How to Mine Bitcoin?
Since the cost of Bitcoin began to be calculated not in cents, but in thousands of dollars, its mining has become much more attractive, and the mining market is very competitive. Mining is computation aimed at creating a new block in the Bitcoin blockchain, a kind of release of a cryptocurrency. Bitcoin emission is limited to 21 million digital coins.
In order to mine Bitcoin, you need to perform calculations and find the required algorithm (hash). The more computing power a miner has, the more chances he has to successfully generate a block. Moreover, with the advent of new blocks, more power is needed to create subsequent ones. The difficulty of mining BTC has increased 10 thousand times by 2015. Previously, miners only needed their PCs and video cards to mine digital money. Soon, such power was not enough - ASIC processors appeared, and altcoins, for example Ether, continued to mine on video cards (and very profitably).
The key players in the BTC mining market today are pools - associations of miners. Each miner in the pool “hammers” his algorithm with a digital pickaxe, which increases the overall chances of getting a hash as soon as possible. Usually, the reward is distributed in proportion to the contribution of computing power. The reward for mining BTC was initially 50 BTC. Then this would not be enough for a can of cola, but today it is half a million dollars. Every 210,000 blocks (every 4 years) the reward is halved. Be that as it may, mining can still make a fortune, which is what thousands of users around the world are doing.
If you want to join them, first of all you need to create a bitcoin wallet where the currency will be stored. Then you will need to buy equipment: an ASIC miner, a power supply and other components, as well as provide a connection to electricity and cooling the ASICs. Then you can join the pool - register on the site and “connect” your computing resources to the shared system of the pool, following the instructions. As a member of the pool, you will need to follow simpler algorithms, and by common efforts the pool will mine a block, receiving 12.5 BTC, of which a part (of course, a small one) will go to you. You will also need to download software to manage your mining equipment.
Pools like Bitminer often have their own software. There are various mining software like BTCMiner, CGminer or BFGminer. Given the high cost of components and the need to keep them running, mining on your own hardware can be challenging. An alternative to it can be cloud mining, when ready-made equipment is simply rented for a certain period. There are many cloud mining services like hashflare or Genesis-Mining.
Although cloud mining involves renting power, not owning it, you do not have to pay for energy, worry about heat and noise, repair and maintain your farms. Ultimately, the profit from mining Bitcoin in the cloud is unlikely to be lower. Therefore, cloud mining, primarily BTC mining, is in significant demand today.
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