Bitcoin mining is a fascinating term, isn’t it? Bitcoin is a form of digital currency. It was created by Satoshi Nakamoto in 2009. You can sell this digital currency, buy it or even exchange it. Bitcoin removed the need for banks. You can perform transactions directly with the help of it.
Bitcoin has become a popular entity over the course of a few years. It is a glimpse of Web 3.0. Currently, the recent spikes in the price of bitcoin have increased the general public interest. Therefore more and more people are coming towards it. 1 bitcoin is roughly equal to 29,596.20 USD.
Table of Content
- What is Bitcoin mining?
- How to start Bitcoin mining?
- Earnings of a Bitcoin miner
- Different ways to mine Bitcoin
You can mine bitcoin too. Unfamiliar with the term mining a bitcoin? Then keep on reading to get a grasp of it. Mining bitcoin is getting huge day by day and more and more people are trying to start mining every day.
What is bitcoin mining? (in layman’s terms)
So what is bitcoin mining? Bitcoin mining is a process in which new bitcoins are created and added to the digital currency. Once a person has successfully created a bitcoin, he/she will be rewarded with some bitcoins.
Dedicated and sophisticated computer hardware performs bitcoin mining.
Why mine bitcoin?
Bitcoin is one of the most popular digital currencies. At the moment it is the most expensive digital currency. If you are looking to bolster your financial status, then mining bitcoin is the best bet.
You can mine bitcoin at an individual level. Otherwise, you can use a group. Using a group will increase the chances of successful mining and also more profits.
Can you mine bitcoin without cost?
The next question that might come to your mind is: Will mining bitcoins cost you any money? The answer to this question is Yes. You will need dedicated hardware for mining. You will have to pay the internet and electricity bills. So overall mining bitcoin is not free.
How to start bitcoin mining step by step
Now that you have enough understanding of what bitcoin is and what bitcoin mining is. Let’s move to the step by step guide on how you can start mining bitcoin:
Step 1: Set up your hardware
The first and foremost important step is to set your hardware. Although mining can be done on a simple laptop or computer, the likelihood of success highly decreases.
Dedicated hardware made for the purpose of mining will improve your success rate. Antminer is a popular example for mining bitcoin. You can buy new hardware or buy second-hand hardware. Once you bought dedicated hardware it’s time to move on to the next step.
Step 2: Set up your bitcoin wallet
Secondly, the next step is to create a bitcoin wallet. After all, you want to get paid for your hard investment and time. You will need a bitcoin wallet for that. The hardware wallet is the best and safest wallet for bitcoin mining.
Step 3: Configure your hardware
With your hardware in place, your digital wallet is set up, it’s time to configure the hardware.
Many of the hardware comes with a GUI (Graphical User Interface). This will allow an easy interface and you can use a mouse to perform the configuration. Otherwise, you will need to have knowledge of the command-line interface to properly configure your hardware.
Another thing to note is that mining hardware works on Linux Operating Systems. So you will need to have a good understanding and knowledge of that too.
If this all seems overwhelming, you can hire a computer programmer to configure your mining hardware.
Step 4: Start Mining
With all of this extensive placement, now you can start mining finally. To mine a bitcoin you have to download the local copy of the blockchain for bitcoin and start mining.
Now you can kick back and relax. The hardware will keep mining 24/7. Meanwhile, you can take a break, sleep or do whatever work you have.
Earnings of a bitcoin miner
As bitcoin and bitcoin mining is gaining popularity, the earning profit of a miner is decreasing too. In the initial days, a bitcoin miner would receive 50 bitcoins(BTC) per successful bitcoin mining. In 2012 it was reduced to 25 BTC. After that in 2016, it was reduced to 12.5 BTC.
At the present day, one successful bitcoin mining results in 6.25 BTC for the miner.
Different ways to mine bitcoin
Mining bitcoin doesn’t mean that you have to buy and bring the hardware to your home and start mining. You don’t have to take the whole burden on yourself. Although you can also go with this approach.
However, there are a few different ways to mine bitcoin. You can read these different ways below:
Pool bitcoin mining
Mining bitcoin is a very time-consuming process. Especially if it is carried on by an individual. It also decreases the chances of successful mining. Here the concept of pool mining comes into play.
Basically, Pool mining is a group of miners. Often third parties operate these groups. When a group of miners works together, success chances increase and the time is also reduced substantially. You can share the final profit with the other miners.
Investing in a bitcoin mining company
The second way to start bitcoin mining without having all the hassle is to invest in a company that is mining bitcoin. Start with finding a company, then decide the amount you want to invest. This profit share will depend upon the amount you invest.
Investing in cloud computing
Worrying about buying dedicated hardware? Another way to start bitcoin mining is to invest in cloud computing. These cloud miners have the system, you just have to pay a fee to them. You will receive a hefty share when the bitcoin gets mined.
Finally
Bitcoin mining is becoming famous day by day and more and more people are coming towards it daily. It is a very time taking and difficult process that will yield a very high investment. To have better success chances, it is best to invest in a company or work in groups to mine bitcoins.
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