Bitcoins work like cash, but they are mined like gold. So how do you get into the current bitcoin group? If done correctly and ready to take on investment risk, you can close with some bitcoin of your own – which is currently $ 945 on an average weekly price on the largest bitcoin exchange.
Here’s how it happened
How many Bitcoins are there?
When the algorithm was created with the nickname Satoshi Nakamoto, as simple as Steve Smith in Japanese – the person set a limited limit on the number of bitcoins ever existed: 21 million. Currently, over 12 million are in circulation. That means fewer than 9 million bitcoins are waiting to be discovered.
Since 2009, the number of bitcoin mining has hit the sky. This is the way the system was introduced – initially it was easy for me, and the downside is that we have reached 21 million bitcoins. At the current rate of production, the last bitcoin will be mined in the year 2140.
What is mining?
There are three basic ways to obtain bitcoins: buying in exchange, accepting them for goods and services, and new mining. “Mining” is the invention of new bitcoins such as lingo – gold. Of course, this is just a verification of bitcoin transactions.
For example, Mike buys a TV with bitcoin from Nicole. To make sure his bitcoin is a real bitcoin, the miners begin to verify the transaction.
This is not merely an attempt to verify the person of the transaction; It’s a lot. All transactions are assembled in boxes with a virtual padlock on them – called a “blockchain“.
Miners run the software to find the paddle key.
Once their computer is found, the box opens and the transaction is verified. To find the “hole in the needle” key, the miner is rewarded with 25 newly generated bitcoins.
According to Blockchain.com, the current number to find the right key according to a top site for the latest key-time bitcoin transactions is 1,789,546,951.05.
Despite many efforts, a 25-bitcoin reward every 10 minutes. In 2017, Bitcoin Rewards for validating transactions halved 12.5 new Bitcoins and continues to do so every four years.
How do you do my work on a budget?
Bitcoin mining can be done by computer devices with high GUP configuration- requiring basic software and specialized hardware.
The software I need is a straightforward and open source to use – free to download and run.
A potential miner needs a bitcoin wallet – an encrypted online bank account to keep what’s earned. The problem is that, as in most bitcoin scenarios, wallets are uncontrolled and vulnerable to attacks.
At the end of last year, hackers demonstrated a bitcoin successor in which they stole $ 1.2 million worth of currency from the Inputs.io site. When bitcoins are lost or stolen, they turn into cash. Since your Bitcoin is not supported by the Central Bank, there is no possible way to recover your losses.
The second most important piece of software is Mining Software – the most popular one is called GUIMiner. When launched, the program starts on its own – look for the magic combination that opens that padlock in the transaction block.
The program goes on and on, the miner’s PC is faster and more powerful, and the miner starts producing bitcoins faster.
When mining started, simple off-the-shelf PCs were fast enough to produce bitcoins. The system is set up this way – it’s easy for me at first, and it’s hard for me to produce more bitcoins.
Over the years, miners have had to switch to hardware to create new bitcoins. Today, application-specific integrated circuits (ASICs) are used. Putting aside the language of the programmer, this means that the hardware is designed for a specific task – in this case mining.
There is a way around such a huge investment: joining the mining pool. The pool is a collective of bitcoin miners around the world who combine the power of their computers.
Popular sites such as Slush’s Pool allow small-time miners to get a percentage of bitcoins when they add their computer power to the group.
The faster your computer runs and how much it contributes to the pool, the larger the percentage of bitcoins you receive. Bitcoin can be divided into eight decimal digits. Like the wallet, pool sites are not registered and the pool’s operator – who receives all the coins – has no legal obligation to give them deductions.
Connecting to a pool means you can use even cheaper hardware. USB ASIC miners – which plug into any standard USB port – cost less than $ 20. “For a few hundred dollars you can make a few dollars a day,” said Bryce Colbert, a North Carolina-based cryptocurrency and operator’s miner. of cryptocurrency.com. “You don’t make much money out of this and with low-grade ASICs you lose money based on the exchange rate.”
Electricity use is another way you can lose money when it comes to mining. Right now, the profits outweigh the money I spent on the energy I needed. Again, this quickly changes due to the volatile price of bitcoin.
“It’s time-sensitive, like a yo-yo,” said Jeff Garzik, bitcoin developer for payment processor Bitcoin. It is not the miners or investors who are causing the ups and downs in currency value, it is the media, ”he said. “Bitcoin pricing follows media cycles rather than hardware or mining. Hard mining is not highly associated with the price of bitcoin.”