Crypto mining: what you need to know in 2024?

The bloody truth about cryptocurrency mining is that it is no longer the easy earnings of 2017. But it is still worth understanding the mechanics.

What is really happening there?

Essentially, miners are computers that solve mathematical puzzles. The first one to solve it adds a new block to the blockchain and receives crypto as a reward. This is called Proof of Work (PoW).

Why it matters:

• Validates transactions without banks
• Gradually issues new coins (fighting inflation)
• Makes the network resilient to attacks

How does it work technically?

Miners use specialized hardware — ASIC or powerful GPUs. They look for a number that, when hashed, will yield a result within a certain range. The more miners that connect, the more complex the tasks become.

This is a delicate balance: if it's too easy, inflation will soar; if it's too difficult, the network dies.

And how much money is there?

Theoretically — yes, it is possible to earn. In practice:

✓ Profit depends on:

• Electricity prices (the main enemy)
• Equipment capacity
• Current crypto price
• Competition in the network

❌ Since 2021, mining has become less attractive due to:

• Increase in energy costs
• Difficulty adjustment of algorithms
• Environmental challenges (PoW is very “hungry” for electricity)

Is it worth it for you?

If you have access to cheap energy (hydroelectric areas, data centers) — possibly. If you pay utilities at the regular rate — it probably won't pay off.

Alternative: Proof of Stake (PoS) based on Ethereum — you simply “stake” coins and earn income, very little electricity is needed.

Summary

Mining is not dead, but it is no longer a lottery with routine earnings. It is a specialized business with calculations and risks. Networks require miners to remain secure — this is a fact. But personally for you — you need to count numbers, not dreams.