Before you continue reading, you should realize that most bitcoiners stopped mining a long time ago as solo mining is no longer profitable as they move to trade through services like torque trading system that helps them with efficient and fast trading of crypto currencies. In any case, if you decide to play with Bitcoin mining on your own you should get the best equipment possible. Bitcoin mining is unpredictable in terms of profits as the Bitcoin value and mining difficulty can change rapidly. Solo Bitcoin mining should be done for entertainment purposes only – to learn or support the security of the Bitcoin community.
What is Bitcoin mining?
Bitcoin mining is like a gamble where you compete with other miners on the system to acquire bitcoins. More powerful Bitcoin mining equipment can help you win the reward leaving the rest of the Bitcoin miners without any reward whatsoever.
Bitcoin mining enables registering records of Bitcoin transactions into the blockchain, which is needed to confirm transactions to the rest of the network and help Bitcoin nodes to identify legitimate Bitcoin transactions and disregard fake transactions where users try to spend or transfer Bitcoins that have been already spent elsewhere.
How Bitcoin Mining Works
Bitcoin mining is done by running SHA256 double round hash verification processes. Your Bitcoin mining power is measured in hashes per second. The Bitcoin network rewards the Bitcoin miners for their work by releasing bitcoin to those who contributed the required mining power and solved the block faster. The reward can come in a form of both newly created bitcoins and transaction fees. The more hashing power you contribute then the greater reward you may receive.
Types Of Bitcoin Mining
Hardware mining. To start mining bitcoins at home, you’ll need to buy a bitcoin mining hardware. it’s no longer possible to mine with your computer CPU as the hash rate increased dramatically. You need to purchase custom Bitcoin ASIC chips. Don’t forget, you also need a source of cheap electricity otherwise bitcoin mining will no longer profitable. Cloud mining. Another option is to join the Bitcoin cloud mining club. This makes the process extremely simple. You don’t need to buy hardware, pay for electricity, or care about hardware upgrades.
How Do You Make Money Mining Bitcoin
As we mentioned before, solo mining is no longer profitable. Every year, Bitcoin mining hardware gets even more sophisticated. By the time you order, receive, and configure your new Bitcoin mining equipment, it will become outdated and you won’t be able to compete with other big miners or mining pools that have fast access to the latest equipment and cheap power.