what is bitcoin mining
Bitcoin mining is performed by high-powered computers that solve complex computational math problems; these problems are so complex that they cannot be solved by hand and are complicated enough to tax even incredibly powerful computers.
Also read :- What is Bitcoin?
how to mine bitcoin
Step 1Put your computer to work mining Bitcoin
Mining Bitcoin is a huge technological step up from the money you could earn by simply using your computer to do the same old tasks that most computers are programmed to do. Bitcoin mining can be done at your home, with your PC in your local coffee shop or on your lunch break at work. The less your computer is under load, the faster you will perform. Step 2Prepare your computer Before your PC will start mining Bitcoin, it must be prepared. This step is very important. Read and follow the instructions below. 1. Turn off your computer when not in use. 2. Disconnect any USB peripherals, i.e. your mouse, keyboard, etc. and power them off. 3. Remove the batteries from your power supply. Disconnect all the cables from your power supply except for the power cord and the USB power cord. 4.
Step 2 Join a mining pool
You want to participate in a mining pool that isn’t too reliant on a single powerful computer. The idea is that mining pools distribute the reward, so you are incentivized to share your mining power with your peers. You should also look for a pool with good customer support. Choose a pool with a good reputation on social media for the ease of registering with the pool and getting started, and for the speed of transaction confirmations for your transaction. There are plenty of reputable mining pools you can join, and bitcoin.com is an example: they have 7,500 active mining farms, 2,000 BHP of mining power, and 12,000BTC of hashing power, distributed among their miners. They are also a helpful resource in understanding the bitcoin mining process. You can learn more about joining bitcoin.
Step 3 Connect to the mining pool
This is the step that most beginners neglect, for reasons that are completely understandable. Bitcoin mining is done using two-way multisignature transactions, which means that you need to give bitcoins to someone else first before you can get a miner's reward. To enter the network and get a miner's reward, you need to connect to a mining pool using something called a miner's proxy. A miner's proxy is a program that you run on your computer and that acts as a middleman between you and the Bitcoin network. Don't worry if you don't have the most up-to-date hardware. Step 4Buy some time with slow Internet or can't afford to buy the most up-to-date hardware, you can still buy some time with extra electricity.
Step 4Configure the mining program
Choose a program. Linux provides two distinct choices for mining. Bitmine is an easy-to-use program that uses four “nanometer” CNC machines that mine at $250 a month. Bitmine has a cap on the amount of coins it mines each year, which ensures that the mine never becomes obsolete, but it also allows you to start mining the currency without paying a fee. The other popular program is Bcoin, which requires more energy-intensive “Scrypt” mining. Bcoin requires more than 40,000 watts and only 3,000 square feet of the server room’s space to mine coins. Step 5Troubleshoot computer issues You must enter your bitcoin address when you create your miner so that your coins can be “marked” with your address. This is important. Do not forget this step!
Step 5 Join a mining pool
It's important to realize that mining isn't actually for the pool's profit. Instead, mining is the basis for the pool's reward. Therefore, if you join a mining pool, you are trusting the pool with your transaction, but not the coins themselves. The difference between mining and trading is that you're giving up a claim on the coins for mining, while also receiving the reward. The reward for each block that is mined is 25 bitcoins. This reward is divvied up among the pool's members based on the number of bitcoins they contributed to the mining. Step 6Open an account at a mining pool The process for setting up a mining pool is similar to opening an account on a bitcoin exchange.
Step 6 How to check your Bitcoin mining progress
Make sure your Bitcoin mining software is working. To verify it, send a Bitcoin transaction to the first address you mined. The software will tell you if you were successful. If not, check the help file or check your local Bitcoin node status and process as many transactions as you can and check back. When you receive a confirmation, check your output amount to see if you made any Bitcoins. If you made any Bitcoins, the software will show it. Check your network data logs. After you find transactions that you mined, check your network data logs (in the software) to see how much power you put out, in watts, and how many Bitcoins you made. The output amount is in Bitcoins and the input amount is in ‘Transactions’.
Conclusion
These steps are designed to help someone get started mining Bitcoin, by making the process more feasible and thus less expensive. This would potentially speed up the time it would take to get to that elusive 51% tipping point. If you are looking to start mining, and are not sure where to begin, feel free to check out the Bitcoin Mining Services subreddit for more resources and details.
