Bitcoin is a decentralized cryptocurrency that is totally independent of entities such as banks or states, in the sense that no external body controls the issuance of Bitcoin. It is based on one principle: mining. Bitcoin is based on blockchain protocol. In this sense, it is possible to mine Bitcoin.
Explaining every block creation may be exhausted multiple ways; but, some sound terribly confusing, however it additionally depends on however abundant you perceive technology. Therefore, hearing or reading it the 1st time will be tough to understand.
1- Start a new block. Even if the miners ar half-way done validatory a block,eventually, they’re going to drop everything and target beginning a replacement block.
2- Select a replacement dealings. this can be once the miners ar selecting from thousands of operations that ar broadcasted over the network
3- Check priority of the dealings. this point the miners will return to preferred by beginning a replacement block if they realize that the dealings they need designated antecedently isn’t that important. However, if the priority is high, the miners could persist and move to successive step.
4- Check that the dealings is valid. This is a method that each laborer should check, there’s no exception of avoiding this step for any laborer. However, if the dealings is found to be faked, or not valid, the miners need to stop the method,and return to number one and begin a replacement block and acquire another, hopefully, valid dealings
5- Accept the dealings. If the previous dealings was tested as a valid dealings, it should be accepted.
6- Seal the dealings. Again, if the dealings has been found valid and accepted,now it’s time to seal that dealings.
7- Add the dealings to the dealings tree within the block. This method will solely be done once all previous steps are verified.
8- Check for the scale of transactions. The miners ought to check if there ar enough dealingss inside the transaction tree, to seal the block. If there don’t seem to be enough transactions nonetheless, the laborer can not be in a position to seal the block till there ar enough transactions. Therefore, the miners should go back to range a pair of of choosing a new dealings once more, and again, till there ar comfortable transactions for waterproofing the block.
9- Check interruptions. this can be the method wherever the laborer should ensure that noother miners have sealed the block within the meanwhile with identical transactions within the block.
10- Seal the block. Once there ar enough transactions for waterproofing the block, the
miners can seal the block.
11- Broadcast the block. The miners should broadcast the new block that has beensealed; but, if the miners are interrupted inside the block waterproofing method, they could need to begin a replacement block everywhere once more.
12- Start a replacement block. this can be successive step within the process; but, as you see, weare currently back to step number one. As i discussed, miners may get interrupted whereas they’re waterproofing the block and once they broadcast it, if another block has already been sealed by another laborer with identical transactions inside a block,the block won’t be accepted. Therefore, you need to begin a replacement block.Each block is made regarding each ten minutes. As a result, one hundred forty four blocks ar created every day.As i discussed before, the miners UN agency have with success supplementary a replacement block intoa blockchain get rewarded a degree of bitcoin.
How can Bitcoin be mined? The 3 best solutions :
Bitcoin mining can be done in several ways, individually from home or by joining a mining cluster.
- Making bitcoin cloud mining
The most simple and economical method to mine Bitcoin is to do Bitcoin cloud mining.
Bitcoin cloud mining consists of using the computing capacity of a company specialized in Bitcoin mining. In a way, by doing so, you are renting the computing and storage capacity of the company concerned.
With cloud mining, you don’t need technical knowledge or to buy expensive mining equipment to do the mining.
You won’t risk damaging your computer’s processor either, and you’ll avoid the electricity charges that apply in individual mining.
Cloud mining is also faster and allows you to mine Bitcoins and your other first crypto money in just a few hours. Some cloud mining platforms also allow you to purchase Bitcoin on their platform.
However, some platforms have a dependency on an intermediary that decreases your gain when you mine and many cloud mining platforms are new on the market, so make sure you choose a reputable cloud mining platform (for example Genesis mining, a reference for mining Bitcoins).
How to make Bitcoin cloud mining?
Step 1: Open a Bitcoin Wallet
If you want to undermine Bitcoin, one of the first things to do is to open a Bitcoin Wallet to secure your Bitcoins. There are several possibilities:
Using a virtual wallet: These are wallets to be installed directly on your computer or mobile device. They allow you to follow the evolution of your Bitcoin wallet in real-time. Using a physical wallet: Such as USB keys or physical storage spaces on which private keys are available.
Step 2: Using a cloud mining platform
To start Bitcoin mining, you will need to open an account on a bitcoin cloud mining platform.
To create your account, you will need to fill in the following information:
Email address A password A phone number
Step 3: Go to the “Miner” tab
Once your account is created, you will be able to go to the “Miner” tab of the cloud mining platform to start mining Bitcoin for free.
If the platform of your choice offers a mobile mining application, you will also be able to start mining Bitcoins from your cell phone.
Step 4: Start mining Bitcoin
Normally, it is the broker who takes care of all the transactions. All you have to do is go back to the application or site to mine Bitcoins. You can renew the operation every 4 hours. On the broker’s site, you just have to click on the green “4h” button to start the operation. It’s as simple as that.
Mining profits are normally paid every 30 to 40 minutes, directly into your account. You will then be able to use your mining profits to trade assets on the platform.
Mining Bitcoin with a mining rig
If you want to mine bitcoins alone, you will need an ASIC first. The increasing difficulty of mining over time makes the use of these machines almost indispensable.
Before buying an ASIC, we advise you to stay focused on the following parameters:
The price: It will be directly dependent on the two following variables. Entry-level machines start at around 100 dollars, while more powerful equipment will quickly reach a price of 3 000 €. The Hash Rate: A higher Hash rate simply means that you can mine more Bitcoin because you will be able to solve the mathematical problem presented much faster. Power consumption: this is an important parameter. If your machine can mine twice as fast but consumes three times as much electricity, this may not be the best solution. On this point, it is a question of finding an optimum ratio between extraction speed and power consumption to mine Bitcoin in the best way possible.
For Bitcoin mining at home, The CGminer or BFGminer software is particularly popular with Bitcoin miners.
The best Bitcoin mining rigs
To mine Bitcoins, you can rely on the following rigs:
Bitmain Antminer S9i Halong Mining DragonMint T1 Bitmain Antminer T9 Pangolin Whatsminer M3X
Joining a mining pool
It is a solution to mutualize expense items and maximize the chances of undermining Bitcoin. A mining pool is for the most part also aimed at beginner miners. There is thus mutualization between all members of this Bitcoin network.
This solution will allow to generate and ensure more regular profits since the profit generated by one of the members of the mining pool will be redistributed among all the miners. Having several nodes on the same network, the discovery process will be faster and you will be able to mine faster than if you were alone.
Another advantage of using a mining pool is that the revenue you generate will be more stable because the blocks will be accepted faster and more often. However, keep in mind that the profits will be distributed among all members of the Bitcoin network.
Top 3 Bitcoin Mining Pools (mining software)
Here are 3 examples of mining software you can trust for successful bitcoin mining:
Pooling: mining software exploits about 18% of all blocks.
F2pool: one of the first mining pools appeared
BTC.com: mining software that exploits 15% of the entire block of the Bitcoin network.
What is bitcoin mining?
In fact, mining Bitcoin has nothing to do with owning Bitcoin. Undermining Bitcoin is about putting computing power at the service of the Bitcoin network. Computing power can be provided in different ways:
Via a PC Via machines dedicated to bitcoin mining such as RIGs or ASICs
The computing power acquired will be able to be used for several things, the most important of which is the security and verification of transactions between Bitcoin users. This computing power will also enable the blockchain to function by verifying that the blocks are articulated one after the other.
Bitcoin works on the principle that a block must be mined every 10 minutes. Unlike cash currencies such as the euro or dollar, Bitcoin is therefore produced by users. Mining is an operation carried out by very powerful computers that put their computing capacity at the service of what is called the blockchain.
Some key figures about Bitcoin:
2009: Year of the launch of Bitcoin 2141: The maximum number of bitcoin in circulation will be reached. More than 18 million: Number of Bitcoin currently in circulation today 21 million Bitcoin will be in circulation in 2141.
If the launch since 2009 has already led to the creation of more than 18 million 21 million tokens, the rate of Bitcoin mining is decreasing. Indeed, the rate of creation of Bitcoin is divided by 2 for every 210,000 blocks solved.
The advantages of Bitcoin mining
To be rewarded in Bitcoin whose price could still be appreciated after having correctly withstood the health crisis. Participate in the collective securing of the concept. This is one of the strong points of Bitcoin, its totally decentralized transaction control system. Generate money while staying at home by solving a mathematical problem Be part of a decentralized concept, far away from traditional payment systems Collective mining, via a mining pool or via cloud mining, offers more chances to obtain Bitcoins.
The disadvantages of Bitcoin mining
Mining Bitcoin alone has many drawbacks. Here are the main negative points:
A very high cost of electricity: This greatly reduces the profitability of mining since in France, electricity is much more expensive than in other countries of the world such as China or some Asian countries. Requires high-tech equipment: While Bitcoin mining is energy-intensive, it also requires the use of technological equipment that can be very expensive. That’s another point that cuts into profitability. Bitcoin mining is very energy-consuming on a global scale. Some studies tend to prove that mining would represent a greater consumption of electricity than countries such as Israel, Switzerland, or Greece. The difficulty of mining is increased every 2016 block, which can make the mining equipment more quickly obsolete. If you mine individually, you are unlikely to be considered as the creator of a new block.
Conclusion: Is bitcoin mining worth it?
If you want to go into mining as a private individual, there’s a very good chance that it won’t be profitable, considering the cost of electricity and the investment required for the machines to be purchased. The only possibility that might eventually be viable would be to own your own electricity generator. It is quite clear today that the cost of mining Bitcoin is higher than the benefit it could bring you.
Nevertheless, by going through a cloud mining company, your yield will be improved while still providing you with an additional income. Cloud mining solutions allow you to mine Bitcoin very easily in a few clicks, staying at home and without having to face big electricity expenses and without having to invest in expensive mining equipment.