There are several facts about Bitcoin which every user should know before joining process of Mining. First of all, Bitcoin is an encrypted program code. It is priced according to the market demand. Amount of coins is limited, and the final emission is already known. Release of the digital money is not controlled by state organizations that is why everybody can mine or get it.
Word ‘mining’ means extraction of encrypted and limited in quantity digital currency code and calculating based on it where needed combination is formed by selecting a set of numerical variations.
Step by Step Mining Guide.
First of all, it’s necessary to calculate the profit user may get to realize if Mining is profitable or not. There are special applications offering Bitcoin mining calculators. User should input main information about the hardware there – and he or she will be able to know the period needed to return invested money and get profit.
Then Bitcoin mining hardware should be bought. To choose a good one, user can look through the customers’ feedback and get info about main devices characteristics. Nowadays Antmainer S9 is known to be one of the most innovative and newest miners.
Next step is Bitcoin wallet creation. There is a necessity to save virtual money somewhere. Wallet address is very important for digital currency getting. Typical address is a long sequence of letters and numbers. Different services offer variable ways of address getting. The only common thing is that user needs a public address, not a private key or password to work with Bitcoins.
Also, that is very important to choose a pool. The word means a group of Bitcoin miners who combine their computing resources and get bigger profit as a result. The main idea of group work is based on Bitcoin blocks creation. Every block costs 12,5 BTS and that is hard to get money with no groupmates. Work in pool allows performing small and less difficult algorithms – that increases chances to get Bitcoins which are shared between all members.
The last step is installing of special program for mining. Different hardware requires different software. Also there are pools offering their own programs, Bitminer for example. There are several popular programs like MacMiner for MAC or BFGMiner for PC.
How to Choose Bitcoin Mining Hardware?
Profit which user can get during Bitcoin mining depends on speed of computing equipment. Its unit is hash per second. To make the calculations more convenient terahash and petahash are used too. Equipment with better speed allows faster returning of investments. Moreover, there is a necessity to take the electricity consumption into consideration. Devices with low productivity may not cover electricity costs.
Firstly, Bitcoin algorithm ensured rapid emission. Miners were able to make crypto currency using usual computer and computing power of processor. Then this kind of equipment was changed by video cards which required less of electricity but had better speed. Unfortunately, using of video cards is not profitable nowadays.
The only equipment which makes mining profitable today is ASIC or integrated circuit of special purpose. The device was developed for hash calculations. ASICs produce better speed for lower price and require less energy than video cards or processors.
ASICs productivity influences their price, energy efficiency and profitability. For example, AntMiner S9 schema has next parameters:
- Productivity – 13,5 terahash per second;
- Energy efficiency – 0,098 watt / joule;
- Price – more than 2000$;
- Month profit – 0,3603 BTC (nearly 200$).
AntMiner S7 and Avalon6 are cheaper. Their price is nearly 500$, but productivity is 4,7 and 3,5 terahash only. Their profitability is nearly 140$ per month. Though the price is better, these devices requires more energy and user needs to waste money for it.
Is Bitcoin Mining Worth It?
Though Bitcoin is very popular these days, it’s harder to mine it now. Sometimes the cost of equipment and electricity is not returned, and users only pay, but don’t get money.
Fortunately, there is a solution. To avoid problems such as equipment buying or choosing the best software, paying for electricity or having noise equipment at home, user needs to join the Cloud mining process. There are several services such as HashFlare, CCG Mining and Hashing24 offering variable mining contracts and having great customers’ feedback.
Some clients are sure that Cloud mining becomes more profitable than usual one today.
Conclusion
Bitcoin mining is an extraction of encrypted and limited in quantity virtual money code. Though processors and video cards using is not profitable today, miners make money with help of ANSI devises.
One more way to avoid many troubles and get better profit is Cloud mining.