We are in the midst of one of the greatest financial revolutions in modern history. Cryptocurrency is going to change the world. It’s already starting to do so. The problem is that the average person doesn’t know how to get started with cryptocurrency mining.
That’s where we come in. We’re a team of professionals who have become obsessed with cryptocurrency mining. We’ve spent countless hours studying cryptocurrencies and mining them. Now, we want to share that knowledge with you online through our blog, which you can find at https://www.yourguidetominingbitcoins.com/.
On our blog, you can find guides about every aspect of cryptocurrency mining, including:
Cryptocurrency mining is a new high-tech way of making money. The main idea behind cryptocurrencies is that they are decentralized and require no central authority to regulate them. They are designed to be self-sufficient, and they can be used by everyone. There has been a lot of hype surrounding the potential of cryptocurrency mining. A lot of people are talking about it, but few people know how to actually do it.
This blog will go over the basics of cryptocurrency mining, what is it, how does it work, and why does it matter?
The first thing you need to know about cryptocurrency mining is that you don’t need any specialized hardware to get started. In fact, all you need is a computer with an internet connection and some basic knowledge about computers. Cryptocurrency miners are used to generate new coins for their users. You can use your computer’s CPU or GPU to mine cryptocurrencies by running a program on your computer called a miner.
The mining craze has destroyed the market and GPUs are ridiculously priced right now. A lot of people are starting to question if mining is worth it anymore. I’ve had a lot of people ask me lately about building computers for Bitcoin mining. So, this is my long winded way of saying that this build wouldn’t be the most efficient way to mine right now.
It’s hard to know exactly what a good price per hashrate is, since the market fluctuates quite a bit. It can take days or even weeks to find out whether your mining rig is even worth the electricity you’re putting into it. Often times, it takes more money in electricity bills than you could ever hope to make back in Bitcoins.
As you can see from the calculator above, at today’s difficulty you’d earn less than 0.01 BTC ($5) from mining with that GPU for one year. That’s assuming you don’t pay a penny for electricity; obviously that isn’t always going to be true. While you could simply set a machine aside and have it run the algorithms endlessly, the energy cost and equipment deprecation will eventually cost more than the actual bitcoins are worth.
For those with an interest in such things: when Bitcoin launched, one of its first adop
There are two basic ways to mine: On your own or as part of a Bitcoin mining pool or with Bitcoin cloud mining contracts and be sure to avoid Bitcoin cloud mining scams. Almost all miners choose to mine in a pool because it smooths out the luck inherent in the Bitcoin mining process. Before you join a pool, make sure you have a bitcoin wallet so you have a place to store your bitcoins. Next you will need to join a mining pool and set your miner(s) to connect to that pool. With pool mining, the profit from each block any pool member generates is divided up among the members of the pool according to the amount of hashes they contributed.
When you join a mining pool, you’ll be given smaller and easier problems to solve. All of your combined work will make the pool more likely to solve the original problem and earn the bitcoin reward and transaction fees. The profits will be spread out throughout the pool based on contribution. Once the pool manages to win the competition, the reward is spread out between the pool members depending on how much work each miner has done (i.e., their miner’s hash rate).
Bitcoin is a form of digital currency, created and held electronically. No one controls it. Bitcoins aren’t printed, like dollars or euros – they’re produced by people, and increasingly businesses, running computers all around the world, using software that solves mathematical problems.
It’s the first example of a growing category of money known as cryptocurrency.
What exactly is Bitcoin Mining?
Bitcoin mining is how new bitcoins are brought into circulation but the future of bitcoin after they are all mined is still unknown. Bitcoin mining is performed by high-powered computers that solve complex computational math problems; these problems are so complex that they cannot be solved by hand and are complicated enough to tax even incredibly powerful computers. The reward for solving these problems is transaction fees and newly released Bitcoin. In this guide we explain what exactly bitcoin mining is and how to get started.
Cryptocurrency mining is the process of generating new units of a cryptocurrency. The process is resource-intensive and difficult such that the number of blocks found by miners on average every day is constant. Mining requires extensive computational resources and energy to solve a complex mathematical puzzle which is made easier using specialized hardware called ASICs, or application-specific integrated circuits. The successful miner will be rewarded with a fixed amount of cryptocurrency and transaction fees.
The process is repeated by the miners until the maximum number of coins in circulation are (approximately) reached. Each coin has its own algorithm for mining, some coins can be mined using CPUs and GPUs, but the most popular ones like bitcoin require the use of ASICs.
Mining cryptocurrencies can be very profitable if performed with the right hardware, software, electricity cost, and contracts. Miners gain by receiving block rewards in form of new cryptocurrency tokens distributed in proportion to their work done (hash power).
So you want to mine Bitcoins, but you don’t know where to start? Well this blog post is for you! In this guide I will cover all the basic information needed to get started mining bitcoins.
Why Mine Bitcoins?
The most obvious reason to mine are bitcoins themselves. If you are reading this guide then it means that you probably have some interest in the currency. But why mine in the first place? What is the point of mining? Well, here is what Satoshi Nakamoto himself says in his white paper describing Bitcoin:
“The steady addition of a constant amount of new coins is analogous to gold miners expending resources to add gold to circulation. In our case, it is CPU time and electricity that is expended.”