What is Bitcoin Mining?

Bitcoin has attracted many people because of its unique features. The demand of Bitcoin is also increasing in the international market. Bitcoin mining is adding new transactions to the previous record. The record is in the form of public ledger. Blockchain technology is used for adding every block or transaction. Mining operates on proof-of-work concept. There are different levels of complexity involved thus making it hard for users to earn Bitcoins.

Advertisement Miners Garden

Mining is another way of earning bitcoin. Mining is a process by which a user not necessarily a developer or programmer can earn rewards for solving a mathematical equation. It basically verifies a transaction for Bitcoin earning a reward in return.

Bitcoin Mining

Mining requires specific hardware. Earlier it was possible on a normal CPU (Central processing unit) or GPU (Graphical Processing Unit). Nowadays platforms such as Bitcoin Ultra, CoinTerra etc. are a better option. A user also needs a wallet which is either online or offline. Wallet stores and protects the money. Some of the popular wallets are BitcoinQT and Armory.

A user can either mine alone where he does not have to share his reward with anyone or he can join a pool. In a miner pool, the user would get a chance to share the resources but will have to divide the reward equally. Earning Bitcoin in this competitive era is very difficult. Hence, the pooling is always a better option. There are softwares that are necessary for the mining process. Popular mining software is CG miner & BFG Miner available easily online.

Mining can also occur on cloud. In cloud mining, user doesn’t have to buy expensive hardware and can save much on electricity. Though it has various advantages, the biggest drawback is fraud. The verification of operations is quite difficult. The profit is less as compared to normal mining.

Show More

Qadir AK

Qadir Ak is the founder of Coinpedia. He has over a decade of experience writing about technology and has been covering the blockchain and cryptocurrency space since 2010. He has also interviewed a few prominent experts within the cryptocurrency space.

Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button