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The main objective of bitcoin mining is to verify that transactions on the network follow the rules. complex algorithms are used for this, which are used to verify transactions and transmit them to other computer systems worldwide.
Miners are rewarded for solving these complex algorithms. These rewards come from the fees of each transaction as well as the rewards established by the network.
To avoid any malicious act on the network, a proof-of-work system is used. A proof of work is needed before any block is added to a blockchain transaction, what computers do is try to guess a long string of numbers and letters this is known as a hash.
Only the computer that correctly guesses the hash can add the block to the chain. The proof of work requires a very powerful computer and the process is neither quick nor cheap.
Bitcoin mining used to be done by CPUs like those found in a normal computer, however, as more units began to mine, the difficulty of the algorithms trying to guess increased. This made people turn to more powerful processors like those used for high-end games.
How to choose hardware for mining
There are many variables when it comes to choosing bitcoin mining hardware. It is important to analyze each part by checking how much hash power it has, how much energy it consumes, temperature and cost.
You also have to decide whether to mine using a CPU or GPU.
Normally CPUs have a good amount of hash they do not cost much, unlike GPUs that if they have a higher amount of hash rate, the bad thing is that they cost too much if you would go from having a hash rate of 4 to having 29.
Then you would have a better chance of solving the math with a GPU than with a CPU but normally running this on a computer consumes a lot of power.
That is why the mining machines were created to reduce the number of components necessary to mine and have a greater amount of hash rate than those offered by a GPU but the same thing happens the more hash rate the higher the price for an ASIC, which is how it is called the mining machines.
What Does It Take to Mine Bitcoin?
The minimum requirements to start mining bitcoin you have to have a machine with a good CPU or GPU, have a mining software, you must also join a mining pool, clearly internet connection and have a virtual wallet.
And you are ready you can start mining bitcoins
bitcoin mining machine
At first bitcoin was mined with normal computers, but as technology progressed, its parts were improved with this, the price increased mainly for bitcoin miners and they went from mining with the CPU to mining with the GPU in the end with better technology they decided to create some mining machines that they called ASIC leaving behind the miners who were using their CPU or GPU to mine.
ASICs rendered GPUs useless. ASIC developers gave them early access to large miners leaving normal users in oblivion, today bitcoin mining is carried out in China for cheap electricity.
An ordinary user cannot compete with the thousands of ASICs they have mining since a normal user can hardly afford to buy 1 or 2 ASICs.
Due to this bitcoin mining stopped being as decentralized as planned since most of the mining is done in a mining company.
For professional miners it is recommended to get DragonMint T1 bars.
For miners on a budget the Antminer T9 + is recommended. It does not cost so much to acquire it but it is still at the level of the other mining machines
In terms of the hardware this unit uses, the Antminer T9 + features 162 of Bitmain’s BM1387 chips. This allows it to produce a brilliant hash rate of 10.5 TH / s whilst drawing just 1332W from the wall.
As well as being a great performer, the Antminer T9 + also has an easy to grasp user-interface. This is used to configure various settings and make upgrades to the firmware as new releases come from Bitmain.
Is Bitcoin mining profitable?
Bitcoin mining can still be profitable for some people. Although an ASIC is the end game, normal computers adapt their mining software so that the power requirements can be modified, which reduces costs, users who want to mine must take into account some variables
First of all, the cost of energy you must ask yourself what is the cost of energy in your area, season and the time of day, this information is found in the electricity bill that is measured in kWh.
Then we must observe the efficiency, how much energy your computer consumes
The time we also have to have the time that we will use for mining since every second that your machine is turned on will consume a large amount of energy
Then you must analyze if what you earn with mining pays for the energy you consume, there are also pages in which you can calculate how much your profit will be, pages like CriptoCompare
Now in order to compete against the mining companies you must join a mining pool, which is a group of miners who work together and share the rewards. Here you can have a profit regardless of whether you have the best mining machine.
The greater your contribution, the greater the reward they will give you, the more time passes, the more difficult it is to solve the mathematical processes and this makes the miners who previously mined alone join these mining pools, the reward decreases since they have to share it among more users, but the combined strength gives them a greater probability of competing with mining companies