by Team AllYourVideogames | Aug 12, 2022 | Shopping |
Bitcoin's popularity is increasing more and more. Many people are investing in this type of cryptocurrency. An example of this action happened in February 2022, when Elon Musk bought $1,5 billion worth of Bitcoins.
That way you know how to mine bitcoin?
In this post, you will see how to mine Bitcoin, what is needed to do it, some guidelines, as well as being able to see other additional information.
But before that, it is important to understand what Bitcoin is.
What is Bitcoin?
Simply put, Bitcoin can be defined as a kind of money, such as the real, pound, peso, euro, dollar, among others. However, there are big differences between cryptocurrencies for capitalization of traditional money.
Bitcoin is used exclusively in the digital medium and is not manufactured by any world government.
Thus, the value of Bitcoin is defined by people freely in the market. For online businesses, it is the ideal way to make payments, as it is done quickly, reasonably priced and there is some security.
It is worth mentioning that Bitcoin has several properties and ways of use. For example: people can have the autonomy to make online payments, have lower fees compared to traditional banking, security, privacy, control, clarity and transparency in negotiations.
Another important point is that no Bitcoin can be seized. People can send the currency to whomever they want, anywhere in the world. In addition, Bitcoin can still be used as an investment for those looking to expand wealth in order to improve earnings.
Now, about the security of this currency, it is necessary to be aware of some situations. Bitcoin is encrypted and this digital key formed by each of the coins is responsible for keeping the owner safe. And since it's virtual, people will never be physically robbed.
Due to the fact that the Bitcoin market does not have any regulation, the owners of this currency may end up exposing themselves in some cases of vulnerability.
For example: hacker attacks, falling into pyramid schemes and errors occurring on the servers of the networks to which your computers are connected.
Therefore, as there is no person, company or body that monitors the average daily volume of cryptocurrency transactions, there is nothing that protects people from possible scams, fraud or theft. So, if for some reason individuals lose the coins, that's it, there's no going back.
This is because the person in charge of a Bitcoin company can be anyone, from a big businessman, who has credibility to a teenager who understands this subject.
Due to this, the Central Bank warns about several adverse situations that the owners of these coins may face, including even the lack of guarantee to exchange the cryptocurrency for physical money.
Understanding how Bitcoin works, it is possible to mine these coins at home. But know that if you enter this market, you will not have a simple mission.
Here is some information you need to pay attention to before knowing how to mine Bitcoin.
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What you need to understand before mining Bitcoin
The task of mining Bitcoins is an action that makes new Bitcoins appear and come into circulation in the market. Plus, it’s what makes your blockchain secure. But what is this? It is important to understand this term to know how to mine Bitcoin.
Blockchain can be described as a chain of blocks that are part of a collective system of record. That is, user information is not stored in one place.
Instead of being stored on just a single PC, all blockchain data is distributed across multiple computers linked to it with a chain of information in chronological order.
This means that the blockchain stores information such as: the amount of Bitcoins (or other types of cryptocurrencies) traded, who sent it, who acquired it, when the deal was carried out and where it was registered. With this data, it is possible to have more transparency between transactions, which increases the credibility of the blockchain.
In blockchain, miners seek to check the validity of the data in a new block, verifying that the transactions with the cryptocurrency happened in the correct way, which reduces the risk of people falling for scams.
It is also important to note that, like physical money, cryptocurrencies need to be kept so that the owners do not lose or even be hacked.
In this way, digital currencies have a wallet, known as Wallets, for example, Coinbase. Thus, your digital wallet is used as a key store and through it you can manage your Bitcoin addresses.
About the keys, they can be public or corresponding private. The key is nothing more than a sequence of numbers and serves as a record for a bank account.
That way, by presenting this public key you can trade, make transfers to Wallet, receive cryptos and make payments.
This means that all addresses are public. So, the transactions that happened through him too. However, the private key is secret and formed to send your transactions confidential. Therefore, without the private key, people do not have access to their bitcoins placed in the address.
There are several types of digital currency mining wallets, each offering the advantages available in their services to customers. It is up to the investor to research well and understand which wallet best meets the desired demands.
So, now see how to mine Bitcoin.
How to mine Bitcoin?
So, what does it take to mine Bitcoin?
The action to obtain this type of cryptocurrency constitutes a competition for who solves a numerical sequence as quickly as possible.
In this way, machines that have more processing power are more effective at making more resolution attempts in short periods of time.
Thus, the chances of a person being the first miner to discover the answer to the problem is measured by the mining strength in relation to the total of the network on which they are located.
The chances of a miner being the first person to find the solution to the problem is measured by the mining strength in relation to the network total.
So, to be able to compete well against other people, it is necessary to have a large hashrate (mining rate, in direct translation), validated in terahashes per second (TH/s).
It is important to keep in mind that the higher the mining rate of the network, the greater the security of the blockchain, because more people are mining to keep this environment as invulnerable as possible.
However, when that happens, the bigger the mining progress dispute will be.
One noteworthy development is that in June 2022, the mining fee system dropped dramatically because of the ban on cryptocurrency mining in China, which was the world's largest mining center for digital currencies.
To give you an idea, this country was made up of more than half of the world's production of bitcoins. In this way, mining became less competitive and more profitable.
But you may wonder: is it possible to mine Bitcoin at home? The answer to this question is: yes. But you have to take into account many situations.
In addition to needing powerful computers with boards and very powerful hardware, another factor that is essential to take into account is the energy used, since the machines need to be on 24 hours a day.
Thus, as the electricity bill in our country is expensive, what is received from mining may not cover the expenses with the electricity used.
In addition to the needs that have already been shown to mine cryptocurrencies, it is still necessary to have a cold place to place the PCs to avoid overheating, that is, the climate of the country needs to be cold or to use cooling equipment, which uses up even more electricity. .
For good mining performance, you will need to take the hardware to maximum processing power for long periods, which is not the most suitable when it comes to notebooks.
These devices need to have a compatible clock according to the thermal solution, and the source usually provides a smaller amount of energy compared to the desktop.
However, there are some ways to circumvent these obstacles. People who want to invest in this type of market can join a “mining pool”. This means that there is the possibility of working together with other miners and sharing the profit made.
The mining pool works with a group of miners who put together machine processing tools to make the mining process more accessible.
It is worth clarifying that Bitcoin is one of the most complicated cryptocurrencies to mine at home. But there are other digital currencies that have somewhat less competition, such as Altcoin, for example.
But regardless of the cryptocurrency you go after, you need to study the scenario and be careful when mining with your personal computer.
Although you can mine cryptocurrency from home using your PC, you need to be aware that this is not an easy task.
It is necessary to weigh all the points mentioned in this post to know whether or not it is worth starting this activity.
Learn More: What is the best site to buy and sell Bitcoin?