Complete guide on Bitcoin Mining

The interest in cryptocurrencies is rising day-by-day. People are starting to get familiar with the concept of Mining, everyone who has ever heard of it is trying to make more and more profit and everyone who has never heard of it should start researching right now and get involved in this revolutionary Financial Tool.

First thing’s first! What is Mining? Simply said- Mining is the process of adding transaction records to Bitcoin's public ledger of past transactions. This public ledger of past transactions is the Famous Blockchain. Blockchain’s main function is to confirm and guarantee the legitimacy of transactions to the rest of the network as having taken place.Network of Users - in this case Miners use the Blockchain to distinguish legitimate Bitcoin transactions from attempts to re-spend coins that have already been spent elsewhere.In other words, Mining is the process by which transactions are verified and added to the public ledger. Anyone who has an access to the internet and has a suitable hardware is able to participate in Mining. This process involves compiling most recent transactions into blocks and trying to solve a computationally difficult puzzle. The first one to solve the puzzle gets to place the next block on the Blockchain and therefore claim the reward. Rewards are Transaction fees and newly released bitcoin.

Bitcoin is a revolutionary currency that has been overtaking our lives these past few years. Everything is about Bitcoin and cryptocurrencies nowadays, every company is trying to get involved in Blockchain Technologies and start up a new business. But all these wouldn’t be possible without Mining. As the simplest transaction of sending a certain amount of money from your account to your friends’ bank account, or paying taxes, bills, needs to be documented, so does the transactions with Bitcoin. Miners act like Auditors, they are doing the work of verifying previous Bitcoin transactions. This agreement is meant to keep Bitcoin users honest and was formulated by Bitcoin's founder, Satoshi Nakamoto. Miners’ importance is in preventing the problem, which is most commonly known as a “double-spending” problem. Double-spending means that there is a risk that the holder could make a copy of the digital token and send it to a merchant or another party while retaining the original, with the physical currency this is impossible, but unregulated transactions with cryptocurrencies can be risky. Bitcoin miners check transactions to make sure that users have not illegitimately tried to spend the same Bitcoin twice. Therefore, miners are important and their work is worth a big reward.

To start Mining a Bitcoin you'll need to acquire bitcoin mining hardware. When the Bitcoin was first announced in 2009, people were able to mine with their computer CPU or high-speed video processor card.Today that's no longer possible.Nowadays, you need to mine Bitcoins with the best bitcoin mining hardware, it should be built specifically for that purpose. Several Companies offer such kind of systems built specifically for this case. Many of Tech Geeks have been trying to mine Bitcoins with different systems, but it is essential to understand that Bitcoin mining with anything less will consume more in electricity than you are likely to earn.

First of all - Get a Bitcoin Miner! For this, you should research more about the latest Bitcoin Mining hardware reviews, to understand which miner is best for you. Some sources say that Antminer S9 is the newest and most powerful miner, but there are others you may consider interesting. For example Antminer R4 - it’s a little different from Antminer S9, it was released in August 2016, whereas Antminer S9 was introduced in June 2016. Antminer R4’s power consumption is 845W±9%, while the same factor for Antminer S9 is 1375W ±7%. They have a small difference in their power efficiencies, hash rates and Dimensions, but overall rating for them is 88% (Antminer R4) and 95% (Antminer S9). The Antminer R4 is intended for hobby mining – basically people who want to mine Bitcoins at home. Antminer S9 is the most Advanced miner today and if you’re serious about mining bitcoins and it’s your thing then this Miner is the best suit for you. Estimated price for Antminer R4 is $1000 and Antminer S9 is approximately $2000 and sometimes even more. For someone who would like to mine bitcoins just as a secondary job or just a home activity, there are cheaper versions of Miners. For example Avalon 7 - It is a lot cheaper than the other Miners, its’ cost is approximately $880 and with this cheapness comes the fact that it’s less powerful. There are a lot of factors to consider before investing in Bitcoin Miner, so research is crucial.

Another option for Bitcoin mining is Cloud Mining Services. For some people, this method of mining is way easier, but some say that mining services aren’t as steady and trustful as the physical hardware. As every single financial tool, cloud mining has its’ advantages and disadvantages. Bitcoin cloud mining enables people to earn Bitcoins without bitcoin mining hardware, software, electricity, bandwidth or other offline issues. Users can purchase mining capacity of hardware in data centers. This Mining system has its’ advantages, but mostly there is a huge risk of it being a Fraud, so to stay safe you have to find trustworthy companies that provide this kind of service. For instance, www.bitforx.com -mining service provider, is a great example. Bitforx simultaneously is digital wallet and cloud mining website, that offers everyone possibility to participate in Bitcoin mining economy. Their main goal is to provide people with better and more suitable ways to mine Bitcoins. Services like this help people to start Mining with few easy steps, with less cost and trust issues. Bitforx has also provides people with Digital Wallet and in the past few months, they have been working on a new application that will also be available to download both for android and ios systems. So, search for more, find the company that suits you and is trustworthy enough for your vision to become reality.

Next steps require creating a Bitcoin wallet, finding a mining pool and getting a mining program for your Computer. After this you can start mining, get involved in Bitcoin transactions and receive rewards.
Currently, as we are writing this article, Block count for Bitcoin mining is 505531. There’s a great web-page http://bitcoinclock.com to look through the changes the Blockchain has been gone through, it gives you the information about the blocks on blockchain, approximate cycle duration, etc. Here’s more information about this last block, the block number 505531, just can follow this link to get more information about all the blocks. https://blockchain.info/block/00000000000000000032616867a1573ded98e6f72af0437218d4b854367ab957

There is a big discussion about advantages and disadvantages of bitcoin Mining. Mining supporters say that there’s a freedom in payments, no extra fees, users have full control of their transactions, information is transparent, fewer risks for merchants and Immediate settlement. Those, who believe that mining bitcoin isn’t as advantageous as others think it is, state that this system is still developing, there’s lack of awareness that only occurs with the lack of research skills, swinging value, etc. But In the end, what you have to have is the Faith in the Future! 30 years ago if you had anything to do with internet, it meant that you would achieve a great success with the new technologies that our great human minds suggested us. 8 years ago people saw the potential of cryptocurrencies, Bitcoin, blockchain technologies and nowadays the uprise of Bitcoin has made them rich and successful. Future holds a great technological and financial development for us and we have to go along with it. Future of physical money is unclear, but the cryptocurrency era has already begun we need to adapt.

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