Cryptocurrency Mining Evolution: Virtual Mining Part 1

A term for a new way to earn cryptocurrency. Virtual Mining is to me a new concept, that I first learned of a few months ago on Steem-Engine. I think it is a stage in the evolution of cryptocurrency mining.

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Vitual Mining
While the mining of cryptocurrency is as old as Bitcoin itself. There are now two types of cryptocurrency coin miners.

Physical miners: which are specialized computers, which are actual physical machines, using electricity, giving off heat and noise, with moving parts.

Virtual miners: which in contrast to physical miners, are not physical machines, but instead I call them “software constructs”, as they have no physical form which to me means they are the same conceptually as digital currency, like Steem, as in they exist only in the digital world.

So far I have encountered and own two types or versions of these virtual miners.

First Version
The first type of virtual miner I call “large number of miner pool” I purchased earn rewards in a very similar fashion as real or physical miners; you compete for block awards, the awards are Cryptocurrency Tokens, which seem to be distributed according to your mining power. This is a complicated topic, but basically the amount of miners you have compared to the total amount of miners of that going determines your numerical odds of earning awards. For a more detailed explanation of what is called “Miner Math” I recommend you read this very good guide written by one of the staff at Steemleo, a investing community blog on Steem-Engine, which I found very useful. Steemleo Guide to understanding mining math

Second Version
The second type of “Virtual Miner” I have encountered and that I own, are what I call “small number of miner pool” for lack of a name, as we are in new territory here, and these miners seem too earn rewards every day versus the first types inconsistent awards. This type of miner may grow more popular over time as the first version doesn’t guarantee you any daily rewards, so you might not earn any Tokens. But this one starts earning Tokens the first day you buy it, and so far every day.

Conclusion
These virtual miners may be the next stage in the mining of cryptocurrency, because with virtual mining and virtual miners there are no machines to consume electricity, give off heat or noise and they require no repairs! I have built and run miners and while there is a strong sense of pride derived from figuring out how to build the miner, then download the software to run the miner. But it’s noisy, hot and consumes a large amount of electricity. Which is becoming an issue and leading some to develop mining pools near hydroelectric dams or in countries with free electricity from geothermal sources.

I say evolution because the idea of going from large, noisy, hot computers to mining with a Computer sounds like a technological

I hope you found this exciting and helpful.

✍️ by Shortsegments.

Picture Credit
http://www.pixabay.com

A Big Thank You to @rosatravels for her article which got me interested in this virtual miners and of course to the creators of Steem Engine for creating this whole new ecosystem within Steem blockchain.