Mining crypto is not like mining for precious metals. You do not need a shovel or anything like that, but you will need a powerful mining rig and lots of electricity. With the recent boom of crypto mining, it is not as profitable as it once was. However, there is still profits to be made if you can do it right. Bitcoin for example is the coin of choice for crypto mining.
What Is Bitcoin Mining?
Bitcoin mining refers to the process where a global network of computers running the Bitcoin code work to ensure that transactions are legitimate and added correctly to the cryptocurrency’s blockchain.
High-powered computers compete to be the first to validate a series of transactions called a block, and add the block to the blockchain. Miners are paid transaction fees and 6.25 BTC per block for their efforts
How Does Bitcoin Mining Work?
Verifying the coin’s transactions and recording them involves solving complex algorithms. By solving these algorithms, users are rewarded with a coin. Bitcoin does this with their proof of work consensus mechanism. This mechanism adds a coin block every 10 minutes and if you have a powerful, enough rig you can win the block.
The current generation of these dedicated Bitcoin mining rigs generate possible answers to the Bitcoin block equations at around 100 trillion hashes per second. A Bitcoin Hash is a mining measurement of the amount of computing power used on the network to process transactions.
How to Mine Bitcoin
Since Bitcoin was released in 2009, the energy required to produce the cryptocurrency has increased as the network raises the mining difficulty to keep the flow of new blocks of transactions steady even as more miners get involved.
Bitcoin mining is usually a large-scale commercial affair done by companies using data centers with purpose-built servers. Mining farms can have many mining computers held in warehouses. Because of this, farms are often located near energy sources like dams, oil and gas wells, solar farms or geothermal sources. Large warehouses have been dedicated to mining cryptocurrency
How to Mine Bitcoin at Home
If you are thinking of mining at home, there are some disadvantages. The average person cannot afford a powerful rig but the main problem would be electricity. These rigs soak up a lot of juice and with that comes a high bill at the end of the month. However, that has not to say mining Bitcoin at home is impossible.
How Long Does it Take to Mine One Bitcoin?
Because a new block is generated roughly every 10 minutes, a new Bitcoin is minted about every 96 seconds. However, that single Bitcoin is most likely shared between many miners worldwide. It can take a single miner a very long time to mine one Bitcoin.