How to get into bitcoin mining
It’s 2017 out there, and you should always remember one important point – becoming a bitcoin single miner is absolutely useless. To get at least some result, you need to join a bitcoin mining pool of many computers that do it.
What is bitcoin mining pool?
When the cryptocurrency was just emerging, mining was possible even on a simple 4-core CPU, but over time the number of miners increased, the hash selection became more complicated. Therefore, at this very moment, bitcoin mining pool setup is effective only with ASIC systems – special equipment designed specifically for the process. They’ve got increased rendering speed and reduced power consumption due to high-quality ventilation. Moreover, there are special bitcoin mining pools called farms – the association of hundreds of video cards and processors, working around the clock.
How do you mine a bitcoin. What exactly is bitcoin mining
The pool combines a lot of miners who work together to select a hash. It is the best way to mine bitcoins – the probability is increased since the system perceives the pool as one object. At the end of the process, coins are distributed and it depends on the contribution of each participant.
- A request to transfer a certain number of coins to the user is made.
- The request is processed and the data is packed in blocks. Blocks are assigned the headers randomly.
- Here comes the most difficult and energy-consuming stage: selection of a one-time password for the header. This password is called a "hash".
- The hash accepted by the network is rewarded by the block. Previously, the cost of the block was 50 bitcoins, then 25, at the moment it’s about 12.
- The code value is added to the next header. A sequential chain of headers which serves as a register of transfers in the network is formed.
How to get started in bitcoin mining
First, you need to have your own wallet. You can either download a special software on your PC or create it on a website. Please notice that online wallet is easier to maintain and receive. After registration, go to the wallet settings and create a new address. Remember it or write it down. Your coins will be sent to your wallet using this address.
Now you will probably look for a best bitcoin mining pool to join it. Most of the pools have their own sites with all the necessary detailed information. You must create so-called "bitcoin workers" in a personal account. As many PC’s are going to take part the mining, as many workers you need to create. Get that best bitcoin mining hardware ready!
Download the bitcoin mining software and install it. The process can be done either on a video card (bitcoin mining GPU) or on a processor (CPU). So, it’s time to mine a bitcoin!
Conclusion. Future of bitcoin mining
If you do not have enough financial resources to get all necessary items from bitcoin mining hardware list (like buying an ASIC system) you can forget about this procedure for good. At the moment, the modest capabilities of a PC is not an option at all. The complication of this process continues, and if you think about how much can you earn with bitcoin mining – you’d better consider the expenses first.