Sunday, March 23, 2014

Mining not for average Joe (for long at least)

I'll put an end to my adventures in cryptocoin mining. The most obvious reason is that my current hardware is not really too good for it (and as the summer is coming there would be heating issues), but now that there are ASICs coming in also for Scrypt coins, the difficulty will go on the rise making it even worse for people like me. There are even cloud mining rigs that one could rent (I'm waiting for someone soon publish an article that states "nn% of all computing power used for cryptocurrencies")...

I've seen it claimed that Satoshi Nakamoto had intended mining to be something that also average folks could profit from, but given the fierce competition to build ever more powerful mining rigs, that is not happening, and likely it will never be happening at large as long as mining doesn't include some sort of a human component (without it making mining a full-time job for the person), or unless new algorithms are introduced often enough to keep the slow ASIC development at bay (but even then people who are both able and willing to buy $1000 USD worth gear every two years will be gaining the most).

Despite my decision, I'll be keeping my eye on the subject, after all I do have some fractions of LTC and some DOGE.

Edit (some 3 hours later):  Yet it is not so simple. CPU mined coins are vulnerable to botnets, and on the other hand ASICs are terrific on hashing vs. power efficiency (i.e. green mining). And yet, in the lack of clean, renewable and cheap source of electricity, it's not a good idea globally if people started buying rigs that draw 1kW constantly...
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