HOW TO MINE BITCOIN??
Because technology continues to move forward very quickly, so is financial. Now, the world is looking for new ways to invest money, and bitcoin has become the main indicator of that desire.Once considered an unproven and unknown currency, cryptocurrency has made headlines. Now accepted by major retailers such as Home Depot, Zappos and Dell, more and more people are looking for answers about digital currency and how it happens. The price of bitcoin has surged beyond $ 1,000 this year, achieving the highest value for the first time and continuing to break new records. Bitcoin's biggest asset, "blockchain technology", has been considered an innovative way to make transactions, and in the future plays a major role in moving money.
One bitcoin miner, Eric, has been bitcoin mining since 2010. After early success, he made the bold decision to quit his well-paid job as a software engineer to devote all his time to extracting bitcoins. He collected 2,500 bitcoins.
Eric's story is unique, but in line with bitcoin's popularity, interest in mining this virtual currency continues to increase. But where do you start? Here is a brief overview to inspire your bitcoin mining business.
Why does Bitcoin Need Miners?
People often send bitcoin via blockchain, which acts as a bitcoin network. For example, Joe wants to buy a DVD player from Bob at an agreed price, but there must be a way to record and validate the transaction. The network completes the task by collecting all transaction data that is made in a certain time period and entering it into a list of lists, called "blocks".The task of the miner is to confirm the accuracy of the transaction and write it into a general ledger, which contains a list of all blocks (also called the "block chain"). As a result, there is a detailed list and confirmation of each transaction that occurs in the network. This data continues to be updated and available to everyone who participates so they can understand what is happening.
Key takeaway: Bitcoin miners are the key to the success of this virtual currency because they verify transactions, ensure the integrity of the blockchain network.
Mining Process: Quick Primer
How do you mine the bitcoin you want? If a "block" transaction is made, bitcoin miners begin a process that ensures accuracy. They take this block and apply mathematical formulas, changing the initial order into something shorter. The result is a simpler sequence and truncated letter and number patterns called "hashes".Each new block is generated using a hash from the previous block. This is an accurate way to make sure the block is confirmed. This process creates a "wax seal", which shows this block and the previous block related to accuracy. Suppose you decide to tamper with the block. If so, everyone will immediately find out because the process - and will look fake. Following are brief details of the mining process.
- The transaction is combined in one block.
- Miners check whether the transaction is valid.
- They select the header from the newest block and insert it into the new block as "hash".
- They solve mathematical problems.
- If a solution is found, a new block is added to the block circuit and then distributed throughout the network.
- Miners don't just check one transaction - they check lots of transactions. All transactions are locked into boxes with virtual keys. Miners run software to search for "keys" that can open it. After the computer finds it, the box will open, then the transaction is verified and the miner receives 12.5 bitcoin.
But, completing this task is not easy. It's like finding a needle in a haystack. In fact, the estimated number of businesses found the correct key of about 1.7 billion, and the bitcoin wages given were approximately every 10 minutes. The key to success is to have the right tool in the right place.
Key takeaway: During the mining process, people work to check transactions and ensure their accuracy. This process is not easy and uses complex mathematical formulas. After the miner completes the process, the bitcoin network gives him a 12.5 bitcoin gold piece.
What do you need to mine Bitcoin ???
First, you need a bitcoin wallet. Each wallet has its own unique bitcoin address. This wallet is your own account during the mining process. In addition to the wallet, you also need the right tools - and these tools have changed significantly over the past few years. The following is a quick breakdown.Bitcoin CPU / GPU mining. Initially, the miners used a simple CPU to mine bitcoin. At that time, a simple desktop computer was still strong enough to complete a given task. But then, breaking the code becomes more difficult, and the miners find a better alternative: Mining the GPU on a graphics card.
GPU is about 100 times faster than the CPU, and if used in bitcoin mining, it is likely to succeed. GPU can also be used to mine various types of virtual currencies, not just bitcoin. But over time, faster and stronger options appear, and many miners don't use this option now.
Bitcoin FPGA mine: Field-programmable gate arrays (FPGAs) allow mining hardware manufacturers to buy large amounts of chips and adjust them for bitcoin mining before putting them in their devices. Because this technology is specifically designed to perform bitcoin mining tasks, its performance is far better than the CPU and GPU.
Bitcoin Mine ASIC: An integrated suite of special applications (ASIC) is the latest bitcoin mining. This system is designed to provide high-speed and energy-efficient mining power - which is a bonus for miners whose electricity bills are expensive, which has reduced profits.
But this chip must be designed for certain tasks, which makes it expensive and takes a long time to produce. But many bitcoin miners realize that their investments are worth the speed. In fact, ASIC devices can run up to 2 terahash / sec.
Key takeaway: Many of the hardware used are no longer relevant for bitcoin mining; because it's too slow. However, newer options are also more expensive. There is a third option that reduces costs while still increasing speed (more about that option later).
