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Understand how How to mine bitcoin?


 How to mine cryptocurrencies?

bitcoin mining, bitcoin, crypto, what is mining

Bitcoin mining is the process by which new bitcoins are put into circulation. It is also how the network validates new transactions and is an essential part of maintaining and improving the blockchain ledger. "Mining" is accomplished using advanced hardware that solves an extremely complex mathematical computation problem. The first computer to find the solution to the problem receives the next bitcoin block and the process starts over.

Cryptocurrency mining is laborious, expensive, and occasionally rewarding. However, mining has a magnetic appeal for many investors interested in cryptocurrency as miners receive rewards for their work with crypto tokens. Maybe it's because the enterprising types see mining as a penny like the California gold prospector in 1849. And if you're tech-savvy, why not?

The bitcoin reward miners receive is an incentive that motivates people to participate in the core purpose of mining: to legitimize and track bitcoin transactions, and ensure their validity. Because many users around the world share these responsibilities, Bitcoin is a "decentralized" cryptocurrency, meaning it is not dependent on any central authority, such as a central bank or government, to oversee its regulation.
But before you invest time and equipment, read this explainer to see if mining is really for you.

2) Why mine bitcoin?

  • By mining, you can earn cryptocurrency without having to deposit money.
  • Bitcoin miners receive bitcoin as a reward for completing "blocks" of verified transactions added to the blockchain.
  • Mining rewards are paid to the miner who first discovers the solution to a complex hash puzzle, and a participant's probability of discovering the solution is based on the network's share of the total mining power.
  • To build a mining rig, you need a graphics processing unit (GPU) or an application-specific integrated circuit (ASIC).

3) Mining Hardware

Bitcoin mining rewards are halved approximately every four years (halving event). When Bitcoin was first mined in 2009, mean every 4-year the mining difficulty increased.

All this says, miners now need to invest in powerful computing hardware like a graphics processing unit (GPU) or, more realistically, an application-specific integrated circuit (ASIC) to mine competitively. These can range from $500 to tens of thousands of dollars. Some miners, especially Ethereum miners, buy individual graphics cards as an inexpensive way to smooth out their mining operations.

Today, bitcoin mining hardware consists almost entirely of ASIC machines, in which case they do one thing and only one thing in particular: mining bitcoins. Today's ASICs are much more powerful than CPUs or GPUs, gaining both more hash power and power efficiency every few months as new chips are developed and deployed. Today's miners can generate around 200 TH/s at just 27.5 joules per terahash.5