Cryptocurrency mining is a sector that continues to expand in the bear market in virtual currencies. However, it is not easy to start extracting cryptocurrencies. Users need sophisticated graphics cards or CPUs (ASIC miners) that could be very expensive. Furthermore, it is important to have cool temperatures throughout the year to be even more efficient. Low-cost electricity is also an important thing to keep in mind.
Companies and individuals have entered the crypto mining market with the intention of benefiting from the growth of virtual currencies. But since the industry has become very popular, competition has also increased. Increasing the number of miners increases the difficulty of finding a block automatically. This means that it is more difficult to receive rewards with the same amount of energy.
Nowadays, mining is a very expensive business today. Miners who want to be profitable have to spend thousands of dollars to create a profitable mining facility. In the past, Bitcoin's mining activities were far more profitable than they are now.
It is also possible to make profits with other consensus algorithms such as Proof of Stake (PoS). You can bet a specific amount of coins to validate a new transaction. Those that hold the largest amount of coins have greater mining power.
Ethereum wants to change its consensus algorithm in PoS because developers claim it is more effective to protect the network. At the moment, miners can process ETH transactions to win Ether (ETH).
It is not easy to improve mining efficiency. During a bearish market like this, it is necessary to reduce the fee paid for electricity and keep fresh hardware devices to work more efficiently. It is also possible to buy new hardware miners that can cost several thousand dollars and improve efficiency. Nevertheless, crypto-miners are waiting for a new upward trend in the encrypted market.