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Mining Cryptocurrency?


skimomma
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Can someone explain this to me in very little words?  I have googled it several times now after I hear some sort of news story and I just don't understand how one can "mine" something that is basically invisible, and I also cannot understand how this has an environmental impact.  

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12 minutes ago, skimomma said:

Can someone explain this to me in very little words?  I have googled it several times now after I hear some sort of news story and I just don't understand how one can "mine" something that is basically invisible, and I also cannot understand how this has an environmental impact.  

The environmental impact, as far as I understand it, is that it uses tons of electricity, and burns through computer parts which are then just trashed.

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Just now, MrsMommy said:

The environmental impact, as far as I understand it, is that it uses tons of electricity, and burns through computer parts which are then just trashed.

More impact that the printing, shipping, keeping track of, etc.... paper/coin money?

But I still don't understand what the computers are doing!

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Just now, Katy said:

It may be invisible but it is basically a long complicated string of computer code. It requires computing power and internet access to generate. Both require electricity. 

What are the computers doing?!?!?

 

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Here is a website that explains crypto mining at block geeks. As for the environmental impact, it's my understanding that the computers used are special rigs that suck power way more than any regular computer like you would have in your house. They get so hot that they have to have specially cooled rooms or they overheat. Also, crypto miners don't just have one or two of these rigs. From what I've heard they have whole rooms or buildings of them sucking power 24/7/365.

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22 minutes ago, eagleynne said:

Here is a website that explains crypto mining at block geeks. As for the environmental impact, it's my understanding that the computers used are special rigs that suck power way more than any regular computer like you would have in your house. They get so hot that they have to have specially cooled rooms or they overheat. Also, crypto miners don't just have one or two of these rigs. From what I've heard they have whole rooms or buildings of them sucking power 24/7/365.

That link was helpful.  There is a 101 type link within it that attempts to explain what a blockchain is and how mining works.  I am still pretty confused and maybe the technology is just over my head.  The miners are "validators" that prove transactions and get paid for it.  This is what requires the computers.  But I don't understand what they are doing to prove or validate.

How does one ever get cryptocurrency?  If I wanted some, how would I actually get it?

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5 minutes ago, skimomma said:

That link was helpful.  There is a 101 type link within it that attempts to explain what a blockchain is and how mining works.  I am still pretty confused and maybe the technology is just over my head.  The miners are "validators" that prove transactions and get paid for it.  This is what requires the computers.  But I don't understand what they are doing to prove or validate.

How does one ever get cryptocurrency?  If I wanted some, how would I actually get it?

The blockchain is basically a ledger that one can add a transaction to (if it has been validated), but can never be erased or changed, so it is considered secure. They are using computers to solve complex mathematical problems to prove their work. You can look up "bitcoin mining explained" on youtube to find some good videos that explain how it all works with varying levels of detail. There are also some videos in there that show you what the mining rigs look like to give you an idea of the sheer scale of some of these operations. This is all sort of bitcoin focused but the other crypto currencies all work basically the same.

There are two ways of getting crypto currency coins: mining for them or buying them on an exchange site like Coinbase, Ethereum or one of the many other crypto exchanges. The pluses of mining are that it's mostly profit once you recoup the cost of the mining rigs and electricity you're using and it's harder to lose money. The cons are that it isn't all that simple to do without time, space, and computer knowledge. Buying crypto currency is just like buying stocks. The aim is to buy low and sell high. Way easier than mining, but also way easier to lose money.

 I'm no expert, but I hope this helps.

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