Digital currency mining has become a widely discussed topic amongst crypto enthusiasts seeking alternatives to generate profits from the burgeoning cryptocurrency industry. While some people believe that mining can give you a decent profit, many others claim it’s competitive and expensive.
This article will specifically consider the Tron (TRX) cryptocurrency and answer some frequently asked questions on whether it’s possible to mine Tron cryptocurrency and how to receive TRX as a reward from mining. However, before we get to these questions, below is brief information about the cryptocurrency.
What is Tron?
Tron (TRX) is the native cryptocurrency of the Tron blockchain. The network was launched about four years ago by a Chinese tech entrepreneur named Justin Sun. Tron blockchain is one of the leading decentralized peer-to-peer networks dedicated to building the infrastructure for a truly decentralized Internet.
The network also aims at building a global digital content entertainment system that will eliminate intermediaries and allow content creators to easily connect with their audience at competitive fees.
TRX is used as the means of exchange on the network. Tron (TRX) was ranked the 23rd-largest digital currency during the time of writing. It has a market capitalization above $4.6 billion, according to Coingecko. Over the last three months, the coin has risen from $0.03 to $0.06.
Is it possible to mine Tron?
Unfortunately, you can not mine Tron.
Note that cryptocurrency mining is basically a process for verifying transactions on a blockchain, wherein new coins are minted into circulation as rewards to the miners. The maximum supply of Tron cryptocurrency has already been reached, meaning all the coins are in circulation. Hence, there is no new TRX cryptocurrency to be mined, unlike Bitcoin (BTC) and Ethereum (ETH), which are yet to reach their maximum supply.
The Tron blockchain is secured through a delegated Proof of Stake (PoS) consensus model. This essentially requires the network users to stake certain amounts of the cryptocurrencies to assign network validators, who would earn transaction fees for verifying transactions made on the TRON blockchain. So, it’s impossible to mine Tron; however, it doesn’t mean the cryptocurrency can’t be earned or purchased.
Are there alternatives to mine Tron?
Of course, we would not be putting together this article if there was no way for you to earn in Tron from mining activities. You can get mining rewards in Tron by mining its supposed rival, Ethereum. This can be done using a more advanced computer system like GPU (Graphics Processing Unit) and not the regular CPUs. This is because mining ETH requires high computational power, which might either overload or damage CPUs when used.
After you have secured a GPU, the next thing you need is GPU mining software. Preferably, you should get Ethereum mining software since you are dealing with ETH. Open a file with the words “start eth.” Here, you would see an algorithm, which will take you to a text document. Ethash, RandomX, and X16Rv2 are three algorithms you can choose from.
Now, here is the interesting part. You have to copy your TRON address and use it to replace any text you see in the document. Place your address too anywhere you see “your wallet address.” This now ensures that any mining you do gets rewarded in TRX.
Do not forget to look for a file labeled “start.dat.” This file tells the mining equipment what coin to mind and the algorithm to use. If this is not set up correctly, it could be wasting power and effort in the name of mining.
Note: this doesn’t mean you are mining the Tron blockchain.
What equipment do I need for mining?
As earlier stated, you need a GPU for basic TRON mining. However, if you want to level up in cryptocurrency mining, you need to get an ASIC. ASIC mining machines have higher computational power, and it’s mostly used by Bitcoin miners. It can also be used for mining other cryptocurrencies efficiently.
However, there are cons to using ASIC machines. They are usually noisy and can generate a lot of heat. Beginners or those who just want to mine cryptocurrencies often can choose to stick with GPUs.
Does Tron have a future?
This is another question frequently asked by people who are looking to mine Tron (TRX). It’s important to consider the future of any cryptocurrency before venturing into it, either through mining or investing. You wouldn’t want to waste your time to mine Tron or any other cryptocurrency that doesn’t have real use cases or demand.
Since TRX is the native digital currency of the Tron blockchain, its market performance is usually influenced by the traction on the network. A surge in Tron network adoption would possibly trigger a decent increase in the market value of the cryptocurrency. Based on this, some predictions hold that the TRX cryptocurrency might reach the $0.5 mark in the coming years.
CoinSwitch predicts that the market value of TRX could surge to $0.7 in the next four years before reaching the $1 mark in 2030. This is obviously a bullish prediction. However, not all these predictions should not be taken as financial advice.
Is Tron mining profitable?
Well, the answer to this question depends on a number of factors. Firstly, you have to take into your account your expenses. Mining consumes a huge amount of electricity, so you have to measure how much you spend on it.
Mining equipment such as ASIC is expensive, although they are much better than using GPUs. Also, the number of miners in your mining pools can reduce your profit. When a block is completed, miners share the profit. More miners mean less profit for you.
So, all these factors would determine if you are able to make a profit.
Although it is impossible to mine Tron, it is still possible to get rewards in Tron, as we have seen above.
Do note that there are several fake applications, websites, and pools that would claim to help you mine Tron. Your best bet would be to stick with the steps explained in this article to avoid losing your resources or wasting your time and money. The Tron you earn from mining other blockchains can always be traded for fiat or digital currency for profit.