Cryptocurrencies can be daunting and scary to many people, especially those new to the industry. We recently spoke to Greg Rogowski, founder of the Mining City platform, to share his expertise with those who are starting their adventure with crypto.
Years ago, anyone with a PC and some coding knowledge could mine cryptocurrencies. Today, it requires expensive specialized equipment and lots of electricity. A long-time crypto enthusiast, Greg Rogowski envisioned the Mining City platform that provides hash power for those interested in mining crypto without breaking the bank.
“Since Mining City facilitates the mining process, we are often the first contact some people have with crypto,” he says. “It can be intimidating at first, but after understanding the basic terms and concepts it becomes a fascinating world of innovation and new possibilities.”
Rogowski emphasizes that cryptocurrencies are emerging as an elementary part of the global financial system. “Banks, fintech companies and other industries are all looking into how this new technology could offer solutions to the world’s problems. Blockchain applications and the decentralized nature of crypto are what draws all these industries towards this area,” he explains.
The origins of cryptocurrencies
The financial system as we know it is centralized. Commercial banks distribute and hold money in the form of loans, transfers and accounts. They depend on national banks, so they are themselves centralized due to inflation, macroeconomic and other factors. But such a system could not maintain a monopoly forever. “Someone had to say ‘stop’ and propose an alternative. The best place to do that was the internet,” says Rogowski.
In late 2008, an individual, or group of people, who goes by the name of Satoshi Nakamoto, set the world on fire with the publication of the Bitcoin whitepaper, the world’s first cryptocurrency. The idea drew on deep cryptographic and financial knowledge to come up with an innovative system for dealing with the world’s problems.
Bitcoin started an avalanche. “Over the last decade, it has become a pop-cultural symbol of the fight against the corrupted monetary policy system that rules the world,” Rogowski adds. Shortly afterwards, new cryptocurrencies began to emerge. There are now several thousands of alternative coins, grouped as altcoins.
Bitcoin and all the altcoins could be called rebellious because they bypass the bureaucracy, slowness and commission system of large financial institutions.
Crypto is very accessible
Cryptocurrencies are universal, breaking down all demographic, financial and geographic barriers and are available to anyone, with the only requirement being internet access. Rogowski reminds beginners that they don’t have to embark alone on their journey into the world of cryptocurrencies.
Platforms like Mining City take care of everything needed to mine cryptocurrencies for the price of a one-time plan purchase. Mining City’s mining plans include Bitcoin, Bitcoin Vault and Electric Cash. “You don’t have to run around looking for the best ASIC miners or worry about electricity bills. All you have to do is sit back and watch the mining progress without having to do any hard work,” he says.
Crypto strives towards safety
Problems such as thefts, scams and scandals are, unfortunately, still present on the cryptocurrency market. But Rogowski believes this shouldn’t discourage users from crossing the threshold into cryptocurrency territory.
“Let’s not forget that storing money at home, in a safe or even in a bank, isn’t always the best idea. Robberies do happen. Your assets can be taken whether they are stored online or offline. But digital wallets used to manage cryptocurrencies come with added security features and you have an array of security measures to choose from as the industry grows and develops further.”
How can beginners make wise decisions?
“Always do your research. You need to know who you are dealing with,” stresses Rogowski. “Partnering with a reputable platform that has a global presence in the field is also important. The reason why thousands of people have trusted Mining City to guide them across this seemingly complicated space,” he explains.
“Mining City has partnered with some of the major players in the mining industry and offer very good deals to private consumers. These take all the guesswork out of the mining procedure, including purchasing, maintaining and running the equipment.”
Cryptocurrencies: the basic of the basics
We asked Greg Rogowski to give some guidance to those who want to take their first steps in the cryptocurrency space. “Start at the beginning. Here are the terms that I think every cryptocurrency newbie should know and understand:”
Also called “digital currency” or “digital asset” is a means of payment which does not have a physical form. It is so because cryptocurrencies are used for digital payments only. Cryptocurrency owners do not have pockets stuffed with crypto notes or piles of crypto coins. Their asset is essentially represented as a sequence of characters managed in an electronic wallet.
The wallet, contrary to its name, is not a space to store means of payment. We already know that cryptocurrencies have no material form. It is a tool, usually an application for mobile or desktop use, which allows you to manage the cryptocurrencies you have. If you want to send and receive crypto, you need a wallet. A very important function of your wallet is to store your security keys.
There are two basic types of keys: private and public. You can say that the first one is the password for your account and the second – the account number.
You need to share your public key in order to carry out a transaction. It is the address of your wallet. But you should never show your private key to anyone as you use it to manage your account. It’s just like in ordinary online banking – you frequently share your account number, but never your password.
In simple words, a blockchain is chain of data blocks.
This is a very important term. Blockchain is a digital record of all cryptocurrency transactions ever made. It is a distributed ledger, a database available online, containing all data about transactions. It exists at the same time on multiple computers connected to the network.
The blockchain network is protected by advanced computing signatures. Each activity is recorded in a block. Every block contains a timestamp and a link to the previous block and it grows through a process called mining.
As in mining of natural resources, in the cryptocurrency world most mining is also a form of work.
Crypto miners do not mine lumps of coal or gold nuggets, but search for digital resources. Therefore, cryptocurrencies are mined by computing machines, also called miners.
The task of a crypto miner is to perform complex calculations. Since the miners are essentially very specialized computers, they need electricity to operate. The higher the computing power, the higher the electricity consumption, i.e. the higher the mining costs. Cryptocurrency miners usually work in larger groups called farms. Such a farm works constantly drawing electricity. Therefore, electricity prices are a strategic parameter of mining.
Interested? Stay tuned!
To learn more about crypto, Greg Rogowski suggests you explore the knowledge section on the Mining City website. It is continuously updated with new and interesting topics.
You can also follow Mining City across multiple social media platforms: