Bitcoin mining – basic rules and technology

The Internet and everything connected with it is gaining momentum and popularity. Today it is almost impossible to meet a person who would never enter the space of a virtual network. However, there are those who have not heard anything about BTC – a virtual currency that many experts call breakthrough and revolutionary.

Its main difference from real money is that Internet currency can be obtained on the network itself using the mining procedure. What is it and how to start mining bitcoin – all this you will learn from the article below.

Mining

From English, this word is translated as mining. Cryptocurrency in a sense is such. Moreover, the process is associated not only with the extraction of virtual wealth but also with programming elements. Of greatest importance to the speed of operations is the power of the installed processor.

The basis for mining is hash operations and thus generating various separate parts of the cryptocurrency. A network of unrelated computers is involved in this task, each of which performs certain computing operations.

Mining rules

The uniqueness and originality of this system give a number of principles. Knowing them, you will get an idea of ​​how the mining process works.

  • Mining is the construction of program code in certain blocks. At the very beginning of the operation of this system, operations were quite simple. However, over time, things get more complicated, so getting BTC today is far from easy.
  • The project does not have single management from any center. The system cannot be subordinated, blocked or otherwise prohibited.
  • Users can be completely sure that their data is anonymous and not widely available. Therefore, tracking a completed transaction is very difficult, and sometimes completely unrealistic.
  • The mining procedure is subject to strict rules and algorithms. To get more than a certain threshold with the help of processors is simply impossible.
  • A perfect transfer cannot be undone. Moreover, information about all transactions is in the database, from which the desired virtual blocks are then extracted for the extraction of BTC.
  • Mining directly depends on how powerful your system is.
  • Virtual coins are mined through the action of a single computer system and special computer systems.

Let’s talk about technology

Like any other business, mining requires some financial injections. The more money you spend, the faster the process of extracting electronic money will occur. If you do not give an excellent start, then all efforts will be in vain or you will have to go to success for a very long time.

There are two ways in which you can provide yourself with the equipment you need for mining. The first is to buy a special computer complex ASIC, which can cost a pretty penny, the second is to acquire all the elements of the system separately. This is associated with significant time costs, but it will be cheaper.

ASIC is a technologically advanced system that was created by Yiofo Guo, one very talented student. It has the capacity to extract BTC blocks from the calculated hashes. However, it is quite unpretentious in use and compact. The only disadvantage of the invention is the high cost and problems in purchasing: after completing the order, you can wait several months until the equipment comes to you.

If you decide to go the second way, then you have to make an extensive list of acquisitions in the nearest computer store. It definitely needs to include a motherboard, a video card (preferably more), a modern processor, a high-power power supply, as well as a fairly developed cooling system, extension cords, and a large HDD storage.

Together or separately?

Due to the fact that the procedure for extracting virtual currency is associated with the work of very powerful computing systems, some miners get lost in teams, combining the capabilities of their computers. However, there are single people who seek to independently provide themselves with everything necessary. They are called solo miners, they do not depend on the actions of other participants in the system, but they spend a considerable amount of money on the purchase of equipment.

Weigh “+” and “-”

Mining pros

This is a type of earnings that does not require time and effort: everything happens automatically.

  • The more powerful the equipment, the more you can get BTC.
  • All mining programs are very meticulously checked for viruses. This makes them safe for the software to function.
  • Payments are received in different ways, so it is quite realistic to withdraw an unlimited amount.

Minuses

  • Time complicates the process of obtaining bitcoin. Therefore, you need to constantly update equipment, purchasing expensive components.
  • Cryptocurrency, despite some independence, is also subject to fluctuations in the exchange rate and the influence of world markets.

Mining is your chance to touch the virtual revolution and make good money at the same time.

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