Bitcoin mining.

[Bitcoin]

Inside a Bitcoin mine that earns $70K a day|5:09

[Bitcoin]

Why Use a USB ASIC Miner Over Mining Hardware?
Before getting started, it's important to ask yourself, "Why should I buy a USB ASIC miner?" Depending on your purpose, the disadvantages can vastly outweigh the advantages.
Advantages of USB ASIC Miners.
Lower Costs.
Even an average-quality ASIC mining rig can cost a few hundred dollars. A high-quality ASIC rig could cost over $3,000. In comparison, a USB ASIC miner costs less than $50 in most cases. There are some units like the 21 Bitcoin Computer that cost $150, which can technically be classified as a USB miner, but these are on the high end.
There are also a few other investment factors to consider. For example, projects are changing consensus algorithms to become more ASIC-resistant. This means that expensive ASIC mining rigs could become obsolete out of the blue. Because they can't be reconfigured for other purposes, this could mean a significant loss. Yes, this would affect USB ASIC rigs as well. However, the loss of investment would be significantly less in comparison.
Easier Setup Process.
One of the most difficult aspects of starting a successful mining operation is the setup process. For the most part, mining rigs aren't plug-and-play. It takes a while to configure one and start mining cryptocurrencies. In contrast, the process of setting up with a USB ASIC miner is pretty simple, and several tutorials are available.
Greater Mobility.
If you're an experienced miner or even someone who is new to mining, you probably know about how expansive mining operations can be. In many cases, even small operations can take up a lot of space.
For people who either travel often or don't have enough room to setup hardware mining rigs, it can be difficult to maintain a traditional mining operation. With a USB ASIC miner, however, you should have the ability to utilize both desktops and laptops. This allows you to mine from practically wherever you can connect to the internet.
It's even possible to mine with a laptop using a USB ASIC miner.
Disadvantages of USB ASIC Miners.
Lower Hash Rates.
When it comes to cryptocurrency mining, hash rate is quite possibly the most important factor. A lower hash rate drastically reduces your chances of finding the next block and receiving the mining reward. Competing against other miners who use a traditional mining rig (or several) with a simple USB ASIC miner isn't a realistic goal.
Lower Profits.
You should expect lower profits with a USB ASIC miner. However, it's essential to look at this from an ROI standpoint. A smaller investment means that you won't go into a large deficit. Is it possible to make a net profit from a USB ASIC miner? We'll explain more in the costs versus profitability section below.
Top USB ASIC Miner Devices.
There are numerous ASIC, GPU and CPU options on the market today. Unfortunately, there aren't as many companies offering USB ASIC miner devices.
Why is this the case? Let's find out by taking a look at the technical details and customer reviews of three of the most popular units available in 2018. Note that shipping costs are not included in the following costs and that prices can fluctuate.
Bitmain Antminer U2.
Cost: $49.97 (used)
Bitmain is the biggest player in the crypto mining market. The company produces all sorts of mining rigs intended for a variety of PoW consensus algorithms. The Antminer U2 is another great example of its diverse product lineup. As of October 3, 2018, the Antminer U2 only had two reviews on Amazon.
One review is quite positive (5 stars). The reviewer highlights the fact that users can learn about mining, cloud mining, and more via this USB ASIC device. However, the other review is negative (1 star) and complained about the device not being recognized on three different computers.
According to one customer question that was answered in November 2017, this device doesn't work anymore due to the fact that the BTC difficulty has increased. It's important to note that the Antminer U2 only mines BTC and, like many other USB ASIC units, can't mine other cryptocurrencies.
GekkoScience 2Pac.
Cost: $44.95.
The product description claims that the GekkoScience 2-Pac is the most efficient USB miner ever made. Don't let the name confuse you, though. This is only one device and not two devices in a pack. This USB ASIC miner includes two Bitmain BM1384 chips (same as the chip in the Bitmain Antminer S5) and a fully-adjustable regulator design, which gives you a core voltage range of 550mV to 800mV. The typical hash rate is 15+GH/s, depending on clock rate. Efficiency is .31-.35 watts per GH.
GekkoScience also recommends that people use the CGMiner along with this device. It appears that most reviews are realistic about what this particular USB ASIC miner can achieve. For example, most don't have high aspirations for an immediate ROI.
According to the product description, this is the most efficient USB miner ever manufactured.
NanoFury 2.
Cost: $89.
The NanoFury 2 miner comes with two Bitfury ASIC Chips. Speed per bits is 50 bits - 3.7-4.1 GH/s and 53-55 bits - 4.7-5.4 GH/s. It also includes a heat sink on the back to better disperse heat. This means that you should expect a better lifespan for this particular USB ASIC miner.
For those concerned with the possibility of a difficult setup, this device requires no additional drivers. It also comes with Bfgminer & Cgminer support. One would expect that this device to perform better over time versus cheaper USB ASIC miner units. In addition, it's possible to mine a variety of SHA256 coins besides BTC, some of which include DigiByte and Joulecoin.
The Nano Fury 2 is easy to install. No drivers are required, and it includes Bfgminer & Cgminer support.
Costs vs. Profitability.
Unfortunately, the customers say that it's difficult/impossible to achieve a good ROI with these units. Most say that the results aren't worth the investment.
For example, one Rev 2 GekkoScience 2-Pac user recommends using a seven-port USB hub that can support USB sticks. This user also recommends that users choose cgminer and point to a P2Pool node. In total, the user estimates that you would have to spend $600 to $800, which would give you a break even timeline of 20 months. However, each time that the BTC block payout halves, it will take longer to achieve breakeven. It's also important to understand that this advice was posted in January 2018 when cryptocurrency prices were at or around their highest point in history. With a bear market, gaining profits can become even more challenging.
You should also consider the amount of time and resources needed to mine daily and maintain your mining operations. At the end of the day, is USB ASIC mining worth it? If you're looking solely at profitability, it's far better to choose traditional hardware mining. However, if you're looking at reducing upfront costs and don't want to go through the process of setting up a full-scale operation, trying out USB mining might be a better choice.

[Bitcoin]

The Best Crypto ASIC Miner for Residential Mining - Goldshell HS1 Review|13:35

[Bitcoin]

The Best PC For Bitcoin mining.
Check Out The Best Components And Prebuilt PCs For Bitcoin mining.
Jul 31, 2020.
Mike Tomlinson.
PC Guide is reader-supported. When you buy through links on our site, we may earn an affiliate commission.
Bitcoin mining is a trend that is sweeping up internet users all across the world - and with good reason too. Bitcoin has quickly become an incredibly profitable source of additional income, and all it takes to really dig into the virtual mines is a decent computer that is capable of completing the complex algorithms that make up the blockchain of Bitcoin itself - it can be pretty confusing to understand, so check out this whole article I wrote about Bitcoin mining for a decent rundown of what it is, how it's done and what it all means!
Anyway, if you already know everything you need to know about Bitcoin mining and just need yourself a few good recommendations for when it comes to the actual mining process, then hopefully this article will give you some good recommendations in choosing the best PC for Bitcoin mining.
The Best CPU For Bitcoin mining.
Ok, the CPU of your PC acts like a brain, so when it comes to the process of Bitcoin mining it's going to be vitally important for you to have your PC loaded with a CPU capable of handling high-stress operations and complex algorithms.
So, what we are going to recommend here is that you aim for the higher specced chips in the AMD Threadripper series - and let it be known that you cannot aim too high here. The 3990X is probably going to be your best bet here, you get 64 cores and 128 threads as standard so you can expect a very succinct and powerful workload, and it's compatible with DDR4 RAM just to add into the reliable and dependable output - more on RAM later.
If you don't feel like dropping that much on a CPU though, the higher end 10th gen intel CPUs and latest releases from AMD will cope just as well - just make sure that they are compatible with your other components. I'm going to keep writing as if you chose an AMD CPU, as they generally have better performance when it comes to non-gaming related tasks.
Something to consider here though is that Bitcoin mining is a physically intensive process in your PC. You are going to find that if you aren't careful, your PC is going to be prone to overheating and basically tearing itself apart via heat based damage. How are you going to avoid this? With the use of coolers of course.
For a specific CPU cooler, we would suggest something in the water-cooled family - and depending on your budget you can either look into closed or open loop options - but the Corsair Hydro series of coolers are fantastic for this kind of work. You can choose from a number of different loop options, with different price points attached to them depending on the level of financial investment you are willing to put down.
Plus, you can even expect a little bit of RGB in these coolers as well. Not a bad thing, especially if you plan to be using your Bitcoin mining PC for more than just mining. But, if you do want to use your PC for more than just mining, then make sure you are prepared to drop some cash on your cooling solutions. In fact, it could be wise for you to not stop at just a CPU cooler.
Instead, look at different air-cooling options you can build into your PC, as they are going to be just as valuable in providing a decent, sustainable airflow through your PC whilst it's in use, keeping it cool. Corsair (again) has a great option in their LL series, a reliable RGB enabled fan option that sill provide 1500 rpm in cooling off your PC. Combine this with an effective water cooling loop on your CPU and you should be able to rest easy when your PC is in the process of mining that your computer isn't going to overheat, cease mining or even damage its internal components.
The Best Motherboard For Bitcoin mining.
Now, I the last section I recommended using the most powerful AMD Threadripper CPU, so it only makes sense here that I recommend the best in TRX40 enabled motherboards, and that means recommending a board that offers superior performance in the Threadripper field.
Weirdly enough, gamers are one o the branches of PC users who demand excellence from the parts that they use, and with that in mind, we are recommending the ASUS ROG II Zenith Extreme Alpha. It's a mouthful, but it does come with a lot of features that make it the best performance motherboard in this bracket.
You can expect an Aquantia AQC-107C 10G Chipset that allows for up to 10 GBPS LAN speed -all important when it comes to the actual speed of mining, as internet speeds will greatly affect your hash rate!
You are also going to have a whole host of different features available when it comes to monitoring your actual hardware, including an OLED LiveDash Display that can display your CPU temperature in real-time - invaluable if you were paying attention to what I was talking about in the last section regarding the toll that Bitcoin mining can have on your hardware.
You'll also get DDR4 RAM support, four PCIe 4.0 M.2 slots, four PCIe 4.0 x16 slots, eight SATA 6GBPS slots, and Wi-Fi connectivity if you do choose to go wireless (though we don't recommend it when it comes to Bitcoin mining).
Impressively, this motherboard also comes with Gamefirst V Network control, designed to allow the user control when it comes to assigning the priority of the applications they are running both from a network standpoint, and from a hardware position. This could be invaluable when it comes to running a Bitcoin mining PC, as it will allow you to select your mining process, software, and the PC itself as a priority machine, meaning that it's going to both get network and CPU priority. Pretty great stuff when it comes to Bitcoin mining.
The Best GPU For Bitcoin mining.
There are a few different factors to consider when it comes to selecting the GPU to stick into your Bitcoin mining PC build. Firstly, you need to think about the hash rate of the card you are buying. This is better explained in the supporting Bitcoin mining article I linked in the intro, but put shortly its basically the rate at which your graphics card is able to put together the hash code that makes up the individual blocks in a blockchain, which in turn allow Bitcoin mining to happen.
Basically I'm talking about how long it takes for the card you choose to actually mine Bitcoin.
Then you have to think about the upfront cost of the card itself. Remember, we aren't talking about gaming exclusively here, we are talking about an investment that you are hoping to see a return on, and with that in mind, you shouldn't want to drop too much money onto a card if you don't expect to see a solid ROI for a long time.
Then you have to think about your graphics cards power consumption - it's going to be a noticeable cost that you will have to factor into all of your Bitcoin-related expenditure, especially if you are expecting to be running your Bitcoin mining rig all hours (hint, you should be if you are expecting to see a healthy return on all of your investments).
So, with all of that in mind, we have a couple of options for you here. If you are looking to splash any amount of cash no worries, and want to get the best performance out of the card that you buy then its obviously going to be the 2080ti. The strength of this card is within its processing power, as it's going to be the quickest card on the market when it comes to putting out a hash rate.
It's not just good for Bitcoin either, you could use this card on a number of different ecurrencies and see positive results when it comes to the turnover of the actual mining process, but be aware that this does come with some drawbacks.
The first of which is the actual price of this card. Remember when I said your selection would depend on your preference when it comes to the actual ROI on the card itself? Well, it's hard to say how long it would take for this card to pay for itself when it comes to the actual mining process, as it all depends on the success rate of your mining and the price of Bitcoin at the time of mining. Basically, it could be a while before you make back the money you spent on the card in the Bitcoin mining game.
Plus, you have to add the actual power consumption of the card into your calculations. Sadly, the 2080ti's processing power comes at a cost, and that's the amount of power it takes to run the thing. Combine that to the (average) $1,200 price tag that is usual;ly attached to the 2080ti, and you have a long way to go in recouping the price of the 2080ti via Bitcoin mining.
So, what should you go for if you are looking for a more well-rounded card that offers a better upfront price, running cost, and decent hash rate? Well, you could go for the 1080Ti, the previous incarnation of the 2080Ti that also offers stellar performance, yet at a lower price.
You will be able to expect a hash rate of around 32 MH/s, which is really good for a dated card like this one, it means you will be able to rely on it for a steady rate of mining for a long time. You are also going to open yourself up to a litany of modification options that are only going to allow you to steer the 1080Ti more towards the end goal of mining.
You can buy these cards pretty cheap online, and they run even less expensive if you choose to buy a used version - just be sure that you don't buy a card previously used by a Bitcoin miner, as they might not have taken great care of the card itself and it might not perform at its 'as new' standards. The card itself is less power-hungry than a 2080Ti as well, pulling in 250W of power - but again, your upfront costs will be lower than if you bought a 2080Ti, so you do have that to factor into your investment budget.
If you are looking for an AMD card to get mining on, then there could be a solution to be found in the Radeon RX570. Now, you might be thinking to yourself that as this card is less powerful than the Nvidia options I mentioned it wouldn't perform as well - and you would be right in thinking this, but what you also have to consider is that you could, theoretically employ a number of these cards in different machines (all built to lost cost), and run several mining machines built out of lower-cost parts for a more productive mining bank.
There are obvious drawbacks to this approach (mainly in the power consumption department), but realistically you could buy several 570 GPUs for the same price as a 1080Ti, or even a 2080Ti, and up your mining process in a trade-off for less power. You won't be getting a stupidly low amount of power though - an overclocked 570 could reach up to around 30 MH/s, so you just have to be willing to put the work in on overclocking your GPU.
Again, the choice is all down to you - but please be mindful of your budget, your ROI goals, and the price of power in the area you are looking to mine from.
Hardware, Software, HowTo's.

[Bitcoin]

Bitcoin Cryptocurrency Mining Pools Explained - Best Mining Pools PPS vs PPLNS|18:17

[Bitcoin]

Choosing The Right Pool To Mine On - Crypto Beginners Guide #4|11:29

[Bitcoin]

Do you often wonder what Bitcoin mining is all about and how to get started?
Cryptocurrency is no longer the new kid on the block but most people are confused about how it works.
That is what we will be looking at in this article.
In this article, we will cover the following areas.
What is Bitcoin mining? Why Mine Bitcoin? What is Bitcoin mining Hardware? How to get started mining bitcoin.
Let's take a look at these four points by starting from the top.
Bitcoin mining is the backbone of the Bitcoin network and what it does is provide security for Bitcoin transactions thereby avoiding external attacks. This process is carried out by specialized computers.
In Bitcoin mining, the role of miners is to make sure that the network is secured and every Bitcoin transaction is tracked and processed, this is achieved when they solve a computational and most times complex problem that allows them to chain together blocks of transactions also known as a blockchain.
In return for this, miners get minted or new Bitcoins and transaction fees which is also called Block Reward.
Bitcoin is not regulated by a central authority, instead, it is backed up by millions of computers around the world referred to as 'nodes'. This network of computers do similar jobs as a Visa or MasterCard debit or Credit Company or even the Federal Reserve, how?
Nodes store information about former transactions and assist in authenticating such. The difference in traditional currencies and Bitcoin is that; unlike traditional currencies, Bitcoin nodes are easily accessible to anyone because they are spread across the globe and the data recorded and processed are filled in a public list (blockchain).
Another essence of Bitcoin mining is to avoid duplicate or double-spending, with paper money, that isn't a challenge because once money exchanges hands, the power of authority over such money is transferred but with digital currency, it can become tricky as digital information can be relatively reproduced easily, that is, there is a risk that a spender can make a copy of their bitcoin and send it to another person while still retaining the original.
Just as the serial numbers of bills can be traced and compared to ensure that there is no counterfeit in circulation, so also is what a miner does when they verify new transactions.
Why Mine Bitcoin?
Mining when it comes to Bitcoin is called that because those who do it are the ones who get rewards of new bitcoins and as we have rightly established earlier, there is a need for mining to secure transactions made online with Bitcoins protecting such transactions from hackers.
Also, mining - as duly emphasized - produces new bitcoin for miners as a reward for mining. This act is better described as competitive bookkeeping because every miner work towards establishing and maintaining a gigantic public ledger containing a record for every bitcoin transaction made all over the globe, anytime there is an exchange of currency (bitcoins) for value (goods and services) or sale of currency to a buyer, such transfer has to be endorsed by miners, how? They check the ledger to ensure that the sender isn't making any transaction of money he/she doesn't possess, once the transaction is approved, miners add it to the growing ledger.
In order to ensure that this voluminous growing ledger containing important Bitcoin information doesn't get hacked, miners seal it behind layers and layers of complex computational work, thereby making it well-protected from fraudsters. As said initially, it is very competitive and only the miner who succeeds in approving a new batch of transactions and finish the computational work necessary to secure the transactions in the ledger gets a reward; it is, however, time-consuming but still rewarding.
Also, as initially insinuated, mining helps to keep track and avoid double-spending and this is done when miners consult the ledger when any transfer is made to ensure that the sender is not double-spending. It may all seem simple tracking down and approving of transactions but it is not all rosy, challenging issues like privacy comes up; to make every Bitcoin exchange transparent while keeping all bitcoin users completely anonymous and also, if the ledger is totally public, how do you prevent people from fudging it for their own gains? This is one of the underlying challenges faced in Bitcoin mining.
The simple answer to this is; yes, it is legal. However, the detailed version is that some countries do not accept bitcoin as legal, naturally, as a result of this, mining will not be accepted and will be considered illegal although this is subjective and depends on the jurisdiction.
The main thing is that one does the mining with legit resources, even in the face of this, some countries have declared anything that has to do with bitcoin and other cryptocurrencies as illegal, why?
As we well know, bitcoin has a decentralized and stateless nature that defies the long-standing state-backed currency.
To understand more the opposition of some countries to bitcoin and its mining, let's consider the fact that it serves as a threat to the national currency and national banks, let's not also forget the salient fact that Bitcoin mining has become a niche business boasting of established mining farms with special ASICs equipment.
In essence, the government has always relished having the power to print money and this is what bitcoin doesn't do, it takes the power away, needless to say, anything that the government is unable to regulate or control will naturally be kicked against.
Also, the fact that as bitcoin increases in value, printed money becomes an alternative in transactions (of purchasing goods and services), that is, Bitcoin was created with the mindset and intention of providing people with an alternative to modern-day banking, helping them to bypass increasing policies of corrupt governments.
It has also brought and established the concept of a decentralized system if well backed up by sturdy/boisterous mathematical models also known as cryptography.
However, Bitcoin mining is legal in many countries with a few exceptions. Find out your country's legal stance or disposition to Bitcoin mining before you start to be on the safer side.
What is Bitcoin mining Hardware?
Bitcoin mining Hardware, also known as ASICs are highly specialized computers used to mine bitcoins. It is a highly complex and competitive system that consumes time and electricity. Satoshi, the founder of Bitcoin, released Bitcoin intending to use computer CPU for the mining process, however, industrious miners discovered soon that more hashing power can be gotten from graphic cards and went ahead to write mining software making this possible.
With time, ASICs (Application of Specific Integrated Circuits) overtook the use of GPUs. Hardly will you see any miner or mining company nowadays using anything other than ASICs and usually, they are carried out in thermally-regulated data-centers with easy access to low-cost power supply/electricity.

[Bitcoin]

Mining Pool Hub [PROFIT Switching MINING Alternative] In 2020!|11:17

[Bitcoin]

Therefore the introduction of ASICs has led to the concentration of mining power into fewer hands than the original intent.
Presently, founded on (1) price per hash and (2) efficiency/quality of electricity, the best Bitcoin miner options are as follows;
AntMiner S7 with specs:
Advertised Capacity : 4.73 Th/s.
Power Efficiency : 0.25 W/Gh.
Weight : 8.8 pounds.
Appx. BTC earned per month : 0.1645.
AntMiner S9 with specs:
Advertised Capacity : 13.5Th/s.
Power Efficiency : 0.098 W/Gh.
Weight : 8.1 pounds.
Appx. BTC earned per month : 0.3603.
Avalon6 with specs:
Advertised Capacity : 3.5Th/s.
Power Efficiency : 0.29 W/Gh.
Weight : 9.5 pounds.
Appx. BTC earned per month : 0.1232.
They can all be purchased from amazon @ amazon.com.
What are Mining Pools?
The idea of Bitcoin mining pools is a system that allows miners to join together as a group or any other miner joining an existing mining group and this is to allow the frequent discovery of blocks, with this, naturally, comes more frequent mining payouts. In essence, pools are groups of liaising miners who agree to share block rewards in ratio to their contributed mining power.
The downside to a mining pool is the fact that; even though it appeals to the average miner as they get rewards more frequently, it, unfortunately, channels more power to the owner of the mining pool. An extremely huge number of blocks are mined by pools rather than individual miners, in fact, mining pools and companies represent a large percentage of bitcoin computing power.
The advantage, however, of mining pools is this; miners with a minute percentage of the mining power stand a slim chance of discovering the next block by themselves, for example, a mining card that one could purchase for a couple of thousand dollars would represent less than 0.001% of the network's mining power, therefore, with such a slim chance of discovering the next block, it could take forever before the miner discovers a block topped with the exasperating difficulty, this doesn't make things easier and we must keep in mind that the miner has invested and may not be able to recover such investments. That is why the mining pools is very much recommended.
Mining Pools are operated by third parties and coordinate groups of miners. By using collective resources and brain work, they get to share the payouts among all miners belonging to such pool, it is as good as a miner starting to earn bitcoin steadily from day 1 of joining a pool. To get more information and statistics on mining pools, check blockchain.info.
How to Get Started With Bitcoin mining.
To start mining bitcoins, there is a need to possess a Bitcoin mining hardware (scroll up to see recommendations of mining hardware). As earlier insinuated, it was possible to mine in the comfort of your home using your computer CPU or high speed video processor card, that's no longer possible today.
Instead, Custom Bitcoin ASIC chips proffer performance up to 100 times the average competence of older systems and have come to rule the Bitcoin mining trade.
Bitcoin mining with anything less than ASICs will guzzle more in electricity than you are probable to be paid. It's crucial to mine bitcoins with Grade-A Bitcoin mining hardware constructed precisely for that purpose. Numerous companies such as Avalon offer outstanding systems built explicitly for Bitcoin mining.
Below is a very simple, easy to follow steps on how to start mining Bitcoin.
Step 1 - Get The Best Bitcoin mining Hardware. ... Step 2 - Download Free Bitcoin mining Software. ... Step 3 - Join a Bitcoin mining Pool. ... Step 4 - Set Up A Bitcoin Wallet. ... Step 5 - Stay Up To Date With Bitcoin News.
Another option to consider in Bitcoin mining to purchase Bitcoin cloud mining contracts. This increases the simplicity and ease of the mining process but also increases risk because the control of the actual physical hardware is done by someone else. There are a number of such cloud mining services, however, mentioning them is not in any way a form of an endorsement but for educational purposes.
Bitcoin mining: Beginner's Guide.
Where do Bitcoins come from? With fiat money, the central bank regulates the issuing and distribution of cash. The Bitcoin network is decentralized and instead of the government, it has the miners who provide their computing powers to issue new Bitcoins and secure the network.
How mining works, how big are the rewards, and how hard is it to set up your own mining farm? Read this article to find out.
Video version.
What is the point of mining?
Creation of new Bitcoins.
Miners install special software to solve math problems embedded in the Bitcoin network. In return, the network rewards the miners with the new Bitcoins every 10 minutes. Why exactly 10?
Because the Bitcoin network automatically changes the difficulty of the math problems depending on how fast they are being solved. Bitcoin is programmed that way to ensure the fairness of the system and to avoid cheating and the creation of Bitcoins out of nowhere.
This provides a wise way to issue the currency and motivates more people to mine. But why does the network need miners?
Confirming the transactions.
Miners record the transactions made on the Bitcoin network in their blocks.
Block: Similar to a record book, a block registers the most recent Bitcoin network transactions.
Bitcoin network only documents those transactions which were confirmed in a block. Only then those operations become formally recorded in the blockchain.
Larger payments require more confirmations. For example, if your transaction is less than $1000 one confirmation will be enough, while larger transactions may require up to six.
Securing the network.
The network also needs miners as they secure the blockchain. More miners -- the more decentralized the network. This makes the blockchain less vulnerable to attacks.
The biggest disruption of the network may happen because of a so-called 51% attack. It can be done by a group of miners who control the majority of the network's mining hash rate.
Hash rate: measuring unit that indicates the computational power of the mining hardware.
If the group of miners controls over 51% of the blockchain network hash rate they can cut off the recording of new blocks by limiting other miners from completing the transactions. The idea here is simple -- the more decentralized the hash power of the network the more it is secure.
ASIC mining hardware.
The evolution of mining hardware.
At first, the miners were using the processors (CPUs) to mine Bitcoins. Those were pretty effective for the network at that time because the math problems were simpler. As the industry evolved, miners figured out that the gaming graphics cards (GPUs) are much more effective mining hardware, and most of the miners switched to them.
Soon, the commercial Bitcoin mining products entered the market. They included the processor chips reprogrammed for mining Bitcoin. These chips were faster than the graphics cards, but still very power-hungry.
The industry then came up with the ASICs -- processors that are designed specifically for mining. They are faster than the first commercial mining chips, but their main advantage is less energy consumption. Smaller electricity bills mean less operational spendings and therefore higher profits.

[Bitcoin]

Bitcoin Mining Pool on OOS  And Mining Sites To Ignore|5:01

[Bitcoin]

Can I start mining with my desktop?
If you want to start mining Bitcoin you should never use your home PC. You will earn pennies, and will most likely damage your hardware as it will work at maximum power all the time.
For the same reason you should also never install the mining software on your smartphone -- an average Android smartphone will earn you literally less than a cent per year. At this stage of the Bitcoin mining industry development, it only makes sense to use the ASICs hardware.
But is there even a point to individually farm Bitcoins?
How big are the rewards.
As the popularity of Bitcoin increases, more miners join the network. This forces the blockchain to be more decentralized and therefore secure but also makes it more difficult for individuals to solve math problems. To overcome these challenges miners have developed a way to work together in pools.
Pooled Mining: combining the efforts of multiple miners to work on the same goal. Such teams find solutions faster than individual miners, and each member of the pool is paid proportionally to the accomplished work.
The rewards for mining are directly linked with the Bitcoin supply and decrease with years because of halving.
Halving: A process in the Bitcoin network that occurs every 210,000 blocks, resulting in the reduction of mining rewards per block by half.
Right now miners receive 6.25 Bitcoins per block, while before May 2020 halving the reward was 12.5 BTC. Halving happens approximately every 4 years and will keep going until the last Bitcoin will be mined in approximately 2140.
Even though miners already farmed 85% of Bitcoin supply, it will take approximately 120 more years to mine the last Bitcoin. Why do people still mine if the rewards decrease?
Because the dividends are shifting from the block rewards to fees. Even after the mining of the last Bitcoin, the miners will still profit from the fees that Bitcoin users pay them for recording each transaction.

[Bitcoin]

Mining farm in China.
Mining companies.
When we speak about big mining companies, the key features that they are looking for are cheap electricity and cold location. The colder the climate the more it can dissipate the heat generated by mining.
The most popular country in mining is China, which is responsible for around 70% of the overall hash rate. The country's West specifically is a very popular Bitcoin mining location, due to the cooler mountainous climate and very cheap electricity bills. Despite China, mining companies spread all around the globe -- the most popular locations include Iceland, Canada, Switzerland, and .
The location is also important because just as Bitcoin itself, mining the coin is also illegal or highly taxed in some countries. It does not usually affect smaller miners as it is almost impossible to detect them. Larger mining farms, even those with big names in the industry, sometimes hide their location due to strict regulations.
Bitcoin mining For Dummies: [2020 Guide]
Are you seeking to learn what Bitcoin mining is all about? Bitcoin uses a process called Bitcoin mining to create and distribute new Bitcoins, as opposed to in our traditional fiat systems, where we trust governments to do this task. Not only does mining generate and circulate new Bitcoin, but it is also responsible for verifying user transactions.
One interesting fact is that only 21 million Bitcoin will ever be in existence. With 17.4 million Bitcoin currently in circulation, what's even more intriguing is how new Bitcoin gets created and issued into the network.
What is Bitcoin mining? Bitcoin mining is a process that involves using a distributed pool of computational power and a consensus algorithm for verifying transactions and distributing new Bitcoins into the network.
Unlike our current financial systems which heavily rely on centralized databases and third parties for verifying transactions, Bitcoin mining uses computing power voluntarily offered by miners.
Miners are required to use a unique algorithm to prevent double-spent transactions from occurring on the Bitcoin network, which is a massive crisis in today's fiat payment gateways.
Anyone can participate in Bitcoin mining with the proper mining hardware and software configuration. While in the beginning this could be done with almost any at-home computer, over the last 10 years, the hardware involved in Bitcoin mining has evolved into much faster chipsets made explicitly for one purpose and one purpose only, Bitcoin mining.
In 2009, the first block of Bitcoin was mined by its anonymous core developer who goes by the code name Satoshi Nakamoto. Back then, the Bitcoin network was small with minimal users, and mining Bitcoin on a laptop/desktop using a central processing (CPU Mining) unit was common. Early adopters reported earnings of around 50 BTC using nothing but a laptop.
It wasn't long after the start of this digital gold rush that someone else discovered graphics cards (GPU) to be more efficient, so, in 2010, a code got released that enabled users to start using GPU to mine Bitcoin. Once GPU mining for Bitcoin launched, the mining difficulty made CPU mining for Bitcoin no longer feasible. However, GPU mining faced the same limited hardware capabilities as the CPU did when a prototype Bitcoin miner was created, bringing an even more efficient chipset to the scene.
The first versions of these Bitcoin Miners hit the market in 2013. ASIC, or Application Specific Integrated Circuits, as they call them are some of the most efficient chips used in today's Bitcoin mining. Now, with Bitcoin continually gaining popularity year after year, 1000s upon 1000s of ASIC miners have been deployed globally, and so it's almost impossible to mine Bitcoin with any other chipset.
Bitcoin mining has this unique dynamic called Mining difficulty, and as more miners participate in mining Bitcoins, it increases with the network. This increase in difficulty is what created the demand for faster mining hardware, and will continue to grow as more Bitcoin adoption happens.
Now that you have this brief understanding of the evolution of Bitcoin mining, let's dive deeper into what miners are actually doing.
Bitcoin is a decentralized currency meaning no bank or authorities are in charge of exchanging and distribution of Bitcoin. Whereas in traditional fiat currencies all credit/debit cards payments are processed using third-party services like Visa and Mastercard, Bitcoin instead uses a distributed network of combined computing power running specialized software for verifying all of its user's transactions, and evenly distribute new Bitcoin into its network.
Each time a user sends Bitcoin to another user, whether they are sending Bitcoin to a friend or using it for a transaction to buy goods, it signals the miners on the network that an exchange is needed. The wallet addresses involved in the transaction are placed in a "mem pool" along with any other Bitcoin transactions waiting to be validated. Senders of the transaction pay miners a small fee for this validation service.

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Once a transaction gets picked up by a miner, the data is then temporarily stored along with any other transactions being processed to form a 1MB size digital block. Before each block of transactions can be officially confirmed valid, there's a long hexadecimal number called a target hash assigned to it that must be guessed correctly using only mining hardware and software configured with a unique proof of work hashing consensus algorithm. This unique algorithm makes pieces of data challenging to generate yet easily verifiable which is perfect for securing and verifying transactions.
The miner or mining pool lucky enough to hash this unique number correctly first while simultaneously confirming the transactions of the previous block against the transactions of the current block wins the block reward (currently worth 12.5 BTC). The block then awaits to be permanently recorded on an open ledger called the blockchain which is a complete history every Bitcoin transaction.
Once the block has had 1 - 6 additional blocks confirmed on top of it, the funds of each transaction are released and it is no longer reversible (double-spend problem solved). The miner or mining pool that was lucky enough to win the block reward has to wait for 100 confirmations before they receive the full block reward, currently set at 12.5 Bitcoin. The same lucky miners also earn the transaction fees that confirmed valid during the block's timestamp period.
So you see, mining is verifying transactions in groups called blocks. However, miners have to double-check the work of the previous block before they can build another block of transactions. Once a miner solves a block, the other miners on the network have to confirm the work is indeed valid using proof of work for validation.
Once enough confirmations have been satisfied by the other miners running on the network the mining pool who solved the block is then paid the full block reward plus any processed transactions fees as a bonus. This block is officially valid and is then permanently submitted to the blockchain which connects all the previous transactions to future transactions in a more secure manner than our current gateways systems.
This process all happens autonomously, using computing hardware and special mining software in which anyone can participate. As I mentioned briefly earlier, ASIC miners are now the standard chipset used in today's mining, which may not be suitable for home use due to its electrical requirements.
Block Reward & Halving.
I also want to highlight a few other facts about Bitcoin mining to give the full picture of how all this works. The first thing I want to mention is that yes the current reward for solving a block is worth 12.5 Bitcoin, but this is set to drop by 50% every four years, which is known as block halving.
You see Block rewards were much higher when Bitcoin mining first started to attract more miners to the network while its user base was small and needed help to grow. As the network continues to grow over the years, the rewards step down which creates a limited supply for purchase meaning as the block rewards go down, the price of Bitcoin should go up.
The second fact about Bitcoin mining pertains to the use of a mining pool. Mining Pools allow groups of miners to pool together their computing hardware in an attempt to increases their chances of solving a block. In the early stages of Bitcoin mining, mining pools weren't a requirement as users could easily find blocks due to the low level of mining difficulty.
Over the last ten years, the difficulty has increased so much that even with the help of ASIC hardware it is near impossible to win a block solo mining. To participate in mining Bitcoin with a pool is a rather simple task to do. All that is need from a miner to participate is an account at a mining pool and pool address to point the mining hardware too.
If a block is found and confirmed valid by your mining pool, the reward is equally divided across the miners who did the work and is proportional to the amount of computing power each miner has pointed at the pool. Meaning if your accumulative computer hashrate makes up 25% of the mining pool's total hashing power, then you earn 25% of the rewards. Please keep in mind that mining pools do charge a small fee for this service.
List Of Bitcoin mining Pools:
Slushpool BTC.com F2Pool ViaBTC Kano CKPool BTC.TOP BitClub Network BTCC Pool BitFury Antpool BW Pool Haopool 58Coin Bitcoin Solo CKPool ConnectBTC Bixin.
The final thing I wish to mention is Mining Difficulty which is a dynamic that regulates how fast new blocks get submitted and uploaded to the blockchain. Bitcoin has this strict rule that valid blocks must be generated on an average of every ten minutes or 2016 blocks total every two weeks. This ensures that no hacker can orchestrate mass amounts of computing power to mine up all the Bitcoins before the network has a chance to mature.
The main issue with our current financial systems is that there are no limits set in place. Whenever a government decides to print more money, it causes inflation to that currency's value, and therefore it becomes worth less over time. Whereas with Bitcoin the mining difficulty is automated through the network and can not be altered by any government or authority, so Bitcoin's circulating supply will always be limited.
Bitcoins mining difficulty adjusts every 2016 blocks so that it averages out to two weeks total. If the miners on the network find 2016 valid blocks faster than the two weeks set by Bitcoin's built-in protocols, then the difficulty of solving a block increases accordingly to match the two-week average. However, if the 2016 blocks take longer than two weeks, then the difficulty decreases accordingly to stay inline with Bitcoins two-week average cycle.
In conclusion, it is said by many that this new way of digital banking will change how the world does business. Most of today's current financial infrastructure is built on technology that has been long outdated and so blockchain along with cryptocurrencies like Bitcoin plan to provide the solution to a lot of its current problems.
How To Get Started Mining Bitcoin.
When it comes to investing in Bitcoin mining, there are two ways in which a person can go about it. The first option involves buying and operating the equipment at home whereas other options allow users to host. Both come with their own set of precautions so let's discuss both in further detail.
Steps To ASIC Mining Bitcoin:
Calculate Profits - To see if Bitcoin mining is profitable at your electric rates, it best to calculate profits before you decide to purchase any hardware. Mining calculators like Whattomine and Cryptocompare allow users to enter in their utility rate and hardware hashrate and power consumption. These calculators then provide you with an estimated return on investment based on the data you provide them.
Mining Requirements - Bitcoin ASIC miners these days require a 220v outlet on its own dedicated circuit. Hiring a licensed electrician to size the wire and install the breaker properly is recommended if you're not an electrician. Cooling ASIC miners is another major issue with most mining operations. Installing in-line fans and circulating fresh air is the most cost-effective way to keep your hardware from overheating and crashing. Lastly, make sure to have access to a high-speed internet connection to be able to plug into the miner directly as running over wifi has reported issues.
Purchase Bitcoin Miner - Buy the latest hardware from trusted manufacturers with great support and warranty. Make sure the manufacturer of the equipment has a reputable name and has been reviewed by several other sources. Sometimes ASIC mining companies come out of the woodworks with miners that promise high profits which are fake sites to steal people's money. Some of the best ASIC miners come from Bitmain and Ebang in China.
Connect Power and Internet - Connect the power supply to the miner and make sure all connections are properly secured. Each ASIC miner also comes with an ethernet port for an internet connection.
Locate Miner IP - Login into your local network's router and locate the IP address of the miner. Once you have the miner IP address, log in by entering the address into a browser and wait for a login screen to pop up. Every ASIC miner has a default username and password to log in.
Get A Bitcoin Wallet Address - Create a wallet so that the miner has an address to receive mining payout earned through the hardware. BRD wallet offers wallet solutions for several coins and is offered in both Apple and Google app stores. Don't forget to backup your wallet and write down any passwords before proceeding.
Get A Bitcoin mining Pool Address - Pick and choose any pool you would like from the list; slushpool is the most popular with its phone app monitoring features. Once signed up for a pool, there should be pool addresses listed on each site, be sure to copy the address closest to your mining hardware operation.
Configure Miner with Pool and Wallet Address - To configure an ASIC miner to mine is rather easy, copy and paste the Bitcoin Wallet address and pool address into the miner main configuration panel and hit save. Once finished the miner should begin connecting to the pool and hashing on the network. Once your pools hit a block, you'll start earning Bitcoin mining rewards.
Cloud Mining is an alternative way for investors to participate in earning Bitcoin mining rewards without actually possessing any hardware. Cloud Mining services have large data centers typically located in areas that have a cooler climate and cheaper utility rates. This advantage allows these companies to mass deploy large Bitcoin operations across the globe and offer investors shares or cloud mining contracts as service.
One of the main drawbacks to owning and operating ASIC mining equipment is they tend to radiate lots of heat. Having to maintain the equipment becomes another issue for those who aren't all that computer savvy, so Cloud Mining offers an easy solution to be a part of this new trend.

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