Monero (XMR) continues to draw the attention of the cryptocurrency community as a solution for transactional privacy. Founded in 2014, the project has quickly become the leader of private currencies. If you are interested in digging Monero, here are the details you need to know.
Reasons for the extraction of Monero
- Cooler temperatures: The extraction of other cryptocurrencies based on Ethash, for example, is much hotter around 12-15 years higher Celsius degrees. The BTi Equihash algorithm also requires more energy to operate a mining rig. Since Monero requires less energy and less heat is generated, your mining rig should last longer than trying to extract some other cryptocurrencies. Overall, this should also mean that the Monero / Cryptonight algorithm mining operations are lower than specific mining for most other popular cryptocurrencies using different algorithms.
- Price value: The price for XMR has skyrocketed in a short time. In May 2016, prices were lower than $ 1 for XMR. At the end of April / beginning of May 2018, prices are closer to $ 250 per XMR. While this could, of course, rise or fall dramatically, prices have generally remained above $ 100 since November 2017.
- Committed to decentralization: Currently, it is much easier for hobby miners to start digging XMR due to a recent change in the algorithm that focuses on a clear ASIC endurance mission. In an era where ASIC led to an increase in initial mining costs, Monero is making XMR easier for more people to mine. We will examine the recent more ASIC resistance battle in a dedicated section below.
- Exchange availability: Since XMR is considered one of the best cryptocurrency projects and is consistently ranked among the top 15 market places, it is a currency that people often trade. In turn, this liquidity will give miners the opportunity to sell XMR quite easily on almost all cryptocurrency exchanges.
- Less hardware required: Because Monero requires less mining hardware for other cryptocurrencies, this makes the whole process of making your XMR data mining operation cheaper and easier to accomplish.
Reasons against the mining of Monero
- No ASIC options: Yes, this is also the same as the third reason why you should extract Monero. Basically, the ASIC position of Monero can be a positive or negative thing depending on your perspective. For most people who do not have the resources to finance large ASIC extraction operations, not having an ASIC option is a good thing. For those wishing to run an ASIC-based company-wide Monero farm, this is a bad thing. As of April 2018, the ASIC extraction with Monero is practically impossible.
- Other coin options for privacy: If you are a miner who likes HODL, Monero could do very well in the future. However, other privacy-threatening currencies may be better options as they may have higher value growth than XMR over time. There are many others emerging privacy coins who are trying to overcome Monero's technology and market capitalization.
Cost of construction of Monero Mining Rigs
The construction cost of a Monero GPU drilling rig (XMR), for example, varies depending on the components used. Some people estimate that you can do one for it under $ 600 and other people say around $ 800 per rig it's a better estimate. 1 GPU platforms should be able to extract them 430 h / s and 12 GPU rigs (cost of about $ 4000 +) should be able to reach about 5160 h / s (calculated in September 2017).
The ASIC controversy
Bitmain and other mining platform manufacturers have announced the release of new ASIC mining facilities that could extract Monero. Initial costs for Bitmain Antminer X3 ASIC was around $ 12,000 per rig. Essentially, the availability of these rigs would give the miners a lot of money to invest in mining facilities (including large companies) the ability to extract a significant amount of XMR. Other mining platforms (such as GPUs and CPUs) would have become substantially obsolete.
The Monero community decided that it would not accept the prevalence of the ASIC miners who would have flooded the market with the release of the new one. During the month of March 2018, the Monero community knew that the mass production of these drilling rigs could lead to greater centralization of the XMR tokens, which involved many other project teams. If you're looking to start extracting XMR now, it's best not to look at highly discounted ASIC platforms. Since the Cryptonight algorithm changes, it is clear that ASIC implants are no longer effective for XMR extraction.
Percentages of hashes, difficulty and profitability
The new Monero resistant ASIC algorithm seems to have worked. How effective was this change so far? The XMR rose from a historical high of over 1.3 GH / s on 6 April to a historic low of around 448 MH / s on 11 April. From April 11, the XMR hash rates remained stable at around 500 MH / s.
The profitability of the Monero mining sector increased from 0551 USD / day for 1 KHash / s from 6 April to 1.795 on 27 April.
The difficulty decreased significantly from 120+ G on 4 April to around 60 G during the rest of April.
The future of Monero Mining
For now, it seems that Monero has pledged to respect Proof of Work (PoW), which means that XMR will probably remain a miniaturized cryptocurrency for a while. The good news for miners who do not have the money for expensive ASIC plants is that Monero seems to be one of the most committed projects to proactively improve its algorithm to create more effective ASIC resistance.
While there is the possibility that some producers of ASIC mining facilities may circumvent the modifications of the algorithm introduced in April 2018, Monero's latest move is a clear sign that such attempts could lead to net losses. for producers and miners who invest in their platforms. It is also important to note that Monero usually updates his algorithm twice in the year, so any potential future progress made by the producers of ASIC mining facilities could very well be nullified once again. For those interested in ASIC mining, other projects like BTC could be the way to go. Meanwhile, those interested in CPU and GPU mining will have at least the bases for success in place because of the clear position of Monero on the ASIC resistance.