We will see the pros and cons of solo mining in this article. This is indeed a question that often arises, namely whether it is possible to mine tranquillou alone at home.
Well, if you only want to mine, you certainly have questions, I imagine. Do you want to mine without going through mine pools? Well, first of all know that it is very possible.
To understand solo mining, you first have to know what cryptocurrency-mining is, huh. So here is a little theory for you before I come to the heart of the matter about the benefits of mining alone.
Reminder of what cryptocurrency mining is:
Simply put: miners are the ones who solve difficult mathematical calculations to “block” the blockchain. By solving these comparisons using their machines, blockchain transactions are validated. It is therefore thanks to minors that the blockchain can register and validate the various transactions. These transactions of the type ‘Jacques sends x bitcoin to Paul’ are therefore forever recorded in a kind of digital ledger (which therefore forms a blockchain – the blockchain).
To make a little theory, the Blockchain is just a set of blocks that each contain information about the transaction data. Each block contains a comparison and is solved by miners. To solve this mathematical problem, a miner must use a lot of computing power (graphic cards or ASIC).
If the minced meat that is available for a miner is sufficient, he works alone or joins a mine pool and receives a part of his contribution (depending on the computing power he has, therefore).
I know that I have just summarized the miner’s work to the limit, but I hope it will be sufficient and clear enough.
So let’s see what solo mining is and how it works.
Cryptocurrencies only mining: how does solo mining work?
Cryptocurrencies only mines: As the name suggests, this only means that you will only mine. In other words, you are going to mine without going through mine pools.
A mining pool is a group of miners who, so to speak, work together in the same collective mine. In other words, they combine all their computing power to have a better chance of easily solving a block. Because again, by solving the mathematical problem, “we are extracting a block”. When the math problem is solved with the help of a ‘pool’, the profit is thus shared with all members of the pool. This is of course shared in proportion to the computing power of minors.
If you want to mine cryptocurrencies yourself, you don’t have to join a mining pool with other miners. In fact, and in theory, a solo miner restores all winnings without having to share the winnings with the miners in the pool.
???? Of course, those are only mines than people who have large mining equipment and do not need help from other miners to solve a block.
Mining alone is therefore absolutely very beneficial, because if the miner succeeds in solving a comparison, he does not have to share his profits. It is much more profitable because the miner then receives the full reward from the block, the equivalent of 12.5 bitcoins! Yes !! I have 16 bitcoins.
– >> Also note that the mining rewards are halved (this is called a halving) every 4 years. So in 2020 the reward for cryptocurrency mining will be 6 bitcoins. This is also the reason why the price of bitcoin is expected to rise.
But all this is in theory. It is no coincidence that mine pools have been invented. It is really hard – if not impossible nowadays – to have such powerful mining equipment; Unless you have a mining company …
Is solo mining profitable?
The answer to the question “Is solo mining possible or profitable?” Depends primarily on two factors, such as the difficulty of the network and the power of the miner’s equipment.
By the way, it looks a lot like winning the lottery … Seriously.
You can solve a comparison in a short period or it can take months or even years before you solve a comparison.
The chance of finding blocks is lower if you mine solo, that’s what you have to remember.
However, solo mining has the highest long-term yields compared to mining with a mining pole. But as said, it depends on various factors and you have to be patient. It is also demoralizing not to find a blockade for a long time. This is why many people who were motivated to mine bitcoins eventually gave up and joined mining pools.
This is also one of the reasons why users who are new to the world of bitcoin or cryptocurrency mining are invited to join a mining pool.
While difficulty is a factor; Another factor to consider is inconsistent payments.
Only consider solo mining if you have a lot of computing power (hashing power). Also note that the processor has been replaced by GPUs and that GPUs are gradually being replaced by FPGAs and ASICs. So you have to study your mining equipment well and decide for yourself whether solo mining is profitable or not.
And to help you make your decision, here are some of the advantages and disadvantages of Solo Mining.
Advantages and disadvantages of solo mining:
Solo mining has its advantages and disadvantages, but ultimately it is the type of currency that you choose and the hardware power that you have that will make the difference.
- benefits: In the long term, the rewards are slightly higher because there are no pool costs or transaction costs. Another advantage of solo mining is that you are not inclined to pool timeouts. In this case you can still configure a backup pool for your minor.
- Cons: You can schedule payments in pool mining, but this is not the case when you are soloing. Based on the happiness and dynamics of the network, you cannot really predict your mining profits. You will be paid irregularly.
The rule of thumb is not to extract yourself if your hardware is not powerful enough. If this is possible with your hacking power, you should use solo. But today, in 2020, it is almost impossible to do it for bitcoin. However, it is quite possible with other cryptocurrencies. It is up to you to do speculative mining and discover the gold nuggets that I have to find before everyone else.
Since most cryptocurrencies are in principle comparable to bitcoin, mining is the same in itself and applies to all currencies. If you are curious, I have self-study articles about cryptocurrency mining that might interest you:
If you have any other questions about mining alone or something else (but still in the field of Cryptos), let me know below.