Crypto mining has always been a pastime of many avid crypto enthusiasts. Not to mention the issues surrounding cryptocurrency mining have also become more common in the space, stemming from the rise of big players like Bitmain.
With the CPU mining not being profitable or possible anymore, and with the mining equipment being expensive, the majority is asking a question – Is crypto mining actually decentralized these days?
As profits in crypto mining space have been reduced in the last year, there’s still a distinct industry that has arisen since the Bitcoin creation. You can purchase crypto miners from companies like Bitmain. However, you should better have some capital to make such a purchase since they don’t come cheap.
There’s great hope that you will be able to make a good return on your investment through mining through the steep entry price of buying crypto miners coupled with the profound technical knowledge required is decreasing the number of potential customers now.
In case a regular customer who has heard of Bitcoin but doesn’t have much knowledge about it can’t get involved, is the system as decentralized as we think of it? On top of all this, the high entry price excludes a number of individuals from being able to purchase one, thereby imparting crypto mining a very particular niche.
The other factor in this regard is the conglomerate of mining pools which have too much power over the network. This can actually lead to forks in coins in case the community decides against allowing such monopolization. Siacoin and Monero are two such communities forcing hard forks to resist ASIC mining from companies like Bitmain while trying to keep their networks decentralized. However, the downside is that this has reduced their hash rate, which makes their blockchains even less secure.
The decentralized nature of digital currencies is one of the most promising aspects of the industry. The problem of mining is just one battle that will rage on in the coming years. We can only hope for the best!