Mining? What is that?

BTC-image
Bitcoin, the world’s most famous crypto currency!

 

Who has not heard of Bitcoin must live under a rock!

– Anonymous

Bitcoin is the world’s most famous crypto currency! It was created by a person or group under the name of Nakimoto Satoshi.

Thank You!

Many people not even know what isĀ  Bitcoin, how would they be able to use it?

Bitcoin is a protocol! Like the Internet is just a protocol. The most famous use of Bitcoin is to transfer money. It is great for that! Imagine to send money on Saturday 11 pm to your relative at the other side of the globe, and pay for that about 6 US cents! – regardless the amount you send.

You can send the money with an Internet connection, from your computer or even from your mobile device.

How and from where do you get Bitcoins?

 

MiningWorkersYou can buy them. See my next post or you can mine them. Today I want to focus only on Mining.

To mine you need an Internet connection and a hardware. The simplest hardware is a computer. The CPU can calculate and find so BTC. The next simple way is to use a graphic card, which makes this calculation much faster and then you come to the ASIC miners, special machines dedicated to mine certain crypto coins.

Today mining with CPU or graphic cards is not efficiently any more, because the calculation is getting more “difficulty” to solve. However, you can get cheap hardware, starting below 100 US$ to start mining.

When you mine you find a block and you will be awarded for that. However, there are thousands of miners out there mining for this “Bitcoin nuggets” – and it is time sensitive. If you solve your puzzle not in time, then maybe another miner has solved it in the meantime, and you will not get anything.

That’s where mining pool comes into the play! You will work in a group and if one of the group finds a “nugget” then it will be shared.

The pool hardware and operation cost money, so the profit will be shared with the pool operator.

What to mine?

What2mineThis is a difficulty question. There are many different coins available to mine. Coins can have a different way to calculate the “puzzle” and so may need different hardware.

The profit depends also which coin at which time to mine.

It is now easier to mine another crypto currency then Bitcoins and use an exchange to change your mined currency to Bitcoins, or even to FIAT currency (US$, Euro, Yen, …)

As more difficulty it gets to mine, as more “hashing power” and with that more electricity is needed.

Mining is therefore not free!

Our mining pool xxx.mininghere.com will offer to mine profitable coins. I am also planning to make it auto-switching, that means if coin xxx is not any more profitable, then the auto-switching pool will mine with you a more profitable coin.

At the tab Coins, you can see which coins we are mining now and how you can connect to these pools.

If you like the post, share it with your friends and social media.

If you find this article worthy then share some Bitcoins with me:

1PXWTtyAZ5zjrV1PuGGzrZJoJqeZS34g7d

Leave a comment below!

Ronald-speaks

Ronald Wiplinger
(Checkout our other social sites at the right bottom)