The majority of people nowadays have a clear idea as to what is Bitcoin and how does it work. For those who haven’t heard of it before: Bitcoin is a digital, decentralized, peer to peer currency. Bitcoin mining setup is same as traditional currency. The only difference is that it is not tied to a particular country. Yes, anyone, anywhere can use Bitcoin and make transactions without any legal obligations.
Unlike the traditional currency, Bitcoin is not regulated by a third party (government, the central bank, etc.) and only exist in the form of numbers in highly secured computers.
If you want to earn cryptocurrency, you cannot do it the traditional way.
Bitcoin mining explained
The only way to generate bitcoin is a process called Bitcoin mining.
In bitcoin mining, miners from all across the world connect with each other through the internet to form groups. Each group is asked to solve some mathematical algorithm. Those who are able to solve these problems are then rewarded with 25 coins for their successful efforts.
Is It Possible to Do Mining from Home?
Yes, it is. For starters, it will seem intricate and you’d need a little guidance to familiarize with it. Once you get used to it, it’s as easy as ABC.
for beginners, there are several visual mining programs to help them get familiarized. Find one if you are having troubles in understanding the process.
What Do You Need to Start Mining?
Before you could start mining, you must have the following equipment:
- Bitcoin wallet address. Having a wallet is necessary as it is used to store the coins and keeps track of your money
- A mining software. There are numerous mining programs out there. But if coding is not one of your strong attributes, go for a GUI version.
- A powerful computer to support the software
- Electricity because your computer needs to be up and running 24/7
- Internet connection (most of us already have it, but if you don’t, do it right now to start mining)
Learn how to setup a Bitcoin miner here.
Is Bitcoin Mining Profitable?
The work required to mine bitcoins increases and becomes harder over time. If you are using a less powerful computer, it might even take you years – let’s say, 10 to earn only one lot of 25 bitcoins.
At the time of writing, the worth of one bitcoin was $1096. Multiplying it with 25, we get $27,400 which is approximately $2,740 per year. Now if you compare the electricity bills and other costs, you will realize that the amount is pretty low.
So, the question is, how do miners make money through bitcoins?
To generate larger sums of money, the process needs to be faster and this is the main reason as to why miners work in the form groups. The more people in a group, the faster the mining.
However, if you are keen on working alone, then you will need to have enough financial power to buy thousands of low-power consuming; mining computers. This would make the process a lot faster.
Good luck with your venture!
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