Thursday, February 1, 2018

How BITCOIN Mining Works?


What is Bitcoin mining?


Bitcoin mining is the process by which transactions are verified and added to the public ledger, known as the block chain, and also the means through which new bitcoin are released.  Anyone with access to the internet and suitable hardware can participate in mining.  The mining process involves compiling recent transactions into blocks and trying to solve a computationally difficult puzzle.  The participant who first solves the puzzle gets to place the next block on the block chain and claim the rewards.  The rewards, which incentive mining, are both the transaction fees associated with the transactions compiled in the block as well as newly released bitcoin. 

This sounds scientific to you. This is where the technology goes nowadays. The revolution of cryptocurrency just started. To give you a clear view, mining Bitcoin is same as mining gold. There is a procedure to be followed before mining the field. Equipment is needed. Safety standards need to be follow to ensure the safety of personnel & materials. Same goes thing with mining Bitcoin. Equipment & system is needed to mine this coin. The only difference is mining using a hardware (a computer set), mining pool or thru acquiring a mining contract (hash power).



How does Bitcoin mining works?

When you hear about bitcoin “mining,” you envisage coins being dug out of the ground. But bitcoin isn’t physical, so why do we call it mining?

Because it’s similar to gold mining in that the bitcoins exist in the protocol’s design (just as the gold exists underground), but they haven’t been brought out into the light yet (just as the gold hasn’t yet been dug up). The bitcoin protocol stipulates that 21 million bitcoins will exist at some point. What “miners” do is bring them out into the light, a few at a time.

They get to do this as a reward for creating blocks of validated transactions and including them in the blockchain.
(Source: https://www.coindesk.com/information/how-bitcoin-mining-works)


How to mine Bitcoins? Two-ways only

1. Set-up a mining hardware & get into a mining pool


Setting up a mining hardware becomes an expensive nowadays. It range 80k - 100k in order to start the mining process. Others expenses are the electricity cost & mining pool fees. Mining hardware are 24/7 in operation in order to get the desired amount of coins. Most importantly, expertise in computer is required to set a good mining set & its maintenance. 


2. Purchase a Bitcoin cloud mining contract (hash power)
Cloud mining or cloud hashing enables users to purchase mining capacity that of hardware in data centres.
Two operators Hashflare and Genesis Mining, have been offering contracts for several years.
Bitcoin cloud mining enables people to earn Bitcoins without bitcoin mining hardware, bitcoin mining software, electricity, bandwidth or other offline issues.
Bitcoin cloud mining, sometimes called cloud hashing, enables users to buy the output of Bitcoin mining power from Bitcoin mining hardware placed in remote data centre.
Then all Bitcoin mining is done remotely in the cloud. This enables the owners to not deal with any of the hassles usually encountered when mining bitcoins such as electricity, hosting issues, heat, installation or upkeep trouble.
What are Bitcoin Cloud Mining Advantages?
  • ·         No excess heat to deal with
  • ·         Quiet because of no constantly humming fans
  • ·         No electricity costs
  • ·         No bitcoin mining equipment to sell when bitcoin mining is no longer profitable
  • ·         No ventilation problems with hot equipment
  • ·         No need to set up a mining hardware

(Source: https://www.bitcoinmining.com/best-bitcoin-cloud-mining-contract-reviews/)

GET YOUR OWN BITCOIN MINING CONTRACT NOW!

For more details click the link below: 

http://pinoyfinancialiq.blogspot.com/2018/01/start-mining-bitcoin-ethereum-today.html


Chase and work on your dreams - lius antiporta



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