The ABC’s of Bitcoin Mining

There are a number of ways that interested individuals can get their hands on some bitcoins. For example, they can exchange some of their money for a sum of bitcoin. Likewise, they can sell either products or services for bitcoin. However, if interested individuals want to get their hands on some new bitcoins that have never been owned by anyone else, they are going to have to get involved in bitcoin mining.

Essentially, bitcoin mining serves a couple of purposes. First, it enables more bitcoins to come into existence without the need for a central authority to issue them, meaning that bitcoin mining can be seen as bitcoin minting. Second, it serves as verification for bitcoin transactions, thus preventing the problem of double-spending that can happen with digital currencies. With that said, it is important to note that bitcoin mining comes with a lot of complexities, meaning that interested individuals might want to pay attention to them.

Here are some things that interested individuals will want to keep in mind:

There Is an Element of Luck in Bitcoin Mining

Perhaps unsurprisingly, there is an element of luck in bitcoin mining. In short, someone who verifies 1 MB’s worth of bitcoin transactions becomes eligible to earn bitcoin. However, they are not guaranteed to get paid in bitcoins because they need to be the first person to come up with the right 64-digit hexadecimal number called a hash as well.

It Is a Numbers Game

As such, bitcoin mining is a numbers game. Theoretically, someone can get lucky again and again in the same way that someone can get lucky while playing a slot machine again and again. However, if they are serious about bitcoin mining, they are going to need a lot of computing power so that they can brute force the issue.

Bitcoin Mining Can Get Pretty Expensive

Due to this, bitcoin mining can get pretty expensive. In part, this is because people who are serious about bitcoin mining often spend money to either buy computers meant for bitcoin mining or computer parts that can be cobbled together into computers meant for bitcoin mining. However, it should also be noted that keeping those computers running on a constant basis means eating up a huge amount of electricity, so much so that interested individuals will want to make use of the very useful bitcoin mining calculators that can be found out there to check their numbers for what they can expect to make as well as what they can expect to spend in order to make it.

Most People Do Their Bitcoin Mining in Groups

Under said circumstances, it is no wonder that most people choose to do their bitcoin mining in group called bitcoin mining pools rather than going at it on their lonesome. After all, when people have nothing but their own computing power, their chances of getting the next unit of bitcoin mined are very, very small. By combining their computing power with that of other like-minded individuals, they can increase the chances of their bitcoin mining pool getting the next unit by huge margins. Granted, they are going to have to split the proceeds with their fellow participants, but that should nonetheless make for a much steadier stream of bitcoins than what they can hope to accomplish on their own.

The Rate Is Falling on a Gradual Basis

In 2009, a single mined unit would produce 50 BTC. Said number was halved to 25 BTC in 2012 and then halved a second time to 12.5 BTC in 2016. Moreover, the number will be halved a third time to 6.25 BTC in 2020 and so on and so forth. In other words, the rate at which bitcoins can be mined is falling on a gradual basis, which is something that interested individuals will want to factor into their calculations when figuring out whether bitcoin mining will be worthwhile for them or not.

Final Thoughts

In the meantime, there is still plenty of interest in bitcoin mining. As such, interested individuals will want to look into the issue at length to make sure that they get the best understanding possible before proceeding further. Fortunately, there are a lot of resources meant for them, meaning that they should have no problems finding helpful sources of information

Add Comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.

David Jukes
10 Things You Didn’t know about Univar CEO David C. Jukes
Tracy Morgan
How Tracy Morgan Achieved a Net Worth of $50 Million
Penn state old main summer
The 20 Most Notable Penn State Alumni in Business
20 Things You Didn’t Know About Hillflint
Le Meridien Al Aqah
What Starwood Preferred Guest Is and Why Should You Have It
Cyber World
How to Keep Your Money Safe in the Cyber World
Credit cards in wallet in back pocket
7 Elements of a Good Credit Application
budgeting in the office
Three Ways Budgeting Our Money Actually Makes Us Richer
Software Engineer
How to Become a Software Engineer and the Salary You Can Expect
Prioritizing Security to Future-Proof Enterprise Collaboration
Does Artificial Intelligence Have Ethics?
Cloud Attack
Top 8 Cyber Security Trends in 2019 You Should Look out For
Luxury Carbondale: Spend a Weekend at the Marble Distillery & The Distillery Inn
Lincoln Memorial
20 Awesome Free Things to do in Washington DC
Philly skyline
20 Awesome Free Things to Do in Philadelphia
20 Awesome Free Things to Do in Miami
1997 Dodge Durango
The 10 Best Dodge SUV Models of All Time
2019 Acura MDX
The 10 Best Acura SUV Models Of all-Time
The 20 Best Mercedes SUV Models of All Time
2018 Volvo XC60
10 The Best Volvo SUVs of All-Time
The 20 Best Tudor Watches of All-Time
Timex MK1 Steel Watch With White Dial
The 10 Best Timex Watches of 2019
Fossil Sport
The 10 Best Fossil Watches of 2019
Hamilton Watches feature
The 10 Best Hamilton Watches of 2019