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.
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