Anyone involved in a start-up will know it’s not without its challenges. A million things can go wrong and you’ll be facing off against existing businesses in the market.
This is why it comes as no surprise that around 60% of all new businesses fail within their first year. However, with a strong business plan and expert knowledge of the industry you’re entering, we’re sure you’ll be fine.
Whilst this is easy to say about most businesses, things get a little trickier when you start a crypto mining business. This is part of the cryptocurrency industry which has grown massively in the past few years. In the UK alone, around 6.2% of adults own cryptocurrency which shows just how popular it is.
So, if you’re looking to start your own crypto mining business, then the future is looking bright and a lot of money could be made from doing it.
You’ll now just have to jump over the first few hurdles to ensure you get your start-up off to the best start possible and really hit the ground running.
What is crypto mining?
Before diving into the challenges of crypto mining, we thought it’d be a good idea to highlight what it is for those that are currently unaware. Crypto mining is a way of verifying and adding new cryptocurrency to the blockchain and it can be extremely challenging to do.
Crypto mining can be separated into three different types:
What are the Main Challenges of Crypto Mining and How Can You Overcome Them?
With crypto mining being quite a complicated process, you want to ensure that the conditions for completing your work are the best they can be. This means eradicating the following challenges, so you don’t face any blocks on your road to success.
High Energy Costs
As a start-up, funds may be low until you can start bringing some business in. This means you’ll want your overheads to be kept tight, so you don’t end up leaking all of your profits in bill payments.
With so much technology needed to complete crypto mining tasks, you’ll likely need countless electrical power and industrial cables trailing around your office space to power all your machines that use up a lot of energy.
Some of the ways you can overcome this and reduce your energy consumption are to use less power-intensive protocols or run your mining on electricity from hydroelectricity or solar power.
You may also find that hackers will try to steal your crypto which means all the hours spent mining will be down the drain. To get around this, improve your security features and ensure all staff is well-trained in avoiding hackers.
The threat of the crypto industry becoming centralized is a worry for all that work within it. You can, however, tackle this problem head-on by decentralizing your manufacturing process and implementing a new hash algorithm that will wipe ASIC minors out.
This process is the one of main reasons the industry is becoming more centralised, so needs to be stopped quickly so your business can thrive.