Beginners Guide to Bitcoin Mining

Bitcoin is the most popular cryptocurrency in the cryptocurrency market. Since then it has been an object of fascination and people have been interested in its various applications, features, and advantages. One such peculiar feature of bitcoin is bitcoin mining. Click For More Info

Beginners Guide to Bitcoin Mining 
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What is Bitcoin mining?

Bitcoin mining is a highly mathematical and computational process that generates new blocks in the BTC network by the miners and they can get a reward of BTC after validating such transactions with BTC. Bitcoin mining is the process of introducing new bitcoin blocks in the blockchain. This process is performed using advanced equipment and requires high computational power.

Miners around the world compete with one another to solve a complex hash puzzle and the one who solves it first receives a bitcoin as a reward. This process is costly and time-consuming, and it can consume more energy, which is not an eco-friendly option for the world. It is based on the PoW or Proof of Work model where you need to prove that you have validated the transaction before than others to get the rewards.  

Importance of Bitcoin mining

Bitcoin mining is important because miners analyze and verify all the transactions that take place on the bitcoin network thus ensuring the security of the bitcoin network. They monitor bitcoin transactions and they can validate such transactions by adding a new block to the BTC network. Thus, bitcoin miners are auditors that help prevent the double spending problem.

Mining requirements

If you want to mine bitcoin, you need to spend a huge amount to set up the mining infrastructure. Miners require various hardware and software tools to mine bitcoins. You either require a GPU or an application-specific integrated circuit (ASIC) to mine bitcoins.

Apart from the latest hardware, you need a low-cost power supply, mining pool membership for a more profitable mining experience, and mining software like BFGMiner, and CGMiner. BTC mining process requires a huge electricity and you need to pay a huge power consumption bill every month. 

Though bitcoin mining doesn't require any high computational knowledge, you still need to have high computer knowledge to set up and configure your mining hardware. This is because mining rigs use the Linux OS. Thus, you need to learn to configure and set up your mining tools. Though you can purchase bitcoins from various trading platforms like Yuan Pay group, and you do not need to spend a huge cost for mining bitcoin. You can buy, sell and trade such coins through a reliable platform or exchange. 

How to mine bitcoins?

Bitcoin mining is a competitive process, where miners compete with one another. Thus, you must have the best equipment to have an edge over others. Following are the steps to mine bitcoins:

1. Choose hardware for bitcoin mining: Choose and set up hardware. It is better if you use the latest technology, instead of your old laptop or desktop. One such hardware that is specially designed for bitcoin mining is Antminer. It is a popular bitcoin mining hardware produced by Bitmain. You can order your hardware online. 

2. Bitcoin wallet: You must have a secure bitcoin wallet where you can store your mined bitcoins. Moreover, make sure to create a separate wallet to receive the rewards from bitcoin mining. It is better to create a hardware wallet that is safer than the software wallet.

3. Configuring equipment: You need to configure your equipment before you start mining. Also, install and configure your mining software once you've successfully created your bitcoin wallet. There are different mining software available. Some hardware has a software component in the form of a command line interface and the other has a Graphic User Interface (GUI). Look for the one you are most comfortable with.

4. Start mining: Once you've configured your hardware and software devices, it's time to start mining. Download a local copy of the cryptocurrency blockchain you wish to mine. Once you start mining you don’t need any technical expertise while mining as all the work is done by your setup or rig. However, you need to periodically check on your rig to see whether it is mining properly or not. This hardware works 24/7.

It is said that all 21 million bitcoins will be mined by 2140. This is due to the method of halving that bitcoin uses where the reward of mining is halved every four years. Currently, the reward is 6.25 BTC. This will be halved in 2024.