in one single month did Bitcoin rise from $200.00 to ten-Thousand Dollars? The answer is no. This is because there were still a larger supply to be mined. Now in 2018 the actual supply left to be mined is less. This is the problem of why investing is the wrong way to do this.

As it was stated in a previous article from this blog, you must mine in a way that gets you the monthly salary you need to live and have some extra. There is a large measure of self-responsibility that comes with mining crypto-currency full time from home. While it allows you plenty of down time, fun time, and free time, there is a time when you will have to take action and handle repairing and maintaining your equipment. Again, this is the self responsibility you must have.

You can always go back and check previous articles of this blog to give you the information you need on mining as well as Staking coins. There are several ways to do this. If you are truly smart .with math and metrics, you can do this as easy as a child connects the dots.

Mining Breakdown-Why Hashpower is not full proof

There are still so many people under the false assumption that the more hashpower you have, the more you will make. This statement will be proven False today, and it will also show that the companies that make mining multiple pools in their miners will corner the market.

First let us take mining itself. The Difficulty of the math problem is based on the miner you have. This is no mystery here, but did you know that you are not being paid 24 hours a day? That is right, you are only paid for accepted shares. If you have ever watched a GPU miner go through it's cycles you will see some interesting things right in front of you to show you what is truly happening when you mine.

Let us look at a picture of a GPU miner on SGMINER.

The first thing will we show you is the difficulty. This is the difficulty of the math problem being sent

for your miner to solve, obviously an Antminer S9 would start at a higher math problem difficulty, and that means more often it would come to a difficulty level it would have problems with. This would then force the miner to request work update and lower the difficulty. You will notice this on the pool when your hash rate decreases. That does not mean your miner is not working, it means it came to a difficulty level it cannot handle. So it will lower the difficulty rate for you to again be accepting shares. Through all of this You are not being paid.

This is why you mine multiple pools, the other coins being mined will be doing the same thing, however, since the difficulty is lower in some cases, it creates a failsafe so that you are still earning from one pool or the other.

Hashpower is fine, but the mining process is the same. You only get paid from accepted shares. This is the main reason it is called proof of work. Proof of work does not mean your miner is turned on and working. Proof of work means your accepted shares, or work completed is what you are being paid for.

To go into detail a little more if your difficulty is set to 120, for example, that means your miner will be working and once the 120 shares is completed you will see something like this

[2017-03-29 09:47:06] Accepted 96c0adder Diff 249/120 GPU 0 Pool 0

In other words the date and time the accepted shares were completed shows they are accepted and the block number it was worked on and the difficulty was 249 and you completed all 120 shares with the one GPU at the pool 0

So I cannot stress this enough, the myth of hashpower will never produce your fruits like you think. It is based on the myth that you are getting paid 24 hours a day when you are not.

I hope this breaks it down a little better for you to fully understand the mining process.