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Mining cryptocurrencies is how new coins are placed into circulation. Because there is no government control and crypto coins are digital, they cannot be printed or minted to create more. The mining process is what makes more of the coin. It may be useful to think about the mining as joining a lottery group, the pros and cons are the same. Mining crypto coins means you’ll really get to keep the total benefits of your efforts, but this reduces your chances of being successful. Instead, joining a pool means that, overall, members are going to have greater chance of solving a block, but the benefit will be split between all members of the pool, predicated on the number of “shares” won.

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The fact that there is little evidence of any growth in using virtual money as a currency may be the reason there are minimal attempts to regulate it. The reason for this could be just that the marketplace is too small for cryptocurrencies to justify any regulatory attempt. It is also possible the regulators simply don’t comprehend the technology and its implications, awaiting any developments to act.

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