Introduction To Mining Bitcoin

Introduction To Mining Bitcoin

Mining is the action of extraction the bitcoin. You can’t compare it to simple print of cash because it has certain functions. Almost everyone can do the mining. Can’t believe it? Then read this guide for newcomers with theory and practical examples.

Bitcoin and other crypto-currencies are actively developing: new places open where they are accepted for payment, many investment funds are starting to invest in them. Their capitalization is increasing, the number of transactions is raising, the query “cloud mining” is becoming more famous in search engines. There is a real boom and a transition to digital currencies, they are even talked about by the presidents. Let’s consider where the electronic currency comes from and how it can be earned.

What is it ? 

In a simpler language: “it is the production (creation) of Bitcoins with the help of computer calculations. What is Bitcoin mining? ” In life — this concept also means “prey”, and, as a rule, gold. The difference is that the virtual world produces digital coins BitCoin, which has long been called “virtual gold.”

There are two ways to organize production: 

Single work (solo-mining). You participate in the solution of cryptographic tasks only with the power of your equipment. This method of extraction is lower.

Work in pools. There are certain groups in which users join, connecting their equipment. As a result, the extracted crypto currency is divided according to the share of participation.

What is Cloud Mining? 

Cloud mining — is carried out jointly by a group of computers through special pools

Since the action of mining a crypto currency is very complex, and only one miner receives compensation every 10 minutes. You will not be able to get any coins on even the most advanced computers. And why be individual, if it is more profitable to work in a team?

For a long time there are pools for mining. They are Net services, where you can find all the information that is imported to get started. Join the pool and collaborate with other participants. Upon completion of the block production, the reward is distributed proportionally to the enclosed capacity. The chances for a stable income are very high.

In order not to engage in self-mining (buying equipment, monitoring the process, etc.), it is much easier to rent power through special farms and receive coins every day.

If you decide to get bitcoins for investment and profit, you can face one serious problem: most sites on this topic are created for advanced users. If you are not a professional programmer, you have no experience working with Ubuntu and Linux, and there is only a little experience of using a Mac or PC, this text will help you start with the basics.

1. Buy equipment for getting bitcoins.

2. Start a bitcoin-purse.

3. Choose a pool for mining.

4. Install programs on your computer.

5. Start getting bitcoins.

 

How it works ? 

A person who is far from mining, explain its principle is quite difficult. Although in practice, there is nothing complicated — you have to buy the right equipment, install the necessary programs and start the process. But at starting the usual PCs were suitable for this, then the enthusiasts switched to powerful video cards, and now the manufacturers release special chips.

It’s extremely difficult to enter the market from the street. Now, the miners are grouped into groups (pools), they solve the tasks posed by these pools, and receive compensation depending on their participation. In order to enter the pool, you will also have to spend a lot of money — obsolete PCs simply can not accomplish any task.

Larger players create their own connected farms — many computers that are integrated into one system and optimized for a specific task. A cheap source of electricity also has value, since the income of owners of such farms directly depends on this.

Article categories

About author

No Comments

forum No comments yet

You can be first to leave a comment

Write a comment