NFTexplained.info is a team of long term crypto investors who are well versed in the NFT space; in this article our team will discuss mining and how profitable it is.
It should be noted that our team has written this article for the average computer or laptop at home; we’re assuming the reader doesn’t have a mining rig, but instead the best-selling home PCs without a large amount of VRAM.
Let’s dive in.
While essentially every computer has the ability to mine cryptocurrency, computers with little VRAM don’t support sufficiently high hashrates (computational power) to complete puzzles fast enough to make mining profitable. On the other hand, mining rigs with high-powered GPUs can be very profitable.
Before we go any further it is important that our team defines VRAM and GPUs. VRAM can be defined as memory used to store image data for a computer to display. GPU is a processor that is designed for graphic rendering.
Our team often gets the question – can I mine cryptocurrency in order to have more funds to purchase NFTs? The short answer is no; without a lot of computational power (which likely includes the computer or laptop you have lying around your house) it is not profitable.
Our team will digress from the profitability of mining with the best selling DELL and Apple machines most people have (computers with low VRAM). We will now briefly discuss how mining actually works and some mining apps you can try out (which our team has already used and will save you the hassle of trying it yourself). We will also include a section of FAQ our team has received.
Mining is a process in which computers verify transactions which can be thought of as blocks being added to the blockchain. Transactions that occur on blockchains which use the proof of work (PoW) consensus algorithm require a gas fee to be paid in order for the transaction to complete.
More on the proof of work consensus algorithm can be found in the article linked here (where our team also discusses the amount of energy an NFT consumes).
The gas fee is what makes mining profitable and is the miners’ reward for confirming the transaction. This is the same process that occurs when one mints an NFT. Similar to the way banks confirm checks by looking at the account it was sent from, blockchains confirm transactions via miners.
Banks record transactions via the organizations’ books while blockchains record transactions via a public ledger, where all users can see the transaction, and agree that it is valid (verified by miners) before the transaction is processed. This makes the blockchain safe and why people call it immutable.
More on gas fees can be found in our team’s article linked here (including the different types of gas fees you may experience).
Now that you have a better understanding of the way cryptocurrency mining works, you may still want to try mining with an old laptop/computer lying around… why not put that old device to work? NFTexplained.info will explore why it may not be the best use of your time.
You will likely quickly learn that mining softwares like nicehash.com and unMineable.com are user friendly and are what most frequently recommend for mining with older devices.
While both are good options and are relatively easy and quick to set up (by simply downloading the software), you will quickly find that your older laptop/computer – which may have 2 or 3 GB of VRAM – has a hashrate of roughly 200 to 800.
Even while mining the most profitable cryptocurrency at the time, you will quickly learn that hashrates in that range require days of mining before you will be able to make your first dollar. Most makers of mining software have established minimum payout thresholds of several US dollars, meaning that you may need to have the PC running for 30 to 60 days before any payment is delivered.
Now the team at NFTexplained.info will cover some FAQs we have received.
Can I Mine Cryptocurrency?
Anyone with a laptop that has computational power can mine cryptocurrency (validate transactions on that specific blockchain). Depending on the blockchain consensus algorithm that is used, different mining practices will have to be taken. The easiest crypto to mine are ones that use the PoW consensus algorithm.
A drawback of the proof of work consensus algorithm is the amount of energy that is consumed as lots of miners are competing to verify a single transaction. More on that can be found in our team’s article linked here.
Is It Illegal To Mine Cryptocurrency?
Mining cryptocurrency is legal in the vast majority of countries however we recommend checking your local regulations before mining. Even in countries where mining is banned, it is difficult to stop individuals as only a computer is needed (and a single mining rig may go under the radar).
Can You Get Rich From Mining Cryptocurrency?
Although the competition is very high, it can be profitable to mine cryptocurrencies. Profitability depends on numerous factors; these factors include the mining rig you have, the hash rate your computer has (essentially how fast it can solve puzzles), and the amount you pay for energy (i.e. your electricity bill).
What Is The Best Cryptocurrency To Mine With An Old Laptop?
The best cryptocurrency to mine with an old laptop is likely Monero ($XMR) which uses the RandomX algorithm; this is because Monero can be mined with CPUs. That being said, mining software like nicehash automatically mines the most profitable cryptocurrency for you. For NFT collectors, it is worth noting nicehash pays out only in Bitcoin (BTC).
Can You Mine Cryptocurrencies Without A GPU?
Almost all cryptocurrencies can be mined without a GPU (as CPUs can be used); however, mining with a CPU is likely not profitable. Blockchains using the proof of work consensus algorithm have miners compete amongst one another to verify transactions with the fastest miner being rewarded.
Higher hashing power results in more profit.
How Long Does It Take To Mine A Cryptocurrency?
The length of time it takes to mine a specific coin (which can occur from verifying many transactions on that blockchain) depends on the mining hardware and hashing power of the device. On average it takes ten minutes to mine one Bitcoin block (amongst a pool of powerful machines).
A bitcoin block is the data that holds the information that a miner has solved. For the Bitcoin block to be complete, it must be linked back to the previous block; this is why people call it the blockchain.
How Long Can You Mine Crypto?
Crypto can be mined for as long as the machine mining allows (given that it won’t overheat or break down). Although some currencies have stopped releasing new coins, they can still be mined as miners will be rewarded the gas fee for confirming transactions (rather than mining for new coins).
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