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BITCOIN MINING EXPLAINED and WHERE TO MINE COINS

BITCOIN MINING EXPLAINED and WHERE TO MINE COINS

Bitcoin mining: is the process through which Satoshis (units of bitcoins) are awarded to computers for solving complex problems of  verifying bitcoin transactions around the world. Just like banks and other Payment processor who earn a reward for verifying and processing money transactions. So bitcoin miners simply earn bitcoins for using their resources ( computing power, electricity and internet connection) to verify and confirm bitcoin transactions in the network.

The idea is synonymous for all cryptocurrencies. It’s through mining that new coins are added into circulation thus balancing their flow.

So how does bitcoin mining really work?

To process bitcoin transactions securely mining rigs try to find the unit block belonging to a hash function by solving a very sophisticated cryptographic encryption function called a hash which is less than or equal to the required hash. This is important as it helps to update and maintain the blockchain ledger.

The ease of solving this problem is referred to as the ‘mining difficulty’. This difficulty increases as bitcoin gains value and the rewards halves every four years. As of August 2020 the mining difficulty was 1/16trillion.  Currently the rewards of mining 1 block is 6.25BTC which is shared to all miners involved. The next halving will be in 2024 when the rewards will reduce to 3.125BTC.

Bitcoin Mining Pools

Mining pools are simply groups of miners who coordinate and agree to combine their hashing power to mine a block and then share the rewards of mining a single block according to their ratios of their contribution.

Over 75% of the pools are located in China, 10% in Malta, 3 % in the United States, 3% in The Czech Republic, 0.5% in Japan and the remaining 7.5% is scattered across different regions around the world.

The 10 major mining pools are: F2pool, Ant pool, ViaBTC,  Poolin, Binnacle Pool, BTC.com, Huobi.pool, Foundry USA, Slush and SBI Crypto.

Is Bitcoin Mining Profitable?

Bitcoin mining requires an astronomic amount of computation power to be profitable. Therefore if you try it on your ordinary computer you won’t see the rewards. It requires some specialized hardware components advanced Graphic Card for computers such as NVIDIA RTX or Application Specific Integrated Circuits (ASCI)  such as Ant Miner s19  pro to facilitate mining.

Why Cloud Mining is the alternative for mining enthusiasts?

The easiest way to experience the benefit of bitcoin or crypto mining is through cloud mining. It provides a way of mining cryptocurrencies by leasing or purchasing hash power from third party cloud providers such as  Bitdeer. Bitdeer offers some affordable mining hash rates for users around the world. The rewards are payable at the end of the contract.

 

Other ways of mining coins on your computer at a low cost.

  1. Crypto tab browser: Perhaps you browse every day on your favorite browser. But do you get any rewards on using that browser. Crypto tab browser available in both Android and Desktop ensures you earn some few coins every time you browse. It’s not enough but at least  it’s a token of appreciation for browsing.

 

  1. Unmineable: Mines a variety of coins on your PC ( Preferable Core i7 or a dedicated Graphic Card0. So far up to 422.28BTC worth of crypto has been on this platform. It’s easy to configure. Click the link for further details.

 

  1. Ecoin: Most people underestimate new cryptocurrencies but what they don’t know is that some of them have a great potential for growth. Ecoin is one of them. Currently it has a negligible value and listed for trading on some few exchanges.

I hope you found this article informative.

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