What should you know about Bitcoin mining ?
In the traditional monetary system, banks and states print coins and notes. But in the Bitcoin landscape, we talk about mining. Clearly, this allows you to own the crypto, without having to buy it. The following article shows you how to mine bitcoin and how mining is profitable.
Bitcoin mining : what is it and how does it work ?
In innovation for the past ten years, cryptocurrency mining (Bitcoin mining) is an activity that consists of securing a data transfer network in exchange for a reward. The latter takes the form of fragments of cryptocurrency tokens. In addition, mining is the validation of a digital currency transaction carried out by encrypting its data and recording it on a blockchain. In terms of its operation, cryptocurrency mining requires a substantial computer power, especially for Bitcoin. It should be remembered that where Ethereum only requires a powerful graphics card for its mining, Bitcoin is much more complex to mine. Indeed, the process on which Bitcoin mining is based, the proof of work, has several stages :
• A transaction takes place between two network users,
• This transaction is integrated in a block,
• Minors check the validity of the transaction,
• Minors include the header of the most recent block in the new block as a “hash”,
• The miners seek and find the solution of the mathematical problem posed,
• A new block is then added to the blockchain before being broadcast throughout the network.
Bitcoin mining, how to do it ?
First of all, it is important to specify that a large majority of individuals who invest in Bitcoin are not minors : mining a cryptocurrency requires computing power, time to devote to this activity, and basic mathematical knowledge. Otherwise, Bitcoin mining is generally done the same way for most miners : via software on a regular PC or a machine specializing in Bitcoin mining. However, if you want to mine Bitcoin yourself, you should have a crypto wallet or crypto wallet with you which will be needed to store your tokens. In reality, these wallets are available in physical or virtual form : the first generally take the form of USB keys, while the second are applications that allow you to control your crypto assets. You will then face the problem of calculations.
As you know, the Bitcoin blockchain is not new, and the difficulty of the calculations required to validate transactions continues to increase with each halving. Initially, Bitcoin mining was done on conventional computers, but today the computing power is such that it is mandatory to turn to Bitcoin Miner ASICs, computers specializing in this practice. It is thanks to this alternative that you can truly mine your Bitcoin.
Is mining profitable ?
Certainly, bitcoin mining can be a profitable solution to obtaining BTC tokens. In previous years, any individual could engage in this activity. But today, this is no longer obvious, as this activity is beneficial to cooperatives and groups of miners. An individual can be profitable if and only if he joins a mining pool. And for that, it is imperative that you share the rewards with other minors. Also, it should be noted that the miners’ cooperatives are able to foresee the possible rewards. In addition, we would like to mention that the gains from bitcoin mining depend on the power of your mining equipment and the price of the crypto.