In recent years, the popularity of cryptocurrency has attracted users from around the world, and more people are now fervently participating in the field of digital currency. As investors, entrepreneurs, miners and general crypto enthusiasts flock to the crypto industry, the market has also experienced an explosive growth, making cryptocurrencies one of the most popular asset classes in the world in 2021. All of these successes are attributed to the world's most famous digital currency - Bitcoin.
When the price of Bitcoin skyrocketed, it caused a worldwide sensation and gave birth to various digital currencies and projects. Many start-up projects and companies begun to surface, along with miners that were enticed by the potential revenue from cryptocurrency mining. Although there are thousands of cryptocurrency projects in the world, almost all of these projects share a similar characteristic: mining. Cryptocurrency mining is a core concept in the industry. Now, let us learn more about it together.
Cryptocurrency mining is one of the most common methods to process transactions on the blockchain network. Blockchain can not only protect transaction data through encryption, but also store this data in a decentralized manner to prevent malicious entities or monopolies from gaining control of the network. In fact, "mining" is a means to ensure that cryptocurrency transactions are accurate, immutable and permanently stored, so that they cannot be tampered with in the future. From a professional perspective, cryptocurrency mining is a transaction process that involves the use of computers and encryption processes to solve complex functions and record data in the blockchain. The entire network of devices participates in crypto mining and keeps shared records through a digital ledger.
There are many reasons why users seek to mine cryptocurrencies. Mining can bring extremely high profits, and some may consider it a good investment. There are also other reasons why users would mine cryptocurrencies, such as the pursuit of greater privacy and control over finances. Cryptocurrencies such as Bitcoin, Dash, Ethereum, and Monero provide users with a certain degree of anonymity. In addition, there are also more benefits such as anti-forgery, reduced fees, high accessibility, immediate settlement, and the elimination of identity theft.
Of course, the most attractive part of mining is its return. Different forms of mining on different projects will provide different returns, so let us take a look at a specific example - Bitcoin. Miners receive block rewards in the form of Bitcoin for every new block added to the Bitcoin blockchain. This means that 6.25 Bitcoins can be mined approximately every 10 minutes, and it should be worth noting that a single Bitcoin was worth almost $60,000 at its peak price. This block reward is designed to "halve" approximately every four years, and the halving will continue until the last block and coins are mined. At the current schedule, it is expected that the last Bitcoin will be mined in 2140.
Cryptocurrency mining is a very important mechanism in cryptocurrency. As a comprehensive platform that combines DeFi, NFT and DAO, MIGO regards encrypted mining as one of its main focuses. Cryptocurrency mining in MIGO is carried out in the Iceberg Pool. Users can use multiple shovels at the same time to mine in MIGO’s Iceberg Pool, as long as the shovels do not exceed a face value of 200. In the Iceberg Pool, each activated shovel can be used for 30 days. The quality of the shovel differs, which would in turn affect the mining speed and expected profitability of the mining process.
Users can participate in cryptocurrency mining through MIGO. The platform has 7 mining pools and each mining pool differs based on the amount of pledge deposit required. While the advanced mining pools would require a higher initial sum, users can expect to mine more MIGO tokens from these pools in return. If a user wishes to participate in the second-level MIGO mining pool, he or she would need to pledge 5 MIGO tokens. However, if a user wishes to mine in MIGO's top mining pool, he or she would need to pledge 5,000 MIGO tokens. The rate of mining for the MIGO network will affect the mining difficulty on the entire network, which would be automatically adjusted by the system.
In the future, as the mining industry continues to grow and develop, MIGO will continue to introduce new mining initiatives and create new decentralized flagship platforms that would benefit the entire community.