Bitcoin mining training + introduction of the best mining devices
Bitcoin mining fever is very hot these days. The emergence of the mining industry and its new form of revenue generation has made everyone eager to know how to do this activity. Follow the complete bitcoin mining tutorial.
What is Bitcoin Mining?
The first question for beginners is exactly what makes bitcoin mining profitable. To answer this question, it is better to first know bitcoin well and get acquainted with how it works.
But to put it simply, Bitcoin is a decentralized currency and network and does not belong to any particular country or company. Decentralization means that no one owns the Bitcoin network and no one can control it alone. Anyone anywhere in the world can become a part of it by connecting to the Bitcoin network.
In other words, Bitcoin is controlled by its users, not one or more specific individuals.
The reason why there is so much hope for the future of Bitcoin is that it is decentralized. The Bitcoin network depends only on its people and users for its activity, not anyone else.
Now that Bitcoin is a decentralized network, then when you send someone a bitcoin, who is helping to get your bitcoin transferred? Who approves or maintains bitcoin transactions? You guessed it: volunteers called “miners” or “miners”.
Of course, the miners do not do this with the pleasure of God. They provide their devices and hardware to the Bitcoin network, and the Bitcoin network rewards them in exchange for maintaining network security.
What exactly does Miner do?
Miners use their hardware to help keep the bitcoin network secure and to conduct bitcoin transactions. During mining operations, miners must compete in a complex process to solve mathematical equations, and as soon as a miner responds, bitcoins are generated and awarded as a reward. Solving mathematical equations requires the processing power provided by computer hardware. It should be noted that the security of Bitcoin is provided by the same processing power that miners provide to the network.
The bitcoin network and mining process are technically very complex, and what was said was just a simplified summary for the basics.
In addition to verifying transactions, miners allow bitcoin units to be generated in a unique way and according to a predetermined schedule. Unlike other currencies issued by banks, in Bitcoin everyone can participate in issuing money (bitcoin units).
Bitcoin mining requires powerful devices and electricity.
In order to maintain network stability and to ensure that not all bitcoin units are extracted quickly, there is a criterion in bitcoin called “extraction difficulty”. Bitcoin blockchain blocks are generated every ten minutes. If the processing power of bitcoin miners is too high, it means that miners may be able to generate blocks and extract bitcoins in less than ten minutes. For this reason, the extraction difficulty increases until it takes ten minutes to reach the solution of the equation. On the other hand, if the processing power of the miners is reduced, that is, the block build time may be less than ten minutes, so in these cases the difficulty is reduced to reach the same ten minutes again.
Bitcoin mining training + introduction of the best mining devices
Also, once every four years, during an event called “halving”, the amount of bitcoins produced suddenly halves, which increases the scarcity of bitcoins.
The number of bitcoins mined is limited to 21 million units, after which bitcoins will no longer be produced.
Currently, 12.5 bitcoins are produced every ten minutes, which will decrease to 6.25 after the next hawing in May 2020. So far, more than 18 million bitcoins have been mined. The extraction of all bitcoin units is expected to take until 2140.
For more information on this, you can refer to the article “How is the bitcoin mining process?” See.
Do not forget that you do not need to know the concepts of mining theory to start bitcoin mining, and the explanations given were more to help you understand mining.
Equipment required for extraction
To extract bitcoins, you need to provide a series of equipment. The type and number of mining equipment can vary depending on the size of the activity. For example, it is obvious that the equipment required for a large farm is different from the equipment required for a small farm. But as a general rule, to do bitcoin mining you definitely need the following:
- Special extraction machine or ASIC
- Bitcoin wallet
- Fixed Internet (ADSL or TD-LTE)
- Suitable electricity, cables and electrical equipment
- Ventilation equipment (fan)
Special extraction machine
In the early days and months of Bitcoin, mining was done mainly with CPUs, and ordinary home computers could also extract bitcoins. But with the expansion of the bitcoin network and the increase in the power of its miners, today the cost-effective extraction of bitcoins is only possible with special chips called ASICs. Extraction with ordinary computers or mobile phones is not profitable at all.
Bitcoin wallet
As a miner, you need a bitcoin wallet to receive and save your income. Wallet software is completely free and can be easily installed on your computer or mobile phone.
Internet
You also need internet for bitcoin mining. The speed and volume of the Internet is not very important, but its stability and disconnection are important. ADSL and TD-LTE internet services are suitable for this.
Suitable electricity and electrical equipment
The most important issue in bitcoin mining is electricity. Extraction devices consume a lot of power, and you must have the right electricity and electrical equipment to be able to operate both legally and safely.
Ventilation equipment
In addition to making a lot of noise, mining devices get very hot, and a solution must be found. It is very important to have cooling equipment to increase the life and efficiency of the device.
Preparation of bitcoin mining machine
To extract bitcoins economically, you need a specialized device known as ASIC.
Bitcoin mining devices, like mobile phones, come in a variety of designs and models. Each model may differ from the other in the following respects:
- Brand and model: The manufacturer of the device and its model. Example: Bitmain Antminer S9
- Processing power: The processing power of the extraction device, which is expressed in terms of output per second (TH / S). Example: 14TH / S – This means that this device has 14 power levels.
- Power consumption: The amount of electricity consumed by the device in watts. Like 1400W
Extraction machines are usually first pre-sold by the manufacturer at a lower price and then distributed in the market. In addition to the official sites of the manufacturers, bitcoin mining devices are also sold on various sites, including Amazon and eBay.
Tips for buying the right extraction machine
In general, the most important factors to consider when buying bitcoin mining devices are:
Device power
How many hashes per second does your bitcoin mining machine generate? More hash equals more power.
electricity consumption
The power consumption of a device is very important because it directly affects profitability. The lower the power consumption and the higher the power of the device, the higher the profitability of the device.
Price
This factor should also be considered in relation to your capital. Return on investment is directly related to the price of the device.
Do not supply the extraction machine only on the basis of price or power alone. The best ASIC device is the most efficient. The most efficient extraction machine is one that has more hash power and less power consumption, and generally has a faster payback time.
Also, some mining devices show high profitability but are of poor quality and have a short service life. Always try to get devices with reputable brands that are widely used and have passed the test.
Before buying an extraction machine, be sure to do thorough research and consult knowledgeable people. The Q&A section of the Digital Exchange site is a good place to ask questions about mining.
The best bitcoin mining machines
Like phone brands, extractor brands are different in terms of reputation and popularity. Currently, the top five manufacturers of miner devices are:
- Bitmain – Manufacturer of Antminer Devices
- Cannan – Manufacturer of Avalon Devices
- Innosilicon – Manufacturer of Terminator Devices
- MicroBT – Manufacturer of Whatsminer Devices
- Ebang – Manufacturer of Ebit devices
The table below shows the best bitcoin mining machines in 2020, some of which have not yet been released at the time of writing.
| electricity consumption | Perks | brand |
|---|---|---|
| 3250W | 110Th/s | Bitmain Antminer S19 Pro |
| 3250W | 95Th/s | Bitmain Antminer S19 |
| 3268W | 86Th/s | MicroBT Whatsminer M30S |
| 2920W | 73Th/s | Bitmain Antminer S17+ |
| 2094W | 53Th/s | Bitmain Antminer S17 Pro |
| 3220W | 70Th/s | MicroBT Whatsminer M31S |
| 3360W | 68Th/s | MicroBT Whatsminer M20S |
| 2800W | 60Th/s | StrongU STU-U8 Pro |
| 3360W | 56Th/s | MicroBT Whatsminer M21S |
| 2500W | 50Th/s | Ebang Ebit E12+ |
| 3250W | 50Th/s | Canaan AvalonMiner 1066 |
At the time of writing, many miners are still using older models, such as the Antminer S9j. Remember that the most important thing is profitability, device life and return on investment.
Can I mine other digital currencies with a bitcoin mining machine?
Most mining devices support a special cryptographic algorithm. The bitcoin extraction algorithm is SHA-256. So you can extract bitcoins, bitcoins, bitcoins, and a few other digital currencies that use this algorithm with mining devices that support the SHA-256 algorithm.
Calculate the profitability of bitcoin mining
To calculate the profitability of extracting bitcoins and other digital currencies, it is best to refer to a mining calculator. You can calculate your profit according to the power of your device, the amount of electricity consumed by the device and the electricity tariff from the calculator section of the digital site extraction site.
A miner’s income is directly tied to the return on investment. Return on investment is the amount of time that the money invested returns, and it is only after that that the name of the rest of the income can be called “profit”. Many factors, large and small, can be involved in the profitability of mining or, more precisely, in the return on investment, but in general, the following can be mentioned:
Extraction difficulty
As explained above, the difficulty of extracting is a parameter embedded in the bitcoin network so that bitcoin blocks are created every ten minutes, neither sooner nor later. In other words, in order for miners not to be able to produce new blocks and bitcoins at once with the high power of their hardware, the more the miners’ processing power increases, the more difficult it is to extract. So if the price of bitcoin is low, high mining difficulty can drastically reduce profitability. Increasing the difficulty of extraction means that in order to maintain your profitability, you need more processing power, to achieve which you must use more powerful extraction devices.
Electricity prices and costs
The power consumption of a device and the electricity consumption tariff greatly affect the profitability of mining. For this reason, you need to calculate the electricity costs well so that you can measure your return on investment. The high price of electricity, if combined with the difficulty of extraction and the low price of bitcoin, will cause irreparable damage to the miners.
Bitcoin price
The current price of bitcoin is another very important factor in mining profitability. For example, in 2018, when the price of bitcoin reached $ 3,200, many miners turned off their devices because the mining profit did not even cover the cost of electricity.
Start extraction by joining the extraction pool
After preparing the device and selecting the Bitcoin wallet, we reach the most important part of the training, which is joining the mining pool and starting work. To extract bitcoin or any other currency, you must join an extraction pool.
The extraction pool is a virtual place where the extractors gather their processing power and everyone tries to extract a block. In this method, each extractor benefits based on its processing power. It can be said that miners around the world give their hardware processing power to the mining pool, and the mining pool competes with other pools on behalf of all miners in finding the block equation.
With mining pools, miners will be able to generate more hashs by bringing together processing power. The extraction bonus will then be distributed among the pool members in proportion to the hash power provided to the pool in its device.
Without joining a mining pool, the chances of a mine being a block will be very small, and only large mining farms with tens of thousands of machines will operate independently. The most popular bitcoin mining pools and the share of each bitcoin network processing power can be seen in the image below:
To start mining, you must select one of the bitcoin mining pools and go to its official website to get the settings needed to set up your device.
Extract bitcoins without providing a device?
Theoretically, it is possible to extract bitcoins with a regular computer or laptop, but if you want to make money, forget about it. Bitcoin mining with ordinary computers has been unprofitable for years.
Another way to extract bitcoins without providing a mining device is cloud mining.
What is cloud mining?
Cloud mining or cloud mining refers to those services and companies that sell you their hardware processing power and do the work of extracting and maintaining equipment.
In fact, cloud mining means that without buying expensive hardware equipment, you can rent some kind of mining equipment to cloud mining companies or buy processing power from these companies. By doing this, all you need is a computer or mobile phone to access your account and see your profits.
Advantages of cloud mining:
- No need for places to extract
- No need for electricity
- No need for mining equipment
Disadvantages of cloud mining:
- Risk of fraud
- Opaque extraction
- Lower profits – Operators have to pay for themselves.
- Price fluctuations that may reduce profits or stop operations.
- Lack of control and flexibility
Some, but not all, cloud mining companies are either based on unhealthy business models or are just looking to empty your pockets. Unhealthy models mean that in the end you either lose your money or your profit will be less than when you invest directly in Bitcoin.
In cloud mining, due to the lack of high transparency, there is a high risk of fraud, which means that no extraction is done with your money, but only a small amount of bitcoin is slowly given to you.
Bitcoin mining training + introduction of the best mining devices
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