Whenever you listen to the word mining, what comes to your mind? Heavy machinery digging surface of the earth in search of expensive metals? Gold maybe? Well, that is quite obvious, but have you ever thought about what does mining has to do with bitcoin? Wait! do you know what bitcoin is?
Bitcoin is a cryptocurrency that is created through mining, so collectively it can be stated that bitcoin mining is the process through which more bitcoins are added to the circulation.
This is done by solving extremely complicated math sums that verify transactions in currency. After successful mining of bitcoin, the miner’s account is added with a pre-fixed amount of bitcoins.
Bitcoin mining has secured high fame in the whole world because of its savage price swings, particularly bitcoin mining in Australia, America, and Asia has all the way become a trending topic.
Here are some important things you should learn before investing in bitcoin;
How To Select Hardware For Bitcoin Mining?
Bitcoin mining is not a mere creation of new coins, it is about the authentication of transactions of cryptocurrency in blockchains. It is not an easy task, it requires high-processing computers and a huge and undisturbed power supply. Higher the processing of computer, higher the mining speed.
If you are looking for hardware components for bitcoin mining, you should better go for buying an ASIC device or Application-Specific Integrated Circuit as it can generate more coins as compared to common CPUs and GPUs which do the task at a reduced speed; just a waste of time.
Moreover, your computer software is needed to be designed in a way that can solve complicated math equations. A fast, unruffled internet connection is also a dire need for bitcoin mining.
Is Bitcoin Mining Profitable?
Although bitcoin miners are successful, it is still unclear whether they finish as profited or not. This is because of the ever-shaking prices of electricity and electric equipment.
The power used by an ASIC is as same as that used by half-million PlayStations (PS 3). So, bitcoin mining does not only require high processing systems, it takes your luck too.
What Is A Mining Pool?
To meet the expenses of bitcoin mining, a group of miners shares the computing devices that increase the compatibility of the mining resources and then they mine altogether.
One mining rig gets reduced block rewards, on the other hand, when mining is performed in mining pools, the block reward gets bigger. Mining pools are now becoming a new trend in the world of bitcoin.
The Bottom Line
Even though bitcoin mining has become a new fashion in the town, it is a complicated and unexpected task.
Moreover, bitcoin prices being volatile adds more uncertainty to its mining. It must be made clear that bitcoin is a theoretical resource that does not have any inherent worth.
Your reward depends on offering it to another person at a greater expense, and that cost may not be sufficiently high for you to make money.
Published by Jatin Kumar