What is Crypto Mining and how are people makings millions of dollars from it?

What is Crypto Mining:

Crypto Mining or Cryptocurrency Mining is a process of is a way of creating new coins of the same Cryptocurrency. However, it does one more thing, it validates cryptocurrency transactions on the blockchain. New coins are just the of incentivizing people to validate these cryptocurrency transactions and making new coins. This helps cryptocurrencies to be secure and decentralized and people on the other hand earn precious cryptocurrency.

Crypto Mining
Crypto Mining

Crypto Mining: 

Back in the day, you could mine cryptocurrencies with a simple CPU

In 2010, anybody could mine cryptocurrencies because barely anyone knew what it was and there was no value in it after all but slowly it started becoming harder and harder to mine every extra coin. And people needed something more powerful than CPUs to mine. This is when people started looking for other options.

This has helped a company called AMD sell tons of GPU

AMD (Advanced Micro Devices) is a GPU and CPU manufacturer. When the price of bitcoin and other cryptocurrencies started to rise, people started mining them with the help of GPUs as CPUs were not very efficient in mining. This helped AMD make tons of profit.

Mining is not as profitable as it used to be.

Mining was profitable back in the days. But because of increased electricity costs and also a rise in competition and difficulty in mining even with the GPUs have made it difficult for people to earn much from mining cryptocurrencies. Still, there are some who are using a different way to still make money out of it.

First, it started out with CPUs, then they shifted to GPUs and now they have found yet another option, which is ASIC (Application-Specific Integrated Circuit). This is more efficient than the other two options.

Cloud Mining is also becoming very popular in which various people contribute their hardware and the combined power of all machines is used to mine. In this process, all the coins earned are distributed among all the individual hardware owners.

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