Investigating the concept of Mining Bitcoin

What is crypto currency?

Crypto currency types and the most famous one.

What is crypto currency mining?

Process behind the bitcoin mining.

Concept of ‘nonce’.

Can anyone do bitcoin mining with standard PC’s?

Equipment’s required for mining bitcoin.

Best strategy for mining bitcoins.

 

  1. What is crypto currency?

It is a digital form of currency designed for exchange of money securely and anonymously by fulfilling specific conditions. These conditions are being created on the basis of the cryptographically created hashes , so complex that makes it almost impossible to crack. These can be transferred across 7 oceans without any transportation costs and saving time concurrently. This modernization in the way of sharing money made crypto currency quite famous in this technical world converting legible information into an almost uncrackable code, to help track purchases and transfers.

For simple ,you could take an example of a puzzle game that is being played by many players but the first one to solve the puzzle wins and gets the reward

  1. Crypto currency types and the most famous one:

The most Famous and Widely used cryptocurrencies in the world recently are :

  • Bitcoin
  • Bitcoin Cash
  • Chia
  • Decred
  • Ethereum
  • DFINITY
  • Cosmos
  • EOS
  • Filecoin
  • RChain
  • Tezos
  • Algorand
  • Zcash
  • Monero
  • Grin and MimbleWimble
  • Mobilecoin
  • Stablecoins
  • MakerDAO

There are almost 1370+ cryptocurrencies available till today. After bitcoin some other cryptocurrencies are Ethereum , Bitcoin Cash ,Chia etc.

Bitcoin got most famous and ravishing in between all these cryptocurrencies. It is most widely used for transfer of money and making the purchase of shares in the digital market.

  1. What is Cryptocurrency mining?

Mining cryptocurrency is like mining any precious metal at a mountain. When you start digging into that mountain it’s relatively easy but over time you will need more advanced equipment and machines as the process gets dangerous and difficult.

Here mining refers to processing cryptocurrency transactions. Miners get rewarded whenever they process a transaction and solve for a new block.

The mining process involves solving mathematical problems. These problems get difficult with time. As the difficulty increases the miner would need fast and reliable technology.

  1. Process behind the bitcoin mining.

The procedure of mining bitcoin is when a computer processes a block of information that contains purchases that have actually occurred over the bitcoin network. During this process the information is converted into something called a “hash” which is kept together with the block at the actual end of the blockchain.

Every block’s going along with hash is created using details from the previous block as well as includes the last hash within itself so every hash on the blockchain has the hash of the block before it, creating a system that can not be tampered with. This makes the transaction ultra secure with each sharing.

  1. Concept of ‘nonce’.

Throughout the process of generating a hash, the mining computer system need to stick to particular rules, every hash should have specific attributes and also be based upon an established design template, after that, random data is inserted into the hash, this random data is called a nonce and within each other the nonce and also the details in the hash need to make good sense as well as fit the required style

If it does not pass, a whole new hash must be created with a new nonce till one is found that fits the format and also passes all the policies. It is quite strict in it’s own sense and necessitate accuracy.

  1. Can anyone do bitcoin mining with standard PC’s?

Well the answer is , you can’t ‘effectively’ mine bitcoin by your PC meeting standard conditions. Mining bitcoin offers you money but it also demands some really costly equipment’s( Tit for tat XD).

The main reason behind not anyone can do bitcoin mining with standard PC’s? effectively mining by your standard PC is that , your PC( if standard) works on the concept of multithreading, i.e. it runs many processes at the same time which makes the mining deliberately slow.

  1. Equipment’s required for mining the bitcoin.

The advanced as well as effective the computer, the much more hashes it could do, the faster it could produce a working hash as well as obtain compensated fulfilling all the required conditions. The existing hash price of the whole bitcoin network is around 4 Petahashes per second, or 4 million trillion hashes each second, reasonably large enough!

At first, when bitcoin was initially mined, maybe extracted using nearly any old computer system, then some individuals discovered that they can utilize their graphics cards as opposed to their computer’s CPU to process hashes and also it was more profitable to mine making use of a graphics card which might generate hashes much quicker compared to a CPU.

The concept developed and ASIC(Application-Specific Integrated Circuit) computers were being made as a mean to extract bitcoin. An ASIC computer is a single instruction computer as well as unlike a regular computer system that needs to do a wide variety of different functions at the very same time, ASIC computers do only single task or we can say process (well in this case : mining bitcoin).

As these are specifically made for mining , they obviously cost more. The starting price of quite simple ASIC computer starts from a range of $3000 and to mine effectively, you need multiple miners to find adequate hash fast enough.

As costly it is, it consumes electricity bills rapidly because it run 24/7 365 and the design makes it quite noisy and exerts tremendous heat. So you have to have a cooling system that could ravish that heat. Also if you are living in a commercial area, god , that could cost you really exorbitant -_- .

  1. Best strategy for mining bitcoins.

The price to investing into Bitclub is a $99 + signing up and after signing up the minimum investment is $500 for the smallest share. Bigger shares are more likely offered.
Each share pays out over 1000 days and all the bitcoin that is extracted by your share throughout 1000 days is yours with 1 exemption.

Bitclubnetwork(a preferred mining pool today) has a regulation that at least 50% of a share is reinvested back right into ,you can say ,brand-new mini shares. You can adjust this to reinvest 100% of your share or anywhere in between but 50% is the minimum on the $500 share. Various other valued shares have somewhat various reinvestment regulations.

This gives you the capacity to worsen your investment , an extremely brilliant technique by many is to set the reinvestment degree to 90% as well as just draw 10% – that 10% will certainly grow and also expand and also expand over time while the 90% reinvestment will additionally compound your shares right into larger shares. 

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