Part 3/8:
Understand Tokenomics and Emissions
A fundamental aspect of successful mining lies in comprehending the underlying mechanics of the coins being mined. Two critical factors to investigate are the coin’s issuance and halving events. An example presented is Bitcoin, where miners might earn a substantial daily profit one month but see that diminish post-halving if rewards reduce without an increase in coin value.
Additionally, the economics of coins like Dogecoin, which boasts an infinite supply, differ starkly from capped currencies like Bitcoin. Misjudging these differences can lead to misguided financial expectations.