In a world of cryptocurrencies and skyrocketing shares of companies like Tesla and Apple, there is not much for the common folks to invest in. In fact, they do not even have much choice when it comes to investing in big companies or thinking about how to make inroads into the big league of inventors.
Investment for most people is in the form of saving certificates, forex, and gold. As this is for the upper middle class, the lower class only has one or two options.
The price of the most popular cryptocurrency, Bitcoin, has shattered all previous records as it touched over 60,000 dollars. From January to March 2021, the currency surpassed all expectations as it zoomed past one record after another, making all other currencies pale in comparison.
But there is a serious problem with all cryptocurrencies, and it’s in the way they are mined.
(Source: https://www.coindesk.com/man-takes-bitcoin-miner-seller-to-tribunal-over-electricity-bill-and-wins)
Just like gems are mined from Earth, crypto such as Bitcoin is mined from the internet, and this consumes huge power and resources. Recently, Elon Musk had Tesla stop accepting Bitcoin due to the heavy external & internal costs associated with its mining.
Did you know?
Bitcoin mining consumes more electricity annually than the whole of Argentina, an analysis by Cambridge University suggests.
Take a look at this chart made by the University of Cambridge Bitcoin Electricity Consumption Index
And it is this particular topic I would like to shed light on in this blog. It is an issue that is seldom picked up by the mainstream media.
Businesses looking to start something in this domain look hapless as the giants in the business world don’t allow new entrants. The scope is bright for anyone with a new idea to make it count, but as mentioned above, the resources required for mining cryptocurrencies can make even experienced investors look jittery.
This can shake their confidence so that they will not go all out for a new cryptocurrency and rather opt for the middle way, like partnering with an existing venture, etc.
Now, let us define crypto mining and its pros and cons for the easy understanding of those who may not be aware of anything about it.
Crypto Mining: Pros and Cons
Crypto mining is a huge task even for decent personal computers and laptops to handle. It requires the use of supercomputers to ease the workload on household computers. Crypto mining is a means to gain crypto by solving cryptographic equations through computers ” such as stock trading“.
This is not a simple task because the resources required for crypto mining can easily overwhelm personal computers within seconds, which is why computers with immense power, such as supercomputers, are required to do mining efficiently.
Due to the intense stress on resources, crypto mining is considered illegal in some countries, but most of them allow it with very few restrictions. One should note that there is a high degree of risk involved with cryptocurrencies as well.
One of these bigger risks that I would like to discuss now is related to crypto-jacking and can affect those involved in crypto and even those who have nothing to do with cryptocurrency or mining.
Let me shed some light on this aspect so that you can understand my viewpoint easily.
What Is Cryptojacking?
Cryptojacking is an illegal activity through which hackers acquire the resources of a system by installing software so that they can use it for Crypto mining. Some advances in software may also steal cryptocurrencies from the wallet stored on that machine.
It can be a personal computer, handheld device for laptops, and other vulnerable things connected to the Internet. Go for taut support so that everything can be taken care of without getting maximum damage.
What can businesses do to ensure they are right on track with this concern?
While there can be many steps and procedures to follow, one of them is the use of a dedicated server. Read on as I discuss how businesses can benefit from this without burning a hole in their pocket.
The use of cheap dedicated server hosting can be a good strategy to ward off threats from crypto-jacking. While it is not an absolute and ultimate solution for small businesses and startups, it can be the ideal way to start coping with this threat.
The use of firewalls and anti-virus software is simply not enough to ensure e-commerce websites and business portals can have a sigh of relief. Anyone with even intermediate knowledge of hacking or know-how of using malicious software can easily log in to your system, steal all your information or use the computer for Cryptojacking.
Why are Dedicated Servers the Remedy?
As I have already discussed, there are other ways as well to combat this threat, but for most small businesses and startups, the use of a dedicated server for their websites is the most common and cost-effective solution.
Don’t think it won’t cost a fortune to add security features and other high-end components to your website, though. There is enough support available for every website so that not everyone can report Facebook hack into your systems, especially on the servers you have utilized to post your website.
For businesses in their infancy, the use of a dedicated server is the perfect and cost-effective solution so that they can think about combating the threat of not only cyber-attacks but also Cryptojacking.
Final Word
Crypto mining and it’s legal/illegal use will continue to draw huge attention in the foreseeable future. Issues like crypto-jacking will also increase in the future as cryptocurrencies will begin requiring more resources for crypto mining.
The good and bad use of any technology is always apparent after a significant time has passed since its introduction, and the same is true for cryptocurrencies. Only the future will tell in what ways it can benefit us, but until then, this is something we have to tackle as it comes.
Businesses and individuals who are taking it lightly will feel the brunt of the situation most. So, until everything settles down and clears, we need to be wary of how to combat the ill use of crypto mining and its related technologies. Right now, the use of firewalls and dedicated servers for websites and business portals is the best available remedy.