How Bitcoin work is entirely different from legal tender currency. The cryptocurrency is not under the control of a central bank. Thusly, Bitcoin cannot be print. Instead, you mine the coin. You mine Bitcoins with your PC. In a nutshell, what the PC does is to discover a passcode to unlock a block. However, the process is a tad more complicated than that. So let’s talk a little more in depth about the blockchain and how to mine Bitcoin.
The Blockchain is the backbone of Bitcoin mining. Mining a coin into existence cannot be possible without this system. The blockchain is a decentralised ledger system that verifies and approves all the Bitcoin transactions made. All the computers connected to the Bitcoin network are involved in this verification system. However, to successfully mine a computer also needs to guess a code that is randomly generated by the system. The computer that guesses the code (solves a block) on top of the transaction verifications receives Bitcoins.
How fast can you mine Bitcoins?
Individually, you can only successfully mine Bitcoin once every ten minutes. The Bitcoin network is always making sure it takes around ten minutes to solve a block. Ergo, the difficulty is adjusted depending on the computational power available. Unfortunately, unless you have a dedicated mining rig, the chances of reaching anywhere close to that ideal time is impossible. The current computational power in the network makes it nearly impossible for casual miners to successfully mine for a Bitcoin.
The best way to mine Bitcoin varies. The first way is to get a dedicated mining rig. Before you go for the most expensive mining rig available, you have to remember that you need to think about which mining machine will get the best return for your money invested. According to the Bitcoin Foundation, the block rewards are halved 210,000 blocks. The first rewards per lucky mine were 50 coins. In 2014 it got halved to 25 coins, and by 2017 it got halved again.
With that in mind, the best Bitcoin miner for your money are the following:
- AntMiner S5 Bitcoin Miner:
It only cost $200 and offers 0.05 BTC per month.
- Avalon 6 Bitcoin Miner:
It is a bit more pricey at $700, but it produces 0.12 BTC
- Antminer R4 Bitcoin Miner:
This Bitcoin miner cost $1000, and it produces 0.29 BTC per month.
- AntMiner S9 Bitcoin Miner:
At the current difficulty levels, this miner produces 0.5 BTC per month. Although, it cost $2000
Bitcoin mining is a huge market that needs to be looked into for it promises huge monetary benefits in the long run given the fact that bitcoin prices have been on the rise since the past year and hopes to grow into booming phase in the next 5 years as it was during its early years and so to enhance your knowledge on mining, you can click for more info on this link https://www.investopedia.com/tech/how-does-bitcoin-mining-work/ and understand the concept better.
If you want to mine Bitcoin without hardware, you can join a cloud mining service. Cloud mining is a cheap way to mine since you do not need to invest in equipment. But you also need to review any site you might be interested carefully. Most sites are scams, and a good way to know that is when they offer lifetime contracts. Even at current Bitcoin prices, that type of deal is unfeasible for the company providing them. Genesis Mining is the most reliable cloud mining site if this is your option.
Bitcoin mining is a good way to start earning coins. Online Bitcoin mining sites are a reasonable start but offer little control on the equipment used to mine. For more control over the equipment, invest on a miner. Although, always make sure to pick a miner that offers a solid return on investment.