Do you know how the process of mining Bitcoin or BTC works? BTC is a decentralized cryptocurrency that does not need a third party for you to use it. That is, no intermediary body is included in the transaction. No Central Bank or government body can regulate BTC. Thus, Bitcoins have transactions made from person to person, that is, peer-to-peer. But the monitoring and validation of these transactions is done by people very important from the cryptocurrency community: the so-called miners.
O BTC is the first and largest digital currency in the world and its popularity since 2020 has made many people curious about how mining this cryptocurrency works.. How it works? Is it complicated? Does it make a profit? There are several questions that people ask themselves before starting to mine Bitcoin. Therefore, in this article we will address the main issues of the subject.
The most popular cryptocurrency has accessibility as one of its main attractions, as anyone can invest a minimal amount of money in it, or even decide to bet on the asset mining on their own. If you want to understand how the process is done and what kind of equipment is used to mine Bitcoin, read on and find out if this process offers any kind of profit for miners?
What would Bitcoin mining be?
It might seem strange to anyone not into Bitcoin, however mining is a lot like a math problem. The computer or other machine set up for mining tries to solve this problem mathematician to mine Bitcoin. In this way, mining is like a race against time and against other users. The reward for solving the equation is a fraction of Bitcoin. This goes for altcoins in the same way, that is, for other cryptocurrencies other than Bitcoin.
To do mining, one needs a device that is capable of deducing and solving several equations per second. Nonetheless, even if the miner fails to get this reward, he still earns a share of Bitcoin, although smaller than the fraction of those who manage to solve the mathematical problem. This is due to the fact that Bitcoin is decentralized and, in this way, the process and all its data are recorded on all the machines involved in this mining.
Other than that, we should mention that because of this mining, the blockchain is kept safe. This is because of the miners who check the validity of the information of a new block. Each new block is created by recording the information of a transaction between users and they are connected in a chain in a chronological way.
What is the profit of people who mine Bitcoin?
For doing these transaction validation services, miners receive in return a transaction fee that can vary from block to block. Currently, the average would be 6,25 Bitcoins. However, not everyone earns this rate. It takes you to be fast and a pro in the matter to actually receive any profit from mining Bitcoin.
Also, we should note that the price of this fee keeps halving every 4 years. In 2009, when the first Bitcoin was mined, the fee price was 50 Bitcoins. Therefore, in a few years the price will decrease to 3 and then to something close to 0. Bitcoin mining has become one of the processes that most attract users interested in cryptocurrency.
What does it take to mine Bitcoin?
Since the activity involves agility, to really mine quickly and solve the proposed equation, it is necessary to have a machine, that is, a computer that is capable of supporting almost everything. The fastest computers are the most suitable for mining Bitcoin. Apart from that, a very important detail would be that countries with high charging rates in relation to energy do not have an advantage in this race.
Brazilians interested in mining Bitcoin are often disappointed: The machine must be on 24 hours and the process takes a huge amount of energy, therefore it is possible that the earnings do not cover the expenses made while mining.
Another detail to note is that countries with cold climates dominate the cryptocurrency mining business. The fact is that cold weather helps machines run better, as it prevents them from overheating. Therefore, it is possible to see that countries in the Northern Hemisphere, such as Russia and the USA, are leaders in this field.
Discover 4 tips for mining Bitcoin
Knowing about how the process works, we will offer 4 basic tips that everyone needs to understand before starting to mine Bitcoin. Check it out below!
Invest in a good machine
Have a computer with a high processing speed, and it needs to be able to make several attempts in the same second. Currently, the most famous is the ASIC, as it consumes less energy and has a better and more agile performance. It is worth noting that these equipment can cost thousands of reais.
Have a Bitcoin Wallet
Setting up a wallet should be one of your first steps. This is because it is the user's way of storing their earnings and carrying out cryptocurrency transactions.
Join a mining pool
A mining pool is about groups of people who come together to mine cryptocurrencies like BTC. The fact is, even with the best equipment, it's difficult to do the process yourself. When a certain amount of BTC is mined, members split the winnings among themselves.
Get a mining program
Finally, it is important that you know the main programs that allow BTC mining to be done. Among them, we should mention:
- Awesome Miner.
By installing the software, just start your mining! Now that you know how the process takes place and what is needed to make it possible, are you thinking about starting to invest in this field? Comment your opinion below and, if you liked this article, check out other informative content about cryptocurrencies and anime on our blog.