Bitcoin news

What is Bitcoin Mining?

We decided to explain to you what is the Mining di Bitcoin for more than one reason. To clarify, first of all, how the mining mechanism works but also to answer the question: "mine bitcoin it means to receive crypto free?".

In the Bitcoin platform all transactions are stored and validated through an immeasurable database distributed among all miners. When a transaction is validated, miners are rewarded with a new bitcoin.

In practice, with the mining system you just need to make your PC available and participate in the distributed computing network. Yes, but is it worth it? How much do you get from such an operation?

We will answer these and other questions by describing how mining works.

bitcoin mining - What is Bitcoin Mining?

What is Bitcoin Mining: is it worth it?

Based on what we mentioned at the beginning, the calculation time of the computer is paid off with new bitcoins.

If you have a high-end computer and keep it on for 3 days you could get 0,00003 BTC. Small change in the face of significant electricity expense (72 hours) which would lead to a loss.

Anyone wishing to mine from home with better results should buy computing devices much more powerful than a normal computer with extremely low energy consumption. We are talking about expensive hardware devices such as Bitmain Antminer S7 or Antminer S9 ~ 11.85TH / s.

Considering i high costs of these devices, mining for mere mortals is not a convenient way to earn Bitcoins. Such an activity is recommended for true Bitcoin experts.

The work of the most experienced miners

Experienced miners use GPU, not ordinary computer CPUs, for the so-called hashing because GPUs speed up running hash (functions underlying the cryptocurrency) to solve cryptographic calculations.

The so-called hashrate is the ability to produce hash, hence money, from the activity of a processor. High-level miners, over time, have managed to increase the hashrate by connecting numerous GPUs and creating small ones cryptocurrency farm to produce money quickly. Stuff from veterans able to contribute their hardware resources to run the Bitcoin protocol by receiving interesting rewards.

Thinking of certain machines that are currently capable of calculating trillions of hashes per second, the home PC or normal laptop makes you smile a lot.

Mining Bitcoins is not easy

Here what is needed today to do Bitcoin Mining:

- Password protected wallet on which to deposit earnings and keep transactions;

- Specific software package for mining;

- Internet connection h24 of at least 2 MB per second;

- Subscription to a exchange online currencies that allow you to exchange currencies for money and vice versa;

- Several GPUs or ASIC circuits with costs ranging from $ 90 for a used part to $ 3.000 for a new one;

- Cool environment to install the hardware and ventilation system to cool the computer;

- Desktop station with a dedicated PC, intended only for Mining.

It is also necessary to join a mining pool to join forces and increase profits.

From FPGA systems to Bitcoin cloud mining

In addition to the speed of the processors, the difficulty in the Bitcoin mining process is the high energy consumption which implies.

To try to solve the problem, miners over the years have switched from using energy efficiency systems FPGA (expensive) to the cheapest ASIC, circuits specially designed to mine cryptocurrencies.

The use of the ASIC platform has increased the complexity of the calculations, which changed every 2016 blocks. This complexity is proportional to the computing power used for mining.

The speech changed with the entry of the data center which provided the computing power while reducing costs for each individual miner. The natural evolution of the data center was the Bitcoin cloud mining which revolutionized the process. It eliminated the need to acquire large amounts of hardware and pay energy costs personally in the face of a downside: low earnings and the possibility of fraud, as cloud mining operators cannot be controlled.

What is Bitcoin Mining and how convenient it is: conclusions

Bitcoin Mining allows you to receive new bitcoins for high investments (specific hardware, electricity). It is an activity that could be convenient in countries such as China where energy costs are very low.

Those who do not have the opportunity to invest in mining can earn by buying bitcoins or selling them short. In this case, we recommend doing bitcoin trading exclusively with the best authorized, regulated, safe and reliable platforms such as eToro, Plus500, Trade, Forextb and Iqoption.

Buying Cryptocurrencies? Exchange Binance Binance

Jacqueline Facconti

Graduated in Business Economics and Strategy, Management & Control with 110 cum laude from the University of Pisa, editor and editorial collaborator for various blogs and Economic and Business sites

Similar posts

Leave a comment

Your email address will not be published.

Back to top button