Bitcoin mining.

[Bitcoin]

Bitcoin mining.
Where do bitcoins come from? With paper money, a government decides when to print and distribute money. Bitcoin doesn't have a central government.
With Bitcoin, miners use special software to solve math problems and are issued a certain number of bitcoins in exchange. This provides a smart way to issue the currency and also creates an incentive for more people to mine.
Bitcoin is Secure.
Bitcoin miners help keep the Bitcoin network secure by approving transactions. Mining is an important and integral part of Bitcoin that ensures fairness while keeping the Bitcoin network stable, safe and secure.
Links.
We Use Coins - Learn all about crypto-currency. Bitcoin News - Where the Bitcoin community gets news. Bitcoin Knowledge Podcast - Interviews with top people in Bitcoin.
Bitcoin mining Hardware Comparison.
Currently, based on (1) price per hash and (2) electrical efficiency the best Bitcoin miner options are:
AntMiner S7.
4.73 Th/s 0.25 W/Gh 8.8 pounds Yes N/A 0.1645.
AntMiner S9.
13.5 Th/s 0.098 W/Gh 8.1 pounds Yes N/A 0.3603.
Avalon6.
3.5 Th/s 0.29 W/Gh 9.5 pounds No N/A 0.1232.
Overview - Table of Contents Mining Hardware Comparison What is Bitcoin mining? What is the Blockchain? What is Proof of Work? What is Bitcoin mining Difficulty? The Computationally-Difficult Problem The Bitcoin Network Difficulty Metric The Block Reward.
Bitcoin mining is the process of adding transaction records to Bitcoin's public ledger of past transactions or blockchain . This ledger of past transactions is called the block chain as it is a chain of blocks. The block chain serves to confirm transactions to the rest of the network as having taken place.
Bitcoin nodes use the block chain to distinguish legitimate Bitcoin transactions from attempts to re-spend coins that have already been spent elsewhere.
What is Bitcoin mining?
What is the Blockchain?
Bitcoin mining is intentionally designed to be resource-intensive and difficult so that the number of blocks found each day by miners remains steady. Individual blocks must contain a proof of work to be considered valid. This proof of work is verified by other Bitcoin nodes each time they receive a block. Bitcoin uses the hashcash proof-of-work function.
The primary purpose of mining is to allow Bitcoin nodes to reach a secure, tamper-resistant consensus. Mining is also the mechanism used to introduce Bitcoins into the system: Miners are paid any transaction fees as well as a "subsidy" of newly created coins.

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This both serves the purpose of disseminating new coins in a decentralized manner as well as motivating people to provide security for the system.
Bitcoin mining is so called because it resembles the mining of other commodities: it requires exertion and it slowly makes new currency available at a rate that resembles the rate at which commodities like gold are mined from the ground.
What is Proof of Work?
A proof of work is a piece of data which was difficult (costly, time-consuming) to produce so as to satisfy certain requirements. It must be trivial to check whether data satisfies said requirements.
Producing a proof of work can be a random process with low probability, so that a lot of trial and error is required on average before a valid proof of work is generated. Bitcoin uses the Hashcash proof of work.
What is Bitcoin mining Difficulty?
The Computationally-Difficult Problem.
Bitcoin mining a block is difficult because the SHA-256 hash of a block's header must be lower than or equal to the target in order for the block to be accepted by the network.
This problem can be simplified for explanation purposes: The hash of a block must start with a certain number of zeros. The probability of calculating a hash that starts with many zeros is very low, therefore many attempts must be made. In order to generate a new hash each round, a nonce is incremented. See Proof of work for more information.
The Bitcoin Network Difficulty Metric.
The Bitcoin mining network difficulty is the measure of how difficult it is to find a new block compared to the easiest it can ever be. It is recalculated every 2016 blocks to a value such that the previous 2016 blocks would have been generated in exactly two weeks had everyone been mining at this difficulty. This will yield, on average, one block every ten minutes.
As more miners join, the rate of block creation will go up. As the rate of block generation goes up, the difficulty rises to compensate which will push the rate of block creation back down. Any blocks released by malicious miners that do not meet the required difficulty target will simply be rejected by everyone on the network and thus will be worthless.
The Block Reward.
When a block is discovered, the discoverer may award themselves a certain number of bitcoins, which is agreed-upon by everyone in the network. Currently this bounty is 25 bitcoins; this value will halve every 210,000 blocks. See Controlled Currency Supply.
Additionally, the miner is awarded the fees paid by users sending transactions. The fee is an incentive for the miner to include the transaction in their block. In the future, as the number of new bitcoins miners are allowed to create in each block dwindles, the fees will make up a much more important percentage of mining income.

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What is a Bitcoin?
Bitcoin is an electronic payment system through a secure, verifiable and mathematical way. It is created by Satoshi Nakamoto in 2008 to produce a new means of exchange of money, independent of any centralization or central authority, which can be done electronically.
Traditional currency is printed and distributed by the Government based on demand and supply in the market. Bitcoin is introduced as a peer-to-peer currency without any central authority or any government body to issue the Coins and track their transactions.
What is Mining.
Where do the Bitcoins come from when there is no central authority to create and distribute? They come through Mining. Miners use a special software to solve the mathematical problems and complex mathematical algorithms to earn Bitcoins.
Bitcoin is the first and foremost digital currency in which new units of currency are generated through computational solution of mathematical algorithms. Bitcoins cannot be artificially inflated or deflated, or cannot be pumped into the market to boost the economy. They enter into the market only through Mining.
The independent and interconnected nodes or computers which solve the mathematical algorithms to create a Bitcoin are called the Miners. In 2009 the miners used to get 50 Bitcoins to solve a mathematical algorithm. This is becoming half in every 4 years due to increase in number of miners and usage of high power processors and Graphic cards. So, presently the person who solves the mathematical puzzle is earning 12.5 Bitcoins.
When the number of miners increase and high speed processors are used to solve the equations, the algorithms will become tougher to balance the number of bitcoins produced. In other words, the difficulty of the math problems increases with how fast they are being solved.
More number of miners = More difficult problems.
Miners use computers with high processor speeds to solve these math problems. Now they are using graphic cards which are proven to be faster in solving the problems. ASIC (Application specific integrated circuit) are specifically designed for Bitcoin mining. They consume less power and are faster. As on today, every 10 minutes a Bitcoin is mined. The total number of Bitcoins that can ever be mined is fixed at 21 million. This number can be achieved by the year 2140 if Bitcoin mining is done at the same speed.
Apart from creating Bitcoins, mining also ensures that Bitcoin network is stable and secure. Miners will verify the new block created through a mathematical process and then add it to the block chain. Miners will be rewarded bitcoins even for verifying the blocks and using their computing resources for the benefit of the Bitcoin Network.
Pooling of Miners.
To break the difficulty of mining, the miners get pooled. A pool of miners can solve the problems faster and can earn bitcoins. Each miner of the pool will be rewarded proportionately to the amount of work they put in.
Is Bitcoin mining Profitable?
Updated 7 minutes ago.
While many investors, like Warren Buffett, are bearish on bitcoin, that hasn't stopped the iconic cryptocurrency's surge. As its price continues to soar, so has an interest in bitcoin as an investment. If you're new to the concept of Bitcoin mining, here's everything you need to know about obtaining the cryptocurrency and what the future might hold for it.
Bitcoin launched in 2009, just in the aftermath of the 2008 global financial meltdown caused by the mortgage crisis. That makes some believe the cryptocurrency was built for financial crisis, which partly explains why interest in bitcoin has soared in the COVID-19 pandemic.
Although bitcoin is the oldest cryptocurrency in use today, many people still don't understand everything about itsuch as how to obtain bitcoin and the concept of mining it.
Side view of cryptocurrency mining computer.
You can obtain bitcoin in several ways. Merchants, for example, can accept it as a payment. Major retailers that accept the cryptocurrency as payment include Amazon-owned Whole Foods, Gamestop, Overstock.com, and Lowe's.
The other way to obtain bitcoin is purchasing it using fiat currency like the dollar, which you can do at crypto exchanges. Then there's Bitcoin mining. Bitcoin mining is the process of adding transaction records to the Bitcoin blockchain. Miners who help maintain the blockchain receive new coins as compensation for their labor. Therefore, mining is the primary way new coins are created.

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How do you mine bitcoin?
If you feel like getting into mining activity, you may wonder how bitcoin is mined. Cryptocurrency mining is a taxing activity that involves solving complex mathematical problems as part of verifying transactions on the blockchain.
Bitcoin miners rely on sophisticated computing machines to validate transactions on the blockchain for the chance to receive rewards. American chipmaker Nvidia is one of the suppliers of the powerful graphics processing chips used in cryptocurrency mining systems.
Is Bitcoin mining legal?
Bitcoin mining is perfectly legal in the U.S. and many other countries. For example, China has a vibrant Bitcoin mining industry, although authorities there routinely crackdown on the crypto industry.
Bitcoin mining can be profitable. However, several factors will determine whether a cryptocurrency mining venture actually nets a profit. The factors include the cost of mining systems and the electricity to power them. Cryptocurrency mining systems typically use a lot of power.
The other factor is the difficulty of mining. The more people involved in mining bitcoin, the harder it gets to solve the mathematical problems needed to maintain the network. Therefore, mining can be profitable if the price of the bitcoin reward you receive is higher than the cost of mining it.
Can bitcoin be converted to cash?
If you hold some coins in your digital wallet, you can sell them on a cryptocurrency exchange for cash in fiat currencies like the dollar. You can withdraw the cash to your bank account or through platforms like PayPal to spend on purchases. You can also convert bitcoin to cash through bitcoin ATMs. There are thousands of cryptocurrency ATM locations around the world.
Which bitcoin wallet is best?
A bitcoin wallet holds your bitcoin assets and keeps them secure from hackers. The best wallets for secure storage are from cryptocurrency wallet providers like Coinbase, Binance, Exodus, Trezor, Electrum, and Mycelium, all of which are highly regarded among the cryptocurrency community.
"Eventually at most only 21 million coins for 6.8 billion people in the world if it really gets huge. But don't worry, there are another 6 decimal places that aren't shown, for a total of 8 decimal places internally."
Is bitcoin a good investment?
Bitcoin may be a good investment for those seeking alternative assets outside the traditional financial system that offer protection from inflation. While central banks can print an infinite amount of fiat currency and continue to dilute its value, the iconic cryptocurrency has a fixed supply capped at 21 million units. Therefore, bitcoin investors don't have to worry about inflation eroding the value of their investment.
DEATH OF DOLLAR. People desperate for money. Very sad. If government gives you free money take it yet spend it wisely. DO NOT SAVE. Buy gold, silver, Bitcoin. Dollar is dying. Silver $20. Best Buy for future security. Everyone can afford $20, especially with free fake money.
Will bitcoin replace the dollar?
Some believe the dollar will collapse one day and cryptocurrencies will take its place. The idea that bitcoin will replace the dollar is one reason some believe it's a good investment now.
The backlash that Facebook's Libra cryptocurrency received from monetary regulators around the world, including the Fed, made some to believe cryptocurrencies really pose serious existential threat to the dollar. However, nobody knows when bitcoin would replace the dollar, if at all.
The Complete Guide on What is Bitcoin mining.
Not sure what is Bitcoin mining? You're in the right place to find out!

[Bitcoin]

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The popularity of Bitcoin is rising as more and more people are learning about it. However, it is still difficult to understand some ideas related to Bitcoin -- Bitcoin mining is definitely one of them.
What is Bitcoin mining? How does Bitcoin mining work? How long does it take to mine a Bitcoin. There are so many questions we ask ourselves when we first read about Bitcoin and mining. It's confusing, right?
It's okay, though. I'm here to help! In this guide, you will find all the answers you need. I'm going to make Bitcoin mining simple and explain it to you in a way that is easy to understand. I'll talk about how mining works, what it is, and how to start Bitcoin mining yourself. By the end of this guide, you will have a much better understanding of the concept.
Not only that, if you find that mining this cryptocurrency is something that might interest you, you might then want to sell or trade it , too. For that, you should rely on some crypto exchange platforms - Binance and Kraken are two of the better options.
So, let's get started!
Table of Contents.
1. What is Bitcoin mining? 1.1. Bitcoin mining Explained 2. What is Bitcoin mining: How Does Bitcoin mining Work? 2.1. What is a Block and Blockchain Technology? 2.2. How Does Bitcoin mining Work? 3. What is Bitcoin mining: How to Start Bitcoin mining? 3.1. Get the Bitcoin mining Hardware 3.2. Join a Bitcoin mining Pool 3.3. Download Bitcoin mining Software 3.4. Open a Bitcoin Wallet 4. What is Bitcoin mining: Is Mining Bitcoin Worth it for You? 4.1. What is a Bitcoin mining Reward? 4.2. How Difficult is Bitcoin mining? 4.3. How Much Does Bitcoin mining Cost? 4.4. How Much Profit Can You Make by Mining Bitcoin? 4.5. One More Important Thing 5. What is Bitcoin mining: Final Words.
Bitcoin mining is the process of verifying, storing and securing Bitcoin transactions. Of course, there is much more to it than that . Before going into more about what is Bitcoin mining and how it works, though, keep in mind these two important things about Bitcoin itself:
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When you make a payment using credit card, the credit card company verifies and records the transaction . Now, when you make a payment using bitcoin, there is no central/third party like the credit card company to verify the transaction. Instead, it is verified by Bitcoin miners. Unlike traditional money ( USD, JPY, EUR etc .), which is printed by banks, Bitcoin cannot be printed by anyone. With traditional currencies, the bank can print as much money as they want because there is no maximum limit on it. Bitcoin, though, has a maximum limit of 21 million . This means there can only be 21 million Bitcoin ever created!
This is what Bitcoin is all about -- it works without middlemen ( like banks or credit card companies ).
As you can see, Bitcoin is very different from traditional payment systems like banks and credit card companies. As the cryptocurrency is not printed, though, how is new Bitcoin created?
Can you guess what the answer is?
If you thought it might be Bitcoin mining, you are right! So, yes, that's the purpose of Bitcoin mining -- to verify transactions and create new Bitcoin . But if that's what it does, how does it work? Let's get into more about Bitcoin mining and answer the question that's still on all our minds: what is Bitcoin mining?
Bitcoin mining Explained.
As you now know, Bitcoin mining is the process of verifying Bitcoin transactions and creating new Bitcoin. The people who mine Bitcoin are known as Bitcoin miners. Well, I say " people ", but really, they are computers that are operated by people .
These computers ( which we call "nodes" ) have to be very powerful, as Bitcoin mining uses a lot of computer power. They run software that connects them to the Bitcoin blockchain and solves mathematical problems.
When these mathematical problems are solved, new transactional data is verified and stored on the Bitcoin blockchain. So, the Bitcoin miners are verifying the transactions instead of banks and credit card companies. This means there is no third party to trust or rely on. Clever, right?

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The basic requirements for Bitcoin mining are:
Specialized computers A strong internet connection Electricity (a lot of it!)
You might be thinking, why do these ' miners ' make all this effort? Surely it's very expensive? Well, that's a good question. Put simply, they do it because they are rewarded with Bitcoin .
That's right, Bitcoin miners are paid with new Bitcoin. This is the only way that new Bitcoin can be created!
At present, there are over 18 million Bitcoins that have been mined and the reward for mining one full block ( I'll explain blocks in a moment ) is set at 12.50 of Bitcoins . Remember, only 21 million Bitcoin can be mined in total; when all 21 million Bitcoins have been mined, no new Bitcoins can be created! So, now you know what is Bitcoin mining in total.
Now then -- what's a Bitcoin block?
What is Bitcoin mining: How Does Bitcoin mining Work?
Let's talk about blocks and the technology involved in Bitcoin mining. You know that Bitcoin uses the blockchain , right? Well, that's where we get the term 'block' from .
Have you ever wondered which crypto exchanges are the best for your dating goals?
What is a Block and Blockchain Technology?
Many Bitcoin transactions happen at the same time. The transactions that happen at the same time are put into groups; these groups are called 'blocks' . It is these groups/blocks that Bitcoin miners must verify -- they verify the transactions in groups, instead of verifying them individually.
Once a block is verified, it gets added to a chain of blocks that have already been verified. That's why the technology behind Bitcoin is called the blockchain !
This will become easier to understand as I explain the step-by-step process of mining Bitcoins.
How Does Bitcoin mining Work?
Step 1 : Imagine you want to buy a bed and pay using Bitcoins. If the cost of the bed is $300 , it will be around 0.046510 Bitcoin ( as of writing this, that is ). While you buy the bed, other people around the world also buy things with Bitcoin. Step 2 : The Bitcoin mining nodes ( the computers ) are told about these transactions that are happening. Step 3 : Now, the Bitcoin miner must verify your transaction. You cannot take your bed home until the Bitcoin miner verifies your transaction.
But, wait. What does verifying a transaction mean, and how is it done?
Bitcoin miners run Bitcoin mining software that solves mathematical problems -- imagine a computer completing a really complicated puzzle/jigsaw! With each block of transactions, the problem/puzzle that they must solve is different. Lots of Bitcoin miners try to solve the problem at the same time, but the miner that solves it first is the one who is rewarded with the new Bitcoin. It's just like a race! Bitcoin miners keep data of all the past transactions of Bitcoin that have ever happened. Let's call this the ' database of old transactions '. So what is a Bitcoin mining transaction ? When you send Bitcoin, the Bitcoin miners check the ' database of old transactions ' before verifying it. This makes sure that you have not spent the same Bitcoin in any of the past transactions. They also check if you own enough Bitcoin . In the bed example, the transaction was 0.046510 Bitcoin. So, the Bitcoin miners will check if you have 0.046510 Bitcoin before they verify it. If you don't have 0.046510 Bitcoin, your transaction will not be verified, and you can't buy the bed.
Okay, back to buying your bed...
Step 4 : The first miner to solve the puzzle ( let's call this miner 'John' ), must tell the rest of the nodes that he has solved the puzzle. Other miners then check to see if John's solution to the puzzle is correct. Step 5: When 51% of the other miners agree that John has the correct solution, your 0.046510 Bitcoin is verified and sent.
Note: The minimum time for verifying a transaction is 10 minutes. But with the increasing number of bitcoin transactions, it can sometimes be 35-40 minutes or more.
One of the best things about what is Bitcoin mining is that the person who chooses to become a miner doesn't need to know how to solve the problems or be good at mathematics. They just need Bitcoin mining hardware ( a powerful computer ) and Bitcoin mining software .
As you can see, Bitcoin mining is not that difficult to understand. That said, the next big question on your mind is probably something similar to ' how do you mine Bitcoin? ' Well, let's get right into it.
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What is Bitcoin mining: How to Start Bitcoin mining?
Follow the steps below and you can become a Bitcoin miner yourself. If you don't want to, that's fine, too -- learning how to mine Bitcoin still helps you to gain a better understanding of the process of mining itself.
Get the Bitcoin mining Hardware.
The first step to start Bitcoin mining is to purchase the mining hardware . Selecting the right hardware is important for the success of mining. So, what is Bitcoin mining best hardware?
When Bitcoin mining started, back in 2009, you could mine using basic computers -- like the ones we buy from retail stores! That computer's CPU ( central processing unit ) had enough power to quickly solve the mathematical problem.
As Bitcoin started to become more popular, the miners also began using more powerful computers. They used faster graphic processing units ( GPU ) that could solve the problems faster, meaning they would win the race and be rewarded with the new Bitcoin!
Guess what happened when Bitcoin became even more popular? Miners got even faster . Instead of using CPUs and GPUs, they started using specialized Bitcoin mining hardware called ASICs ( Application Specific Integrated Circuits ). So, if you want to win the race and mine Bitcoin now, you'll need an ASIC.
ASICs that are created for mining are very powerful and fast . They do not do anything else other than mining.

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If you want to buy an ASIC, you should compare different ASICs using:
The price; The hash rate ( this number tells you the power of the ASIC -- the higher the hash rate, the quicker the ASIC is ); The electricity requirement ( the lower this number is, the less electricity it uses ).
You can check the following comparison of different ASICs that are popular among beginners.
ASIC model Hash rate (TH/s) Electricity (W) Price (USD) Antminer S9 14.0 1372 2,694 Avalonminer 821 11.0 1200 3,190 Antminer R4 8.4 845 1,000.
You can also checkout ASICs available on Amazon and eBay.
Join a Bitcoin mining Pool.
There are two ways that you can start Bitcoin mining. One is to start by yourself, which is called solo mining . Another way is to join a group of other Bitcoin miners - these are called mining pools .
So, what is Bitcoin mining pool? Think of Bitcoin mining pools as large Bitcoin farms . Lots of miners combine the power of their Bitcoin mining hardware. They also split the Bitcoin reward that they receive.
Imagine this: you're in a Bitcoin mining pool. Your computer power is 2% of the total power in the mining pool. If your mining pool wins the race to verify a block, you will get 2% of the new Bitcoin that the mining pool is rewarded with.
If you are a beginner, Bitcoin farming ( joining a mining pool ) is recommended . There are many different pools for you to choose from. Be careful and only choose well-known mining pools with a good reputation, though! Of course, they charge a fee, but it's normally quite small ( 1-3% ).
Some of the popular mining pools that I recommend for new miners are:
Slushpool : fees of 2%. Pool.BTC.com : fees of 2-3%. Kanopool : fees of 0.9% ( the cheapest of the three! ).
Download Bitcoin mining Software.
You could have the best mining hardware in the world, but without Bitcoin mining software , the hardware is useless .
Mining software is needed to access the Bitcoin network and the ' database of old transactions '. You also need it if you want to join a mining pool.
There are different types of Bitcoin mining software available. There are different ones for different operating systems -- like Mac OS, Windows and Linux . Some of the most popular software that supports mining with ASICs are:
CG miner ( Download here )
Available for Windows, Linux and Mac; Can be used with GPU/ASIC; Free to download!
BitMinter ( Download here )
Open a Bitcoin Wallet.
Once you have set up your Bitcoin mining hardware, downloaded your software, and joined a mining pool, you can start mining Bitcoins! But wait, you're going to be rewarded in Bitcoins, right? So, have you thought about where will you store these Bitcoins?
Unlike traditional money, Bitcoin cannot be stored in your bank account. Instead, you store them in a Bitcoin wallet! So, what is a Bitcoin wallet ?
You must be very careful when choosing a wallet or you could lose your Bitcoin. Many people have lost a lot of money because their Bitcoin wallets got hacked.
There are three types of Bitcoin wallets -- web wallets , software wallets and hardware wallets .
Web wallets and software wallets are always connected to the internet. To use/access a web wallet, you go to a website. To use/access a software wallet, you go to an app.
I do not recommend using a web wallet, as this is the least safe option. If you want to download a software wallet, I recommend Exodus.
Hardware wallets are more secure because they are not connected to the internet. They are actual physical devices that you can store your Bitcoin on; you connect your hardware wallet to your computer via USB.
Three of the most popular hardware wallets that I recommend are:
Price - $110 Great security features, including a USB connection that cannot get viruses (+) Can be linked to a Dropbox account (+) Can't store many cryptocurrencies other than Bitcoin (-)
Price $116 Easy to use (+) Can store 10+ different cryptocurrencies and ERC-20 tokens also (+)
Price $49 User-friendly (+) Great design (+) Very new, still has to prove itself (-)
What is Bitcoin mining: Is Mining Bitcoin Worth it for You?
The answer to this question is different from person to person. It might be right for you, but it might not be right for someone else.
What is a Bitcoin mining Reward?
The current number of Bitcoins that miners are rewarded with per block is 12.5 . That's right, 12.5 Bitcoins are given to the first miner to solve the problem ( verify the transaction ) of each block.
This number halves every 4 years, though. So, at some point in 2020, the reward will go down to 6.25 Bitcoin per block.
It's 12.5 Bitcoins per block right now?! So, how long does it take to mine a Bitcoin? Well, one block takes 10 minutes to mine. That means one Bitcoin is mined every 48 seconds .

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How Difficult is Bitcoin mining?
As more and more Bitcoin miners join the network, the difficulty level of the mining also increases. This simply means that the miners/mining pools with more powerful hardware will win. Also, it means that you would need to buy more expensive hardware .
How Much Does Bitcoin mining Cost?
Let's go through what is Bitcoin mining cost? Two of the main costs involved with Bitcoin mining are:
Hardware/computer costs : Even for beginners, the cost of Bitcoin mining hardware would be $600-$1000 and it is much more expensive if you want to buy the best hardware available. Electricity costs : Bitcoin mining uses a lot of electricity! The cost of electricity at your location can make a huge difference in the cost of Bitcoin mining. If the electricity in your area is too expensive, you might lose money by mining Bitcoins instead of making money.
If you join a mining pool, remember to also think about mining pool fees -- 1-3% .
How Much Profit Can You Make by Mining Bitcoin?
The easiest way to find out how much profit you can make is to use an online calculator! There are many different Bitcoin mining calculators on the internet. I recommend CryptoCompare's Mining Calculator .
You'll need to enter:
Hashing power -- the power of your hardware ( which you can find out once you have chosen which hardware you are going to buy ); Power consumption -- how much electricity your hardware uses ( again, you can find this out once you have chosen which hardware you are going to buy ); Cost per KWh ( $ ) -- how much your electricity costs ( if you don't use USD, you can use Google's Currency Converter ); Pool fee -- the fee for the mining pool you are joining.
Make sure you think about the cost of your Bitcoin mining hardware. You should include the cost of your hardware in your calculations so that you find out your real profit.
Bitcoin mining and how does Bitcoin mining work?
Bitcoin mining, on its own, is harmless and involves using a computer to solve difficult mathematical equations for a user to earn bitcoins. The user earns bitcoins by verifying transactions on the blockchain, which is a digital ledger, similar to a bank ledger, that tracks all transactions for a particular cryptocurrency. Every time a hash solution is made, the user who dissolves it earns bitcoins.
However, to solve math problems, the computer must run without stopping, which results in a large expenditure of CPU power. This requires a lot of electricity. Hackers have started hijacking other people's computers for use, their resources, and the electricity used for mining Bitcoin, which the hacker can take advantage of.
Bitcoin mining uses malware. Hackers have written malware with the ability to access your computer and use its resources to mine Bitcoin and other cryptocurrencies. For a hacker to earn cryptocurrencies, he must verify transactions on the blockchain. Cryptocurrencies depend on this to maintain solvency.
Each transaction generates a hashed identifier. In the Bitcoin blockchain, the hash is 256-bit crypto, which is basically a password. Every computer on the network tries to figure out a 256-bit password, and if something goes wrong with even one character, the hash will not be resolved. Other computers are validating the originality of the "winning" computing solutions. All this work is rewarded with cryptocurrencies, in this case, Bitcoin.
In some cryptocurrency ecosystems, users also gain voting rights in the governance structure of the system. This means they can vote on the decisions the development team makes about the future of the coin, its symbol, and how to use it.
Although it is not difficult for a computer to solve fragmentation, to do it fast enough that the problem is resolved before other users' computers solve it, the computer must be fast. But a fast computer is not enough. Since the CPU tries to generate a response as quickly as possible, it has to fire billions of electrical pulses in a short period of time. To prevent the computer from burning out, the powerful fans run constantly. This requires a lot of electricity. This is the reason why stalk your computer, to take it to a mining pool for hacked bitcoins.
installs Bitcoin mining malware on hundreds of computers to divide the work between them. All computers become Bitcoin miners to verify Bitcoin transactions. Bitcoin mining calculators have calculated electrical withdrawals for these operations, which are enough to make electricity bills soar, burn CPUs, and computer crashes completely.

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How to mine bitcoins.
Miners are paid for their work as auditors. They do a job of verifying the legality of Bitcoin transactions. This agreement aims to preserve the authenticity of Bitcoin users and was designed by Satoshi Nakamoto, the founder of Bitcoin. By verifying transactions, miners help prevent the "double spending problem."
Double spending is a scenario where the owner of a bitcoin illegally spends the same bitcoin twice. With physical currency, this is not a problem: once someone handles a $ 20 bill for a bottle of vodka, they no longer have it, so there is no risk of using the same $ 20 bill to buy lottery tickets neighbor. While there is the possibility of making fake money, it is not the same as spending the same dollar twice. However, with digital currency, as the Investopedia Dictionary explains, "there is a risk that the owner may make a copy of the digital code and send it to a dealer or other party while retaining the original."
Suppose you have a legitimate $ 20 bill and a fake $ 20 coin. If you were to try to spend both the real and the fake bill, the person who went to the trouble to look at the serial numbers on the bills would see that they are the same number and therefore one of them must be false. What a Bitcoin miner does is similar to this: they verify transactions to make sure that users have not illegally tried to spend the same bitcoin twice. This is not a perfect analogy.
Once miners verify 1 megabyte (megabyte) Bitcoin transactions, known as a "block," these miners are eligible to be rewarded with an amount of bitcoin. The 1MB limit was set by Satoshi Nakamoto, which is controversial as some miners believe that the block size should be increased to hold more data, which means that the Bitcoin network can process and verify transactions faster.
Please note that verifying a 1MB transaction makes a coin miner eligible to earn bitcoins - not everyone who verifies transactions will be paid.
In theory, 1MB of transactions could be as small as a single transaction (although this is not common at all) or several thousand. It depends on the amount of data that the transactions consume.
"After all this transaction verification work, I still can't get bitcoins for that?"
To earn Bitcoin, you must meet two conditions. One is a matter of effort. One is a matter of luck.
1) You should verify transactions with a value of about 1MB. This is the easy part.
2) You must be the first miner to arrive at the correct answer or the closest answer to a number problem. This process is also known as proof of work.
Bitcoin mining Profit Calculator.
Why Our Calculator is the Most Accurate.
There are many factors that affect your mining profitability. Two of the main factors that influence your profitability are:
The Bitcoin price and the total network hash rate.
The Bitcoin network hash rate is growing at a rate of 0.4527678% per day. This means if you buy 50 TH/s of mining hardware your total share of the network will go DOWN every day compared to the total network hash rate.
Our calculator assumes the 0.4527678% daily increase in network hash rate that has been the average daily increase over the past 6 months.
Without factoring in this growth, most Bitcoin mining calculators show results that appear MUCH, MUCH more profitable than reality.
Quick Tip.
Mining is not the fastest way to get bitcoins.
The Bitcoin Price.
Even though the network hash rate will cause your share of the network hash power to go down, the Bitcoin price can help make up some of these losses.
The Bitcoin price is rising at a slightly lesser 0.3403% per day over the past year. We suggest you enter a custom Bitcoin price into our calculator based on what you expect the average price to be over the next year.
The price has gone down for most of the past year, which is a factor that should be strongly considered in your calculations.
What our Calculator Assumes.
Since our calculator only projects one year out, we assume the block reward to be 6.25. We also use the current Bitcoin price in our calculations, but you can change the Bitcoin price to anything you'd like to get better data.
Factors That Affect Mining Profitability.
Mining can be an effective way to generate passive income. However, there are numerous factors that affect mining profitability, and often times they are out of your control.
Some seem to believe they will be able to quit their nine-to-five job after investing in a few Bitcoin miners - unfortunately, that is not necessarily the case.
How do you know if mining is right for you?
It is important to understand the constantly changing dynamics that play into mining profitability, especially before you invest your hard-earned money. Nevertheless, a proper passive income can be generated if you play your cards right. Let's explore the factors that you need to consider before you buy mining hardware:
Mining or buying bitcoins? You can't do either without a Bitcoin wallet.
Our guide on the best bitcoin wallets will help you pick one. Read it here!

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Initial Investment.
The initial investment in efficient mining hardware is probably one of the things keeping you from pulling the trigger, and for good reason. Mining hardware is expensive!
In actuality, the high cost of dedicated mining hardware ASICs (Application Specific Integrated Circuits) is largely to blame for the centralization of Bitcoin mining in China.
In case you were not aware, the vast majority of mining operations are in China, primarily because of cheap electricity (more on that later.) Since ASICs are expensive, many average consumers do not have the capital to invest.
Large mining corporations operate mining farms with thousands of ASICs. The average Joe can't even afford one ASIC, much less thousands of them.
Instead of mining being spread out across the world, the validation process is controlled by fewer people than first anticipated upon Bitcoin's inception.
ASICs' impact on Bitcoin aside, it is important to determine your ROI timeline before investing. Some hardware might not pay itself off at all. The additional factors below are largely responsible for determining your ROI period.
You can use the calculator above to determine your projected earnings based on the ASIC you're using, and your electricity cost.
Block Rewards and Transaction Fees.
Every time a block is validated, the person who contributed the necessary computational power is given a block reward in the form of new-minted BTC and transaction fees.
Bitcoin's block time is roughly 10 minutes. Every 10 minutes or so, a block is verified and a block reward is issued to the miner. When Bitcoin was first created, miners received 50 BTC for verifying a block. Every 210,000 blocks - roughly 4 years - the amount of BTC in the block reward halves.
50 BTC per block may seem high, but it is important to consider the price of Bitcoin at that time was much less than it is today. As the Bitcoin block reward continues to halve, the value of Bitcoin is predicted to increase. So far, that trend has remained true.
First, the amount of newly minted BTC (often referred to as coinbase, not to be confused with the Coinbase exchange) halved to 25 BTC, and the current coinbase reward is 12.5 BTC. Eventually, there will be a circulating supply of 21 million BTC and coinbase rewards will cease to exist.
If BTC is no longer minted, mining won't be profitable anymore, right?
Bitcoin transaction fees are issued to miners as an incentive to continue validating the network. By the time 21 million BTC has been minted, transaction volume on the network will have increased significantly and miners' profitability will remain roughly the same.
Of course, block rewards have a direct impact on your mining profitability, as does the value of BTC - since the value of BTC is volatile, block rewards will vary. Additionally, successfully confirming a block is the only way you will generate any revenue whatsoever by mining.
This leads us to our next point:
Block Difficulty.
If you were able to connect the dots, you probably realized that a block reward is worth a whole lot of money. Take a look:
12.5 BTC x current BTC value (approximately $7,200) = $90,500. NOTE: The market is currently bearish - block rewards are always subject to change.
If block rewards are worth so much, why isn't everyone buying ASICs?
Mining Bitcoin is not easy - that's why millions of dollars have been invested to research, develop, prototype and sell specialized mining hardware.
Even if you invest in a specialized mining ASIC which can cost thousands of dollars, your chances of successfully validating a block on your own are slim.
ASICs have caused Bitcoin's mining difficulty to skyrocket. Moreover, you're competing with everyone else on the network to validate a block. Those with more computational power are more likely to validate a block.
As stated previously, companies have set up large-scale mining operations in China with thousands of ASICs running in synchrony. They're more likely to confirm the block than you are on your own.
Nevertheless, there are ways for the little guy to turn a profit. If you want to start mining Bitcoin, consider joining a Bitcoin mining pool. You'll team up with other miners to increase your collective hashing power, thus increasing your chances of validating a block.
If a block is validated by your mining pool, the block reward will be distributed according to the amount of computational power you contributed. For example, if you were responsible for 5% of the hashing power, you'd receive 5% of the block reward, minus pool fees.
Mining pools may not seem appealing at first because you have to divvy up the reward, but they're actually a smart move, as they significantly increase your odds of validating a block. Otherwise, you may end up consuming loads of electricity without actually being rewarded for your work.
Speaking of electricity:
Electricity Cost.

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Electricity cost is probably the factor that has the most impact on mining profitability.
After all, Bitcoin's SHA-256 mining algorithm is classified as Proof-of-Work (PoW) because work must be done to validate the network. The 'work' is computational power - therefore electricity is required to validate the network.
Always look at a miner's hashrate/power consumption ratio. Ideally, you want an ASIC that has a high hashrate and low power consumption. Such an ASIC would be efficient and profitable because you'd hopefully validate a block which would be worth more than your electricity costs.
If you don't successfully validate a block, you'll end up spending money on electricity without anything to show for your investment. If you want to maximize your profitability, purchase the most efficient ASIC and mine where electricity is cheap.
In the United States, the average electricity cost is around $0.12 cents per kilowatt-hour. In other countries, electricity cost will vary. Asia's electricity is particularly cheap, which is why China is home to many mining operations.
Taxes.
Paying taxes is the one thing that many people forget about when they are trying to figure out if mining is porfitable or not.
Just like any business, miners must also pay taxes on the profits, which makes margins even tighter for the miner.
Make sure that when you are calculating your mining profitability, you also consider what the tax situation on mining is like in your country and use a crypto tax software to help you out.
Conclusion.
Bitcoin mining is very competitive. If you are looking to generate passive income by mining Bitcoin, it is possible, but you have to play your cards right.
In order to profitably mine, make sure that you: Mine with cheap electricity Buy the most efficient miner you can Join a mining pool Have patience.
Now you have the tools to make a more informed decision. Mining is competitive, yet rewarding. If you invest in the proper hardware and combine your hashing power with others', your odds of turning a profit will increase considerably.
Bitcoin mining Calculator.
Enter your Bitcoin mining hashrate, power consumption in watts, and costs.
Accurate Bitcoin mining calculator trusted by millions of cryptocurrency miners since May 2013 - developed by an OG Bitcoin miner looking to maximize on mining profits and calculate ROI for new ASIC miners.
Developed for miners by miners. Our Bitcoin mining calculator makes it simple and easy to quickly see Bitcoin mining profitability based on hashrate, power consumption, and costs. Default inputs are preloaded with the latest Bitcoin difficulty target and Bitcoin mining hashrate for the best Bitcoin miner.
Bitcoin Miners.
Bitcoin mining Reward Estimates.
Bitcoin mining profitability calculator results.
Bitcoin Profit Margin -->
Mining Rewards Stats -->
Bitcoin mining Investment -->
Estimated Mining Rewards -->
Bitcoin mining Profit -->
Bitcoin mining Reward Forecasts.
Time Frame BTC Reward Revenue USD* Power Cost (in USD) Pool Fees (in USD) Profit (in USD) Hourly 0.00003275 $0.61 $0.16 $0.00 $0.45 Daily 0.00078595 $14.73 $3.90 $0.00 $10.83 Weekly 0.00550162 $103.11 $27.30 $0.00 $75.81 Monthly 0.0236 $441.90 $117.00 $0.00 $324.90 Annually 0.2869 $5,376.44 $1,423.50 $0.00 $3,952.94.
* Bitcoin Price at $18,741.70 USD.
Bitcoin mining Calculator Inputs.
Bitcoin mining Difficulty Bitcoin Block Reward Bitcoin Price 17,596,801,059,571.00 6.25 BTC $18,741.70 (BTC to USD) Bitcoin mining Hashrate Bitcoin mining Hardware Watts Bitcoin mining Hardware Cost Electricity Costs 110.00 TH/s 3,250 Watts $2,407.00 $0.05 per kWh.
Bitcoin Blockchain Mining Summary.
Bitcoin Blockchain Stats -->
Bitcoin Block Reward -->
Bitcoin Hashrate -->
Bitcoin mining Difficulty -->
Bitcoin mining Rewards -->
How to use the Bitcoin mining calculator?
Every aspect of our Bitcoin mining calculator has been developed for miners by miners .
The latest version of the Bitcoin mining calculator makes it simple and easy to quickly calculate Bitcoin mining profits by adjusting the mining hashrate values or by selecting one of the Bitcoin mining hardware devices from the ASIC Bitcoin miners list.
The Bitcoin mining information is updated continually with the current block mining information. This information is used as the default inputs for the BTC mining calculator along with the default hashrate and wattage specs from the best ASIC Bitcoin miner.
With this information and our backend hashrate calculator, you can calculate your BTC mining profits - providing valuable and strategic profitability information allowing you as the miner to make better informed decisions about Bitcoin mining.
Along with the Bitcoin mining profitability, the list of top 5 ASIC Bitcoin miners is updated frequently. A Bitcoin miner is also referred to as a Bitcoin mining rig, or a Bitcoin mining hardware device, or a Bitcoin mining machine, but we simply call them miners, or more specifically, Bitcoin miners.
Each BTC mining calculator input has been preloaded with the best Bitcoin mining hardware hashrate and energy consumption in watts, average electricity costs as well as the current Bitcoin price, Bitcoin block reward, and Bitcoin difficulty.
Calculate your Bitcoin mining profitability and estimated mining rewards by starting with the Bitcoin mining hashrate calculator inputs above; mining hardware, mining costs, and mining reward.
How Bitcoin mining Works.
Bitcoin mining is the process of securing and validation Bitcoin transactions on the Bitcoin blockchain.
In order to secure and validation transactions - Bitcoin miners are constantly trying to solve the next Bitcoin block.
This process requires an enormous amount of computing power, which is represented by the Bitcoin hashrate.
The Bitcoin hashrate is number of possible solutions (hashes) being generated per second. As of January 2020, the Bitcoin hashrate peaked at 131 EH/s.
Bitcoin mining also generates new Bitcoin.
When a Bitcoin miner finds the correct hash to solve the next Bitcoin block, the miner is rewarded with Bitcoin.
Currently, 6.25 Bitcoin are created when a block is solved.
To start mining Bitcoin, you'll need cheap electricity (a lot of it), an internet connection, and at least one Bitcoin mining hardware device - an ASIC Bitcoin miner.
In the very early days (2009-2011) you could mine Bitcoin with a CPU, then mining software was created to utilize the computing power of a GPU, then came FPGAs, and in 2013 the first ASIC Bitcoin mining devices became available.

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Now, all Bitcoin mining is done using an ASIC Bitcoin miner as it is no longer profitable to mine with a CPU, GPU or FPGA.
That being said, most ASIC miners require 220 volts or higher and at least 20 AMPs. You can check the Bitcoin miner specs to see the power requirements.
At this point you should determine your available power capacity in wattage at the location where you'll be mining.
If you have a 200 AMPs electrical service with 220 volts, then the total power capacity is 200 AMPs * 220 volts = 44,000 watts.
But you never want to use more than 75% of that capacity, otherwise you'll trip the breakers.
So, 44,000 watts becomes 33,000 watts of usable power capacity.
Now that you know how much power capacity you have (more is better), you can determine how many miners you can run. In this case, it would be about 11 Bitmain Antminer S17+ at 2,920 watts per device.
Once you have the Bitcoin mining hardware in hand, the last step is to configure each miner.
Typically, the configuration consists of setting the Bitcoin mining pool, user name, and password.
Most Bitcoin mining device manufacturers provide a guide on how to configure the Bitcoin mining hardware.
Bitcoin mining Pools.
Given the Bitcoin hashrate, it is statically impossible to generate enough hashes to solve a Bitcoin block mining solo (by yourself).
To increase the chances of solving a Bitcoin block, you can join a pool of other miners all working together to solve a block.
Once a block is solved the Bitcoin mining reward is split between the pool participants.
And in turn the Bitcoin mining pool charges a small fee, typically 1% to 4%.
Here is a list of popular Bitcoin mining pools.
F2Pool Poolin SlushPool AntPool BTC.com ViaBTC.
Is Bitcoin mining still profitable?
Yes, mining Bitcoin is still profitable - based on the mining hardware hashrate of 110.00 TH/s, electricity costs, and pool / maintenance fees provided.
While, mining Bitcoin is still profitable as of right now.
Mining profitability can change very quickly.
The blockchain is constantly growing and the Bitcoin difficulty increases and decreases over time based on the total computing power currently mining blocks and generating hashes.
That said, we recommend checking your mining profitability frequently.
The Bitcoin mining profitability results and mining rewards were calculated using the best BTC mining calculator with the following inputs.
A BTC mining difficulty of 17,596,801,059,571.00, a BTC mining hashrate of 110.00 TH/s consuming 3,250 watts of power at $0.05 per kWh, and a block reward of 6.25 BTC at $18,741.70 (BTC to USD).
How many Bitcoin can you mine a day?
Based the mining hardware inputs provided, 0.00078595 Bitcoin can be mined per day with a Bitcoin mining hashrate of 110.00 TH/s, a block reward of 6.25 BTC, and a Bitcoin difficulty of 17,596,801,059,571.00.
After deducting mining power costs and mining fees, the final daily Bitcoin mining profit is $10.83 Bitcoin to USD .
How long does it take to mine 1 Bitcoin?
As of Saturday, November 21, 2020, it would take 1,272.4 days to mine 1 Bitcoin at the current Bitcoin difficulty level along with the mining hashrate and block reward; a Bitcoin mining hashrate of 110.00 TH/s consuming 3,250.00 watts of power at $0.05 per kWh, and a block reward of 6.25 BTC.
It is important to point out that the number of days calculated does not account for difficulty increases and decrease as well as block reward increases and decrease (halvening).
Profit Details.
No records found.
Disclosure: The Profit Details are the result of a chosen budget of $ 10,000.00 to purchase Bitcoin mining servers that are hashing 76 TH/s at a price of $ 25 per terahash. This assumes a total hashrate of 400.00 . The Profit Details also take in consideration the current network hash rate of 1.7596801059571E13 and current BTC/USD exchange rate of 1 BTC = $ 18,785.50 . These figures vary based on the total network hash rate and on the BTC to USD conversion rate. Block reward is fixed at 6.25 BTC. The Profit Details do not take into account any future changes in block rewards, hashrate and difficulty rate. All inputs in this calculator vary over time. The profit details is based on current values only and should be used as a guide only.
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