The Experts' Take: Is Mining Crypto Profitable? | Coffee & Crypto
Welcome to cc also joining us is roshan. Roshan is a co founder and ceo of gosats and roshan is also somebody whos invested in the system and well try to understand from him how it works. Hi, roshan welcome to the program. Let me begin with uh mr kurana ajit, just sort of explain to us and ive tried to cover some basics over here, but theres. So much really more. That has to be explored in this mining space. Can we first start by talking about what is pool mining, and this is basically just for the benefit of our viewers again, a couple of people putting their resources together to mine, so its sort of a kitty or a club that you find, and all of you Put your resources together and, of course, whatever coin you mind gets distributed, could you talk about some ways on that im going to take 10 seconds first to congratulate you on the elegant way in which you explain mining. I have explained mining over 100 times im going to use your words and second, i did not know. I was going to be on the program with russian because i am a shareholder in his company and roshan presents an alternative to mining by using his app, but that apart, let me answer your question. Oh, i didnt have any idea either. So we are just getting to know the crypto community here, but go ahead, yeah! Okay! So if you want to mine, there are three fundamental approaches: one is you get your hardware in mind that is advantage you get the highest yield because everything yielded becomes.
Yours. Second is somebody else has hardware, you borrow it for some time advantage. No upfront costs disadvantage. Somebody takes some part of your profit away. Third, you do neither of these. You just pay somebody who is offering a mining contract and they mine it for you. What you have asked me about pool mining and, by the way, the last one, of course becomes the easiest, because you can put in 100 rupees disadvantage being that a lot of your profit gets taken away, probably to the people of five to ten percent. Now the first thing where you run your own mining equipment, even if you have like very serious uh servers like for example, what you are showing on tv right now, its very small yeah right. So if we look at your gpu mining rigs quite likely, i will run them for my lifetime and earn nothing as i could run them for at least 10 years and on nothing because the probability of being the first one. You know that sharmajika ludka has to come first in mining. Also, that is true exactly how you described first, the fastest graphic first in this case yeah. So if many of us got together and said, given all a lot of our computer power to mining, the likelihood that at least one of us would come first is high, and at that point of time we divide the rewards amongst all the people who contributed their Power to the uh process, this is called cool mining right right.
So i think what youre suggesting is a good way if you want to experiment in the spaces, pool it first, try and test water, see how it is working then see if it is giving you enough dividends to sort of get started on your own. In case you want to get into that space as well, but you know when it comes to mining, and i want to come to russian on that. The biggest concern the world is really watching, for is the amount of energy that is used, so how bitcoin works in a very basic level again for our viewers to understand is that a lot of transactions actually dont yield to anything, because you couldnt race it to The finish right, you didnt come first, so all the effort and energy went to waste over here right and people are saying well what is happening with all this constant running of energy, etc. So is there a way in which tech has managed to solve that problem, because you know this remains to be a huge concern. Governments also picking it up now absolutely uh, i mean like it is true up to a certain extent i mean like before bitcoin there was this whole gold mining debate. You know what happened for decades. See you there, sorry uh. You know russian for a bit what i viewers are seeing on the screen. Right now is actually a map of where all mining happens across the globe, and you see that its actually centralized in china.
It was the case for a very, very long time until they banned it, of course, but well get to that in a bit. To finish our comment, please yeah yeah uh, so so uh. There was this whole debate about gold and the mind thats associated with it. So right now this is kind of like shifted to bitcoin, so people do not like getting out of their comfort zone and when we talk about wastage right i mean waste. It is such an ambiguous term like we cannot quantify waste so its just an abstract noun. So uh all this energy with machines, the mind the bitcoin mine is basically purchases energy and they convert that into bitcoin into a sound monetary system. So, and – and this is only going to incentivize renewable energy like like years ago, like probably just 20 percent of entire bitcoin, my bitcoin mining was renewable today, its over 50 and its only going to go up and the china ban is a good thing like, as You mentioned its centralized in china its going away now, like its coming to all the other countries, countries that have good renewable energy infrastructure and once el salvador, which is the first country to adopt bitcoin as legal tender once they come up with this huge volcano mining Kind of a strategy bitcoin is going to be stronger and uh as ever. So i honestly feel, like a lot of critics, try to attack uh mining by saying its a lot of wasteful, but what is getting wasted here? The energy is being pushed into do something into creating something of value: a trillion dollar asset, whereas if you look at other blockchain tokens right, theres, no energy, its just that you buy a bunch of tokens, youre rich enough, you accumulate a lot and you own interest On top of it so thats, what i see with bitcoin is this proof of work where youre actually proving that you know youre putting some effort into getting something of value, how fascinating theres something new we get to know about crypto every minute i shouldnt even say Every day or every episode, but closing comments there, uh from ajit ajit, tell me but again for our viewers.
This is not the only way that you mind right. Ethereum, say, for example, works on a very different concept. No, so the thing is that at a top level you use computers and computing power to mine, uh bitcoin might require asic, ethereum and all of its family might require gpu waste mining. There are some who require cpu based mining. There was a very, very popular mining based token called chia, which required hard disk space for mining. So there are many methods. All of them require computing power, but you know one very quick point is that the entire debate and halabaloo around energy usage is always only accompanying a sudden rise in prices where people lose all concepts of cost and want to mine at all costs when mining becomes Uh very competitive as it is presently frankly, it is not very energy inefficient. I see all right there, gentlemen, im afraid thats all the time we have, but theres so much to dig into this mining stuff as well, and well continue to do that in fact. Thats the whole point of this program to sort of simplify uh crypto for everybody else.