How to mine Bitcoin?
How to mine bitcoin. If this question has been in your head for a while because you’ve read or heard about this business, then you’ve come to the right place!
The mining Bitcoin is precisely the activity by which this cryptocurrency is extracted or specifically undermined. That is to say, created. And whoever carries it out is defined as a miner. Miner indeed.
Now you are thinking of the miners of yore, those who worked underground, for hours in the dark and unhealthy environments., Mining takes place comfortably from home and in front of a PC, In the case of bitcoin.
But don’t think it’s all so simple and profitable. Bitcoin mining also has drawbacks. Not surprisingly, mining pools were born. So let’s see what bitcoin mining is, how it works and if it is convenient.
What is bitcoin mining?
Before seeing how to mine bitcoin and how it works, let’s see what it is. Assuming you know what bitcoins are and how they work.
In practice, it consists of making your processor and video card perform a task using some programs. Think of it as an exchange: you provide a technology, namely the computing power of your PC, and the system returns you via bitcoin.
Moreover, the original idea of Satoshi Nakamoto was precisely that of creating a democratic and decentralized system where economic power was in the hands of end-users and not governments and central banks.
A romantic idea, of course, but the problem is that over time, and with the increase in miners, the three phenomena have occurred :
- to mine a bitcoin it takes more and more time, precisely because there are more people committed to doing it (a bit like when, in the gold rush, the interested parties increased)
- more and more computing power is required from a terminal
- the closer you get to the maximum number of bitcoins that can be mined, 21 million, the more difficult Mining becomes
What did all this entail? Problems in terms of costs, therefore increasing disadvantages:
- it would help if you had a high consumption of electric current to make your car always travel at maximum
- Devices are increasingly imposing in terms of strength. This is also causing difficulties for manufacturing companies, with a shortage of video cards offer
How to mine bitcoin
How to mine bitcoin? The advice is to directly look for companies specialized in providing PCs already assembled and set up for Mining unless you are a computer expert and want to buy individual parts and build your war machine, of course.
Of course, if you are looking for specialized PCs, you will run into very high costs. But, at the very least, you are sure that you are not making empty purchases or having to change your terminal after a few months due to too much effort.
Best bitcoin mining hardware
The best bitcoin mining hardware is given by the so-called ASIC computers, born precisely to mine the queen of cryptocurrencies, made to avoid the waste of energy you would have with a traditional computer. Moreover, bitcoins are already criticized for the pollution they cause to the environment.
Alternative to ASICs is the solutions in external format and particular USB.
This device can attach directly to your computer, just like you do with a USB port. In this way, you will be able to mine bitcoins without consuming too much electricity, and the costs are much lower: around 50 euros.
Is it worthwhile to mine bitcoins today?
We would be dishonest to tell you that bitcoin mining is worthwhile. As mentioned, it has become increasingly difficult to mine the first cryptocurrency as we know it today.
Precisely because, on the one hand, the interested users have increased. On the other hand, the closer we get to the exhaustion of available bitcoins, the more difficult it becomes to undermine them.
Sure, you can always try, but remember the above: you need robust equipment and very high electricity consumption.
Furthermore, there is another risk factor: the volatility of cryptocurrencies. You may buy your beautiful ASIC PC, maybe you spend days Mining with a lot of electricity, and at some point, the bitcoin price collapses from one day to the next.
After all, it takes very little to make this happen. Think of Elon Musk’s tweets or hacker attacks.
You risk a high investment and then find yourself much less than you thought.
Hardware: miners for sale online
Let’s see what is the best hardware for bitcoin mining.
Xiaomi Bitcoin Miner L3 + 504mh / s Scrypt 800w Asic Miner Bitcoin Machine Bitcoin
some product features are:
- A powerful product that won’t overheat, thanks to a high-quality aluminum case, custom heatsinks, and two computers controlled fans to keep it cool
- Small size design
- Mighty BM1485 ASIC chip
DBG BTC Miner L3 + 504Mh / S Scrypt 800W Asic Miner Mining Bitcoin
Here are the main features:
Power Consumption: 1541W
Hashrate: T15 23t
Bitcoin USB-Stick Miner bit shopper GekkoScience NewPac 22 bis 45 GH / s
Alternatively, you can opt for a USB. some product features are :
HashSet performance: up to 45 GH / s
Clock rate and voltage adjustable by software
Power consumption: 2-10W
Custom CGMiner software available
Mining pool: what it is
By Mining Pool, we mean Mining that is done “in community. ” In practice, you become part of a network of people who participate in the mining activity from various parts of the world.
Among the best known and used, we found SlushPool, and it seems to work quite well.
For the mining bitcoin pool, you need to download a very similar client and are often compatible with any operating system.
In reality, the Mining pool is also created by companies that invest massive capital and are based in some Eastern European or Asian countries, where the cost of electricity is much lower.
Unfortunately, even this phenomenon has ended up making cryptocurrency mining increasingly complicated for the single user who wants to try it from home. Oligarchies have been created.
Legality and environmental impact of Mining
As to whether bitcoin mining is legal, it depends on state to state. Some countries have banned this activity since 2017, such as Russia and China. They are also aiming to control cryptocurrencies from above.
Then there are countries like South Korea, Hong Kong, or Japan where it is legal, and in fact, they are the most important cryptocurrency markets.
Others, including ours, still have many legislative flaws in this regard and have been saying for some time that they want to regulate this activity definitively. Still, there is nothing concrete.
In general, bitcoin mining in Italy is not an illegal activity. But always stay up to date on the regulations in force, decided by the European Union.
Regarding the environmental impact, this activity, as mentioned, consumes a large amount of electricity. Cryptocurrencies heavily accuse of causing pollution. So if ecological ethics are essential to you, it is an activity that you should avoid.
Although some recent studies have shown that traditional banking activities, oil or gold, pollute even more.
Bitcoin mining is the activity by which a user makes his PC and electricity available to mine cryptocurrencies and reward them.
The more miners increases and the more bitcoins to mine have shrunk, the more inconvenient it has become to carry out this activity. At least you don’t join mining pools.
Also Read: How to dice an onion.