Bitcoin Mining is a process by which transactions are first verified and then added to the public ledger, also known as blockchain. Anyone who has proper access to the internet and a suitable and powerful hardware can participate in bitcoin mining. Bitcoin mining is specially designed to be resource-intensive and the number of blocks that are found by miners remains steady that is somehow difficult. Individual blocks must have proof of work so that they could be considered valid. This proof of work is later on approved by other Bitcoin nodes whenever they receive a block. The main concern would be that how much is 1 bitcoin? So 1 bitcoin these days is 16405.01 US Dollar.
What is Proof of Work?
Another question which comes to the minds would be What is Proof of Work? A proof of work is a remarkable piece of data which is very difficult to produce to satisfy some of the basic requirements. It is a process that generates proof of work with low probability and efficiency so that the number of trials and errors is required before a valid proof of work is produced.
Bitcoin is Secure
Bitcoin miner help to keep the Bitcoin network secure by approving the transactions. Mining is an important part of Bitcoin that ensures fairness while keeping the Bitcoin network safe and secure.
Bitcoin Mining Guide
In this article you will learn about:
- How does bitcoin mining works?
- How you can start bitcoin mining?
- Which is best bitcoin mining software?
- Where you could find the best bitcoin mining pools?
- How you could optimize your bitcoin mining earnings?
How Bitcoin Mining Works?
The main question which arises here is where do bitcoins come from? Bitcoins don’t have a central government instead of in Bitcoin mining, the miners use special software to solve the mathematical problems and in exchange for this, they are issued the certain number of bitcoins. This a smart way to issue currency and also creates an incentive for other people to come and mine over here. Bitcoin mining is legal. The bitcoin network appreciates their Bitcoin miners for their effort by giving bitcoins to those who contribute towards the needed computational power. The more the computing power you will contribute, the greater the reward you would be getting.
How you can Start Bitcoin Mining?
To start bitcoin mining, you shall need a bitcoin mining hardware. In the early days of mining, it was possible to mine with the help of your computer CPU or high-speed processor but that’s not possible now. Custom Bitcoin ASIC chips offer great performance up to 100x. Bitcoin mining utilizes more electricity so you have to use the best bitcoin mining hardware to save electricity. Several companies offer excellent bitcoin hardware for bitcoin mining and one of the company is Avalon.
Bitcoin Mining Hardware Comparison
Based on price and electrical efficiency the best bitcoin mining hardware is:
The advertised capacity of AntMiner S7 is 4.73 Th/s, power efficiency is 0.25 W/GH, it’s weight is 8.8 pounds and it is available in the market at $479.95.
It’s advertised Capacity is 13.5 Th/s, it’s power efficiency is 0.098 W/Gh, it’s weight is 8.1 pounds and it is available for $1,987.
The Avalon 6 weight is 9.5 pounds and it is available for $499.95.
Download Free Bitcoin Mining Software
Once you have received your hardware, you have to download some command line programs, the most popular command line programs include Cgminer and BFGminer, and these programs are specifically used for bitcoin mining.
Join a Bitcoin Mining Pool
When you are ready to mine the coins then you have to join a bitcoin mining pool. These pools are specialized groups of Bitcoin miners working together to solve particular block and share its reward. If you are not having these pools, you would be mining bitcoins but would never be able to earn bitcoins. The following pools are believed to be currently fully validating blocks:
- Bit Minter
- CK Pool
- Slush Pool
Best Bitcoin Cloud Mining
Bitcoin Cloud Mining enables the owner not to encounter any of the hassles and basslines usually faced by most of the people while mining the bitcoins such as excess heat loss, constantly humming fans, electricity costs and ventilation problems with hot pieces of equipment. There are tremendous bitcoin cloud mining scams which are listed below:
- Hashflare Review
- Genesis Mining Review
- Hashing 24 Review
- Minex Review
- Minergate Review
- Fishnet Review
- Bitcoin Cloud Mining Review
- NiceHash Review
- Ebot Review
- MineOnCloud Review
What is the Difficulty?
Bitcoin mining is somewhat a difficult task because the SHA-256 hash of a block’s header must be lower than or equal to the specified target in order for the block to be accepted by the network. The hash of the block starts with a certain number of zeros. Many attempts have to be made for calculating the hash.
The Bitcoin Network Difficulty Metric
The bitcoin mining network difficulty is the measure of how much difficult it is to find a block compared to how easy it can be. As more miners will join this task, the rate of block creation will continue to increase up. As the rate of generation of the block increases, the difficulty level also rises up to compensate which will again push the creation of block back down.
When a block is discovered by someone, the person who discovered that box award himself with a certain number of bitcoins, which is agreed upon by everyone who is in the network.