Using Machine Learning to Improve Cryptocurrency Mining Profitability

摘要： Machine learning technology has had a powerful influence on the future of cryptocurrency mining.

▲圖片標題(來源：Morrowind)

Satoshi Nakamoto introduced the world to bitcoin in 2008. Many people speculated that the virtual currency would never gain traction and become extinct. However, it has grown faster than even some of the staunchest supporters originally predicted. Advances in AI and machine learning technology have been important in setting the trend for bitcoin.

It’s been over a decade since the cryptocurrencies were introduced to the world and since it has become increasingly popular. And that is mainly due to the availability of trading profits that has driven a HUGE population to take interest in it.

Many people would like to increase their wealth by helping mine bitcoin and other cryptocurrencies, as well as to help them make more profitable cryptocurrency trading decisions. They are discovering that machine learning technology can help them achieve this goal.

Using Machine Learning Can Be Very Valuable for Cryptocurrency Miners and Traders Alike

Many people have become wealthy by mining cryptocurrencies. But apart from trading, there is another way to earn some profit off of this new technology and that is mining. Some people like to call it the “money making machine” and while not technically accurate, that’s what you can do with it.

However, mining can be pretty complicated for someone just stepping into the world of cryptocurrency, this is where you might consider getting game keys and play cryptocurrency games and farm coins that way. But in this guide, I will try to break it down for you to make things easier for you to understand. You will learn that machine learning can make it a lot easier to mine cryptocurrencies profitably.

What is Cryptocurrency Mining?

The process of verifying transactions and minting new currencies from blocks is known as cryptocurrency mining. It is conducted by highly sophisticated machine learning algorithms. Richmond Alake, an author with Towards Data Science, talked about some of the benefits of applying machine learning in cryptocurrency mining. Alake pointed out that machine learning has helped optimize cryptocurrency mining platforms and make them far more secure.

In fact, there are two forms of mining: proof of work and proof of stake. All mining hardware like the GPU falls under the category of proof of work.

The mining gear uses electricity and processing power to solve randomly generated complicated problems, machine learning has helped some miners solve these problems much more efficiently. Miners are paid whenever they find the correct solution. While proof of stake is similar to being a shareholder, it entails holding a specific amount of a cryptocurrency in order to establish a node.

The bulk of newbie miners, on the other hand, are primarily interested in the proof of work technique of mining. There are several different algorithms that cryptocurrencies fall under when it comes to proof of work. Algorithms are essentially various problem areas; thus, certain mining gear excels at specific currencies with specific algorithms more than others.

Your hash rate is the unit of measurement for your mining power. The hash is seen as an effort to solve the problem. So, if your hash rate is like 40 mega hashes, your system is trying 40 million different solutions every second, which might sound like A LOT, but there’s even more.

How to use machine learning to start with Mining as a Beginner?

It is clear that using machine learning can help anybody that wants to make more money off of cryptocurrencies. You can use this technology to identify better trading opportunities by using AI to forecast future prices. However, it can be far more useful when it comes to mining cryptocurrencies.

So, as I mentioned earlier, there is a variety of mining but keeping in mind that the majority of people here are beginners, I will explain the one that is the easiest to setup and use, which is GPU mining.

In GPU mining Graphic cards are used to increase computing power. So, the more and better GPUs you have, the more mining power you’ll have, and this is the most residential-friendly alternative because basic miners create a lot of heat and noise, but GPU mining is… silent. As a result, you may utilize GPU mining at your house or anywhere else.

Now that we’ve covered the various types of mining rigs, we can move on to the various types of mining services. There are a plethora of mining services available. However, we will be discussing the following ones:Pre-Built Mining Rigs, GPU Rentals, Cloud Mining.

轉貼自： Smart Data Collective

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