How to Mine Bitcoin ?

4 min read

How to mine Bitcoin  :Bitcoin is world’s first decentralized crypto currency. Since its inception in Nov 2008 bitcoin
has gain massive popularity all around the world and people are curious to know how they
can mine this ever fluctuating ever rising digital currency. Bitcoin is based on blockchain
technology which uses peer to peer connection of machines such as laptop and other
computer processing systems to solve complex mathematical problems related to transaction.
Bitcoin miners use special software for its mining, this mining works by solving complex
mathematical problems and in turn miners get reward of a fraction or a whole bitcoin
depending upon the processing power of their system. Bitcoin can be obtained through
mining or it can be bought from existing bitcoin holders via. crypto exchange.
Let us understand  and learn about some of the popular bitcoin mining
pools.

Bitcoin mining Apps:

The first method in the series of “How to Mine Bitcoin” is mining through bitcoin mining
apps available for bitcoin mining. All you have to do is to download these apps and turn them
on. As they share your mobile’s processing power with other computers and mobiles around
the world you get rewards in term of bitcoin. Some of the most popular bitcoin mining apps
are Droid Miner, Easy miner, LTC Miner. Again you must considered this fact before
mining bitcoin through apps your bitcoin reward depends upon how much computing power
you are sharing with the other computers in the network more is the computing power more
are the chances of getting reward. Take a note of this practical example as 8hours of mining
through any of these apps will only get you a reward of .0005 bitcoin. But if somehow you
are able to generate more processing power your share of bitcoin will also rise.

Bitcoin mining through Cloud:

Mining through cloud is a popular way, all you have to do is to sign up on a third party
website pay them and then they will do the rest of mining work for you. These mining cloud
are big corporations and companies who use specialized hardware for solving difficult
mathematical problems. These cloud mining companies works on a contract basis system
which usually last minimum for a year i.e. regardless of where the price of bitcoin is heading
you’d get the same number of bitcoins as you were promised during your contract signing
process. So the more you pay for bitcoin mining the more you receive as a reward. Some of
the popular bitcoing mining cloud companies are Genesis mining, Hashnet, Hashflare,
Hashing24,EBOT.

Bitcoin mining Pool:

Another popular method of bitcoin mining is joining bitcoin mining pools where a user share
the mining power of his system with other systems in the network and in turn gets the reward
in proportion to his shared computing power. Mining pools are group of miners who join an
existing network to share the processing power of their system and to share the block reward.
The most popular bitcoin mining pools are BTC.COM, ANTPOOL,VIABTC, SLUSHPOOL,
F2POOL, BITFURY etc. It is important to understand that the hash power of a computer can
be redirected anytime to other pool if the miner wishes so. Each mining pool has their own
transaction fees; some are even free like bitfury which charges 0% transaction fees. Bitcoin
miners can switch their pool anytime simply by routing their hash power to another mining
pool.

 

Bitcoin mining Farms:

People living in the countries with cheap electricity have created their own bitcoin mining
farms. These farms are server rooms with highly specialized computers consisting
ASIC(Application Specific Integrated Circuits). These ASICs solve very complex
mathematical problems at a very high rate, generating enough revenue for the farm owner to
live a lavish life. Yes you get it right, Bitcoin Farms have become more popular among
people than bitcoin Pools or Bitcoin Cloud. The highest number of bitcoin mining farms is in
china. Most of these farms use Antminer for mining bitcoins. Most of the farm owners are the

early adopters of bitcoin who mined bitcoin on a large scale and sold them through bitcoin
wallet or bitcoin exchange. The major factor which drives these farms is the cheap electricity
price. For many countries where the price of per unit electricity is high people prefer to either
join a pool or mine through cloud. Mining farms are also complex and they require a tonne of
cooling power as well since the bitcoin mining machines inside these farms are working day
and night solving extremely complicated problems.

Bitcoin mining through Laptop:

Bitcoin Mining through laptop was the first method of bitcoin mining but as more and more
people started to join the race of bitcoin mining, mining through laptop became dwarf as
people devised their own methods of mining and mined on a much larger scale than a laptop
of a desktop could do. But if you are new to bitcoin mining and you want to understand how
bitcoin mining works you can give it a try by using your laptop. But mining through laptop is
the least recommended method as the Bitcoin Mining on laptop is a long process, you can use
softwares like bitcoin Miner and BTC miner for mining using your laptop but you must
consider this fact if your laptop is consuming more electricity than the profit you are making
using bitcoin then it is of no use for you. For enhancing the computing power of your laptop
and generating positive revenue you can upgrade it with external hash devices. These hash
devices are ASICs which can be easily bought from the internet.
If you know any other method of ‘How to Mine Bitcoin’ do share with us in the comment
below.

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