Last Updated on August 25, 2021
If you are like most people who buy Bitcoin off crypto exchanges, let me tell you that it’s not only way for a person to get their hands on the world’s oldest cryptocurrency — they can also mine Bitcoin for it. No I am not talking about physically going somewhere to mine, Bitcoin is digital and it’s mining happens on the blockchain network.
All you need is a computer that isn’t outdated. However, that alone doesn’t guarantee success. Mining for Bitcoin is like playing a game of fastest finger first. The more computing power you can offer, the better your chances of actually hitting gold, or in this case, Bitcoin.
What is Bitcoin mining?
Simply put, Bitcoin mining is the process of solving mathematical equations very quickly. That’s why, in order to reap the benefits, you’ll need a lot of computer power to not just solve these mathematical queries quickly, but also faster than everyone else.
What is ‘rig’ to mine Bitcoin?
A rig isn’t as frightening as it sounds. It could be any ordinary computer, consisting of a CPU, motherboard, RAM, and storage. The only distinction is the graphics processing unit (GPU), also known as the ‘video card.’
When a computer isn’t mining, the GPU is responsible for running games, videos, and other applications. Its computational power is ideal for the heavy-duty requirements of Bitcoin mining. In fact, a common laptop with a high-performance GPU is likely to outperform an expensive laptop with an average GPU when you try to mine Bitcoin.
Instead of a personal computer, Bitcoin mining can also be accomplished with specialised hardware known as application-specific integrated circuits (ASICs). The catch is that an ASIC can only be used to mine for a single cryptocurrency. As a result, an ASIC miner for Bitcoin would be optimised to solve its specific algorithm.
The Biggest Challenge in Bitcoin mining is the Electricity Cost
Electricity will be the most expensive component of a mining machine’s life cycle. When you operate one or more machines continuously, each requiring hundreds of Watts, it quickly mounts up.
Being in an area with higher-priced electricity or requiring power backup can wipe out most of one’s profits. One of the reasons the greatest Bitcoin miners operated from China, where electricity was cheaper than in most wealthy countries, is because of this.
How do you actually get Bitcoin?
Bitcoin mining is based on the principle of ‘proof of work,’ which rewards processing power with cryptocurrency coins. A miner will solve challenging mathematical problems in order to add one block of transactions to the blockchain, which is currently worth 1 megabyte (MB).
The first person or pool to solve the math and add a block is considered the winner and receives Bitcoin. Because only 21 million Bitcoin will ever exist, the amount of Bitcoin one receives in return will fluctuate and decrease over time. A copy of the blockchain – a ledger of all Bitcoin transactions ever made – will be saved on every miner’s machine. This copy is 356 GB in size till July 2021.
If you found this interesting and want to start the process to mine Bitcoin. It’s a very easy process, please navigate here and complete the Mining setup on your PC.