Click here to get this post in PDF
Bitcoin is still the most expensive digital currency. At first, one bitcoin was worth 1 cent; in December 2017, it was worth $20,000. The exact earnings of those who believed in the cryptocurrency from the beginning are difficult to calculate. But they all became dollar millionaires. So what does it take to make money mining bitcoin now?
Mining is the mining of encrypted and limited amounts of cryptocurrency software code. Based on it, mathematical calculations take place. We also recommend reading how to mine dogecoin. The measure’s result is to find a new blockchain – a blockchain. For each found blockchain, there is a reward in the form of crypto coins.
How to mine bitcoins
Mining is the mining of cryptocurrency. Recall that the number of BTC coins is limited, and the issue is known in advance. Any state organization does not regulate cryptocurrency. Anyone can engage in bitcoin mining. It was possible to mine new coins at home with a computer and a powerful video card until recently. Today you can’t make money that way.
Only cloud mining sites can make money mining Bitcoin. And even Asic is no longer profitable. Bitcoin mining is getting more and more complicated every day, its cost of production is increasing. Initially, there were a lot of bitcoins, but the currency itself did not cost anything. Now the price of coins is in the thousands of dollars. Every bitcoin found is a real trophy for the miner. And the miners themselves have become more creative and technologically savvy.
They use potent, expensive equipment and invent new schemes and ways to increase the profitability of mining to recoup their investments and earn money. So now a bitcoin miner is Indiana Jones in the cryptocurrency world. He has to do the impossible to achieve his goal constantly.
There is also a simplified way to get the desired coins – to use automatic miners. Mining cryptocurrency in automatic mode is the best option for dummies, for whom the principle of mining coins is still a little bit unclear.
What is bitcoin mining?
The principle of mining is that computers worldwide, located at different points on the earth, solve mathematical problems. Blockchain is a chain of blocks in which information about all transactions/transfers is stored.
The mining process is not controlled by anybody and is distributed to all participants in the network. This ensures complete decentralization and data security.
How bitcoin mining works
All transactions are recorded in the Bitcoin public network. Then, the data is transmitted to the miners along the chain. The goal of their actions is to pick one single hash out of a million combinations. It fits all new transactions and the secret key. Without it, it will not be possible to get the reward.
When the computer picks up the correct hash, the block is closed. Then, the miners or members of the btc mining pool are rewarded and start generating the next block.
Mining is divided into amateur and industrial. In the first case, the mining of coins takes place on a computer with the help of a particular program. To date, this method is long and inefficient.
Industrial mining uses a set of special equipment – ASIC. It consists of powerful computers, graphic cards, and cooling systems. This method is effective but very expensive.
You may also like: Tips in Setting Up Your First Cryptocurrency Mining Rig
Image source: Shutterstock.com
