When you think about mining cryptocurrency and ASIC hosting, chances are good that bitcoin is the first thing that comes to mind. That’s natural – bitcoin is the most popular cryptocurrency in the world, and the oldest, as well. It’s made headlines around the globe for the myriad ways that people can use it to make money, including mining. However, it is far from the only option out there. You’ll find a host of altcoins on the market today, many of which can also be minded. With that being said, there are some surprising altcoins that cannot be mined at all – you can only buy and sell them. Which ones cannot be mined?
What Is an Altcoin?
The term altcoin has gained prominence in recent years, but it can be a little confusing for newcomers. What is an altcoin? Technically, it is any cryptocurrency that is not bitcoin. For instance, that would make well-known coins such as Ether altcoins. However, the name is more often applied to smaller, newer, and less well-known cryptocoins.
What Is Mining, Really?
When it comes to cryptocurrency, the notion that coins can be mined is almost a given. However, it is not always the case. In fact, some of the most notable and most promising cryptocoins in recent months have debuted without the ability to mine them. So, what is mining, really?
Mining is tied into a process of consensus agreement. Bitcoin uses a consensus algorithm called proof of work, or PoW. Ever 10 minutes, miners find a new block, and receive 25 bitcoins for their efforts. The new block allows data to be written and moved. However, PoW is not the only form of consensus algorithm, and if it is not used, then there is no possibility of mining the cryptocurrency or altcoin in question.
Wax
WAX is a new cryptocoin as of early 2018, and it is notable for debuting without any ability to mine it. Instead of mining, WAX will use DPoS, or delegated proof of stake. Mining is used in a proof of work (PoW) setting. Because DPoS is being used, mining is not possible.
Waves
Another cryptocoin that does not allow mining is Waves. Like WAX, Waves uses dedicated proof of stake, rather than proof of work to manage consensus issues. That means there is simply no way to mine the coin at all.
MaidSafe
You’ll find that mining is not supported with MaidSafe. However, it’s worth noting that MaidSafe is the name of the platform, not the name of the altcoin in question. MaidSafe’s native currency is called a Safecoin. It’s also important to note that Safecoin will supposedly be mineable in the future, but is not at the time of this writing. It is also important to note that mining Safecoin will be based on hard drive space allocated to the project, rather than to graphic card usage.
NXT
NXT cannot be mined in the same way that bitcoin can be, but users/buyers can “forge” new NXT coins. If you have a balance in your wallet, simply leaving it open will earn interest that will eventually earn NXT coins. This is another platform that uses DPoS rather than PoW.
Ripple
The only way to get your hands on Ripple is to purchase it through an exchange. There are no mining options, nor can the coin be replicated through other methods. Note that the price of Ripple will continue to rise, as well, because some coins are destroyed with each transaction, and only 100 billion were created with the debut.
These are just a few of the altcoins available to you that cannot be mined, although some can be replicated in other ways.