How does Bitcoin mining work? As we know, digital currencies are transacted directly without any third-party intermediaries, namely banks.
Scienceloversss - Bitcoin is one of the most lucrative cryptocurrencies as an investment. The advantages of this cryptocurrency can be hundreds of times.
In addition to investing, one of the first types of cryptocurrency in the world can be obtained by mining Bitcoin aka mining or mining.
In principle, Bitcoin mining means literally mining Bitcoin. Because obviously, mining = mining. Meanwhile, those who carry out mining activities are called miners, aka miners.
In this mining activity, a miner searches for and collects cryptocurrencies. Miners use a set of computers to solve complex mathematical problems.
This mining process is simultaneous in the world. So Bitcoin mining seems to be a struggle with world miners. Moreover, the stock of Bitcoin coins that can be mined is limited.
How to mining Bitcoin
As we know, digital currencies are transacted directly without any third-party intermediaries, namely banks. The blockchain working system will record and verify all transactions that occur.
At one time, you can imagine there are millions of cryptocurrency transactions, in this case, we are discussing Bitcoin. Those transactions are grouped into blockchain groups to then be ‘assisted’ verified by Bitcoin miners.
The mining process is also likened to the sealing of every Bitcoin transaction that occurs around the world. So, as a reward for the verification carried out, each miner will get Bitcoin or other digital money.
Because the process is complicated and requires a high level of computer speed, it is clear that Bitcoin mining requires sophisticated computer specifications. Although it's possible to use a home computer or laptop, the chances of profit are getting smaller.
Remember, the Bitcoin mining process is carried out simultaneously around the world all the time and is a fast, sophisticated competition.
Currently, many Bitcoin miners use ASIC hardware, aka Application Specific Integrated Circuit. This computer hardware is believed to be sophisticated enough to help a miner complete complex mathematical calculations in verifying Bitcoin transactions.
For those of you who want to know how to mine this cryptocurrency, here's how:
1. Pool mining
Simply put, mining this way means you join other miners in one pool. When you are already in a group, there will be rewards obtained and divided according to the number of miners in the pool.
2. Cloud mining
This mining method requires sophisticated computers. Different from the first method, in this second method you can use cloud mining provider services such as Genesis Mining, Hashflare, and others.
3. Solo mining
Solo mining is an alternative for you who don't want to share rewards when Bitcoin is released. If you want to apply this method, you must have a super-sophisticated PC, motherboard, graphics card, hard drive, RAM, and others.
In addition, it takes a lot of electricity and the ability to solve complex mathematical algorithms to get Bitcoin.
4. Trading platforms
In addition to the three ways above, you can mine through the application. This option is an alternative for those of you who mine through smartphones. Some applications to choose from are MinerGate, Eobot, and Crypto Miner.
So the answer is yes, to mine Bitcoin it is recognized that it requires a large amount of capital. Armed with sophisticated hardware and supported by software that is no less expensive.
It's like the gold mining or oil and gas industry which also needs expensive tools, but the mining results are also very valuable.
You can also earn Bitcoin without having to mine. From investing in P2P to doing various jobs that get paid with Bitcoin.
Special tools for Bitcoin mining
As discussed above, super-sophisticated computer equipment is absolutely necessary for the Bitcoin mining process that produces high profits. Actually, at the beginning of Bitcoin's launch, mining with a CPU or home computer was very reliable. But that was then.
Now along with the rising value of Bitcoin and the popularity of digital currency, more and more parties are involved in mining Bitcoin. With a limited number of coins and a large number of miners, the opportunity to collect as many Bitcoin chips as possible is getting narrower.
So yes, if you want to make big profits from mining Bitcoin, you have to have big capital.
The hardware that most Bitcoin miners use is ASIC, as mentioned above. The price of ASIC itself is not cheap, in the market the figure can touch the US $ 10 thousand or equivalent to Rp. 143 million (exchange rate of Rp. 14,300). Of course, the need for electric power is quite jumbo.
In addition to hardware, software alias sophisticated software is also needed. This is because Bitcoin mining needs to maintain decentralized data security. Citing TheBalance, some of the software used by cryptocurrency miners include CGMiner, BFGMiner, EasyMiner, and Awesome Miner.
How to mine Bitcoin on Android
Although it is better to use a set of super-sophisticated computers, mining Bitcoin with Android is still possible. Yes, though, the digital money that can be dredged will not be as much as mining with the readiness of qualified hardware and software.
Some Android applications that can be used for the Bitcoin mining process include:
1. MinerGate Mobile Miner
In early versions, this application was used to mine Bitcoin with a CPU or PC. But now there is an Android version that can be downloaded on mobile phones. How to mine Bitcoin on Android using this application:
Download MinerGate on Google Play Store
Register at minergate.com
Choose the mining type, mobile or cloud mining. Mobile mining uses smartphone chips, while cloud mining costs some money.
Log in or log in to your miner account and select the type of Cryptocurrency you want to buy.
In accordance with how it works, the higher the specifications of your cellphone, the higher the chances of earning Bitcoin.
2. AA Miner
This Bitcoin mining application is without ads, making it easier for miners. This Android application also supports the CryptoNight mining algorithm. A miner can also set the number of chains. Chain is the core processor used for Bitcoin mining.
3. Crypto Miner
This application works in a similar way to other Bitcoin mining applications. In this application, a miner can determine the cryptocurrency to be mined. However, not all crypto mining algorithms can be used for free. A miner needs to pay a certain amount of money to access advanced algorithms.
In addition to the two applications above, there are two other applications that are quite popularly used for Bitcoin mining on Android, namely Droid Miner and NeoNeon Miner. In principle, the way it works is almost the same.
It just needs to be understood that mining crypto money on mobile phones is certainly not as optimal as mining with sophisticated computer devices.
Is Bitcoin investment safe?
Investing in cryptocurrencies is very popular. Moreover, the price of digital money, such as Bitcoin, Dogecoin, Ethereum, or other types has skyrocketed in the last year.
The issue of being safe is not safe, what needs to be understood is that all forms of investment have risks. An investor must understand every risk faced when investing his capital in certain investment instruments.
Moreover, cryptocurrencies, such as Bitcoin, whose value is very volatile and very sensitive to certain sentiments.
Bitcoin itself does not actually have a physical underlying. However, Bitcoin has a complete record of transactions in a complex blockchain system. There is no limit until later the block ends. But Bitcoin has a supply limit of up to 21 million pieces.
Whether or not cryptocurrency investment is safe is returned to each investor. What is clear, Bitcoin ownership has been recognized by the Commodity Futures Trading Regulatory Agency (CoFTRA). Thank you :)
