Before starting Bitcoin mining, it would be helpful to understand what Bitcoin mining really means. Bitcoin mining is a legal practice and is accomplished by performing SHA256 hash verification processes to approve transactions and offer maximum security to the blockchain. The rate at which Bitcoin is mined is measured in hashes per second.
What miners actually do
The miner is paid to do the auditing work. This consists of verifying previous Bitcoin transactions. This process is carried out to maintain a high level of honesty of users and was devised by the creator of Bitcoin, Satoshi Nakamoto. By verifying a transaction, the miner helps prevent the "double spend problem".
Double spending is a scenario where the owner of a Bitcoin illicitly spends the same Bitcoin twice. With paper currency or money this is not possible: once you have handed someone a 20 euro banknote to buy a good, that banknote no longer has it, so there is no danger that you can use the same 20 euro note to buy another good from the shop next door.
However, there is a risk that the Bitcoin holder could make a copy of the token's digital currency and send it to another user, while keeping the original one. Let's say you have a real and a counterfeit 20 euro banknote. If you had to spend them in the same shop and the merchant had to take the trouble to check the serial numbers, he would find that they are the same and therefore one of the two notes must necessarily be fake. This is what a miner does, check transactions to make sure users have not illegally tried to spend the same cryptocurrency twice.
Step 1 - How to start Bitcoin mining
How to mine Bitcoin? First, you need to buy the hardware to mine Bitcoin. When Bitcoin was launched, it was possible to mine it via your computer's CPU or high-speed graphics card. Today it is no longer possible to do so. Or rather, custom Bitcoin ASIC chips offer performance up to 100 times that of older systems and have dominated the Bitcoin mining industry in recent years.
Mining Bitcoin for free with less powerful hardware will consume more electricity than you can earn. It is essential to mine bitcoins with the best Bitcoin mining hardware, specially designed for that purpose. Several companies like Avalon offer excellent systems built specifically for online Bitcoin mining.
Step 2 - Download Bitcoin mining software
Once you have purchased the hardware to mine Bitcoin for free, you will need to download a particular program to mine Bitcoins. There are many Bitcoin mining software that can be used to mine Bitcoin, but the most popular are CGminer and BFGminer.
Those who prefer simpler software to use, however, can try EasyMiner, which is a Bitcoin mining program with Android, Windows or Linux, with a simple click. The software offers work to the miners and is able to receive the completed work, and then forward the information to the miner's blockchain and mining pool. The best Bitcoin mining software can run on almost any operating system, such as OSX, Windows and Linux. Furthermore, it is possible to mine Bitcoin with iOS with some software made specifically for this purpose.
Bitcoin mining software not only forwards the input and output of Bitcoin miners to the blockchain, but is also useful for monitoring and viewing general statistics of your hardware such as temperature, hashrate, fan speed and average miner speed. of Bitcoin.
There are different types of Bitcoin mining software online and each has advantages and disadvantages, so before you rely on any software, be sure to take a look at everything the internet has to offer.
Step 3 - Join a Bitcoin mining pool
As soon as the user is ready to mine Bitcoin, he must join a Bitcoin mining. These pools are nothing more than groups of miners who work together to solve a block and share its rewards. Without a pool to mine Bitcoin or Ethereum (another very popular cryptocurrency with miners), you can mine a digital currency for over a year and never earn Bitcoin or ETH.
For this reason, it is much more convenient to share the work and share the reward with a much larger group than to do it all by yourself and never achieve anything. Here are some options available online:
For a completely decentralized pool, we recommend p2pool.
The following pools are believed to be currently validating blocks with Bitcoin Core 0.9.5 or later:
- bitmint is
- CK Pool
- Slush pool
Step 4 - Set up a Bitcoin wallet
The next step to mine Bitcoins is to set up an electronic wallet for cryptocurrencies that will allow you to receive the Bitcoins you mine. Copay is a great wallet and works on many different operating systems. In addition, hardware wallets are also available.
Bitcoins are sent to one's wallet, using a unique address that belongs only to one user. To configure the Bitcoin wallet, the most important step to do is to protect it from any threats, keeping it on a PC that has no online access and enabling two-factor authentication. Wallets can be obtained by downloading a software client to your computer.
To also be able to buy and sell cryptocurrencies, here are the best sites to mine Bitcoins:
- SpectroCoin - European exchange with SEPA debit-credit in the same day of request and purchase with credit card
- Kraken - Europe's largest exchange with SEPA same-day debit and credit
- Buying Bitcoin Guide - Assistance in finding a Bitcoin exchange in your country
- Local Bitcoins - This service allows you to search for people in your community who are willing to sell Bitcoins directly
- Coinbase - This is a good starting point for buying Bitcoin. We highly recommend that you do not leave any Bitcoins in their service.
Is Bitcoin Mining Still Profitable?
Due to recent technological changes and the creation of professional mining centers (which have enormous computing power), as well as the volatility of the price of Bitcoin itself, many individual miners are wondering if Bitcoin mining is still profitable. And some miners even want to use their mobile to start the mobile Bitcoin mining.
Several factors determine whether bitcoin mining is still a profitable venture. These provide for the cost of electricity, availability and the price of the computer system to mine. Difficulty is measured in hashes per second.
The hash rate measures the speed of problem resolution; however, the difficulty changes as more miners come into play because the network is designed to produce a certain level of Bitcoin every ten minutes. As more miners enter the market, the difficulty increases to ensure the level is static. The last factor in determining profitability is the price of Bitcoin relative to standard currencies.
To answer the question of whether bitcoin mining is still profitable, it is necessary to use a web-based profitability calculator to perform a cost-benefit analysis. In these calculators you can enter various factors and find out your score.
Additionally, you can determine if you have the start-up capital to purchase the hardware, estimate the future value of Bitcoins, and the level of difficulty. When Bitcoin prices and mining difficulty go down, it usually indicates fewer miners and easier getting Bitcoins. When Bitcoin prices and mining difficulty rise, the opposite is to be expected: more miners for fewer Bitcoins.
What is Bitcoin cloud mining?
Bitcoin cloud mining, sometimes called cloud hashing, allows users to purchase mining hardware output for Bitcoin placed in remote data centers around the world. Genesis Mining and BTC Miner have been offering cloud mining contracts for several years.
This means that Bitcoin mining is done remotely in the cloud. This allows users not to face any of the hassles normally encountered while mining Bitcoin such as electricity costs, hosting issues, heat, installation or maintenance issues.
With this practice, at times, one could mine a more volatile altcoin like MWC, which is superior in scalability, privacy, anonymity and usability at the base level. With the launch of MainNet in November 2019, its value increased from $ 0,22 to over $ 8,00 in its first two months.
Who is Genesis Mining
If you are looking for a smart solution for your investments, you cannot fail to consider the cloud mining offered by Genesis Mining. This cloud mining provider was founded in 2013 and enjoys an excellent online reputation.
Genesis Mining is currently the first name to spring to mind when it comes to cloud mining platforms. However, it is not only the most important hashpower provider in the world, it is also one of the best in terms of benefits and alternatives.
It is essential to remember that this mining service allows you to mine several cryptocurrencies at the same time. So, if you don't know which one to mine, you can benefit from several mining options at the same time! Are you already intrigued, right?
Unlike other online mining sites, Genesis Mining boasts a lifetime mining period. Therefore, it is not necessary to renew the contract year after year as is the case with other competitors. As with other cloud mining platforms, however, you are likely to have to pay a special fee to keep your coins in the cloud.
How to start making money through Genesis Mining
Starting earning with Genesis Mining is as easy as 3-XNUMX-XNUMX:
- Create a free account and choose which cryptocurrency you want to earn
- Purchase the required Hash power
- Receive your first payment the next day
In addition, the service continues to improve and be constantly expanded.
Genesis Mining is a smart choice for those looking for the largest hashpower provider for Bitcoin and Altcoin.
Who is BTC Miner
BTC Miner is a reliable and safe mining platform, capable of generating an average of $ 2 per day! The trading technology used by this platform is now well established and in use for many years in large cryptocurrency pools.
Its online reputation is excellent and confirmed by the testimony of many users. Most of the people who have tested this platform have managed to make steady profits.
Furthermore, the same testimonials state that the platform offers excellent customer service, which responds both by telephone and via live chat in a professional, friendly and timely manner.
Furthermore, it is worth mentioning that Bitcoin Miner cares about the safety of its users by protecting their data with 128-bit SSL encryption. This is essential for any platform that wants to appear reliable in the eyes of new users.
How to make money with BTC Miner
Earn money with Bitcoin Miner it's very simple. Just follow the steps listed below:
- Open an account on the official BTC Miner website and verify your information
- Make a deposit. The minimum deposit allowed is $ 250 but you can deposit even more
- Install the platform using the link provided and open the application to start cryptocurrency mining
- Let the app take care of the mining and everything else, while you take care of your personal business.
This cryptocurrency mining software is based on well-established technology and appears to be reliable and easy to use. All you have to do is install the application on your computer and start it.
Bitcoin Miner is considered reliable because: transparent, safe and attentive to the customer. An initial deposit of $ 250 is required to use the software. However, this seems like a more than reasonable amount to spend for anyone looking to get started and given the perks on offer.
How many bitcoins can I undermine: Mining bitcoin is an increasingly widespread practice among enthusiasts, since it seems to represent a faster way to get a greater number of these cryptocurrencies, however what a novice miner often asks is,
How many bitcoins can I mine?
Well, the answer is first: it depends on the method used. If you use hardware, knowing how many Giga / Hash the device you are using can produce, you can also get an idea of how many bitcoins you can undermine. From this site for mining hardware comparison you can take the data you need.
With this formula instead you can estimate how many bitcoins you can undermine based on the difficulty:
Bitcoin / day = (Hash / sec * 3600 * 24 * 25) / (2 ^ 32 * difficulty) ~ = GigaHash / sec / (difficulties in millions * 2)
The difficulty indicates a specific parameter with regard to bitcoin mining, but it is rather volatile, since it undergoes changes at least every two weeks, which means that to get a clear idea about your possibilities you will have to review the formula given rather often.
Table how many Bitcoins to mine
However, this formula does not take into account external factors such as pool tax, share prices, invalid blocks, pool uptime, PC uptime.
The formula that instead takes into consideration the factors just mentioned and which can therefore be a little more precise is this:
BitcoinReali / day = GigaHash / sec / (difficulties in millions * 2) * (1 - PoolFees%) * (1 - StaleShares%) * (1 - InvalidBlock%) * (1 - HWError%) * PoolUptime% * PCUptime%
Is mining bitcoin 2019 / 2020 worthwhile?
Not exactly. To undermine bitcoin you need a fairly powerful computer and a stable and strong Internet connection. Both things involve considerable costs, just take a look at the prices of processors on Amazon.
What is convenient, although in a very broad sense of the term, is mining with sites like Free Bitcoin, which practically allow earn bitcoins looking at advertisements or playing games. Note: these are really minimal gains.
- Q) How long does it take to mine a Bitcoin?
- A) If we talk about costs, according to a fairly recent study, the current price of Bitcoin easily allows most miners to make interesting profits from Bitcoin mining, given that the cost to mine a Bitcoin is around 5 thousand euros. . Considering that today a Bitcoin is worth almost double ...
- Q) How long does it take to mine a Bitcoin?
- A) In reality there is no real answer to this question. It is estimated that with all the computational power in the world, it is possible to generate a new Bitcoin every 10 minutes, however, the possibility of an individual miner appropriating this Bitcoin depends on their computational power and even a little luck. For this reason, it is more profitable to share the results in a pool of miners.
- D) What does it mean to mine Bitcoin
- A) Mining means verifying every transaction that is added to the public register known as the blockchain, but not only, because it is also the process that makes it possible to issue new cryptographic coins, up to the maximum cap set at 21 million.