If you have even a little experience with cryptocurrencies such as Bitcoin or Ethereum, you have probably also heard about mining. Unlike traditional money (called fiat money), cryptocurrencies are not physically present in our world and exist as virtual coins in a distributed ledger called blockchain. In other words, Bitcoin and altcoins are digital money existing as data or records stored in a virtual environment. Moreover, blockchain is a computer network where there is no master node controlling the operation of the system and the circulation of digital money. Knowing that the issuance of national currencies is the responsibility of a special government body, the question arises — how do cryptocurrencies get issued? The release of new tokens into the network occurs through the mining.
In simple terms, mining is the process of keeping the network operational. The nodes responsible for mining solve complex mathematical puzzles to validate transactions and are rewarded with a few coins for doing so. The result of a successful job done by a mining node is the release of several new coins into the network, and that’s how cryptocurrency issuance works in most blockchains. And you have probably heard that Bitcoin mining is a very resource-intensive process. Miners use powerful computing systems to do their job. So, is it possible to mine cryptocurrency on phones or would it be better to buy Bitcoin with a credit card? The article will try to give you the answer below.
How Does Cryptocurrency Mining Work?
Mining is a complex computational process that produces new tokens on the blockchain. As mentioned above, cryptocurrency is a decentralized financial system with no central authority like a central bank. Moreover, in the Bitcoin or Dogecoin network, there is no authority overseeing how financial transactions are conducted. This means that there is a risk of money laundering or fraudulent activity. To prevent this, the creators of cryptocurrencies have introduced a network consensus mechanism where most of the nodes must approve transactions. This eliminates the problem of double spending when a crypto owner can copy their tokens and reuse them. So, here are some key features of a blockchain to better understand how mining works:
- Every time a person sends coins to a recipient, a new record (transaction) is created in the blockchain, which is a huge distributed ledger. These records are grouped together and added to a virtual container called a block. Each new block in the network is created every 10 minutes on average (Bitcoin blockchain).
- A blockchain is a sequential chain of blocks with transactions. Each block has an identifier, its own hash amount as well as the hash amount of the previous block, and this is how blocks in the chain are interconnected.
- Any transaction is considered valid if its format and digital signatures have been successfully verified. Notably, the first transaction in a block is information about the commission to be paid for creating a new block.
- The generation of new blocks with transactions is a task that is undertaken by special network nodes called miners. They use powerful computing systems to search for the hash by brute force.
Thus, mining is necessary to keep the network up and running. First, miners perform transaction verification to prevent any fraudulent use of crypto assets. Secondly, mining ensures the issuance of cryptocurrencies, that is, the release of new tokens into the network.
Ever-Increasing Demands on the Computing Power of Mining Equipment
As the network in which Bitcoin or other token circulates grows, the complexity of the algorithms computed by miners constantly increases. If you want to engage in mining, you need to understand that the probability of you successfully solving the math puzzle is equal to the ratio of the power of the equipment you are using to the total power of the network. The lower the ratio, the less likely you are to create a new block and be rewarded for doing so. The reward in the form of a few coins is the main incentive for miners to perform transaction verification tasks. In order to work more efficiently, miners tend to maximize their computing power. Given the nature of the mathematical puzzle to be solved, this task is best handled by devices that perform parallel computing. That is why many miners have started to use multi-core GPU computing systems. For Bitcoin mining, the use of common CPU-based PCs proved to be impractical, due to the increased complexity of the mathematical puzzles to be solved. Hence, ASIC-based systems, a special chip designed to calculate hash functions, soon appeared. Thus, in the early 2010s, only ASIC-based systems were used to keep mining operations profitable.
With the advent of ASICs, crypto mining companies began to emerge on an industrial scale. The more efficient a computer system is, the more power it consumes to perform complex calculations. Therefore, large miners began to locate their computing facilities in regions with cheap electricity. In addition, in order to reduce the influence of randomness, mining companies began to join the pools of huge computing power. In addition, there were aggregators, offering part of their computing power for rent (cloud mining).
So, the requirements for computing power are extremely high. However, is it possible to mine on a smartphone (mining on Android for example)? No matter how powerful modern phones are, using them for mining seems pointless given the above. However, mining on your phone is quite viable, and below in this article from J2TX company we will explain why this is the case.
Mining Cryptocurrency on Phone
So, although mining on an iPhone or mining on an Android device seems like a preposterous undertaking, it is quite realistic. However, you should reject the idea of solo mining on your phone. Even if you have the latest version of your iPhone or have bought a top-of-the-line Samsung phone, you shouldn’t go mining solo. As a reminder, a device that parallels computer calculations as much as possible is a perfect mining machine. However, the processor of a modern smartphone does not work like an ASIC-based computing system. Even if your phone is more powerful than your old laptop, it does not mean that it is good for solo mining, and here is why:
- Your phone may be slower because most of its processing power will be used for crypto mining.
- The mining will put a lot of strain on your smartphone’s processor and can lead to severe overheating. As a result, your phone could fail quickly.
- The processing power of even the most high-end phone is negligible given the increased complexity of the mathematical puzzles being solved by Bitcoin, Ethereum, Dogecoin and a host of other highly-ranked cryptocurrency miners.
So, using a smartphone for solo mining is not profitable, to say the least. However, that does not mean that you should abandon the idea altogether.
How Google and Apple Treat Crypto Mining on Phone
In 2018, in a wave of growth of crypto-mining apps, Apple banned mining on its devices. The main reason why iPhone mining is not possible is because it causes the devices to overheat. Therefore, you will not be able to find mining apps in the App Store. As for Google, the company has also banned mining on Android devices. The official reason why crypto mining apps for phones have become unavailable to Android users has not been published. However, it is also likely to be due to the overheating of Android phones. However, apps that compute remotely are still allowed. And that means you can mine crypto on your Android phone.
How To Mine Crypto on Phone
So, mining on your phone or tablet does work. But given the processor performance of the mobile device and the ever-increasing complexity of the mathematical puzzles to be solved, it will take you months to earn at least a bit of cryptocurrency. Thus, solo Bitcoin mining on Android is a pointless waste of time. Moreover, it can significantly shorten the lifespan of your smartphone. However, today, mining is a type of industrial activity where companies create mining pools to gain a competitive edge. A mining pool is a community of miners pooling their efforts and computing power to mine a cryptocurrency. The basic idea behind a mining pool is that the more miners working toward a common goal, the better the odds of success. The good news is that some mining pools even accept users mining on their phones.
So, the only viable option for those wishing to mine crypto on a phone is to join a mining pool. The goal of a mining pool is to combine the processing power of as many computing devices as possible to solve the math puzzle correctly, create a new block and get rewarded for it. However, the question is, how much of the profit of the mining pool will you receive? Most of the pools use a transparent reward sharing scheme, according to which each member gets paid proportionally to its computing power. That is, the percentage of your profit is calculated as a ratio of your phone’s power to the total power of all devices connected to the pool. Though some pools do make fixed payments no matter how much you contributed to crypto-mining on your device. In any case, phone mining will yield a very low passive income. As far as mining apps are concerned, there are only two that will be recommended to you.
Bitcoin Miner
Despite the name, this app allows you to mine not only Bitcoin, but many other cryptocurrencies including Ethereum and Dogecoin. To use Bitcoin Miner, you need a modern phone and a constant connection to the global network. The mining process will run automatically in the background, so you can use your phone as usual for daily tasks. However, sometimes you will notice that your device is running a little slower than usual.
MinerGate Mobile Miner
Like the previous option, MinerGate Mobile Miner is something like your gateway to mining many popular cryptocurrencies. One of the benefits of this solution is the built-in crypto wallet where you will receive your commissions for participating in the mining process. However, MinerGate Mobile Miner will also load up your device’s processor, and therefore you may experience problems such as phone slowdowns, overheating and accelerated battery wear and tear.
Closing Thoughts
Mining is a process that is vital for a cryptocurrency to work honestly and transparently. In addition, in many crypto blockchains, mining facilitates the release of new coins into the network as a reward to the special nodes for the work they do. As the processing power requirements of the hardware have increased significantly, solo mining on the phone is a pointless waste of time. Moreover, it can lead to a quick failure of your device. However, you can join a pool to provide a share of your device’s processing power and receive a small share of the pool’s profits. You can try any of the above apps. However, keep in mind that your device may be slower than usual. In addition, excessive processor load can cause your phone to overheat, which is why Apple and Google have officially banned mining apps as far back as 2018.
F.A.Q.
1. Can you mine Bitcoin on a mobile phone?
Yes, because any device, capable of doing computer calculations, is suitable for that purpose. However, the complexity of algorithms computed by dedicated nodes in the BTC network has grown too much lately.
2. Is Android crypto mining viable?
There are several dedicated apps, including for Android devices. However, mining on Android devices was officially banned in 2018 by Google.
3. How to mine cryptocurrency on iPhone?
Apple banned solo mining on its devices in 2018. However, there are apps that allow you to connect to mining pools.
4. How to mine Ethereum on Android?
Ethereum’s computable algorithms are less complex than Bitcoin’s, so the probability of creating a new block of transactions is significantly higher. Just install an app like Bitcoin Miner to earn a small passive income.
5. How to mine Dogecoin on phone?
You won’t be able to do this directly, but there are several cloud-mining apps available to you that will allow you to participate in creating new blocks of transactions and earn a small fee.
6. Is cell phone crypto mining worthwhile?
This can cause some discomfort in using your device for day-to-day activities, as cell phone crypto mining can put a lot of strain on your device’s processor. It can also cause your smartphone to fail more quickly.
