Moving Towards the New Frontier of Mining: Mining Cryptocurrency
According to the Mines and Geosciences Bureau in the Philippines, the country is the fifth richest in the world for the minerals gold, nickel, copper, and chromite, generating billions in export every year. But at the turn of the digital revolution, we have been introduced to a new resource to mine—money.
Traditional money, or fiat currencies, are often printed by a government’s central bank. In the Philippines, the Bangko Sentral ng Pilipinas produces and prints the Philippine peso in its coins and bills. On the other hand, digital currencies or cryptocurrencies are mostly generated by the blockchain network through digital transactions and processes called mining. As a decentralized network, anyone with the software and hardware can mine, earn, save, and invest cryptocurrency. While some cryptocurrencies have physical coins and physical tender, these are more like commemorative and collection items that have their digital value imprinted or encoded onto them.
The community of crypto miners, traders, and digital platforms that facilitate these transactions make up a global ecosystem and international network—centered around a particular type of resource that is independent of government and institutional regulation in its storage, distribution, and value. Moreover, because crypto transactions are digital, they are created as code—encoded and secured through encryption on a public ledger.
According to Statista’s research as of April 2020, the most mining happens in China, the United States, and Russia, but many other countries have mining pools or mining communities that share the physical and digital load of hardware and software requirements it takes to mine cryptocurrencies.
Is it possible for the Philippines to increase the mainstream adoption of crypto not just through trading but through its mining as well? The establishment of crypto exchanges, the utilization of blockchain technology by private and public entities, and the use of crypto in the payment of goods and services has served to bring awareness of the future of finance to Filipinos. However, is it possible for more Filipinos to contribute to the ecosystem via mining? As a country with thriving information technology sectors and capabilities, what would it take to incorporate this avenue for resource building towards financial inclusion for more people?
How Does Cryptocurrency Mining Work?
Mining is the process by which Bitcoin and other cryptocurrencies are distributed for circulation through the blockchain network. Miners use computers that are equipped with exceptional computing power in order to solve algorithms, which then release new blocks into the chain. These transactions are facilitated through a mining pool, which rewards miners for their work.
Furthermore, some crypto, like Bitcoin, have a set limit of supply for the primary purpose of stabilizing its value—there will only ever be 21 million Bitcoin that can either be mined or circulated—while others, like Ethereum, are indefinite in supply.
How Do Crypto Miners Earn?
In the Proof-of-Work model, once a blockchain network verifies transactions that are the result of solving these unique mathematical equations first, miners are compensated with a portion of the crypto. This is how Bitcoin miners add blocks to the chain and release the currency into circulation. On the other hand, Proof-of-Stake refers to the mechanism where winning verified blocks depends on how much coins a miner holds.
In utilizing methods of compensation, what crypto miners actually do is maintain the integrity of the blockchain through the “consensus” mechanism, where unique and genuine transactions are verified and added to the public ledger.
Is Mining Digital Currency the Future of Finance?
In the Filipino digital space, one could find individuals, small communities, and hardware and software providers who have been mining Bitcoin. Building a rig—or hardware and software set-up—that will solve complex algorithms and successfully mine “winning” blocks that are added to the blockchain can be expensive and consume time and energy, which is why mining pools were created for expense, energy, and profit sharing. With a strong sense of community and the calculated choice of platforms, more Pinoys could start earning from crypto mining.
Jumpstart your future with mining crypto with Binance Pool! As Binance’s platform dedicated to ensuring and protecting the income and investments of crypto mining communities globally. Binance Pool supports Proof-of-Work and Proof-of-Stake mechanisms and continually adds support for more cryptocurrencies.
Furthermore, our platform is a reliable partner for your cryptocurrency journey because of our security. Users can be assured of the protection of their data and funds while our standards for transparency provides an ecosystem where you can make the best choices when buying, selling, and trading crypto. Binance also supports payment options that Filipinos use on a day-to-day basis, like GCash and Western Union.
Since its launch in October 2019, Binance’s P2P platform has supported approximately 31 fiat currencies, including the Philippine Peso. It was also able to process trades of more than $1 billion. For their Global P2P Merchants Program, the company now actively searches for local merchants with reliable crypto and fiat access. Here, verified merchants enjoy a lot of benefits—exclusive support for customers, VIP discounts, ad transactions and postings, and security deposits without any fees.
With its zero transaction fees, Binance offers an escrow service—which aims to ensure that all of the cryptos will go to the users’ wallets. Its P2P platform also lets users gain more access to various financial services, likespot, margin, lending, and futures trading of Binance.com.
Start learning about Binance P2P trading by downloading the Binance mobile app now.