• Category
  • >Financial Analytics

How to Mine Bitcoin? Bitcoin Mining

  • Soumyaa Rawat
  • Jul 02, 2021
How to Mine Bitcoin? Bitcoin Mining title banner

What is Bitcoin

 

Digital money or a cryptocurrency, Bitcoin was established in the year 2009 by a person or a group of persons who go by the name of Satoshi Nakamoto. The topmost digital currency, Bitcoin, is traded by the name of ‘BTC’ and exists only in the digital form. 

 

A cryptocurrency that works on the basis of peer-to-peer technology, Bitcoin is not sanctioned by any central authority or a bank but is traded on a public ledger. This public ledger is transparent and accessible to all those who trade in digital currency.  

 

An open-source platform where the currency is traded among those participating, Bitcoin is a global currency, unlike other currencies that are sanctioned by central authorities or governmental organizations. 

 

A leading cryptocurrency that has swiped away people’s attention from all around the world, Bitcoin is stored in the form of digital currencies traded through a network of decentralized ledger systems known as a blockchain. A blockchain, in this case, ensures that the information updated on the public ledger cannot be compromised or hacked. 

 

It adds blocks as the information related to Bitcoin keeps increasing, confirming the security and safety of the traders and their financial information. Currently, Bitcoin price till date is at a value of $31,611


 

Bitcoin Mining

 

As we read about Bitcoin, we will now dig deep into this topic and learn about the process of Bitcoin Mining. The process of Bitcoin Mining is defined as the process of discovering new Bitcoins that are brought into circulation after performing a series of highly complex computational problems. 

 

The process directly affects the blockchain which preserves the public ledger. High-end software that are particularly designed for Bitcoin mining are used to mine Bitcoin these days. 

 

These Bitcoin Mining software are developed on the basis of similar algorithms that help in the verification of Bitcoin transactions. A number of hardware are also incorporated to mine Bitcoins. 

 

For instance, the Application-specific Integrated Circuit chips (ASIC) is a hardware computer that has the ability to mine Bitcoins at a high speed and with less energy. It is a device that uses microprocessors solely developed for mining digital currencies like Bitcoin. 

 

All in all, the mining of any cryptocurrency is a painstaking and time-consuming process that results in high rewards. There are numerous ways to obtain Bitcoin - buying the digital currency (trading), accepting it in exchange for goods or services, and mining the digital currency. 

 

While the first 2 methods require an individual to give up money or commodity for possessing Bitcoins, the third way - Bitcoin mining, can get Bitcoins without having to pay for them. 

 

(Also read - Dogecoin v/s Bitcoin

 

 

How to mine Bitcoin?

 

The process of Bitcoin Mining surely sounds amazing, doesn’t it? Well, it is easier said than done. Let us move on to learning about how the process of mining Bitcoins works. 

 

Bitcoin mining can be done with the help of open-source software and specialized hardware that are compatible with each other to mine Bitcoins. To mine Bitcoin, it is important to create a Bitcoin wallet in order to store what has been earned. 

 

In order to get started, a miner is first required to verify Bitcoin transactions. This is done by opening boxes that hold transactions of Bitcoin in them. For these boxes to open, a miner has to unlock the padlocks that preserve blockchain transactions in these boxes. 

 

This is where the mining software does its work. The software is required to detect the key that will help a miner to unlock the padlock and unbox the transactions in order for them to get verified. 

 

(Similar read: What is text mining?)

 

Although the presence of the software makes the whole process fairly easy, it still takes lots of attempts to unlock the blockchain for the verification of Bitcoin transactions. 

 

“The current number of attempts it takes to find the correct key is around 1,789,546,951.05, according to Blockchain.info—a top site for the latest real-time bitcoin transactions.” “Bitcoin Mining

 

As soon as a miner unlocks 1MB Bitcoin transactions (approximately one block) after solving complex puzzles or other computational problems, the miner becomes eligible to be rewarded with a specific number of Bitcoins known as the block reward. 

 

In order to earn a Bitcoin, a miner has to mandatorily unlock and verify 1MB worth of Bitcoin transactions and be the first one to identify the right answer to a computational problem. Therefore, speed and accuracy are the most important factors that help a miner mine this peer-to-peer cryptocurrency. 

 

Even though the computational problems presented in the process are not that advanced or high-end, they are so complex that in order to arrive at the right answer, a miner requires the help of high energy and great computational power to mine Bitcoins. 

 

Furthermore, miners can also operate under a mining pool that lets various miners collaborate their efforts and combine their resources in order to mine Bitcoins. As this process is not feasible to be handled by an individual alone, mining pools often gain success in mining Bitcoins. 

 

The reward gained after the process is divided among the miners. While mining Bitcoins sounds more like mining gold or another precious metal, it is also a way to ‘mint’ cryptocurrency. When the algorithm for Bitcoin trading was first developed, Satoshi Nakamoto defined a specific number of Bitcoins that will ever exist in circulation. This number was fixed at 21 million. 

 

“Currently, more than 12 million are in circulation. That means that a little less than 9 million bitcoins are waiting to be discovered.”Bitcoin Circulation 

 

With around 9 million Bitcoins still needing to be discovered, the process of Bitcoin mining will get harder and harder as the world reaches up to the last Bitcoin. 

 

While anybody can develop resources and install a suitable hardware system for mining Bitcoins, Bitcoin miners are professionally capable of doing the job for individuals. This means that people can hire miners to verify transactions for them and compensate them monetarily. 

 

The time taken to verify one block of transactions is 10 minutes and no matter how much energy or capability is invested in the process, a Bitcoin cannot be mined in time less than 10 minutes. Here is a step-by-step process for Bitcoin Mining:-

 

  1. Get your own Bitcoin Mining device set up. For instance, the AISC mining rig. 

  2. Create a Bitcoin Wallet

  3. Preferably participate in a Mining Pool.

  4. Install mining programming on your computer. Make sure your software and hardware are fully equipped.

  5. Get started immediately!  

 

 

Future of Bitcoin Mining

 

One of the greatest examples of digital currency, Bitcoin, is here to stay for a long time! There is no doubt that cryptocurrencies have gradually gained popularity and every 9 in 10 people know about it. 

 

Bitcoin Mining, when it comes to its future, is surely going to escalate as more and more people are discovering about it. With only 9 million Bitcoins yet to be discovered, the world is soon going to run out of Bitcoins. 

 

( Must read - Top 10 Companies adopting Bitcoin

 

This will only lead to a higher value of the cryptocurrency since Bitcoins would only be left for trading. The future of Bitcoin mining is largely dependent on the energy sector and compatible bitcoin mining hardware as more cost-friendly and sustainable computer power will be required for the process to take place. 

 

As digital currencies like Bitcoin are soon going to overtake paper currencies regulated by central authorities, Bitcoin mining will become a matter of concern and caution too. 

 

Yet, the future that it beholds is strongly in the favour of more and more miners joining the party and trying to mine new Bitcoins for the numerous benefits it provides - secure network, no middlemen required, high rewards, and immediate transaction of coins in wallets. All in all, Bitcoin Mining is fundamentally spreading its wings across the world while it sails across the digital realm unstoppably. 

 

 

Summing Up 

 

In the end, Bitcoin Mining is a complex process that requires adequate resources and knowledge to get started. A process that leads to the discovery of new Bitcoins, Bitcoin Mining helps in the verification of Bitcoin transactions and also helps in identifying if the same Bitcoin serial number has been used twice. Lastly, the process is also a beneficial way to gain Bitcoins without having to pay for them. 

Latest Comments

  • shallikquawalker

    Nov 24, 2022

    I was scammed by a binary option website iq options to be exact. I lost about $253,000 to them. It was a really hard time for me because that was all i had and they tricked me into investing the money with a guarantee that i will make profit from the investment.. I was referred to "WIZARD GARRY SPEED RECOVERY",they are recovery specialists for all types of online scams,they helped me in recovering all my lost funds I couldn’t believe at first that this was possible as i have lost all hope in contacting anyone on the internet, but i guess not everyone is bad after all. You can reach them on E-mail: wzardgarryspeedhack@gmail.com WhatsApp: +1 928 534 9618 website:https://wzardgarryspeedhac.wixsite.com/my-site-1

  • carinhazell

    Dec 13, 2022

    Thanks to Mrs Jane who helped me recover all my lost funds in forex and crypto trading including my profits, i was a big fool giving my hard earned money to greedy and scammed brokers, but am so happy i met Jane silva a honest woman who helped me recover all my lost funds, and she also gave me the right signal and platform to trade with, now am able to make $5000 weekly, and am very happy, that is why i cant stop testifying about her, if you are out there still experiencing failure trading in binary option, crypto and forex trading or you want to recover your lost funds trading in binary/ forex trade i will advice you to reach out to her via email on janesilva0727 gmail com

  • Monica Faderick

    Dec 22, 2022

    You can begin making money from the convenience of your own home. The professor and I connected on a cryptocurrency site, and he is interested in mining bitcoin and other cryptocurrencies. Banks and other businesses are closing as a result of COVID-19. I spoke with the professor about working from home, and he gave me more information about bitcoin mining, which helped me realize that I could make up to 8.5% of my initial investment in three days. I collaborated with the professor, and he delivered. I made $15K in two weeks, and I still plan to increase my investment with the professor to acquire additional bitcoins. To join the mining team and start your trip, get in touch with the professor. (Profsydneycryptoconsultancy at gmail dot com or +1 (832) 696-0236)

  • Lucas Khan

    Dec 27, 2022

    Professor Sydney helped me mine 57 bitcoin in 1 week. I have been scammed twice before getting in touch with the prof, I got introduced to the prof by a friend of mine that claimed the prof helped him mine 5 bitcoin. I contacted the prof and we got going then the prof showed me the investment plans and he also explained to me so i get to know about cryptocurrency and also why i need to invest and to get a hold of as much as i can. The prof completely helped me mine 57 bitcoin on the 7th day which was unbelievable until I transferred the coin from my blockchain to my coinbase. I converted some to cash because I need money and I hold a lot just as advised by the prof. In as much as the prof asked me not to share his info out there because he prefers to work with you in person but i believe everybody is not living in the States and people around the continent might need him so i decided to share his email here if anyone needs help with bitcoin mining. Prof Sydney will help you achieve what you've been longing for. get to him at (Profsydneycryptoconsultancy@gmail.com) and get to thank me later for this great info.

  • bennet9800

    Jan 02, 2023

    I highly recommend Wardriver's Cyber service to help you recover your funds if you have ever been a victim of a bitcoin and cryptocurrency scam. I was contacted a few weeks ago on Instagram by someone claiming to be into investment and I could make huge profits on all my investment returns, I was moved by it and invested $70,000 into this cryptocurrency scam after he promised I will get a huge return on my investment in a few days, I realize it was all a scam when it was time to get my profits and they stopped responding to me and logged me out of my account on their platform. I heard about Wardriver's Cyber service from a colleague of mine and how they can help me recover my funds by hacking into their system. I contacted them and provide them with the information they requested and my funds were refunded to me within 24 hours. I feel relieved and thought it would be best to share this with many others out there who might need their service. You can contact them with the following information. Email: wardriverscyberservice @techie.com Whats-App/Tele-Gram: +1 ( 6 1 6) 8 9 8-7 2 8 5

  • anthonymorphy30

    Jan 05, 2023

    ◼️ ALL YOU NEED TO KNOW ABOUT LOST FUNDS RETRIEVAL ◼️ ◼️ These days you have to be very careful about who you contact for Funds Retrieval because most of these companies out there who claim they are funds recovery experts are not really who they claim they are, especially those that spam comment sections with their gmail, they are as wack as the scammers who took your money in the first place. come to think of it, why would a Legit Firm be using an ordinary gmail instead of a professional email address or even a standard website to be more professional. If you’ve had encounters with these guys, you’ld appreciate this Write up.. ◼️ Truth be told, the only firm capable of retrieving your lost funds from online scams, fraud and scam investment websites are Team of PROFESSIONAL HACKERS & CYBER FORENSIC EXPERTS, they are the ones who knows various Retrieval Techniques and Strategies that suits different scenarios of Scam. Some companies would tell you they would make use of their Lawyers and Law enforcement Agencies to fight your scammer, all these are long and time wasting procedures and this might eventually not work out or even result in more losses. If you are smart enough, you should know that online scam recovery is a very Professional Case that requires Professional Handling by EXPERTS in the field. You have to take a bold and SMART step by consulting a team of Highly Ranked Hackers and Cyber Forensic Experts Today At FUNDS RETRIEVAL PANEL ◼️ www.fundsretrievalpanel.com ◼️

  • ronchan.ngalog

    Jan 10, 2023

    ASOREHACKCORP is a financial regulator, private investigation and funds recovery body. We specialize in cases as regards ETHICAL HACKING, CRYPTOCURRENCY, FAKE INVESTMENT SCHEMES and RECOVERY SCAM. We are also experts in CREDIT REPAIR, we analyze what’s impacting your score. All software tools needed to execute RECOVERIES from start to finish are available in stock. Kindly NOTE that the available tools does NOT apply to CREDIT FIX. Be ALERT to FALSE reviews and testimonies on the internet, the authors and perpetrators unite to form a syndicate. Contact our support team as soon as you can via the email address below to get started. asorehackcorp@gmail.com Stay Safe !

  • christianaalexandriadonalds

    Jan 16, 2023

    Hello everyone, The Cryptocurrency world is very volatile and a lot of individuals have lost some crypto coins and crypto assets to online scams . I was also a victim of fake telegram personnels from Uniswap group. My wallet address security and 12 phrases got compromised and I lost all my crypto coins (Filecoin, Eth, Btc, and EthereumMax) to the tune of $184.000.This left me so devastated and left me depressed at my lowest point because my family could’ve been homeless if I didn’t recover my crypto coins successfully which was most of my savings and financial assets. I laid my complaint in the group and a real group admin referred me to Wizard Recovery Home. This cryptocurrency recovery agency saved my life by helping me recover all my losses in just 6 days.I provided necessary requirements and relative information to complete the successful recovery of my crypto coins. I was filled with joy once I got my coins back, Here is his contact info if any one also need his help. Email: jamesmckaywizard@gmail.com or what'sapp +1 (507) 414-7049,

  • assetsasset7

    Jan 18, 2023

    SCAMS CAN COME IN MANY FORMS, BUT ALL ARE DESIGNED TO GET A HOLD OF YOUR MONEY. “Unfortunately, The first mistake was getting your funds stolen (crypto scam, trading/Fx investment scam,romance scam etc.)” Let The most tactical funds recovery team, Assetsretrievalboard. com save you from making the second mistake. Do not seek help from any of these fake recovery emails (scammers) on this very platform or elsewhere , it will land you in more loss. Sending any message to emails here that claim to be hackers.? There is more to being a “Real Hacker” (or recovery agent) than just using the words “hack and recovery” to create an email and also go as far as formulating fake testimonies to lure victims to contact them. 📝1: You need a certified and effective team to help recover your misappropriated funds. 📝2: you need at-least, a 15years hacking or recovery experienced and oriented dialectical team to enable that your funds recovery is a success, and therefore we at assetsretrievalboard. com is the team to render this service, we work so hard to enable that, the right hacker (recovery agent) is assigned to you after reviews/investigations have been carried out and confirmed that you are a victim of stolen funds. For more informations and detailed proof of works(testimonials) Visit our website now and let’s have your funds retrieved. assetsretrievalboard. com SCAMS CAN COME IN MANY FORMS, BUT ALL ARE DESIGNED TO GET A HOLD OF YOUR MONEY. “Unfortunately, The first mistake was getting your funds stolen (crypto scam, trading/Fx investment scam,romance scam etc.)” Let The most tactical funds recovery team, Assetsretrievalboard. com save you from making the second mistake. Do not seek help from any of these fake recovery emails (scammers) on this very platform or elsewhere , it will land you in more loss. Sending any message to emails here that claim to be hackers.? There is more to being a “Real Hacker” (or recovery agent) than just using the words “hack and recovery” to create an email and also go as far as formulating fake testimonies to lure victims to contact them. 📝1: You need a certified and effective team to help recover your misappropriated funds. 📝2: you need at-least, a 15years hacking or recovery experienced and oriented dialectical team to enable that your funds recovery is a success, and therefore we at assetsretrievalboard. com is the team to render this service, we work so hard to enable that, the right hacker (recovery agent) is assigned to you after reviews/investigations have been carried out and confirmed that you are a victim of stolen funds. For more informations and detailed proof of works(testimonials) Visit our website now and let’s have your funds retrieved. assetsretrievalboard. com assetsretrievalboard. com ©️ 2023 signed. assetsretrievalboard. com ©️ 2023 signed.

  • joshuahughes922

    Jan 27, 2023

    The crypto Trend was everywhere, I saw plenty of crypto news and hype on Twitter, Facebook , instagram and on google as well .. plenty of people were getting into it and making money from the comfort of their homes and I didn’t know how so I reached out to a group admin on telegram after following them for a while and asked for assistance so I could be a member as well . He assisted me into investing, I started with the plan A and eventually upgraded to the mega plan but I didn’t know it was a scam company and all the reviews I saw was fake until a member broke the sad truth on the platform before she was immediately removed .. I searched for the name on telegram and found her and she showed me all the proofs and how she lost and regained her money with the help of the DARKRECOVERYHACKS TEAM . I tried to withdraw just to be sure and I was denied access to withdrawal . I was dumbfounded so I reached out to the DARKRECOVERYHACKS TEAM on email : Darkrecoveryhacks @ gmail . Com and on telegram: Darkrecoveryhacks . I quickly sent all transactions proofs for verification before my recovery exercise was initiated and successfully recovered to my wallet in 4days . I have learnt my lesson to stay away from online money making plots thanks to the DARKRECO VERYHACKS TEAM