What is Bitcoin mining for beginners – a simple explanation
I’m going to do a very quick step-by-step guide on how to mine bitcoins at home before you start mining the first thing you want to do is you want to check if mining is profitable for you because with how hard mining is today usually won’t be profitable so You can find us just on Google’s Bitcoin Profitability Calculator, and you go to one of these calculators. Here you have an example from a website called Coin Wars. All you have to do is choose what you want to extract if you mine Bitcoins, or you can follow the article until the end and you will know more.
How is Bitcoin mined?
More than 12 million bitcoins have been mined. Just like mining in the real world, you need to invest energy to mine these bitcoins. Computers need to solve complex mathematical problems, and once they are solved, new bitcoins are created and given to them. But miners Not only do they create new bitcoins, but they also use their computers to verify transactions and prevent fraud.
So more miners means faster transaction verifications and less fraud That’s why we want to compensate miners for their hard work when verifying a transaction, the miner gets a small fee from that transaction for their work, so miners get paid twice as much for verifying of transactions and again when they succeed in creating new bitcoins that appear to be profitable very well and very quickly.
The way bitcoins are created is through miners
Satoshi, the man who invented Bitcoin, wanted the number of Bitcoins mined each time to remain constant no matter how many miners joined, which is why mining became more difficult as more miners joined the network in 2009. You can extract 200 Bitcoins Using a PC at Home In 2014, it would take about 98 years to mine just one, which is why ASIC miners invented super-powerful computers designed solely for mining Bitcoins.
But since many miners have joined in the past few years, it is still almost impossible to mine alone. To solve this problem, mining pools were invented by groups of miners formed together to deal with the increasing difficulty of Bitcoin mining, with each miner receiving a wage. In exchange for his relative share of the work.
How to calculate profit from Bitcoin mining
Enter into the calculator the specifications of your miner, how much the product consumes, how much you pay for electricity, and then click. The profitability calculation below will show you when you will make profits if you mine bitcoins which you can also use for litecoin or any currency you want to mine as well.
Now, keep in mind if you want a minority, we’ll probably need to spend a lot of money on a good miner, so in this example, I’ll use a very old, and by old I mean a mine that’s about six months old or maybe a little bit more, this is the miner I’ll be using it, this is a Bitcoin miner, it’s just a black box, no buttons, nothing connected to it other than a USB cable plugged into my computer and a power port.
There’s also here an example of a smaller miner from butterfly labs which I think is insolvent at the moment but those were good miners at the time I think this one is 10 gigahashes and this one is 25 gigahashes but today we’re talking about miners that are in terra hashrate And not in giga hashes, so after you have your miner.
Join a Bitcoin mining group
You know what you want to start mining, and the next thing you want to do is join a mining pool there are a lot of criteria before joining a mining pool to consider and I will explain them in the following example:
In this example, I’m going to use Bitcoin cz also known as Slush Spool I’ve already opened an account here and this is what my dashboard looks like, I haven’t mined anything yet and the last thing you want is we’re going to need to use what’s called a mining client or mining software uh Because this miner as I said doesn’t have any controls on it and it has to communicate with your computer somehow.
You should have some kind of software that helps you control the miner from your computer, this is called a mining client or mining software or mining software since I’m using a Mac, I’m going to use a software called Mac Miner and now it’s time to start mining, so the first thing What I would do is plug the miner into a power outlet.
These miners need to be kept in a cool place so you should keep it cool too so that it works better my miner is ready to work I want to start mining then the miner displays the GPU and this is now I am mining and I hope you also think about what is known as miners Asic miners uh they are a specific application that integrates with computers and is specifically designed for mining bitcoins.
Tools that help you mine Bitcoin
I’m going to need to open up the ASIC control panel, the ASIC miner, let me close the GPU miner and I’m going to start mining and that it’s connected to the pool and it’s starting to connect to me now if you don’t know if you want to connect it to your pool after you first sign up, you’re going to get a username and password passage.
So you need to go to settings and edit your pool settings and enter your pool settings where you can see your username and password and that’s how it connects to the pool for the first time but after that, you can start mining, it’s that simple.
