It is everywhere!!!
Perhaps it’s a little “late” to be writing something on this. Since it’s everywhere, I will not be sharing with you what you could already Google online…
Curiosity kills the cat… Sometimes, it does…
Sometimes there’s an itch, even though you know that it’s not good to give in and scratch it but… you still do anyway… Even though you know that you’re not sure and you’re not well-versed with the matter or issue, still, there were times you would have come to a decision to dip your pinky-finger into it… It won’t hurt… Well they never do at first, but the pain will slowly sip in when you get yourself in deeper, and deeper.
I’m quite sure we’re not foreign to the term Cryptocurrency anymore. For the benefit of those who do not, basically cryptocurrency is a form of currency, just like US Dollars, or Malaysian Ringgit, just that they are in digital form. When people talk about cryptocurrency, most people would be able to identify the term with BitCoin, Ethereum, Monero, etc. There are many more kinds of cryptocurrency out there.
Many would have also realized that towards the end of last year… BitCoin, one of the leading cryptocurrencies out there, suffered a huge dip; it’s value dropped low… to a point it was at the lowest it has been. The ride wasn’t as fun for those who jumped into the bandwagon late, thus suffering losses instead of experiencing gains like how different individuals promoted it on the media.
I am blessed that I was given a small “taste” of what it was like to be in it.
Great! Now Abel is going to tell us how to get it done!
Not quite… In fact, I’m gonna share with you my opinion which would be biased towards discouraging you from getting involved in it… Strongly, if you’re thinking of starting now.
Just like most of the things around us, they usually tell us the good, but they seldom tell us the bad and the ugly. Should you be interested in cryptocurrency, there are some things that you should know, before yourself tangled in it.
Your involvement could be either as an investor, or as a worker.
As an investor, you would be coming up with a sum of money (in short: invest), to buy up a certain amount or quantity of coins, or even just a small invisible fragment/portion of a coin (there’s no tangible, physical form of coin anyway). There are many kinds of coins out there, each has their own beautifully designed website, a vision statement or a cause, a roadmap showing you what they hope, or at least plan to do with your money, and where will the coin stand, in value, in a few years time, measured in quarters, IF it works…
As a worker, you would be also coming up with a sum of money (in short: also invest), to buy up a certain type of equipment (not coins), which will be configured specifically to help you earn a portion of, or a certain quantity of coins. This is called mining.
Why mining you ask… It’s cheaper as a start-up and if the coin you’re mining isn’t doing so well, you can always try to use your equipment set to mine another coin. Investors on the other hand will be locked to a particular coin.
I’ll be sharing the blues… from a worker’s point of view… Mining, as they call it.
3 Points… Using the alphabet… U.
I’ll give you three examples…
1. You’re a Malaysian and the currency that you primarily use in Malaysia is the Malaysian Ringgit, MYR. Suppose you go on a holiday to Australia, you landed, you chartered a cab… cab brought you to the destination you wanted to go to and you paid him MYR… what happens?
2. You have a very very old coin that is dated back to the 16 hundreds, during the reign of so and so, and that coin is said to be worth a lot, thousands of US Dollars. You have no use for the coin, but you have much use for thousands of US Dollars. You decide to sell the coin. What do you think happens next?
3. You have something for sale, let’s say a limited edition watch, you advertised it on some forums and someone contacted you that he is interested in buying it at the price you’re comfortable to let it go. This man added that he will bank you the money after he has received the watch from you. Will you ship him the watch?
In the 1st example: The coin is of value only to a certain people, at certain places. Not all countries accept cryptocurrency as a form of fiat currency.
In the 2nd example: Even though the coin you hold may be worth thousands of US Dollars, e.g. 1 BitCoin, you will need to find a platform to trade it away to an interested buyer, and your trade is bound by a transaction fee, depending on your privileges on the platform you are trading on, and also the amount you are trading. Some platforms also place a limitation to how much you can trade daily.
In the 3rd example: Cryptocurrency boasts of being anonymous in it’s dealings. You need to find a credible platform to trade on with trustworthy (ranked) people who agrees with your asking price.
Cryptocurrency also talks much about volume; how many people in the crypto-market have the coin, how many people in the crypto-market who are interested in buying the coin, and how many of that particular coin are there in the crypto-market which affects the coin’s value, and how easy is it to “get-rid” of it.
Since you would be running at least (yea I said at least) an equipment set (also called as miner) to mine the coin you want, that will also correspond to these matters as well:
1. Base of Operation – You will need to find a secured place to station the miner. Some build some kind of shed or an enclosure outside of their houses. Some would also rent an area (could be a room, house, or shop lot). Anywhere other than home, you will then need to look into security.
2. Units in Operation – Most of the time, one miner will not be enough to generate the “daily figures” you desire. Some even run in “farms”. Each farm possibly has at least 10 miners running at the same time.
3. Noise – Each miner generates a lot of noise. Think of it like the sound of a vacuum cleaner running on high speeds, without the bass part of the noise. That’s for just one miner.
4. Heat – Noise comes with heat. Think again of the heat the vacuum cleaner would generate. If one already generates that much of noise and heat, what about running more than one miner? The room where the miner is placed will be generally warmer.
5. Cooling – When there’s heat generated, you will then need to think about the cooling needed so that the miner will not overheat. Miners will tend to shutdown or restart due to overheating which will affect the lifespan of your miner (chips overworking) and also your daily generated income versus the expenses spent on electricity and cooling.
6. Uptime – How long do you plan to run your miner(s)? Do you run them 24/7, or do you allow cooldown periods in between?
7. Electricity – Current is much needed to run your miner, and also your method cooling – doesn’t matter if it’s via exhaust fans and fans or air-conditioners. Each miner takes around the same amount of electricity as a 1 horsepower air-coinditioner. A miner taken in this context are GPU-based (graphic processing unit) miners, running on an average 6 GPUs (RX580s).
Some may be aware of this that air-conditioners run on wires with higher resistance. However, most of the basic wiring found in homes or shops alike are of lower resistance. So if you plan on running more than 1 miner, you will also need to look at the wiring so that it will not set your house (or shop) on fire… Just joking… I was told that at most it will just blow a/some fuse(s) in the fuse box (or worse case scenario the fuse at the meter), or the wire insulation will melt.
Do also consider should you run the miner 24/7, it will be similar to running an air-conditioner 24/7. You may not like receiving the next electricity bill.
You need to have a place to store your coins. You call them… wallet… like duh…
The thing is, not all coins have an online wallet. And even if they have an online wallet, you may not be so trusting to place your wallet on the drive way… right? You will want to place your wallet somewhere close to you, like your room, but in this case, on your personal computer. So if you want to place your wallet in your computer, then you will need to know this word… Blockchain.
Blockchain is like a… digital ledger that records all transaction that took place. Each, yes and I mean each coin, runs on a blockchain. The blockchain requires constant, regular, frequent, all the time (you get the idea) updating from the main server which takes up not only a lot of storage space on your computer’s hard disk but also internet bandwidth, depending on what coin you are mining. For the more popular coins, the blockchain is bigger, e.g. 30+ GBs (Giga not Mega), smaller/newer coins around 8-10 GBs.
Not fun… at all…