If we think about it, there are still so many people out there who don’t have any idea about Bitcoin. Its entire concept, how it works, and how to mine Bitcoins. For this reason, we will explain to you the basics of this digital currency and everything you need to know to begin bitcoin mining. So, are you ready to explore this new world? If you do, then get ready to dive in.
To give you something to imagine, Bitcoin mining is very similar to mining gold. However, Bitcoin mining is different. In a way that, it only happens in the world of the internet while mining gold is done in physical quarries and mines.
When it comes to their similarities, it is notable that the process of both is energy intensive and incredibly costly. In terms of gold, miners need to put extreme effort to dig the ground until they reach the actual ore where the rare mineral resides. This ore needs to be confounded so it’ll be ready to be taken to the place (specifically to a factory). Wherein the mineral will be processed to get the perfectly refined gold that it has to be.
See? Mining gold requires a lot of effort, energy, and money. Therefore, expect Bitcoin to require those particular elements too. In order to mine Bitcoin, miners must head to a legitimate block of bitcoin on the internet. While it is similar to mining gold wherein you have to find the ore comprising the rare mineral, mining bitcoin goes more than just mining the bitcoin block.
The said block is often compared as similar to a lottery. It is because the process of winning new bitcoins only occurs through the lucky guesses of the miners. Which means, if you happen to give a wrong guess then you don’t get a bitcoin. But if you are right, you’ll have it. Just take note that these guesses are not as simple as a, b, and c. Moreover, you can’t just make a random one which might probably make sense if you do it in lottery and gambling. Rather, these guesses have to be constrained and highly informed. You can tell it requires a lot of energy. And of course, money.
How to Mine Bitcoins
In our previous article, we talked about the best ways and cites to buy bitcoins. So, since you are already here. It seems that you are quite (if not very) interested in this digital currency. For this reason, we will teach you everything you need to know in order to mine bitcoins today with our step by step beginners guide to bitcoin mining.
Get a Mining Rig
To start mining, you have to get a mining rig first. Initially, bitcoin miners utilize ordinary domestic computers. Afterward, graphics cards were introduced. Meanwhile, if you use either of the two to mine expect to gain something very small. Let alone that it would take you for an incredibly long time.
Today, bitcoin mining requires special bitcoin mining hardware to extract coins. Like so, it works for other currencies that utilize a similar algorithm. This bitcoin mining hardware is called Application-Specific Integrated Circuit chips or in short ASIC. It only uses less energy and you can mine bitcoin extremely faster with it compared to others.
However, this hardware is gold. Meaning it is quite expensive because manufacturing it takes time. On the other hand, its speed is, in fact, astonishing that can allow you to mine bitcoin practically faster. Imagine, these powerful machines can solve more than 14 terahashes for each second. Meaning, it renders 1012 attempts in order to solve a bitcoin block each second. Furthermore, the development of these powerful bitcoin mining hardware continues to move forward. And that is good news for every bitcoin believers out there.
Create Your Bitcoin Wallet
This is your next stop. You have to get your own bitcoin wallet. This is the only way you can receive your bitcoins and manage them. Moreover, bitcoins are specially stored in Blockchain and their address has a form of matched private and public key. Wherein, public key has a completely unique combination of characters that basically works just like a bank account number. This way, you can receive Bitcoins from others as well.
For beginners, we recommend you to download a software wallet on your computer to secure and manage your mines easily. There are two versions of this software which includes a lightweight that only stores the relevant transactions you need. And the one that downloads the entire blockchain.
Join a Pool
Today, it is nearly impossible to acquire a single bitcoin even with the use of the most powerful ASIC miner. However, when there is unity anything is possible.
While large bitcoin mining farms exist around the world to mine with the most powerful Bitcoin mining hardware, most of the miners gather in groups in their so-called mining pools. In here, miners pass their computing power to a selected group. So when bitcoins are finally mined, they divide the gain among members depending on the power given to them.
Mining in pools can provide a regular income. Yet, it is lower compared to most of your expectations. Like so, pool members have to pay the pool operator with fees pricing particularly between 0 to 2 percent of the reward they received.
Get a Bitcoin Mining Software
If you’re done setting up the things above. Then you are ready to complete your list. At this point, you have to get a bitcoin mining software to run on your own computer that will link you to the bitcoin network and blockchain. Excellent mining software gives miners work. Afterward, they will collect the results then notes all information collected to the blockchain. More so, it monitors the activities of a miner and then provides basic statistics such as cooling, temperature, average mining speed, and hash rate.
Furthermore, there are a lot of free mining programs out there that you can utilize to mine bitcoins. Find the best that can work on most types of operating systems and consider that each has its pros and cons as well.