While success in individual mining enables the award alone; the probability of success is very low due to the high power and resources needed to win the reward. Mining is generally not a profitable venture for individuals. In recent years, mining for many cryptocurrencies has become increasingly difficult, with the increasing popularity of digital currencies and the expensive hardware and electricity required to become a competitive miner, as well as electricity expenditure is often higher than potential rewards.
Mining pools require each participant to spend less in terms of hardware and electricity costs and increase the chances of profitability. An individual miner has little chance of finding a block successfully and receiving a mining reward. Also, working with others increases the success rate significantly.
- CandleFocus Editor
Benefits of Mining Pool