The Purpose Of Crypto Mining

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THE PURPOSE OF CRYPTO MINING AN INDUSTRY WITH MANY PURPOSES

Crypto mining serves several purposes - from ensuring ensuring that the system can operate without double spending to incentivizing miners for their work by rewarding them with cryptocurrency.

UP TO THE CHALLENGE?

The mining process itself is straining and doesn't have a 100% guarantee for success. Regardless, miners like to challenge the odds in hopes of a big reward.

NEW CURRENCY

Crypto mining has the ability to create newly minted cryptocurrency that can be circulated throughout the system. For example, Bitcoin's total number of coins is capped at 21 million, which is projected to be reached by 2140.

MINING POOLS

Many businesses around the world have taken an interest in crypto, with some forming mining pools that combine computing power to solve blocks. They then split the coin reward, ensuring they receive a return on investment for the equipment they purchase.

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