Bitcoin mining can be defined as a way to get Bitcoins. Regular currencies are mostly directed and controlled by government, so a government decides about printing and distribution of any particular money. As Bitcoins are not controlled or owned by any single entity or government so issuance and distribution of Bitcoin is done through special combination of sophisticated hardware and software. Miners use special software to solve complex mathematical problems and are rewarded with certain number of Bitcoins in exchange. Thus mining is an important and integral part of Bitcoin which keeps the Bitcoin network safe, stable and reliable.
Also Read: What is Bitcoin and How does it works?
Why people do Bitcoin Mining?
People do Bitcoin mining for number of reasons. Firstly, they want to get profit through sale and transfer of Bitcoins. Bitcoin currency is getting world wide acceptance so people are getting involved to make this revolutionary money their possession. Secondly, as mining is an integral part of Bitcoin network so miners help to make Bitcoin network more secure through mining. Thirdly, some people love to gain technical experience and they just do mining for fun and to enhance their expertise.
Important things to know about Bitcoin Mining
With the passage of time people and with the prevalence of information about the success of Bitcoin people are getting involved in Bitcoin mining. But before any serious involvement one should seriously consider the following things:
Firstly, one should analyze how profitable it is to invest on Bitcoin mining and in the years to come. Mining experts opine that Bitcoin Mining has become a very challenging adventure in 2017. Every individual or company must understand Return on Investment (ROI) factor. Mining consume a lot of electricity and requires cool climate to work efficiently. And countries with cheaper electricity rates along with cool climates will get higher ROI.
Secondly, with every passing day mining bitcoin difficulty is increasing with evolving network which has made individual mining almost impossible. So mining in groups could be more advantageous in this complex and hard mining environment.
Thirdly, Bitcoin mining is a time taking process as complex mining machines are not easy to install and are difficult to maintain as well.
Fourthly, the wise and clever selection of mining hardware is considered key to success of mining process. Many mining hardware devices are available in the market. Hence a degree of knowledge about mining hardware is required to make good and profitable choice.
Techniques of Bitcoin Mining
Bitcoin mining techniques are methods or ways through which Bitcoins are harvested from the internet. There are several techniques of Bitcoin mining which are currently being used in the market.
One of the famous Bitcoin mining techniques is solo mining. Solo Mining is a process of individual mining where individual tries to fetch Bitcoins through the power of their own computers. In contrast to solo mining is pool mining where miners share their resources and work as a team to get Bitcoin. Such pools are created to merge mining services for collective benefit.
Latest posts by QoinBook (see all)
- Gemstra: A Blockchain-Integrated Ecosystem that Liberates Social Selling Economy - April 20, 2019
- First Regulated Share Offer for a Company Investing in Cryptocurrencies Launches - April 12, 2019
- HYBSE, GMEX and MINDEX collaborate to list the world’s first Multi-Asset Stable Token in Mauritius - February 23, 2019