Bitcoin Mining: The Sure Way To Digital Currency
I
know you must have probably asked yourself ‘what is bitcoin mining’ and ‘how is
bitcoin mined’? Relax because i am going to tell you everything you need to
know about how bitcoin mining works, how to start mining bitcoins, what the
best bitcoin mining software is, what the best bitcoin mining hardware is and
where to find the best bitcoin mining pools.
Bitcoins are online currency
known as cryptocurrency, but they are mined like gold. If properly done and
willing to take the investment risk, you could rake up a few bitcoins of your
own which currently have an average price of $4000 on the
largest bitcoin exchange.
How Bitcoin mining works
Bitcoin mining literally means the
discovery of new bitcoins. It involves adding transaction records to Bitcoin's
public ledger of past transactions or blockchain. This ledger of past
transactions is gathered into boxes with a virtual padlock on them called
"block chains." Miners then pool resources together and run software
to find the key that will open that padlock.
Once their computer finds it,
the box pops open and the transactions are verified. For finding that
"needle in a haystack" key, the miner gets a reward of 25 newly
generated bitcoins.
How do you mine bitcoins?
Bitcoin, miners use special
software to solve math problems and are issued a certain number of bitcoins in
exchange. A prospective miner needs a bitcoin wallet (an encrypted online bank
account) to hold what is earned. Bitcoin mining is straightforward and can be
done by a computer novice requiring basic software and specialized hardware.
The software required to mine is free to download and easy to run.
What is the best bitcoin mining Software?
The most popular software used
for mining bitcoin is called GUIMiner. When launched, the program begins to
mine on its own. It looks for the magic combination that will open that padlock
to the block of transactions.
What Hardware Do You Need For Bitcoin Mining?
To begin mining bitcoins, you'll
need to acquire bitcoin mining hardware. When mining began, normal PCs were
fast enough to generate bitcoins. That's the way the system was set up—easier
to mine in the beginning, harder to mine as more bitcoins are generated. Today,
Custom Bitcoin ASIC chips offer performance up to 100x the capability of older
systems and this have become the dominant Bitcoin mining hardaware in the
industry.
Best Mining Pools To
Join
Once you have purchased your
hardware and software for mining, we recommend joining a Bitcoin mining pool.
Bitcoin mining pools are are a collective group of bitcoin miners from around
the globe working together to solve a block and share in its rewards. These
miners pool their computer power together to mine bitcoins. Without a Bitcoin
mining pool, you might mine bitcoins for over a year and never earn any
bitcoins.
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