If you have heard about Bitcoin, you might probably know about Bitcoin mining? No? Well, it’s actually a concept to create Bitcoin through specialized computers. The mining work is taken care of by the miners who help in securing the network to process all the Bitcoin-related transactions. The miners can easily achieve this by resolving all the computational issues that enable them to chain all the blocks of transactions together. Once miners complete their given tasks, they are rewarded every 10-minutes for services with Bitcoins. To know more about Bitcoin, you can click here and get all the information that you seek.
How does Bitcoin mining work?
Individuals who wish to update the ledger of Bitcoin transactions, which is also known as Blockchain, can do so with no hassle. The only thing you need to do is guess a random number that can solve an equation, which is generated by the system. It sounds simple in your ears but this guessing work is done by your computer. When you have a powerful computer, you will get the chance to make plenty of guesses within seconds. When you manage to guess the numbers, it will enable you to win bitcoins and give you the chance to write down the next chapter of the Bitcoin transactions within Blockchain.
Why does Bitcoin require miners?
Miners are required in Bitcoin because they help in securing all the transactions which take place on the network. They do so by making it pretty difficult to alter, attack or stop. When there are plenty of miners available for mining, the network will be secured and safe. If you want to reverse a Bitcoin transaction, then the only way you can do so is by having around 51% of the network’s hash power. Realistically, this isn’t really possible for one person to achieve. When the hash power gets distributed among the miners, it will help keep Bitcoin safe and secure.
Type of Bitcoin mining available
Given below are several types of Bitcoin mining you might want to consider.
- CPU Mining: This type of mining uses your computer’s CPU to mine cryptocurrency. Very few people use it these days as it is extremely slow and not profitable. Besides, it could damage your computer through overheating.
- Cloud Mining: Under cloud mining, there is no need for you to purchase a physical rig. Instead, you can rent computer power through a mining firm and get paid for the mining power you own. It might sound like an excellent idea, because you will not undergo the hassle of purchasing equipment, cooling, storing, and maintaining it. But if you do your math correctly, you will find out that these cloud mining sites are not that profitable. It will be much better to avoid this mining option. But if you wish to opt for this path, make sure to do the right calculations.
- Mining through phone: You probably have come across several mobile applications that can mine Bitcoin. This is feasible, but there are limitations due to the low processing power available on smartphones. You might end up draining your phone’s battery just manage to make a tiny bit of Bitcoin. Applications that allow Bitcoin mining will distribute the profit according to the amount of work done by each of phone.
Over to you
Bitcoin mining can be a great way to generate some income if you’ve got what it takes. Apart from the options mentioned above, there are other alternatives available for Bitcoin mining when you want to obtain a much higher return for your investment in Bitcoin. However, they can be quite capital intensive.