Mining bitcoins - what is it and how to make money on it
Thanks to the development of computer technology, one can not only entertain, communicate and learn, and also earn money. Today there are many opportunities for this. One way to earn money with the help of a computer is the mining of bitcoins. Cryptocurrency mining is available to every user, but without substantial financial investments you cannot make a lot of money.
What is mining?
In simple words, mining of bitcoins (mining of bitcoins) is the process of mining virtual coins by searching for new information blocks, which happens with the help of high power equipment. The basis of the technology is blockade.
The principle of the system is to solve mathematical problems, thereby creating a cryptocurrency. Operations are transferred to the list of transactions and are given to miners. They, in turn, pick up combinations that are the secret key to each transaction. For him, and issued a reward, which constitutes a certain number of bitcoins.
The complexity of mining Bitcoins lies in the fact that this will require powerful equipment. However, there were cases when users managed to get a lot of cryptocurrency coins on their home PC. However, this is in the past.
Today, even mining Bitcoins with the help of several powerful graphics cards often does not bring profit. The fact is that the competition grows yearly, and the number of coins that can be obtained on detection of one block is reduced by half every 4 years.
In addition, mining Bitcoins is an unregulated type of earnings. That is, the state does not have the ability to control the extraction of cryptocurrencies. This means that I can ban it altogether at the legislative level.
On a note! The bitcoins obtained during mining can be exchanged for electronic money or purchased for them via the Internet. True, not every company agrees to accept cryptocurrency as payment. It is more often practiced in the West and has not yet taken root in the Runet.
Bitcoin mining methods
To run the bitcoins, you can act on your own or earn a crypto currency by pooling with other users.
The following ways of mining bitcoins are known:
- using the computing power of a personal computer (cryptocurrency solo mining);
- by creating a farm, combining several computers with powerful video cards;
- using ASIC processors;
- renting the necessary capacity for bitcoin mining (cloud-clearing of the crypto-currency).
Bitcoin solo mining on a regular PC
The method of solo minings of bitcoins consists in extracting crypto currency using a conventional home computer with powerful components. The search for blocks is carried out by solving mathematical problems.
Earnings for one hash is 12.5 bitcoins. Since today the bitcoin rate reaches $ 2,700, the profit is quite decent. It would seem that it could be easier.
But it is worth noting that there is a catch in the bitcoin solo mining. An ordinary home computer with a single video card simply does not have enough power to find a hash. Therefore, you can successfully forget about mining a cryptocurrency using a home PC. To mine bitcoins in such a way could have been several years ago, and now it is almost impossible.
Mining with several video cards
Some users manage to beat the bitcoins by creating a farm consisting of the following components:
- random access memory;
- power supply;
- hard drive;
- video cards (up to 6 devices).
In addition, for the assembly of the mining farm will need adapters, cables and other elements.
Important! The motherboard used to create a cryptocurrency mining farm should have severalPCIslots, in which the installation of video cards. As for the RAM required for mining bitcoins, its volume should not be below 4 GB. Hard disk space requirements are 32 GB, otherwise it will be difficult to mine bitcoin. Video cards should be powerful, it is allowed to use up to 6 such devices for bitcoin mining. Most often used 4 video cards. As for the model, it is preferable to chooseRadeon R9 390X 8GB.
It should be understood that the equipment for bitcoin mining is quite expensive. Therefore, it is important to think several times before starting to clear this crypto currency. After all, costs can exceed revenues, and then mining Bitcoins will be unprofitable.
Using ASIC Processors
The modern way of mining Bitcoins, which can bring the highest possible income - the use of processors ASIC. This high-power equipment is best suited to crypto currencies.
For mining cryptocurrency using ASIC processors requires considerable investment. This is expensive equipment, but it helps to earn more bitcoins than previous methods.
To determine which ASIK is best suited for mining bitcoins, you need to be guided by the following device parameters:
- efficiency- the more the device is able to hash, the more it costs;
- power consumption- ASIC processors are quite powerful, so they consume a lot of electricity, before buying you should make calculations and determine whether a device for mining bitcoins will be profitable;
- the cost- not every miner can afford to buy too expensive equipment.
Despite the high cost and efficiency of ASIC processors, even on them it is not always profitable to mine bitcoins.
Bitcoin cloud mining
The essence of cloud mining of bitcoins lies in the absence of the need to purchase equipment for the extraction of cryptocurrency. Miner simply puts his money, which rents devices on other resources. But you can purchase equipment if you have the desire and financial capabilities.
Cloud mining of bitcoins is carried out according to the following scheme:
- The user finds the site and registers on it.
- He contributes the necessary amount for obtaining equipment for rent.
- Waiting for the results of mining cryptocurrency.
As a result of cloud mining, bitcoins are mined by all miners simultaneously, and then profits are divided between the participants.
Bitcoin mining step by step instructions
As an example, the LTCraft project will be considered. Step by step instructions for bitcoin mining involves the following steps:
- Create a btc wallet by registering in the system. This uses Gmail.
- Go to the "My Computers" tab, download the archive with the program. Which to choose? It depends on the video cards that are used for bitcoin mining. Also download the file to run the program.
- On any disc, create a folder that contains another one. Drag unzipped program into this “internal” folder, the contents of which are transferred to WINRAR.
- The downloaded document is moved to the third created folder, and then the program is launched. To do this, simply click on its file. After a few minutes, if no errors were made, you can track the statistics in the LC.
If any difficulties arise with the program or the program is not installed or loaded, the user can always contact the support service. Experts will answer all questions and help you perform the required actions.
Good news for miners: you can withdraw from 5 satoshi (1 satoshi is equal to 1/100 000 000 bitcoin). At the same time, well-known payment systems are used, such as WebMoney, Qiwi wallet, Yandex Money. In addition, additional earnings can be obtained by taking part in the referral program.
Is mining profitable at home?
At first mining Bitcoins was much cheaper than now. Since the advent of special tools, it has become more difficult to get cryptocurrency since competition has increased. Now it is no longer possible to mine bitcoins with the help of a regular home computer, at least several powerful video cards are required. However, they do not always provide profit during btc mining. In addition, serious equipment not only has a high price, but consumes a lot of electricity.
Thus, we can conclude that the mining of bitcoins at home using a computer does not belong to a cost-effective type of business. The only hardware that can benefit is ASIC processors.Unlike powerful video cards that produce no more than 1.2 GB of hash, at ASIK devices, this figure is at least twice as large.
Pros and Cons of Mining
The advantages of mining Bitcoins are as follows:
- Availability - this type of earnings is available for everyone around the clock;
- low percentage of commission or its complete absence when performing operations with bitcoin;
- modern and relatively promising type of earnings;
- the ability to receive passive income without leaving home;
- no taxation - since the crypto currency is not controlled by the state, no tax is imposed on it.
Disadvantages of mining bitcoins:
- large investments at the start;
- strong fluctuations in the rate of virtual money;
- high probability of loss in mining btc;
- lack of knowledge of the processes that affect fluctuations in the course of digital money.
Experts have still not agreed on whether it is necessary to invest in cryptocurrency or it is not worth it.
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