Bitcoin Mining explained for dummies

Questions To Answer Before Bitcoin Mining

Is bitcoin mining for you? It just might be. If you have been thinking about getting involved in this exciting field, there are a couple of questions you may want to ask yourself, to make sure that if you do become involved, you won’t be barking up the wrong tree, so to speak:

  • Are you willing to invest? In most cases, if you want to do the bitcoin mining (not just join a pool) you have to have a computer that is powerful enough to handle the massive number of calculations that are involved in the process. As well as other equipment, whether it is software or hardware, that is going to be necessary for you to do things efficiently. If you are just looking to get into bitcoin mining as a lark, then you may want to consider a pool or one of the free sites where you can pick up fractions of bitcoins here and there.
  • What are you looking to get out of the “transaction”? Is your goal to be involved in the activity to make money? Or are you looking to have some fun? Sure, it can be a lot of fun, but you also must keep in mind that bitcoin mining is the kind of activity where competition exists. Indeed, there are still available coins to be uncovered, but the truth is that the people who are fastest are going to get to them first, and if you are operating at a slower pace your chances are going to lessen.

Watch Quick Video to get simple explanation of Bitcoin

What does Bitcoin Mining mean?

For many people, bitcoin mining is seen as a way of creating new coins, but the idea of bitcoin mining is for the participants to track the movements of the coins. Because bitcoins are distributed from peer to per there is no database keeping records of who owns the coins. Owners keep a log that is available on the network and transactions are recorded as they occur. Bitcoin transactions are mined after every ten minutes to avoid the risk that may be associated with using the same coins numerous times. Which makes the whole system official, and transactions that are conflicting are not let into the block. The complexity of the mining process stops people from mining blocks randomly, and it takes a lot of calculations to mine a block successfully. Members of the network, on the other hand, have the skills and knowledge to know that a block has been mined.

How does Bitcoin Mining work?

Currently, the reward of mining a new block is 25 bitcoins which are approximately $15,000, and this considerable amount encourages people to do the hard work of mining these blocks. Cryptography is a platform used by miners and has a hash function called double SHA-256. Using the hash system, the miner is required to come up with a block identifier using the previous block os the base of reference and then trying to modify the block slightly to successfully mine it. One may try for a million times before coming up with a new block, and in about every 10 minutes somebody manages to mine a block, and the process starts all over again.

What it as simple as possible? Join Bitcoin Mining Pool!

Because of the difficulties in mining bitcoins, a bunch of miners may join and share the work and the rewards. Mining for fun and profit can be a be interesting for curious people. One needs to create an account with a mining pool and start getting shares in a few minutes for a pool of low difficulty while in a higher difficult pool one may begin getting shares within one or two hours. Bitcoin mining should be an option for individuals who love arithmetic and it is easy to join since you only require creating an account with a mining pool, and off you go. Bitcoin as a form of currency is gaining popularity among people and businesses, and it is worth trying them out. Also, the value of Bitcoins is much higher when compared to other currencies.