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What is bitcoin mining
Bitcoin mining is the process of solving the very complex and computationally vigorous mathematical challenge proposed by the blockchain. In this case we will refer to the bitcoin blockchain. Mining is a term that was coined by early programmers and adopters of bitcoin. The process being a simple which involved using your computer to solve the math problems for a reward. The reward being bitcoin, which is released every 10 minutes when a block in the blockchain is solved and thus a new one is released.
As time goes on the math difficulty increases. It is now at a point where traditional computers cannot handle the complexity on their own. Because of this, mining pools have become a mainstream method of mining. By joining the combined computing power of thousands of computers / nodes to collectively solve the math challenges and earn BTC, the blockchain is maintained.
Cryptocurrencies like Bitcoin and Ethereum require enormous computing power now to generate the block reward by solving the mathematical challenges. Due to this there are now essentially three main ways to mine / earn cryptocurrencies for the moment. At the time of writing this, players like Ethereum are moving away from the mining and into Proof of Stake [PoS] instead.
- Mine using your own Computer
- Mine by joining a mining pool
- Mine by buying Cloud Mining Contracts
Mine using your own PC
There are many coins available to mine with your own computer. Many ICO’s that make it onto the market still use PoW [Proof of Work] algorithms on their blockchains which means you can use your computer to mine it and earn. Bitcoin started out as a very easy coin to accumulate using a basic computer.
Basic computer mining that is becoming popular is browser mining. Essentially this allows you to use your PC to mine in the backround while you work and do other stuff. Browser mining is getting more popular because of ‘ease of use’ .
You can either use a standard CPU based computer or a gaming computer. The graphic cards used in gaming are much more efficient at mining for cryptocurrencies as the processing speed of the graphics card allows for faster math solving. At this point of writing one of the most profitable coins being mined with either CPU’s or GPU’s is Monero. We anticipate that soon Monero will become to hard for standard computers and will move into strictly pool or cloud mining.
Mine by joining a mining pool
There are many pools are the world that offer people the ability to join their collecting computing power to solve the math challenges of several different coins. The most popular coin to mine at the moment is Ethereum by way of pool mining. Pool mining is easy and quick to set up. Guys like Minergate offer a very easy pool mining option for your computer to join and mine while you work and do other things.
Pool mining has 2 requirements that need to be fulfilled.
- You can only withdraw your mining balance when it has been confirmed at the minimum the pool allows. In the case of Monero, once you have achieved 0.005 XMR you can withdraw into your wallet.
- Pool Fees are added to all withdrawals. They do differ from pool to pool. Its best to do your homework before you link your computer.
Again, if hooking up your computer to a mining pool and letting it earn you crypto coins is what you want then use minergate.com. I have found them to be the easiest and simplest to use.
Mine by buying a Cloud Mining Contract
Cloud mining is becoming big business and getting lots of investment. The most popular cryptocurrency on cloud mining platforms is Bitcoin. This makes sense as Bitcoin is super hard so by purchasing cloud mining contracts to mine it means combining more power together than even pool mining allows.
Most cloud mining companies offer 2 year contracts for your money. They all vary in price and also vary in transaction fees. It is also worth noting that there are lots of scams online that have cost thousands of people money. When we investigated cloud mining services we could only give a thumbs up on just three.
Three recommended mining services
Of the three listed services I recommend CCG Mining. They are the only ones that offer ‘open-ended’ mining on Bitcoin. This means that they can keep mining on your behalf well past 2 years. This could mean a much higher ROI for your money.
Mining is still a profitable venture only if you have done your research on what the best coins are to be mined and if you have the appropriate computer / service provider. As we move forward into the developing world of cryptocurrencies we will begin to see a slowdown in PoW and an uptake in PoS instead. This helps ease volatility and makes the market more stable. The best advice we can offer is to stay tuned to our website as we explore and investigate cryptocurrencies and ICO’s so you can make better decisions.