1. PixelPlaygroundHome
  2. Blockchain Briefs

Why are there so many miners (Why mining is dangerous)

• Blockchain Briefs • 90 views

Why are there so many miners?Editor\’s note: This article is from William\’s chat

Why are there so many miners (Why mining is dangerous)

Why are there so many miners?Editor’s note: This article is from William’s chat (ID: William1913), written by Chen William, and authorized to be reprinted by Odaily Planet Daily.

Mining is one of humanity’s greatest inventions, and Bitcoin mining has developed over the past decade as if it had been around for nearly 20 years. However, we now know that there are actually too many people in this world who have a deep understanding of blockchain technology. So what is cryptocurrency? Why are there so many miners? Because it is a new productive force, a new economic model, and a new development trend. When you put everything together, it creates value, just like everyone else today.

As time goes by, people have found that Bitcoin mining can create more wealth for themselves – there are many factors that have led to this growth: first, price fluctuations; second, energy consumption; and finally, environmental pollution. Without these reasons, a more fair and better ecosystem would not be formed to attract more users, or even make the entire industry more centralized. So for ordinary investors, the most important thing is the risk appetite for investing in Bitcoin, that is, they will choose to mine coins that are not worth speculating on instead of participating in other businesses or projects, or just want to make money and then invest in doing something to build infrastructure and develop various applications.

Personally, I think that many times we only buy Bitcoin and other digital assets in order to get high returns. But here comes the question, why are there so many miners? Because many people are paying attention to network effects, such as the Bitcoin halving, etc., so most people like to use Bitcoin to make profits. Of course, if you are an ordinary investor, your returns are also considerable, and there may be a lot of room for improvement. Therefore, you should learn how to avoid losses in bear markets.

Why mining is dangerous

According to Coindesk, recently, Bitcoin miner BTC.com announced that it will cooperate with a company named “Bitmain” in the United States to jointly research how to mine without a central counterparty. This means that the company is considering acquiring Bitmain’s stock to raise funds.

But if this happens, will there be similar incidents? It’s actually quite simple: high energy costs, high network latency, and security risks to personal computer devices are caused by the inability to confirm transactions and the insecurity of network speed.

For ordinary consumers, they can use it as a digital currency investment or other financial products. However, if these investors think that they have already participated in the mining industry and find any problems, then they should rethink their risk tolerance and potential threats. Why are cryptocurrency miners trustworthy and dangerous? We explain from the following two perspectives: 1. Mining is very vulnerable to hacking; 2. Mining requires a large amount of electricity consumption.

First of all, if you are a person running a computer in some kind of cloud computing environment, it is probably impossible for you to find a reliable method to make this system more secure. In addition, if someone tries to obtain a large amount of rewards by exploiting your computing power or controlling your machine (because some people want to do this), then you can use their hardware to mine encrypted assets. So, if you want to buy Bitcoin, you must have a dedicated server, ensure it is correct, and then enter the mine to mine.

Of course, most people have heard of “blockchain”, but in fact, the term “blockchain” does not really mean Bitcoin, but refers to those service providers who only provide information services without permission. In other words, developers can directly start operations as long as they can obtain enough information. This forms an assumption that people just want to get information about it, rather than knowing what its source is, and then a new concept emerges.

Although there are currently no specific solutions to solve these problems, a new model may emerge over time. For example, a recently emerging new technology called “Lightning Network” can be used to achieve instant payments.

According to the “Internet Advertising Standards”, users only need to pay to access the data on the platform’s services or applications. For example, companies can connect to the Microsoft Azure ledger in their wallets through mobile apps. In other words, users can open the webpage of the service to view account balances and other detailed data without downloading the application.

This article and pictures are from the Internet and do not represent Fpips's position. If you infringe, please contact us to delete:https://www.fpips.com/23675/

It is strongly recommended that you study, review, analyze and verify the content independently, use the relevant data and content carefully, and bear all risks arising therefrom.

Like (0)
Previous 08/13/2023 15:22
Next 08/13/2023 15:45

Recommended articles