What Is A Bitcoin Mining Pool?
Bitcoin mining can be expensive, and in many cases not even profitable due to the energy costs. Fortunately, enthusiastic Bitcoin miners have come up with a solution to the problem. Bitcoin mining pools are the simple practice of pooling the processing power of several computers to solve Bitcoin transaction blocks. Let’s have a look at some of the pros and cons of mining pools.
Advantages of Bitcoin mining pools
The benefit of joining a mining pool is obvious: many hands make light work. Your mining pool will have a much higher likelihood of winning Bitcoins with more processing power. You can earn a decent steady income from joining a pool.
Disadvantages of Bitcoin mining pools
There is also a downside of joining a pool: all rewards will have to be shared between the members. That means the yields are far lower than if you were mining solo. Whether or not it’s a feasible solution for you depends on what your aims are.
Mining difficulty
It’s worth bearing in mind that cryptocurrency mining comes at different levels of difficulty. The number of Bitcoins is capped at 21 million, of which 80% has already been mined. It becomes increasingly more challenging to mine Bitcoin the closer we get to reaching the cap. That means it’s nigh but impossible for a solo Bitcoin miner to compete with the big mining companies. That makes mining pools such an attractive option for Bitcoin miners in particular. That said, there are many other tokens you can mine apart from Bitcoin.
Bitcoin mining can be expensive, and in many cases not even profitable due to the energy costs. Fortunately, enthusiastic Bitcoin miners have come up with a solution to the problem. Bitcoin mining pools are the simple practice of pooling the processing power of several computers to solve Bitcoin transaction blocks. Let’s have a look at some of the pros and cons of mining pools.
Advantages of Bitcoin mining pools
The benefit of joining a mining pool is obvious: many hands make light work. Your mining pool will have a much higher likelihood of winning Bitcoins with more processing power. You can earn a decent steady income from joining a pool.
Disadvantages of Bitcoin mining pools
There is also a downside of joining a pool: all rewards will have to be shared between the members. That means the yields are far lower than if you were mining solo. Whether or not it’s a feasible solution for you depends on what your aims are.
Mining difficulty
It’s worth bearing in mind that cryptocurrency mining comes at different levels of difficulty. The number of Bitcoins is capped at 21 million, of which 80% has already been mined. It becomes increasingly more challenging to mine Bitcoin the closer we get to reaching the cap. That means it’s nigh but impossible for a solo Bitcoin miner to compete with the big mining companies. That makes mining pools such an attractive option for Bitcoin miners in particular. That said, there are many other tokens you can mine apart from Bitcoin.