The Idea Behind Cryptocurrency Mining and the Current Trends That You Need to Know

Cryptocurrency mining was driven by power intensive processes till late 2022 , when Ethereum migrated to the Proof of Stake algorithm. Here are insights into the mining process.

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Mining is still one of the best-known crypto related activities. However, it is also one of the most misunderstood, with doubts ranging from what it really does or how much to expect as earnings. It is no doubt an intensive process that has also become a worldwide enterprise since 2015, though it emerged in 2009.

Must-Read: All the Reasons Why the ETH Merge Could Be a Big Deal

What mining means

Mining, in blockchain terms, refers to a competition of sorts that takes place among active nodes within an ecosystem. This competition consists in finding the answer to a difficult math problem that can only be solved by participants via brute force – that is, by trial and error. This answer is a number, and it is referred to as the nonce. The first miner to find the nonce has the right to validate a block of transactions.

It is then the miner’s duty to ensure all the transactions in that block are legitimate in other to be authorized by the group of validators. As a reward for the effort, the miner gets a certain amount of crypto that varies depending on blockchains, which on Bitcoin, for example, amount equals to 6.25BTC for 1 block till mid-2024

Why mining is so expensive

Anyone who has investigated cryptocurrencies, and particularly into crypto mining has seen reports on how Bitcoin mining consumes massive amounts of energy. It can be quite profitable for most people, although it has only become a preserve of organizations, individuals, or parties with special and otherwise costly hardware.

While the above assertions are true for Bitcoin and some other digital currencies, there are still cryptocurrencies that can be mined to some degree without specialized equipment.

The reason mining consumes so much energy is simple: Since finding the nonce is a race, the miner must use the processing power of a mining hardware. Specialized hardware is designed by the manufacturers to specifically perform tasks by brute forcing these problems, but as should be obvious, high processing power usually comes with high energy usage. This is even more true when, as miners usually do, the hardware stays on and runs 24/7.

Read Also: How Staking Works With Ethereum 2.0

On eligibility for mining

Most cryptocurrencies can be mined by anyone, and all you need for this is a computer or even a mobile phone. However, regular computers or phones are not optimized for mining. This leads to low performance, wasted processing power, and poor earnings. Still, many cryptocurrencies can still be mined with regular household electronics. Bitcoin, however, is not one of them.

Why mining is becoming less common

Over the last few years, cryptocurrency mining has become less and less common with new projects. This is both due to the extreme resource intensity of mining algorithms and the vulnerability to 51% attacks that cryptocurrency algorithms must contend with globally.

The touted option to the above is the proof-of-stake model, where instead of wasting resources solving a random problem, nodes instead stake (that is, swap) some of their cryptocurrency in exchange for the chance to authenticate transactions. If the resulting block then passes the proof-of-consensus, a certain incentive then goes to the approving nodes.

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The outlook for the cryptocurrency market is one that presents a shift to less energy-intensive algorithms as the Ethereum blockchain has done in recent weeks. With the crypto mining process becoming energy-efficient, its uses and adoption should soar in the years to come

Also Read: These Are The 4 Fastest Cryptocurrencies For Money Transfer Purposes


Cryptocurrencies, Ethereum and The Future

The use of Ethereum in the crypto chain has been monumental, From the initial rise of ICOs to the growth of DeFi, it has become a leading bulwark. Here is the pathway to the future.

Cryptocurrencies took the world by storm in 2017 when Bitcoin reached an ATH that tethered at the $20,000 mark. Ever since, the market has posted some amazing ROI that has left other asset classes scrambling for cover.

With the initial mad rush to take a cut of the bitcoin pie simmering down by nid-2018, investors did begin to explore other crypto with potentials, While ETH was also affected by the downturn that hit the crypto market, other initiatives led to the development of DeFi markets, which largely revolved around Ethereum at the time.

In a factual assessment, with its smart contract features, Ethereum largely led the way for real world assets to be tokenized although that glaring advantage has taken a hit of late. The likes of Cardano, Tron, Stellar, and Ripple have introduced smart contract features that are giving Ethereum platform a good run for the DeFi money.

If you want to thrive in the modern market, you should familiarize yourself with the features of Ethereum that have helped positioned it a leading cryptocurrency and a global digital market frontline asset.

Also Read How Chainlink Connects Smart Contracts To The Real World And The Opportunities Therein

About Ethereum

Ethereum can be referred to as a modern technology covering vast online activities and trading. Ethereum is an online platform that aids payments and transactions globally. It provides an avenue for everyone to work online and earn money.

Ethereum has made transactions globally easy as it covers and accessible globally. All transactions and payments will be made online with ease and no third-party issue. All that is needed is to register on the platform, secure your wallet, fund it and transact with precautions. Ethereum service is also available 24/7 customer support service if you have any issues. 

Perks of Ethereum

This crypto provides an unbiased and equal opportunity for everyone. Being on the platform and obeying rules makes you entitled to benefits and profits concerning trades and activity. 

It serves as a modern avenue for online development and financial breakthrough. Ethereum provides a transparent, open-source service that allows you to monitor your activities and use strategies or codes used by pros on the platform. 

It makes investments much more effortless. Ethereum serves as your bank, your secured wallet, which can be accessed and used for any transaction anytime, anyway. 

It is available in any quantity. You can purchase Ethereum worth any value of money you have for small investors or beginners.  

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A Guide on how to get started on the Ethereum platform. 

After registering on the platform, here are the basic things you need to do. 

Select a wallet. This wallet connects you to trading on the platform and keeps records of your transactions. 

Fund your wallet. The currency of Ethereum is ETH, as the US currency is Dollars (USD $). This currency will be exchanged for any transaction with any currency on the platform. This is like a balance to avoid confusion and currency preference. 

Start trading on the platform. This is essential to make profits and key to your financial breakthrough. 

Frequently Asked Questions About Ethereum and its Future

Is it feasible for Ethereum to reach $2000? 

Generally, every cryptocurrency is not fixed; hence rise and fall in their price. Ethereum has once been valued at $1400, though fallen now but very much feasible to exceed the $2000 worth.

Is Ethereum better than Bitcoin? 

With the recent rise in Ethereum value, it is safe to choose Ethereum over Bitcoin in terms of its usability, beyond just as a crypto. Its blockchain value is growing.

Ethereum is the future, and this can be seen from the expanding use it has seen in the DeFi game.


Ethereum is a leading crypto with clearly marketable credentials. With steps taken to re-imagine the blockchain and make it nimble and responsive to marketplace realities, there is no doubt that it is not giving up its market lead so easily.

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