How To Mine Bitcoin: Guide To Mining Bitcoins

In the days when bitcoin was just a niche concept between tech enthusiasts, people could engage in bitcoin mining with just a normal computer. But with bitcoin going mainstream and the competition getting more fierce, bitcoin mining becomes a big business that consumes massive energy. Still, individual miners can contribute to the network and generate income. In this article, we will answer some of the most common questions on how to mine bitcoin

How To Mine Bitcoin

How Does Bitcoin Mining Work?

The Bitcoin network works through a process called “proof-of-work”. It is a decentralized consensus mechanism, in which members of the network work together to solve an arbitrary mathematical puzzle to prevent bad actors from disrupting the system. Pow measures miners’ contributed computing power on processing and verifying transactions, as well as block generation.

So what is Bitcoin mining? In short, miners are presented with a complex cryptographic puzzle and the first one to work out the answer of the puzzle will get the right to pack the verified transaction into a block and add it to the blockchain. Every ten minutes, a new block will be validated and added to the blockchain. To control the production of Bitcoin, the reward miners receive will be cut in half roughly every four years in the halving event. The hash rate of the blockchain will also be adjusted every two weeks so that the average time between each block remains ten minutes. You might wonder how long does it take to mine a bitcoin. After the third halving, now each block yields 6.25 BTC. So currently it takes about 1.6 minutes to mine 1 bitcoin. 

How Do I Mine Bitcoin?

People often ask the questions of “How to mine bitcoin on pc” and “how to mine bitcoin at home”. If you want to mine your btc, you need to get a bitcoin mining rig. Nowadays an ordinary domestic computer is not enough and you will need special hardware called ASIC (Application-Specific Integrated Circuit chips). It is expensive but most efficient as the best one could solve as many as 14 terahases per second. 

Mining rig not only consumes a high level of electricity but also emit a lot of heat and make a lot of noises. So if you want to mine bitcoin in your home, make sure to find a special place for your machine. 

What Is A Mining Pool?

How to mine for bitcoin more efficiently? Besides working alone, you can cooperate with other miners in so-called mining pools to enhance efficiency and make more profits. In a mining pool, members receive rewards according to their power contribution. Third parties operate the mining polls and users need to pay a fee. The fee is usually 0 to 2% of the received reward. A specialized mining rig work with only a particular algorithm. If you own an ASIC hardware, you can mine other cryptos with the same algorithm (e.g.. Bitcoin Cash or BSV).

Cloud Mining

What if we tell you that you don’t need to own a machine to mine bitcoin? You can register an account in a could mining firm and rent the hashing power to mine cryptocurrency. You can avoid the hassle of setting up and maintaining your equipment with cloud mining. But as cloud mining is relatively new in the industry, there are many scams. Before jumping ship, remember to do your research and ensure the company/project is reliable. 

Conclusion

Mining bitcoin is no easy task: you need to understand how mining works, which equipment works for you, and learn how to set up your mining rig. Mining also has a high initial investment. But the reward is very handsome once you get a better grip of mining. With bitcoin and many cryptocurrencies getting more and more valuable, mining remains a good way of joining the crypto space. 

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