Expert debunks five major myths about mining 01:42

The cryptocurrency market is developing rapidly, mining equipment is being developed, and blockchains are rapidly entering our daily lives. It is not surprising that there are many myths about mining that prevent novice crypto miners from achieving success. In a conversation with socialbites.ca, mining expert Maxim Dutikov, founder of DC Maining, dispelled five common misconceptions about industrial-scale cryptocurrency mining.

Myth one: mining is illegal.

“Even 10 years ago, there were rumors that mining would be banned in Russia, but despite all the horror stories, such a ban was not reflected in the legislation. Moreover, from November 1, 2024, a Federal Law will come into force in the country, which will provide legal status to crypto mining. It is expected that the full legalization of mining will benefit both individual miners and the state as a whole. For example, this will encourage mining operators to develop new projects, increase the number of jobs in the regions, support innovation, increase tax revenues and, of course, provide additional profits to suppliers of electricity actively consumed by mining farms, he explained.

Russia is now second only to the United States in terms of industrial mining development, but in terms of growth rates we are significantly ahead of even the Americans. Our country can become an absolute leader in this area, if the interests of all parties are taken into account, the expert added.

Myth number two: ASIC miners are noisy and difficult to use, and are also not environmentally friendly and harmful to health.

“Most modern industrial ASIC miners are not suitable for home use, and installing them at home can lead to negative consequences, since the home electrical network is not designed for such powerful consumers. Therefore, mining equipment is placed in specially designated places – data centers (mining hotels). Their infrastructure is built in such a way as to completely protect the population from noise and ensure safe consumption of large amounts of electricity,” he said.

Myth number three: ASIC miners break often.

“The device will be both reliable and durable if it is in the right conditions, with uninterrupted and stable power supply, well-ventilated, and maintained correctly and at appropriate intervals. These services and conditions are usually provided by the above-mentioned data centers. The frequency of maintenance depends, first of all, on the technical characteristics of the model, as well as on the operating conditions and intensity, and its life depends on the reliability of the components used, the quality of cooling, the stability of the power supply and a number of other factors,” the expert emphasized.

Myth four: Mining poses great danger to investments.

“With the right approach, mining is a stable business with good profitability, but on condition that the investor does not expect immediate returns from the project. Long-term planning (at least three years), refusal to invest in risky projects, as well as diversification of the equipment portfolio and mining of different coins will help to significantly reduce risks,” Dutikov added.

Finally, the fifth myth: Mining is expensive and no longer profitable.

“Despite market fluctuations, mining remains profitable only for large players, especially since equipment purchases have become more affordable. Now, with the approval of spot ETF, large investment funds around the world are investing in cryptocurrencies, such as BlackRock, Grayscale, FidelityInvestments. As of August of this year, Bitcoin alone has a capitalization of more than a trillion dollars. Therefore, it would be foolish to say that cryptocurrencies are not backed by anything. Crypto is an excellent investment tool and asset to protect against inflation. In the current conditions, diversification of assets is a must, and considering the above, some of these assets should be cryptocurrencies, because this is our future. Therefore, the main thing is not to believe the rumors, but to approach the issue competently and responsibly,” he said.

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