What is Bitcoin Mining?
In today’s financial system, while paper money can be printed and produced by the government as required, Bitcoin does not produce it in this way. Bitcoin mining is based on the addition of new blocks to the system by decrypting cryptography passwords. Decryption depends on the processor capacity of the computer and the length of the password. BTC award is given to the miners from the new blocks formed as a result of decryption.
How is Bitcoin Mining done?
All Bitcoin trading and transfer transactions are written to Blockchain blocks and miners are asked to approve the transactions. As a result of the miners’ approval of the transactions, the amount is deducted from the sending account and added to the receiving account. BTCs can be stored in mobile, hardware and paper wallets. The addresses of this wallet are publicly accessible and can even display your balance, but they won’t know who you are. Wallets use two different encryption layers. These are private and public keys. The public password is accessible to everyone, and only you can trade with the private password.
Thanks to the mining process, all transactions from the past to the present are processed in the Blockchain, which will be processed in the same way in future operations and this data can be accessed by everyone. When the miners perform these operations, they are awarded some BTC. As the operations performed at the Blockchain increase, the block length increases, however, the difficulties of mining gradually increase. As the maximum number of BTCs is getting close, the BTC award per block decreases. All these rules can be followed through the software network Blockchain where the transactions are made.
In order to do BTC mining, you must first have an internet connection and the appropriate equipment. Bitcoin mining works on creating and validating encrypted blocks of generated blocks. These blocks include the financial transactions made within the Bitcoin system as mentioned before. Bitcoin mining is currently performed through ASIC devices.
The most basic requirement of BTC mining is that it first has the appropriate internet infrastructure.
There are multiple ways to do Bitcoin mining;
Bitcoin (BTC) Mining with Hardware
Bitcoin (BTC) Mining with Cloud Mining
Bitcoin Mining with CPU
Mining with Hardware
Bitcoin mining with hardware is currently the most profitable and maintains the ecosystem. Between 2010 and 2013, ASIC machines are now being produced with computers. So what are we talking about ASIC devices and hardware? ASIC devices are application-specific integrated circuits. In its simplest terms, ASIC devices are designed for Bitcoin mining only. Therefore, ASIC devices used in BTC mining are more appealing and more productive than other production methods. With the increasing use of BTC, the size of the produced blocks has increased. The capacity of ASIC devices had to be high. Currently, the cost of an ASIC device, which you can earn 0.16 BTC, comes back in just over 12 months with an investment of $ 1000.
BTC Mining with Cloud Mining
Equipment and electricity costs are very high. Let’s say you have $ 100. Is it possible to do bitcoin mining with this money? The answer is yes. By registering to cloud-based web services with many devices, you can rent online device power and start production. You can produce BTC by investing in mining ponds established for this purpose.
Bitcoin Mining with Computer
Mining with computer (CPU) were the most preferred models between 2010 and 2013. Today, on the contrary, if you have a 320 GHz processor, the average annual BTC you can earn will not exceed 2 to 3 TL. Due to its low efficiency and high cost, computer mining is not used today.
Investment information, comments and recommendations contained herein are not included in the scope of investment advisory. Therefore, making an investment decision based solely on the information and comments contained herein may not produce results that are in line with your expectations.