If you are at least a little bit familiar with the world of technology, you must have heard about Bitcoins. And, if you know about them, you must also know about mining bitcoins as well. Although a lot of people think that mining requires solving a lot of mathematical problems, that is not entirely true.
This article might help you with learning if mining Bitcoins is still profitable, however, before writing about that, first, we will look at what it means, how it functions, and other important things that you should know about this process. Let’s take a closer look:
What Does Mining Mean?
Simply said, it is a method of updating a register of activities happening, and it is commonly known as a blockchain. It is usually done by incredibly strong PCs named ASICs, and their job is to “race” other people to figure out specific numbers first.
The person who guesses the number right can update the register and they will also get an award of 12.5 coins. In order for someone to mine Bitcoins, they will need to spend money on tools, storage space, and cooling units. Remember that it will not be possible for you to mine this cryptocurrency if you do not have a strong computer.
Now, guessing a number might seem like a simple thing, however, it is not done by you, but by your computer. And the more power it has, the more guesses it can make in one second, which will in return, boost your chance of success. So, if you get it right, you will earn the bitcoins.
What Hardware You Will Need to Get?
- CPU – in 2009, using your CPU was sufficient for mining since there were not a lot of people interested in this. However, once it became more popular, people started looking for better ways to mine.
- GPU – is a part that you can add to your PC. This will allow the PC to figure out more difficult calculations. Because of what it could accomplish, people increasingly used GPUs during 2011.
- FPGA – now, this element is similar to GPUs, but, they can run calculations faster. However, they are difficult to configure and that is why people did not use an FPGA as much.
- ASIC – now, this hardware was created specifically for mining this cryptocurrency – and when compared to the previously mentioned hardware, it does not do anything else. This hardware is now usually used for these processes.
I Heard About Pools, so, What Are They?
As previously mentioned, mining is perhaps, the most competitive process happening on the Internet. Although you may choose to purchase the best miners out there, you will still be competing with some major mining farms. And that is exactly why these pools were created.
It is quite easy to understand this – people get together to build a “pool”, hence, this will allow them to combine their miner power, and in return, they have higher chances of winning. If this group of people wins, the award they receive will be divided between each pool member. However, not everyone will get the same award since it is determined by how much power they contributed to the team. If you want to see the best websites for bitcoin mining, visit here.
Is it Really Profitable?
To put it simply, it is profitable, but it might depend on a wide range of things. When assessing the profitability, there are some factors that you will need to consider including:
- How Powerful Are You? – the math problem your PC will need to solve is called a “hash”. And when it is called a “hashrate” it refers to how well you perform.
- How Much Can You Earn? – currently, the amount of coin you can get per block is 12.5. However, it is halved every four years and the last one happen in 2016. So, this means that it will be 6.25 during next year.
- How Difficult is The Mining? – the difficulty is determined and will depend on the total power active in the entire system.
What Steps You Should Take When Starting Out?
If you are thinking about getting into the Bitcoin mining world, you will need to follow these steps:
1. Know the Profitability Chances
If you are thinking about getting into mining, you will need to do some digging first. One of the best ways to do this is to use a Bitcoin mining calculator.
2. Purchase/Create a Powerful Miner
When you finish calculating the profitability, the next step is to find a good miner. You will want to check out what hardware is best for doing that, as well as which one will fit your needs.
3. Do Not Have a Bitcoin Wallet? Get One!
You will need a place to store your newly gained coins. Once you get a wallet, ensure that you get the wallet address – which is usually a long arrangement of both numbers and letters.
4. Opt for a Pool
When you join a team, you will receive one part of the problem to solve. And as previously mentioned, you and your team members will work together to solve the problem and reap the rewards later on.
5. Get The Software
If you want to control and monitor your hardware, you will need a program that will allow you to do that. The software you will get depends on what mining rig you have.
6. Begin Your Journey And Enjoy The Rewards!
Once you have finished all the previous steps, connect your miner and start it. You will want to connect it to your PC and open the program you have purchased. Of course, you will need to submit the address of your mining pool, password, and username. Once this is set up, you will begin collecting shares.
As you can see, bitcoin mining is not an easy task, however, it is one that can be quite profitable. So, now that you everything there is about bitcoin mining, do not waste any more time, and start researching various websites that will allow you to harvest these coins and make a profit!