The generation of new Bitcoin (BTC) digital currency is tired of slow central bank systems. The sophistication is further compounded by the high technological setup and expensive initial capital. However, while there are a few with the big pocket to venture into crypto mining, only a few have the right information on how to get started.
This piece is set to address this gap as we look into the primary ways in which anyone with the right resources can mine bitcoin. Sit back, learn how to farm bitcoin, and let’s learn something new!
Bitcoin mining for beginners: ultimate guide!
Mining Bitcoin as a digital currency has evolved in more than a decade since digital currency came into existence. The future of bitcoin is bright. Many computer nerds who caught the BTC revolution early were able to mine Bitcoin on any computer back then. Today, everyone can buy bitcoin with Apple pay, or any other credit card. However, the difficulty in mining has increased, presenting a whole new approach to Bitcoin mining.
In this article, we are going to describe the major things to note about mine Bitcoin. Attempts to answer many people’s inquiries on how to start bitcoin mining will be provided. We will even show you how free bitcoin mining works. So sit back and let us dive deep into this subject.
What is bitcoin mining exactly?
In seeking to provide context to the question of how do you mine cryptocurrency like Bitcoin, it is ideal to explain what Bitcoin mining is exactly. Bitcoin mining is an interconnected activity that involves harnessing computing power. The computing power is channeled in helping to maintain the validity of transactions in the Bitcoin blockchain.
When users initiate transactions, they are grouped in blocks, all of which must be confirmed before finally being stored on the blockchain. This process of verifying bitcoin transactions is done with specialized machines, and the reward for a successful confirmation is the issuance of Bitcoins.
It is therefore important to see how to mine crypto like Bitcoin as a mutually beneficial activity that leads to the generation of new BTC.
Can anyone mine bitcoin?
Yes, anyone can become a Bitcoin miner, provided they have the right resources for the right setup. Just as mentioned earlier, in the early days of Bitcoin, mining the virtual currency is easy. The majority of computers back then can mine the coin, and anyone can easily learn the ropes. However, the network has transformed with difficulties ushered in.
Becoming a BTC miner is cost-intensive. To solve the math, miners use the SHA-256 hashing algorithm and define the hash value. This thus leaves the mining game to the richer investors in countries with relatively cheap electricity unless you go for cloud mining.
Can you really make money mining bitcoin?
As noted, the numerous changes in the Bitcoin network and the right adjustments are vital to determining profitability in mining. Mining for Bitcoin as a single miner may in the long run result in a waste of time and resources. This is so because when the costs of miners, electricity, mining pool are factored in, they may be too big for a single miner to bear.
Since most people’s goal is to make money when they mine for bitcoin, setting up large mining farms can be a sure way to guarantee this. The chances of Bitcoin miners solving the mathematical challenge that will help validate transactions are higher with a large number of miners.
Based on this, miners or investors with large investments in a big farm or mining pool can profitably mine for Bitcoins, make money and receive the block reward for creating a new block. The payout is in Bitcoin.
How do you mine bitcoin?
How to mine for bitcoin today primarily depends on the use of application-Specific Integrated Circuit (ASIC) machines. These machines come with different specifications, and performance capabilities, however, they are highly central to generating new Bitcoins. The entire system features gateways to mine bitcoin on pc as would be explained shortly.
To mine Bitcoin, a number of set-up requirements must be put in place. ASIC or CPU (central processing unit) and GPU (graphics processing unit or graphics cards) power are key factors. The overview of the equipment and procedure are outlined in subsequent sections;
Bitcoin mining setup requirements
It may be very arduous to build a Bitcoin miner from scratch, however, it is possible and I will tell you how. With various ASIC machines from different brands out there, the best bitcoin mining setup must be such that saves you the most dollars and delivers the best hash rate. The Hash-Rate is the speed at which the miner attempts to solve the mathematical puzzle in the network. It is measured per second and the more efficient miners have a high hash rate.
While enough capital is one of the most obvious bitcoin mining requirements, other factors including electricity costs amongst others are also crucial. A list of the most important things needed for a functional Bitcoin miner is outlined below.
1. ASIC Machines
These are popularly called mining rigs and they are a piece of hardware that competes to complete the mining puzzle. It is noteworthy to consider costs when choosing an ASIC machine as the prizes can vary from hundreds to a few thousand dollars. Once the hurdle of cost is settled, then the machines with the best performance should be considered.
While the best rigs have a performance of 14 tera-hashes per second (that is, it makes 1012 attempts to solve a block per second), machines with close enough hash rates are ideal. With various brands, vendors, and specifications out there today, prospective buyers can utilize review platforms like ASIC Miner Value to compare the various machines up for sale.
Additionally, the profitability of each machine can also be estimated through Nice Hash or Coinwarz before the machines are acquired.
2. Bitcoin Wallet
A Bitcoin wallet to custody the generated Bitcoin is also an essential requirement for Bitcoin or cryptocurrency mining. There are two types of wallets, the software wallet or the hot wallet, and the hardware wallet which provides cold storage of coins. While the soft wallets provide immediate storage for coins from the mining activity, the hard wallets help to keep them secure for longer-term storage.
3. Joining a Mining Pool
I explained earlier that to conduct a mining operation profitably, you cannot do it alone. You will need to do it in conjunction with other miners to channel the hashing powers from numerous mining rigs. The numerous miners give a better likelihood to solve the math problems and specialized mining pools offer this service.
With mining pools, you can contribute your hashing power to the pool, and when the BTC rewards are paid out, it is shared equally to all the participating miners. Top examples of Mining Pools include AntPool, BTC.TOP, Slush Pool amongst others. To get a good overview of all mining pools, you can refer to the comparison of mining pools on Bitcoin Wiki.
4. Computer
A personal computer is also required in the Bitcoin mining setup. The mining pool linkage, wallet connect, mining program integration amongst others are all powered by the computer. So as a miner, a high spec computer is a must-have. It’s a straightforward approach, can happen in real-time but the transaction fees are lower if you start mining with a simple computer.
5. Mining Software/Program
Once all the aforementioned requirements have been acquired, the mining software will be needed to connect between the mining rig and the Bitcoin wallet amongst other components in the mining system.
Mining software delivers work to miners, collects complete results of their work, and sends all the mining rewards and information back to the Bitcoin Blockchain. Depending on the build of the mining software you secure, other details like the mining hash rate, mining speed, cooling temperature amongst others can be displayed.
How to mine bitcoin at home
There are essentially two ways for anyone how to mine bitcoin on PC, and one involves the entire setup bordering on the Mining Rig as described above. The mining rigs can be placed in a data center with a little premium paid for the electricity and cooling. Setting up and mining through this model is the most legit way, however, one can still mine Bitcoin on personal computers by following the following steps;
1. Get the CryptoTab browser
Download and install the CryptoTab browser or any such browser through which users can earn Bitcoin for surfing the net.
2. Browser setup
Set the browser as a default browser and use it for your everyday browsing needs
3. Start mining Bitcoins at home
Bitcoin can be generated as you browse, offering another option to the regular mining rig setup.
How to mine bitcoins without hardware
The concept of mining comes with the first thought of an expensive and energy-intensive setup which may be quite expensive. However, to draw in more financial inclusion, creative minds in the Bitcoin ecosystem have developed other means on how to mine Bitcoin without mining hardware. This is made possible by renting mining rigs online, through such service providers as Betarigs.com.
Using this service provider, the procedure is described below;
1. Visit the online rig rental platform
After you must have done your detailed research, visit the online rig rental platform and complete any necessary registrations. I’d be using Betarigs to describe these steps.
2. Search out the hosted rigs
The Betarigs.com platform has a slightly busy homepage, however, you can navigate and click on the button ‘Rent a Rig’. The list of available rigs can be displayed and you can choose one.
3. Pay for the rig
Once you have seen the right rig for you, you can go ahead to pay for the rental and commence your mining.
In choosing the rig rental service to pitch a tent with, the nature of the contract and the flexibility must be put into consideration. Best to patronize platform where the termination of your rental service can be achieved easily.
Key takeaways on farming bitcoin
Mining bitcoin is essential to maintaining a healthy network. Bitcoin mining works through the Proof of Work (PoW) consensus model and is facilitated by specialized ASIC machines. The number of bitcoins that can be generated in a mining setup differs, and can be greatly influenced by the number of rigs and the mining pool a miner joins.
In all, mining is the major way new coins like BTC, Ethereum (ETH), and other altcoins are generated. When done right, crypto mining can be very profitable. If you need a hand to get started, then book a free initial consultation with one of our experts.
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FAQs
Is it still possible to mine bitcoins?
Yes, it is possible to mine Bitcoin. To do so, however, one would need mining power provided by a combination of ASIC miners, computers, software, and electrical power amongst others. it is also possible to mine BTC through web browsers and rig rentals. the number of coins that will be generated will be much lower in the latter scenario.
How hard is it to mine bitcoin?
The process of mining Bitcoin increases every four years using a process called halving. Following this halving, the mining difficulty increases, and the reward paid out to miners is reduced by half and generally makes the mining more unattractive. However, halving helps boost the price of bitcoin which makes it worth it in the end.
What is the fastest way to mine bitcoins?
The fastest way to mine Bitcoin is through the use of specialized ASIC miners with high computing powers or hash rates.
Is it expensive to get into bitcoin mining?
The most profitable option to mine bitcoin is expensive to set up. The costs involved including those involved in purchasing the Bitcoin miners, electricity, subscription fee to the mining pool amongst others.
