Why “the Easiest Cryptocurrency to Mine?” Is the Wrong Question
The cryptocurrency revolution has arrived. With Bitcoin (BTC) hitting all-time highs, peaking at one point around $3,000 per unit—and Ethereum (ETH) going from around $10.00 to over $400.00 in under a year—these two leaders in the cryptocurrency market are making the case that they are some of the most lucrative investments in 2017.
But one of the most important developments in the cryptocurrency trade right now is finding the easiest coins to mine. In fact, the easiest cryptocurrency to mine is going to be a game-changer, because whichever online currency can manage that will ultimately become the cryptocurrency of choice for the world at large.
First, a basic understanding of mining is needed here. Mining describes the process by which Bitcoin, Ethereum, and other coins are created.
In the case of Bitcoin mining, for instance, the process involves a third party helping a transaction go through by interacting with the blockchain. In order to do that, they need their computers to solve a complex set of math problems that increase in difficulty depending on how many miners are currently working, and decrease in difficulty if there is a dearth of miners working.
Also Read: Why Is Bitcoin Crashing?
While the process is time-consuming and costly, the reward for helping that transaction go through is a Bitcoin. Not a bad trade, all things considered. Except that mining is by no means a cheap endeavor. Cryptocurrency mining takes a very strong computer, as well as a large amount of energy to power said computer.
One projection argues that Bitcoin transactions may consume as much electricity by the year 2020 as the entire nation of Denmark. (Source: “Proof of Work vs Proof of Stake: Basic Mining Guide,” BlockGeeks, last accessed July 12, 2017.)
For a number of reasons, that’s unsustainable. Environmentally and economically, it’s unlikely that this manner of energy consumption will be able to continue indefinitely for the long term.
So, when it comes to the easiest coins to mine, there is a bevy of smaller cryptocurrencies that you may have luck with if your computer is fast enough to grab them while they’re still in their infancy. They may even have a strong growth potential. But then you’re playing with fire.
By far the two most trusted cryptocurrencies, BTC and ETH have long since attracted most of the attention of the media and consumers, and essentially have phased out casual miners. Trying to invest in another cryptocurrency has its merits, but also carries high risk.
So, instead, the question is not which is the easiest cryptocurrency to mine, but rather, which one is going to innovate the mining process.
And that brings us to Ethereum’s play for dominance over the cryptocurrency market.
Cryptocurrency Mining Hardware
As explained, there is a high barrier to entry when trying to mine for BTC and ETH, as well as severe energy costs. They are not the easiest coins to mine, but they are your best bets if you’re dead-set on going that route.
But a better alternative may be to look at what Ethereum is doing. The company has mentioned that it is looking into changing the way it handles mining from a proof-of-work model to a proof-of-stake model.
Also Read: Hold on to Ethereum for the Long Term
What this means is that the process I explained above, in which complex math problems are processed in order to help with blockchain transactions, would be replaced by a far more efficient and deterministic way of handling ETH transactions.
Essentially, instead of having miners compete, a third-party peer would be selected to help the process along. They will make a security deposit so the exchange would be done in good faith, and the process will be many magnitudes more efficient, cost-effective, and speedy.
At that point, Ethereum would become the easiest cryptocurrency to mine. With ETH becoming the easiest coin to mine, expect the value of ETH to rise accordingly.
This all makes Ethereum potentially one of the best investment opportunities in the cryptocurrency market, with huge growth on the horizon if this mining process switch is implemented correctly.
(Data source: “Ether Historical Prices (USD),” Etherscan, last accessed Juy 12, 2017.)
Best Cryptocurrency to Mine with CPU
With the Ethereum changeover expected to happen sometime in 2017, that would make ETH a good cryptocurrency to mine in 2017. Not only will the cost of production of a ETH be lowered, and therefore make the mining process more profitable overall, it will be streamlined and simplified, making this one of the best potential cryptocurrency mining opportunities out there.
With Ethereum, you get a rising cryptocurrency with a decent amount of support already in the market, where ETH is one of the more trusted options available.
If you’re looking for the easiest cryptocurrency to mine, ETH may soon be exactly what you’re waiting for when it makes the change to proof-of-stake. Not to mention that the massive growth in ETH makes it an already attractive investment opportunity.