CDS CDS Wiki Mining Bitcoin: a Short Guide
CDS Wiki

Mining Bitcoin: a Short Guide

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Mining Bitcoin: a Short Guide

Bitcoin mining is the mechanism that creates new Bitcoins. Bitcoin is based on blockchain technology. This is a distributed ledger that tracks all past transactions, a decentralized system that’s not controlled by a centralized authority.

Mining Bitcoin: a Short Guide
Mining Bitcoin: a Short Guide 1

Mining Bitcoin: a Short Guide

Bitcoin miners use their computers to solve complex math equations in order to earn the right to add new blocks to the blockchain. It takes an ever increasing amount of computing power to obtain the solution to these equations, known as a hash. Miners deploy computers, sometimes referred to as mining rigs, to solve the next hash. In exchange for their work, successful miners receives payment in the form of newly created Bitcoins.

To mine Вitcoin, users will need special software like the programs described above to solve mathematical problems. The programs require powerful computing hardware to solve complicated equations. Earlier it was possible to use the standard CPUs found in regular home computers.

Mining Bitcoin: a Short Guide
Mining Bitcoin: a Short Guide 2

Today, mining requires more powerful systems based on GPUs to build mining rigs. They also set up standalone ASIC-based rigs for the sole purpose of mining Вitcoin. Expect to invest considerable amounts in electricity and hardware to successfully mine bitcoin. The rigs need to run 24-7 in order to earn more value in Вitcoin than you spend on resources. Another way to combine resources is by joining a mining pool. It’s when you share your systems with other miners through your mining software. If one person in your pool succeeds at completing the hash, you split the value of the Вitcoin. This increases your chances of solving a hash.

Picking The Best Mining Software

Beginners may prefer cloud-based software that doesn’t require mining equipment and programs designed for more basic CPU and GPU mining. They may also prefer software that features low withdrawal requirements, since it could take a long time to mine enough Bitcoin to make it worth using mining software with high limits. More sophisticated miners with more powerful systems may prefer customizable programs to utilize a wide variety of mining equipment, mining pools and more ways to tailor their mining rigs.

Source

www.forbes.com

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Written by
ali009

The author is 28 year old student recently graduated from Celal Bayar University, Faculty of Medicine. Currently he works as a writer and translator for different platforms.

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