Understanding Bitcoin Mining

Understanding Bitcoin Mining

The first time you heard Bitcoin Mining, what came to your mind? Were you thinking of a cave with headlamp wearing men slugging it out with pickaxes? You are so wrong! Bitcoin mining is the complicated process of adding new blocks to the Blockchain network that supports the electronic currency. In order have an understanding bitcoin mining, please, read on to get the details of how to mine Bitcoins.

understanding bitcoin mining

Bitcoin mining involves solving complex mathematical problems with purpose-built equipment. Highly sophisticated equipment solve the mathematical problems, and the unit of measuring the speed of calculations is known as hashes per second. Bitcoin mining machines use the SHA256 round hash verification system to authenticate Bitcoin transactions to create a secured ledger for the Blockchain platform used by the digital currency. The people who own the mining machines are known as miners, and they get free Bitcoins as compensation for their work.

A Bitcoin mining machine is the first thing you need to get if you want to start mining Bitcoins. You need specialized machinery for mining Bitcoin because the process of solving the complex mathematical problems require a massive amount of computational power which cannot be supplied by regular computers. Some of the popular mining hardware are the Avalon6 and Antminer S7. These machines are available in online stores and provide a cost-effective way of mining Bitcoins.

Alternatively, you can use Cloud Mining. Cloud mining requires a person to pay another to get access to their mining hardware and services. Cloud mining might be less expensive as you won’t be buying a mining hardware, but this leaves your investments out of your control. Popular cloud mining solutions include the Minex, Hashflare, and Genesis Mining. There are also mining pools where miners come together to solve projects and divide the earning among themselves.

When your mining hardware is all set up, the next step is to install a Bitcoin mining software. There are various Bitcoin mining software in the public domain, and they are available for Mac and Windows. The software gives you access to the Blockchain network, helps you to send the results from your machine and receive results from other devices on the Bitcoins Blockchain network. Additionally, the software provides feedback such as the machine temperature, hash rate, and fan speed.

You can also mine Bitcoin with a mobile Bitcoin miner. The mobile miner gives you access to your mining hardware from anywhere you are so that you can mine on the move. You can monitor your mining hardware’s performance, speed, and every other statistics from the mobile app. In fact, mining with a phone increases your chances of success. Bitcoin mobile apps are available for the Android and iOS platforms. The app provides miners with fundamental mining parameters that allow them to determine how they want the software to work. Also, miners get notifications of coins available for mining. If you operate more than one Bitcoin account, you can sync them with one mobile app and control them from your mobile device. Additionally, you can use your Bitcoin mobile app to convert your earnings to USD, GBP, or EUR.

Next, you set up your Bitcoin wallet. Your earnings on the Blockchain network will be sent to your wallet, and you can use it to pay for services that accept Bitcoin as a medium of payment. The wallet will also help you generate an address when you need to connect to Bitcoins Blockchain network.

There you have it. While this article is concise, it has touched on the basic requirements of understanding Bitcoin Mining. If you need more information about Bitcoins, do stay with us.