Bitcoin mining.

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Bitcoin mining - How Do Miners Process Transactions Inside The Blockchain?
May 11, 2020, was a big event for Bitcoin miners. The third halving transitioned, cutting the supply of bitcoin in half, from 12.5 to 6.25 BTC every ten minutes for every mined block.
But what exactly is mining? It is a ubiquitous term associated with the Bitcoin network and many other cryptocurrencies. Yet many explanations go only as far as indicating the importance of processing transactions, securing the network, and making transactions near-instant.
This guide lets you understand more of what happens inside the blockchain network and what the miners do. It's the simplest explanation of what happens inside the Bitcoin network during a transaction when bitcoins are sent from point A to point B.
Sending Bitcoins - Wallet To Wallet.
To pay for a transaction using bitcoins, you need to have a Bitcoin wallet and the public address of the person you're sending it to, who also has a wallet. Some people attach transaction fees if they want their transactions to be processed faster (added to the next block), but they're not mandatory.
Blocks are just hundreds to thousands of grouped transactions of 1mb each. They are generated by miners who use them to record and add transactions to the chain of other blocks containing earlier transactions.
The transaction is sent over the Bitcoin network goes to a local pool of other unconfirmed transactions, where miners pick them at random and add them to new blocks. First, they have to confirm their validity by looking at the wallet's transaction history to ensure enough balance to make the current payment.
Miners prioritize transactions with higher transaction fees, and so your transaction may get picked by two or more miners working on different blocks. So if you're in a hurry as a sender, you should use a higher transaction fee option as that will fasten the processing period of your transaction. Transaction fees are not mandatory, especially for smaller purchases like coffee or paying for a movie ticket. Still, it means your transaction might have to linger in the pool for longer.
Mining-Finding the Block Signature.
Once a miner picks enough transactions for their block, they need to add the block to the network, but for this to happen, the miner has to find the block's unique signature. This is where the computational power of their mining computer (mining rig) comes to play.
The signature, also known as a hash function , is a complex mathematical puzzle that each miner can solve for each block. It is like finding the unique identifier that will identify the block from the chain of thousands of other blocks already in the network.
Finding the signature involves inputting a random combination of symbols, digits, or numbers to get a 32 string digit that starts with a specific number of zeros, let's say 17 zeros. Not all random inputs will generate such an output, and thus, the miner has to change the input until the output meets the set conditions. This means the computer needs to perform fast, repeatedly, and consume a lot of electricity.
Keep in mind that this happens simultaneously with thousands of miners working on different blocks containing the same transaction. The first miner to work out the answer to their block's puzzle transmits the block, its puzzle input, and other miners' answer on the network.
Verification and Addition to the Chain.
In turn, the other nodes verify that the transmitting miner's input for the block gives the exact unique output (signature). This is easy to do since the same random input will always give the same output. Once other nodes on the network verify that the block is valid, they add it to their nodes, and the block is said to be confirmed.
The miner who mined (solved the hash function) the block gets rewarded, and the next block is added based on the metadata of the last mined block. To further explain, it means that the hash output of the mined block will be included in the next block's hash function.
Confirming a Transaction.
Every transaction is said to have one confirmation. Once the block is in, it has been verified by other nodes and added to the network. Consequently, if the next block is confirmed, it is then added to the chain, and it becomes the second confirmation for the transaction, and so on.
Miners have to be fast since only one block is included and, therefore, the reward and transaction fees if there are any. This means that other miners have to abandon their blocks if they contain some confirmed transactions in an already mined block.
Besides, the next block has to have a signature of the previous block. Otherwise, other miners would see this and reject a block that doesn't fit the blockchain's block's history.
After their block has been confirmed, miners repeat the same process by going back to the local pool in approximately ten minutes. They verify and group other transactions in a block that references the chain's latest block's signature.
How then, are Bitcoin Transactions Instant?
After getting a picture of how the Bitcoin network works, the next logical step is to wonder how bitcoin purchases or wallet transfers reflect instantly on the destination wallet.
On the Bitcoin network, the answer is pretty simple. Sending bitcoins is broadcasting the request for the transaction to the entire network. Therefore, the person receiving the bitcoin will get a message almost instantly that the transfer has taken place, but the transaction still has to go through the mining process.
The probability of your transaction getting confirmed is and being added to a block with no problem is always high, especially if there's an attached transaction fee. Many merchants or outlets do not necessarily have to wait until the blocks are validated when paying with bitcoins. You can use block explorers, which are useful tools in tracking the progress of a transaction in a blockchain network.
This simple explanation reveals the foundation of decentralized governance, where everything is done automatically without a third party's involvement. Miners can be located anywhere in the world, and it's not enough for any miner to solve the puzzle, but they have to broadcast for others to verify and reach a consensus on what the truth of the transaction is supposed to be.
How the bitcoin processing units used in mining.
It is a well-known fact that the hardware of Bitcoin mining has changed dramatically in recent times due to the evolution of new central processing units in the market. Newer machines can process bitcoins at a faster rate than previous computers. Plus, they use less power and last longer. Field programming gateway processors are integrated with CPUs to increase their computing power. When choosing hardware for bitcoin processing, make sure it has a very high hash rate that will give users excellent results. According to experts, the speed of data processing is measured in mega hash rate per second or GIGA hash rates per second. If you want to know what is exactly the bitcoin circuit so you can visit here to get all the details and information.
Selection parameters.
Another parameter for choosing the best Bitcoin mining hardware is to analyze the power consumption of different machines available in the market. If the CPU requires too much power, it can have a detrimental effect on output and business operations. Therefore, in order to attract people's attention, the quality of hardware should be high and price-oriented. Spending on the electricity bill should be in sync with the bitcoin earned through the application. One should keep in mind that the CPU uses its own power for its operation and more is needed to power Bitcoin mining hardware. The combined costs should be compared to the benefits of the machine.

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My Biggest Bitcoin Mining Contract Ever! 50 TH/s Hashflare Cloud Mining Upgrade!|7:47

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Graphical processing.
One of the most important components of hardware is the graphical processing unit that can easily handle complex multidimensional calculations. As a result, it is very useful in solving the problem of transaction blocks with bitcoin processing. According to experts, GPUs have a distinct advantage over CPU hashing technology due to their high processing power. In addition to handling bitcoins, GPUs can also synchronize data transfers of cryptocurrencies with other programs without any hassle.
What are the Bitcoin mining purposes?
The ASIC option has been introduced in the market for Bitcoin mining purposes as it has more power than a graphics card. To achieve processing purposes, it is embedded in the computer's motherboard along with other doors. The on-board field program capable gate array is capable of delivering power of 750 MHz. Bitcoins can be mined at amazing rates with powerful machines. Although, custom chips are expensive and take some time to fabricate, the data speed they provide is very good.
What mistakes we should avoid?
At the moment there are lots of things are coming as bitcoin trading flaws so some purchasers make some costly mistakes. On the time they try to earn some basic returns on their investments for the first time they should have to take a lot to understand it. It is basically depending upon totally on the rate of investment and trust in it towards the success. It may want to be careful when making the purchase. You have to keep all the instructions and details for your earning and future profit.

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USB Bitcoin Miner - The Power of 1000's Computers|15:24

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Bitcoin.com's Mining Video Censored: The Tale of Youtube's Blatant Censorship and Propaganda.
During the last few years, the Google-owned Youtube platform has been accused of massive censorship and in the last three months, the video streaming business resembles the Ministry of Propaganda, more than an online video-sharing platform. This week Bitcoin.com was also censored for sharing a video about our Bitcoin mining pool. Bitcoin.com's Youtube account was given one strike for allegedly "violating community guidelines."
Youtube Took Part in Historic Amounts of Censorship During the Covid-19 Outbreak - People Will Not Forgive and Forget the Firm's Transgressions.
When the online video-sharing platform Youtube was first released in February 2005, it was a community of people sharing ideas with very little censorship and moderation. Nowadays, Youtube is under the ownership of Google, and the firm's CEO Susan Wojcicki has been outspoken about removing videos. Weeks ago, Wojcicki told CNN that any videos that went against the WHO narrative in regards to the Covid-19 outbreak would be removed.
Last year, Youtube de-platformed a myriad of 'alt-right' and so-called 'conspiracy' groups and removed these channels from the video streaming site. Youtube also started harassing cryptocurrency content creators and Youtubers who operated channels that discussed bitcoin and other digital assets. During the holiday season in 2019, Youtube officials purged a massive number of cryptocurrency video channels for very little reasoning. The company typically just tells the person that the channel had "violated community guidelines."
Prior to Bitcoin.com's recent video removal and strike, Wojcicki's words came to fruition as her company banned many videos that spoke out against the WHO's narrative when it came to an oppositional narrative toward 'official' coronavirus data. Youtube and Wojcicki took it upon themselves to shelter the public from an opposite narrative that claims herd immunity works and the fatality rate for Covid-19 was extremely over-exaggerated.
California Dr. Daniel W. Erickson and Dr. Artin Massihi had their video removed after it gained 5 million views. Erickson's statements suggested that the lockdowns were unnecessary for a virus that has a 99% survival rate and that so-called experts like Dr. Fauci were disregarding basic herd immunity science.
We now know that the proof is right in front of our faces and many respected scientific think tanks and epidemiologists have told the public that the lockdowns were very irrational. Despite the proof, Youtube has banned a number of videos that go against the ongoing fear-mongering narrative. When a video was posted on Youtube that featured Dr. Daniel W. Erickson and Dr. Artin Massihi from California, the video got 5 million views before it was removed. Youtube's excuse was:
We quickly remove flagged content that violate [sic] our Community Guidelines, including content that explicitly disputes the efficacy of local health authority recommended guidance on social distancing that may lead others to act against that guidance.
Youtube also banned a video called "Plandemic," which featured Dr. Judy Mikovits soon after it was published on the online video sharing platform. Youtube, however, does allow videos that rebut Judy Mikovits, Daniel W. Erickson, and Dr. Artin Massihi's narratives. The company has no issues allowing rebuttals that stay on course with the fear-mongering narrative.
Youtube removed a video called "Plandemic" which featured Doctor Judy Mikovits. Mainstream media slandered Mikovits and she explained this week she is willing to testify in Congress about her perspective that goes against the current MSM narrative.
But any dissenting views against the lockdowns, stay-at-home orders, and social distancing continued to be removed to this day. The former head of biostatistics, epidemiology, and research design at Rockefeller University, Dr. Knut M. Wittkowski, recently told the public that Youtube had banned his video that went against the lockdown, and over-reaction narrative after it gathered more than 1.3 million views. Dr. Andrew Kaufman's videos were also removed, when he spoke out against the stay-at-home narrative and the data spread by people like the epidemiologist Neil Ferguson.
Youtube has banned videos from Dr. Andrew Kaufman, and the former head of biostatistics, epidemiology, and research design at Rockefeller University, Dr. Knut M. Wittkowski.
Youtube Bans a Video About Bitcoin.com's Mining Pool.
Now Youtube has banned one of Bitcoin.com's videos for sharing information about our mining pool. The video removal was based on the company's "sale of regulated goods" policy and the video allegedly went against "community guidelines." The Bitcoin.com account was given a single strike, which gives the account a one week probation period. Two to three strikes could lead to far worse restrictions against the Bitcoin.com account that merely shares information and resources about cryptocurrency solutions. Bitcoin.com's CEO Mate Tokay has spoken out against the Youtube censorship in a tweet letting the company and Wojcicki know they have been immoral.
This week, Youtube banned one of Bitcoin.com's videos about Bitcoin mining. Youtube's censorship and propaganda these past few months have been irrational and illogical. "Crypto is the future and if you think censoring Bitcoin.com will do any good you are delusional," tweeted Bitcoin.com's CEO Mate Tokay. "Myspace used to dominate and look at what happened to them," he added.
History shows that censorship has produced some manipulated realities and it has furthered evil time and time again. Youtube is a private company and it can do whatever it wants, but the censorship still speaks volumes on the company's tethered relationship with the status quo. There's a reason why cryptocurrency videos are removed and it is because it goes against Youtube's financial masters. The reason why Youtube bans certain groups is because those groups gain grass-roots attention and make people think critically.
Let us know what you think about Youtube's action.😕😑 We will make sure to update all of you! Stay tuned and watch our Weekly Show: https://t.co/jOjTQqOQI9 #BitcoinCash #StayHome #cryptocurrencies #youtube pic.twitter.com/OfqjVDDYQn.
Youtube Wants to Ban Videos That Promote Critical Thinkers.
Youtube has banned videos that go against the Covid-19 narrative as well, because people started realizing that a virus with a 99% survival rate isn't as horrible as we all thought. Concrete evidence shows that the lockdowns and stay-at-home orders did absolutely nothing, even though Youtube continues to scream the less-powerful Covid-19 mantras. "Staying at home saves lives," "We're all in this together," "Flatten the curve," and other propaganda slogans are still aired on nearly every ad published on Youtube today.
Censorship and propaganda techniques paint a clear perspective of Youtube's true colors. Censoring Bitcoin.com's mining video bolsters the argument that Youtube does not have the best interests of global citizens in mind. If anything, people who understand Youtube's vile acts of censorship and misinformation, should vacate the platform in great numbers and leverage a more decentralized online video sharing application like Lbry, or Bitchute. As the economic think tank Fee.org has said: "Youtube's censorship of dissenting doctors will backfire."
What do you think about Youtube's censorship and propaganda techniques these last few months? Let us know in the comments below.
How to build an efficient cryptocurrency mining PC (if you insist)
By James Norris 01 February 2018.
Curious about cryptocurrency? Here's how to build a simple mining rig.
The right mining hardware is just part of the story. If you're serious about mining Bitcoin or other cryptocurrencies, check out our guide to what you need to know cryptocurrency mining.
Cryptocurrency mining has driven up GPU prices and is hurting gamers . But if you're dead set on spelunking into the cryptocurrency mines, you might as well know what you're getting into.
To be clear, we don't encourage this. But if you really want to start mining Bitcoin or Ethereum or another cryptocurrency, don't be too intimidated: if you've built a rig before, putting together a cryptocurrency mining PC is an easy weekend project that will let you learn how blockchain technology works, the limits of at-home hashing, and the real costs involved, some of which are hidden.
You should also be aware of the risks. Cryptocurrency is volatile, and there's no guarantee you'll make back the money you spend on your hardware as quickly as you expect. You could even lose it altogether. And keep in mind that every GPU sent into the mines is one more that could have spent its life pushing pixels in PUBG.
Financial philosophy aside, the hardware part of the bitcoin equation is simple. Despite their well-earned reputation for gobbling up GPUs, the rest of a mining rig's layout is very lean. You won't need a high-powered CPU, fancy motherboard, exotic DRAM, or even the Windows OS to bring it all together. In fact, other than a few odds and ends, you may already have most of the parts sitting in a garage or closet--leftovers from previous gaming rig upgrades. Here's a quick overview of what you need, and why.
Firm foundations.
A simple frame is all you need to house your mining rig, so wait for a sale or try DIY before spending hundreds of dollars on a 21st century pan and pickaxe.
Mining rigs start with a rudimentary open-frame enclosure for the motherboard and other components. While many prebuilt configurations exist, they can cost more than proper gaming cases since, in a long running tradition, suppliers often charge a premium on mining hardware.
Fortunately, there are frequently plenty of options on sale for under $100, and you can always make one from simple hardware store parts as the designs aren't complicated. Ingenious crypto miners have used everything from nailed wooden planks to milk crates with good results.
The main point of the open-air frame is ventilation and space for the GPUs. With many rigs sporting a packed stable of full-sized graphics cards, it's wise to ensure they can all breathe and run freely. It's also much simpler to evaluate faulty fans, replace burned-out cards, clear dust, and perform other basic maintenance with the components in easy reach. The downsides are noise and exposure, so a separate, dry, well-ventilated room is recommended. The fan roar and exposed components don't play well with others.

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MINING RIG SETUP IN INDIA - 17600 INR MONTHLY EARNINGS IN BITCOIN|4:06

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Motherboard.
Flexibility and stable operation are the top considerations for mining motherboards, rather than all-out performance, since the goal is attaching as many GPUs as possible. Most recent gaming motherboards from top-tier manufacturers like Asus, MSI, or Gigabyte will suffice here, although check the documentation to see how many graphics cards the hardware can handle. Keep in mind that some BIOS adjustments will be required to maximize stability with more than a couple of cards.
While a hand-me-down gaming motherboard should be sufficient for a starter rig, serious enthusiasts use boards made for mining, such as this Asus B250 Mining Expert that supports a crazy 19 GPUs. MSRP is $150, but it's selling for $230 right now.
ASRock's H110 Pro BTC+ motherboard supports up to 13 graphics cards and is a good start for those that want to start dabbling in mining. It's going for $230, which says 30% off but the original MSRP was $140.
More serious cryptocurrency hobbyists use dedicated mining motherboards that have pre-tweaked BIOS settings and the ability to connect over a dozen GPUs. These aren't particularly pricey parts either, at least in theory, with many coming in at around $100, so they are worth consideration if you already gave your old gaming board to a friend. But supply and demand issues are a recurring theme with mining rigs, and the boards that support more than six GPUs are often out of stock or seriously overpriced.
If you've been wondering how it's even possible to cram that many GPUs into a motherboard, the trick is a piece of inexpensive hardware called a PCIe 1x to 16x riser card. This adapter allows bulky high-performance GPUs to attach to the motherboard's slots via a cable rather than being plugged directly into the slot. Unlike gaming, cryptocurrency mining doesn't require a high-bandwidth connection between the video card and the rest of the system, so any type of PCIe slot works just fine, including tiny 1x connectors--and they can be PCIe 1.x, 2.0, or 3.0 slots.
This is how you get half a dozen (or more) double-slot sized GPUs to fit on one motherboard. They come in 6-packs for around $50.
Virtually any reasonably modern multicore CPU will suffice in the center seat of a mining rig, along with a modest 4-8 GBs of DRAM. Don't overclock or push exotic memory configurations, as the gains aren't be worth the stability risks. Celerons, single-stick memory configurations, and other money saving shortcuts are all fine here. This is a perfect place to use items off the spare parts shelf.
Dust off that dual-core Celeron, puny Pentium, or Ivy Bridge antique. They all work just fine in a mining rig. A Skylake Celeron can be had for a cheap $46 on Amazon.
There's a small corollary here, and it's that CPU mining of certain algorithms is still potentially profitable. The CryptoNight algorithm used in coins like Monero is the only real option these days, but you can mine about $1 per day from a Ryzen 7 processor--though it was as high as $3 back in January. You're probably better off buying another graphics card rather than worrying about CPU mining potential.
Graphics card.
Right now, the best new GPUs for mining are all the high-end parts from AMD and Nvidia. At the original MSRPs, AMD's Vega 56 and Nvidia's GTX 1070 would be good picks, and everything from the GTX 1060 and RX 570 and up is viable, but the situation is more complicated than it sounds.
AMD's Vega 56 would be a great choice for crypto mining, if only you could find it for the original target price of $400. Right now they're expensive though. But check this listing to make sure.
With price gouging running rampant, the best bet may be special six pack deals , or alternatives such as old R290X/R390X cards that you might already have handy or can get for reasonable prices from a trusted source. Although power hungry, these older cards still provide good mining performance and are less subject to predatory cost increases, so they aren't a bad option for people in areas with lower electricity rates. Be wary of second-hand cards formerly used in mining rigs however, as the stress shortens the lifespan of the hardware considerably.
One area requiring investment is the power supply. Typical multi-GPU cryptocurrency setups require plenty of juice, more than even a high-end gaming system, and these PSUs will cost you. A gold rated power supply is minimum, since mining rigs run at constant high loads, and depending on what GPUs you're running (and how many of them), you'll want at least a 1000W output, if not more. High-end models from Seasonic, EVGA, and Corsair are all good choices.
Since you'll need at least 1000W of quality power, a good PSU, or even a pair of them, is required. This Corsair HX1200i has the capacity for several high-end graphics cards.
If you need more power, EVGA's SuperNOVA 1600 goes to the max and is certified 80+ Gold for high efficiency. You'll need all the efficiency you can get.
For bigger rigs or miners on a budget, multiple power supplies can be connected to a single motherboard using a dual PSU 24 pin adaptor cable, a $5-10 part that allows both power supplies to be controlled by a single motherboard. This permits less expensive or already owned lower-wattage PSUs to be paired for a starter rig, or high-end PSUs to be paired for dozen GPU mining monsters.
Something else to keep in mind with power use is your power circuit . Most US homes come with 15A circuit breakers, which means a single circuit will top out at around 1725W. If you're thinking about setting up multiple mining rigs, you'll need to keep them on separate breakers.
RAM and storage.
Good news: you may be paying a premium for a graphics card and a high capacity power supply, but you can cheap out a bit when it comes to your system memory and storage. We generally recommend at least 8GB for a PC running modern Windows, but you can get by with 4GB if you're really looking to save.
Likewise, the speed of your OS drive isn't important for mining. If you have an old hard drive or spare SSD around, that'll do the job just fine. If you're picking up a fresh part, grab a small SSD on the cheap. It'll make the system easier to use, and you don't need much storage space to keep your mining operation running.
The cheapest single DDR4 4GB DIMM we found goes for $47 on Amazon, which would have been even lower if memory prices weren't high this year.
Newegg has a single Patriot Memory 4GB DDR module for very slightly cheaper at $46. You only really need 4GB as there's not much going on in the memory-use front.
The best prebuilt Bitcoin mining rig.
Building your own cryptocurrency mining rig is no harder than building any other custom PC. It's a great way to learn the inner workings of the hardware, and save some money over a prebuilt system (outrageous graphics card prices notwithstanding). But if you really don't have the time to build your own mining rig, buying prebuilt is always an option.
But should you buy a prebuilt desktop PC, or a dedicated mining rig with multiple graphics cards? Thanks to the cryptocurrency boom, the latter cost thousands of dollars on Ebay, both used and new. Buying used could net you heavily worn graphics cards with diminished lifespans. Either way, it's a huge investment if you're just getting started with mining.
For a more traditional prebuilt system, you'll be stuck with a maximum of two GPUs by default, and even prebuilts have been hit by the current GPU shortages. Interestingly, one of the best deals right now is an Alienware Aurora with dual GTX 1080 Ti GPUs for $2,550 (lesser GPUs are also available). That's an extreme gaming PC, but for mining purposes, the two GPUs on their own would cost around $2,000 right now, so why not pay an extra $100 to get a top-tier CPU and 16GB RAM (worth $400, incidentally)? And if the mining thing doesn't work out, you've still got a bodacious gaming PC.

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[Unboxing] New Mining Rig 8GPU - Portable - Compact - High Performance|12:34

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Wrapping up.
Along with a little software, that's all it takes. But is at-home mining worth it? The answer isn't always so simple, and is frequently situation dependent. Do you have cheap power rates? Hardware laying around? Friends with spare video cards? For the cryptocurrency curious who can say yes to these or other similar considerations, it may be worth giving mining a try. You'll get a first-row seat to the spectacle and whether you make money or not, you can become an expert about bitcoin and blockchains. With crypto heists, market bubbles, and price crashes always in the news, that's knowledge worth having, even if the only person asking is your uncle.
Our advice is to not invest more than you can afford to lose, and don't get caught thinking about breaking even and making a profit in just a few months. Realistically, right now the price gouging on graphics cards means you're looking at a best-case result of around seven months, assuming nothing goes haywire. If crypto prices drop further, it could take much longer to break even--and of course there's the possibility of another bubble. But if you already have most of the parts handy, you could give it a shot. Just stop buying up all our gaming GPUs, please.
Chances are you hear the phrase "Bitcoin mining" and your mind begins to wander to the Western fantasy of pickaxes, dirt and striking it rich. As it turns out, that analogy isn't too far off.
Bitcoin mining is performed by high-powered computers that solve complex computational math problems; these problems are so complex that they cannot be solved by hand and are complicated enough to tax even incredibly powerful computers.
Bitcoin mining is the process of creating new bitcoin by solving a computational puzzle. Bitcoin mining is necessary to maintain the ledger of transactions upon which bitcoin is based. Miners have become very sophisticated over the last several years using complex machinery to speed up mining operations.
The result of Bitcoin mining is twofold. First, when computers solve these complex math problems on the bitcoin network, they produce new bitcoin (not unlike when a mining operation extracts gold from the ground). And second, by solving computational math problems, bitcoin miners make the bitcoin payment network trustworthy and secure by verifying its transaction information.
When someone sends bitcoin anywhere, it's called a transaction. Transactions made in-store or online are documented by banks, point-of-sale systems, and physical receipts. Bitcoin miners achieve the same thing by clumping transactions together in "blocks" and adding them to a public record called the "blockchain." Nodes then maintain records of those blocks so that they can be verified into the future.
When bitcoin miners add a new block of transactions to the blockchain, part of their job is to make sure that those transactions are accurate. In particular, bitcoin miners make sure that bitcoin is not being duplicated, a unique quirk of digital currencies called "double-spending." With printed currencies, counterfeiting is always an issue. But generally, once you spend $20 at the store, that bill is in the clerk's hands. With digital currency, however, it's a different story.
Digital information can be reproduced relatively easily, so with Bitcoin and other digital currencies, there is a risk that a spender can make a copy of their bitcoin and send it to another party while still holding onto the original.  
Special Considerations.
Rewarding Bitcoin Miners.
With as many as 300,000 purchases and sales occurring in a single day, verifying each of those transactions can be a lot of work for miners.   As compensation for their efforts, miners are awarded bitcoin whenever they add a new block of transactions to the blockchain.
The amount of new bitcoin released with each mined block is called the "block reward." The block reward is halved every 210,000 blocks (or roughly every 4 years). In 2009, it was 50. In 2013, it was 25, in 2018 it was 12.5, and in May of 2020, it was halved to 6.25.
Bitcoin successfully halved its mining reward--from 12.5 to 6.25--for the third time on May 11th, 2020.
This system will continue until around 2140.   At that point, miners will be rewarded with fees for processing transactions that network users will pay. These fees ensure that miners still have the incentive to mine and keep the network going. The idea is that competition for these fees will cause them to remain low after halvings are finished.
These halvings reduce the rate at which new coins are created and, thus, lower the available supply. This can cause some implications for investors, as other assets with low supply--like gold--can have high demand and push prices higher. At this rate of halving, the total number of bitcoin in circulation will reach a limit of 21 million, making the currency entirely finite and potentially more valuable over time.  
Verifying Bitcoin Transactions.
In order for bitcoin miners to actually earn bitcoin from verifying transactions, two things have to occur. First, they must verify one megabyte (MB) worth of transactions, which can theoretically be as small as one transaction but are more often several thousand, depending on how much data each transaction stores.
Second, in order to add a block of transactions to the blockchain, miners must solve a complex computational math problem, also called a "proof of work." What they're actually doing is trying to come up with a 64-digit hexadecimal number, called a "hash," that is less than or equal to the target hash. Basically, a miner's computer spits out hashes at different rates--megahashes per second (MH/s), gigahashes per second (GH/s), or terahashes per second (TH/s)--depending on the unit, guessing all possible 64-digit numbers until they arrive at a solution. In other words, it's a gamble.
The difficulty level of the most recent block as of August 2020 is more than 16 trillion. That is, the chance of a computer producing a hash below the target is 1 in 16 trillion. To put that in perspective, you are about 44,500 times more likely to win the Powerball jackpot with a single lottery ticket than you are to pick the correct hash on a single try. Fortunately, mining computer systems spit out many hash possibilities. Nonetheless, mining for bitcoin requires massive amounts of energy and sophisticated computing operations.
The difficulty level is adjusted every 2016 blocks, or roughly every 2 weeks, with the goal of keeping rates of mining constant.   That is, the more miners there are competing for a solution, the more difficult the problem will become. The opposite is also true. If computational power is taken off of the network, the difficulty adjusts downward to make mining easier.
Bitcoin mining Analogy.
Say I tell three friends that I'm thinking of a number between 1 and 100, and I write that number on a piece of paper and seal it in an envelope. My friends don't have to guess the exact number, they just have to be the first person to guess any number that is less than or equal to the number I am thinking of. And there is no limit to how many guesses they get.
Let's say I'm thinking of the number 19. If Friend A guesses 21, they lose because 21>19. If Friend B guesses 16 and Friend C guesses 12, then they've both theoretically arrived at viable answers, because 16 Bitcoin vs. Traditional Currencies.
Consumers tend to trust printed currencies. That's because the U.S. dollar is backed by a central bank of the U.S., called the Federal Reserve. In addition to a host of other responsibilities, the Federal Reserve regulates the production of new money, and the federal government prosecutes the use of counterfeit currency.    
Even digital payments using the U.S. dollar are backed by a central authority. When you make an online purchase using your debit or credit card, for example, that transaction is processed by a payment processing company (such as Mastercard or Visa). In addition to recording your transaction history, those companies verify that transactions are not fraudulent, which is one reason your debit or credit card may be suspended while traveling.

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My Bitcoin mining machine Vlog|5:10

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Bitcoin, on the other hand, is not regulated by a central authority. Instead, bitcoin is backed by millions of computers across the world called "nodes." This network of computers performs the same function as the Federal Reserve, Visa, and Mastercard, but with a few key differences. Nodes store information about prior transactions and help to verify their authenticity. Unlike those central authorities, however, bitcoin nodes are spread out across the world and record transaction data in a public list that can be accessed by anyone.
History of Bitcoin mining.
Between 1 in 16 trillion odds, scaling difficulty levels, and the massive network of users verifying transactions, one block of transactions is verified roughly every 10 minutes.   But it's important to remember that 10 minutes is a goal, not a rule.
The bitcoin network is currently processing just under four transactions per second as of August 2020, with transactions being logged in the blockchain every 10 minutes.   For comparison, Visa can process somewhere around 65,000 transactions per second.   As the network of bitcoin users continues to grow, however, the number of transactions made in 10 minutes will eventually exceed the number of transactions that can be processed in 10 minutes. At that point, waiting times for transactions will begin and continue to get longer, unless a change is made to the bitcoin protocol.
This issue at the heart of the bitcoin protocol is known as "scaling." While bitcoin miners generally agree that something must be done to address scaling, there is less consensus about how to do it. There have been two major solutions proposed to address the scaling problem. Developers have suggested either (1) creating a secondary "off-chain" layer to Bitcoin that would allow for faster transactions that can be verified by the blockchain later, or (2) increasing the number of transactions that each block can store. With less data to verify per block, the Solution 1 would make transactions faster and cheaper for miners. Solution 2 would deal with scaling by allowing for more information to be processed every 10 minutes by increasing block size.
In July 2017, bitcoin miners and mining companies representing roughly 80% to 90% of the network's computing power voted to incorporate a program that would decrease the amount of data needed to verify each block.
The program that miners voted to add to the bitcoin protocol is called a segregated witness, or SegWit. This term is an amalgamation of Segregated, meaning "to separate," and Witness, which refers to "signatures on a bitcoin transaction." Segregated Witness, then, means to separate transaction signatures from a block -- and attach them as an extended block. While adding a single program to the bitcoin protocol may not seem like much in the way of a solution, signature data has been estimated to account for up to 65% of the data processed in each block of transactions.
Less than a month later in August 2017, a group of miners and developers initiated a hard fork, leaving the bitcoin network to create a new currency using the same codebase as bitcoin. Although this group agreed with the need for a solution to scaling, they worried that adopting segregated witness technology would not fully address the scaling problem.
Instead, they went with Solution 2. The resulting currency, called "bitcoin cash," increased the blocksize to 8 MB in order to accelerate the verification process to allow a performance of around 2 million transactions per day. On August 16, 2020, Bitcoin Cash was valued at about $302 to Bitcoin's roughly $11,800.    
Bitcoin mining Operation Riot Blockchain Fearful Of COVID-19 Impact.
(Photo by: Andia/Universal Images Group via Getty Images)
Universal Images Group via Getty Images.
Riot Blockchain, a Nasdaq-listed cryptocurrency mining firm , released its annual 10-K report to the SEC where it outlined the effect the COVID-19 virus outbreak may have on its mining operations. Under the headline of 'general risk,' the company was compelled to list two specifics that have emerged surrounding the ongoing pandemic.
Bitcoin mining, as an operation, requires mostly hardware and energy to operate as mining rigs are set up to solve logarithmic equations to unlock new blocks, and receive Bitcoin rewards for doing so. These mining rigs use substantial amounts of energy but require little management or human operation.
However, the mining firm is still being struck by the pandemic as its workers have been forced to either self-isolate, quarantine themselves in line with a global humanitarian response to the virus. However, their supply chain in getting equipment out has been hit hard due to border controls and factory closures.
Bitcoin mining, quite understandably, has not been classified as an essential business, and thus the running of these mining farms and companies is being directly affected by the pandemic and its global shutdown. According to the 10-K report: "If we are unable to effectively service our miners, our ability to mine bitcoin will be adversely affected as miners go offline," Riot wrote .
Notable effect?
The Bitcoin mining industry is an essential part of the whole Bitcoin ecosystem as it not only unlocks new blocks, but confirms transactions and most importantly provides ongoing security to the network through its hashing power.
The proof-of-work algorithm that is employed by Bitcoin benefits from increased 'work' or mining, which is translated into hash rate. When the price of Bitcoin fell rather spectacularly earlier this month, the hash rate fell with it.
This is not a strange occurrence as the price of Bitcoin is directly linked to mining efforts as the higher the price of the coin, the better the profit margins for miners in this incentives system. So, when the price dropped, miners may have turned their rigs off leading to a drop in hashing power.
However, the price has recovered somewhat, and the mining difficulty has actually dropped, yet the hash rate is still down. It may well be that the issues seen by Riot Blockchain around the Covid-19 pandemic could be part of the reason for the lowered hash rate.

[Bitcoin]

Mining Difficulty - Simply Explained|5:32

[Bitcoin]

Seen it before in China.
Chinese mining farms felt a similar pinch as Riot Blockchain is now Experiencing as PandaMiner Chief Operating Officer Abe Yang told CoinDesk , in early February, his company had difficulty operating some of its farms due to quarantine controls in certain provinces because they had limited staff repairing machines and running the hardware.
Riot runs a rather large operation in Oklahoma City as it features 4,000 Bitmain S17 Pro Antminers purchased over December 2019 for $6.35 million total. Those rigs replaced Riot's older fleet of about 8,000 S9 models, now offline, the 10-K shows.
This use of capital to try and boost Riot Blockchain's potential earnings has now been scuppered by this pandemic which is affecting just about every conceivable sector on the planet. The effect of it on mining farms will be worth watching in the coming months to see how it impacts Bitocin -- especially with the mining reward halving set to take place in May.
Know more: what Bitcoin mining operations make sense?
Bitcoin mining makes the Bitcoin blockchain run, but you might want to know more about what Bitcoin mining technology could be an interesting investment. Sadly, the days of homegrown Bitcoin mining operations are over. While you can pick up used ASIC miners for reasonable prices, it will be difficult to create a viable business with these machines.
The basis of Bitcoin mining is solving complex mathematical problems, and while this was possible with PCs in the early days of Bitcoin, now it takes specialized equipment, and there are other factors to consider as well.
Mining Bitcoin takes a lot of electrical power, and this is expensive. Bitcoin mining operations have popped up in areas that have low annual temperatures, as well as cheap electricity. This makes sense, as all the ASIC rigs need constant cooling to remain operational.
If you want to mine Bitcoin yourself, the good news is that you can buy old ASIC miners and set up your own mining operation. The profits may not be amazing, but you will probably make something from your efforts, and you will also be helping the Bitcoin blockchain, which is an amazing thing for all of us.
We need to understand that a decentralized world holds the potential for human greatness, and it all started with Bitcoin mining.
Author: Nicholas Say.
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As the reward halving approaches, bitcoin miners are preparing new strategies so customers can reap the most profits from their hashrate services. On December 3, the mining operation Poolin introduced a hashrate auto-switch feature so clients can automatically switch between BTC and BCH mining. Moreover, a few days later at Bitmain's annual customer appreciation meeting, the company's CEO Jihan Wu explained the firm is offering three strategic mining offerings.
Poolin's Auto-Switch Feature Bitcoin mining is extremely competitive, and currently there's a lot of processing power pointed at the SHA256 consensus networks BTC, BCH, and BSV. Ever since miners could choose between the BTC chain and the BCH chain, the profitability between those two networks has varied. For instance, at the time of publication, it is 2.5% more profitable to mine on the Bitcoin Cash blockchain, but this metric can change often.
Do you want to maximize your Bitcoin mining potential? Plug your hardware into Bitcoin.com's profitable Bitcoin mining pool. Similarly, the profitability between BTC and BCH can vary against BSV as well. Most miners process blocks on both the BCH and BTC chains, but a few operations mine all three chains depending on profit changes. Just recently, the mining operation Poolin announced a new hashrate auto-switch feature that will automatically connect to the most profitable chain between BCH and BTC. Poolin says that BSV will be included in the near future as well. According to Poolin, the hashrate auto-switch functionality will only work with cryptocurrencies using the same algorithm.
"We are thrilled to provide this feature that will increase profits for our miners, this hashrate auto-switch continues in the direction that Poolin has been forging, mainly, bringing excellence to this industry and customer-first service," Poolin's VP Alejandro De La Torre announced.
The mining operation Poolin mines both the BTC and BCH chain. Poolin also has dedicated hashrate on the BSV chain and will be offering auto-switch for BSV as well. The hashrate auto-switch feature was discussed on crypto-centric forums and one person asked if the switching feature would "make block time variance worse." "Not really since just 2.8% of BCH miners are from Poolin. It's mostly annoying for Bitcoin since its difficulty won't adjust as fast to switching miners," a BCH supporter replied.
BCH mining profitability at 2:30 p.m. EST on December 9, 2019, using Coin Dance statistics. Bitmain's Three Strategies Following the announcement from Poolin, Bitmain's Jihan Wu revealed three new strategies for customers at the company's annual customer appreciation meeting. Regional reports from China say that the Bitmain CEO introduced "installment payments," "option hedging" and "joint mining" services. With the installment payment system, big facilities that purchase 100+ mining devices can put 50% down. Let's say they want to purchase 5,000 mining rigs, then only a 20% down payment is required. However, the buyer needs to settle up seven days before the items are delivered. Jihan Wu also told attendees about the option hedging plan that will protect the price of bitcoin. He said that Bitmain plans to purchase options from the company Matrixport in order to combat price dumping. Local reports detail that the Bitmain option product is called the "Bitcoin 2020 / 3 / 27 35000 CNY Put Option."
Bitmain's Jihan Wu. In addition to the installment payments and option hedging, Jihan Wu spoke about offering a joint mining service that lasts 12 months. Reportedly, Bitmain will provide S17 mining rigs and pay the electrical costs, but the buyer needs to provide a facility and maintenance personnel. "The income during the cooperation period is settled on a monthly basis, which is distributed as 25% for the partners and 75% for Bitmain," 8btc columnist Vincent He explained. "If the revenue cannot offset the electricity charge, no distribution will be made."
Structure Changes and New Mining Services Will Be Offered Prior to the Halving It's likely that many mining operations will change their structure and offer new features as signs of this trend have been cropping up six months before the reward halving. On Halloween, Bitcoin.com published a video of professional miners from around the world explaining what they think will happen when the block reward shrinks. The film included mining heavyweights like F2Pool's Global Director Thomas Heller, Hyperblock's CEO Sean Walsh, and Genesis Mining CEO Marco Streng. Some of the miners' predictions in the video showed why SHA256 mining operations are trying to profit with new types of provisions like hashrate auto-switching and joint mining services.
"If you look at six months before the halving and six months after the halving in both previous instances you see a massive upward surge in the price of bitcoin," Sean Walsh remarked in the film. "It is a bit scary being a miner and knowing that your revenue stream is gonna get cut in half overnight, but the exchange rate will more than compensate for the reduction in our bitcoin denominated revenue."
Shut Down Bitcoin mining Operation Now Operational.
A Bitcoin mining plant in Montana is running again after being shut down after its majority owner was charged in a US$722 million crypto investment scheme.
If there's one thing that crypto miners know, mining rigs that are shut off are not making any money. CryptoWatt, a Bitcoin mining operation in Butte, Montana, was forced to shut down for two months due to its majority owner being charged in a crypto Ponzi scheme worth $722 million. Fortunately for the company's over 30 employees, the power is back on and the Bitcoin mining operation is back in action.