Is Stellar Mining Profitable?
Introduction to Stellar (XLM)
Stellar refers to the decentralized Blockchain-based network that enables users to create, transfer, and conduct trading in a variety of cryptocurrencies. Since its inception in 2014 and launch in 2015, the network has been quite successful in creating a single platform for several financial systems. The cryptocurrency of Stellar network is lumen (XLM). The network of Stellar operates with the help of multiple servers. The servers make sure that the activities performed at the Stellar network are verified and authenticated by various sources across the network.
What Is Stellar Mining?
There is no mining-based cryptocurrency of the Stellar network. During the genesis of the network, almost a hundred billion stellars were created. Upon creation, the stellars get distributed by the Stellar Development Foundation. In the near future, the network of Stellar will adopt the novel consensus algorithm called the Stellar Consensus Protocol to facilitate the mining of Stellars. As of now, users may obtain Stellars by engaging in trading and investment at the Stellar network, taking part in the giveaway program of the Foundation, and participating in inflation voting. In order to become a miner, one needs to join the mining pool. It is important to purchase professional and highly efficient miners or mining computers called ASIC to mine Stellar lumens successfully.
Need of Stellar Mining
Mining in the Stellar network is important for the creation of Stellars, distribution of Stellars, and verification of transactions at the Stellar network.
The built-in cryptocurrency token of the Stellar network is lumen. The XLM token or lumen gets traded at multiple cryptocurrency exchanges. The Stellar network interconnects people, banks, financial institutions, and payment systems to facilitate cross-asset transfer and payments at low costs.
Is It Profitable to Mine Stellar (XLM) Coin?
Raking in profits from Stellar mining is a tad too complicated. The profitability of mining in Stellar depends on a variety of factors that include electricity availability and cost, taxes, set up of mining rigs, and so on. Users may consult the profitability charts of Stellar and make investments accordingly to earn a decent income from the Stellar network.
Okay, Now See What’s the Current Stellar Price
The current price of Stellar lumen is $0.2021. Lumen is the native asset of the Stellar network. It has an annual rate of inflation of 1%. Lumens make sure that the Stellar network users maintain their minimum account balance and do not overwhelm the network with transactions. The crypto tokens also acts as a bridge between two different currencies and facilitates trading between two currencies when the direct market is not big enough to accommodate transactions.
There are approximately 22.5 billion lumen tokens in circulation today, while the maximum supply of lumen tokens is 50 billion. Originally, the Stellar Foundation had 100 billion lumen tokens but then it burned a half of it in 2019. In May 2020, the value of lumen plunged by more than 2/3rd of its initial price. According to XLM price prediction experts, Stellar’s lumen is still one of the best performing and most trusted altcoins for investing in the cryptocurrency market. In March 2021, the market cap of lumen was recorded to be of $8.3 billion. The cryptocurrency ranks 11th on the charts of the CoinMarketCap. The basic mining fee of each lumen transaction is 0.00001 lumens.
Future of Stellar (XLM)
The primary focus of the Stellar Network is to develop a novel economy in the arenas of bank loans and remittances for those users who are beyond the scope of banking services. Stellar does not impose any charges on the users for employing the Stellar network for transactions. As a network for cross-border payments and transfers, Stellar aims to decrease the costs and delays involved in the execution of transactions. Even though Stellar is similar to Bitcoin, its technology differs significantly from that of other technologies owing to the unique consensus protocol. The Stellar Consensus Protocol makes the network an open-source system. The protocol restricts the transaction authentication procedure to a set of reliable nodes instead of exposing it to a vast network of nodes. In the near future, the network of Stellar is going to work on reducing the approval cycle in order to facilitate the faster execution of transactions.
Stellar may be a good investment choice as is evident from the good performance of lumen in the crypto market. The price of lumen has increased greatly over time and the overall increase in the value of the token since its inception suggests that lumen could be a viable asset for long-term investment. Even though Stellar network has burned more than half of its tokens, yet, it is important to understand that the scarcity of the tokens in future will pump up its price and investment potential. Crypto users may purchase lumen at Kraken, Coinbase, Binance, Huobi, and other cryptocurrency exchange platforms.