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Risks and Rewards of Bitcoin Mining

               Risks and Rewards of Bitcoin Mining Risks Possible risks of mining Bitcoins include: 1. Susceptible to high price volatility: This is one of the main risks of Bitcoin mining. The price of the cryptocurrency is not stable, and it usually tends to fluctuate very often. Its price depends on its demand and supply, and the demand keeps increasing daily when there are only 21 million Bitcoins available. 2. Competition with other cryptocurrencies such as Ethereum: Bitcoin’s current value caps at 12.5 BTC, with an average block time of 10 minutes. Ethereum’s block time, on the other hand, is 12 second. With a faster block time, Ethereum thus confirms its transactions much faster. Ethereum also has over 89 million coins currently unmined, unlike Bitcoin that has fewer. If Bitcoin reaches its threshold, more investors will move to Ethereum or other cryptocurrencies. 3. The “hard fork” issue: Due to B...
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How to Calculate Bitcoin Mining Profits

               How to Calculate Bitcoin Mining Profits To calculate your Bitcoin mining profits, you will need to find out your electricity rate. You can find this in your monthly electricity bill. Note that the future profitability of Bitcoin mining cannot be ascertained because of the ever-changing nature of the Difficulty modifier and the BTC price. Nonetheless, you can still determine your current mining profitability. To being with, you must select a suitable ASIC mining rig. It is advisable that you go for the AntMiner S7 from Bitmain. Compute its specs and cost, including other information such as power cost and pool fees. You can also use websites like CoinWarz.com which provides a good platform for calculating mining profitability. This site automatically enters the current BTC price, Difficulty and block reward information when performing mining profitability calculations. Remember to include your d...
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How to set up a Bitcoin mining operation

                      How to set up a Bitcoin mining operation Setting up a Bitcoin mining operation is quite a complex task and requires investing some time and effort on your part. You may choose to buy a cloud mining contract with Hashflare or Genesis Mining as an alternative, or you could purchase a mining rig. Once that’s done, choose a mining pool to join and make sure that your wallet is also linked and ready to run. If, however, your rig, FGPA or graphics card fails to run, try the following steps: Step 1: Download the full Bitcoin client. Depending on your download speed, this may take quite a few days. Step 2: Download some Bitcoin mining software – or the program that controls your mining hardware Step 3: Join a mining pool Regarding simplicity, Spondoolies tech is the most user-friendly miner you could begin with. Plug in the SP20 or SP10 into your router and follow the five sets ...
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Other Bitcoin Mining Options

                         Other Bitcoin Mining Options Cloud Mining Cloud mining provides the option for miners who want to earn Bitcoins without having to manage their own hardware. You simply pay a service provider to mine for you, and you get the rewards. It is a very useful alternative for those who aren’t technically minded. Also, if you live in an area where electricity cost is high, it is a good idea to outsource your mining to areas where electricity costs are cheaper. You use shared processing power run from remote data centers. All you need is a computer for communications, optional local Bitcoin wallets, etc. There are currently three types of cloud mining available, they are: 1. Hosted mining: where you lease a mining machine that is hosted by the provider. 2. Virtually hosted mining: where you create a virtual private server and install your own mining software. 3. Lea...
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Getting Started Mining

                                  Getting Started Mining To get started as a major Bitcoin miner, there are two specific things that you’ll need. Aside from having cheaper electricity, you will need access to the latest mining hardware. Since the second halving event that took place in early July 2016, the mining of Bitcoins has become even tougher, with the reward for successfully mining a block dropping from 25 Bitcoins down to 12.5. Also, with the Chinese taking the lead in the Bitcoin mining game, you’ll need to work with the best available miners to be able to compete. However, before we delve into the Bitcoin hardware you will need, you must first gain an understanding of a few technical terms. Hashrate As earlier explained, the hashrate refers to the measure of how many attempts at solving a Bitcoin block a miner tries per second. The more attempts, the more...
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Why Do People Mine Bitcoin?

                            Why Do People Mine Bitcoin? There are several reasons why people mine Bitcoin. Mining is the only way Bitcoin is produced. Also, unlike conventional currency which is based on gold and silver, Bitcoin is based on mathematics. People around the world use software programs that follow a mathematical formula to produce Bitcoins. The beauty of this is that the mathematical formula is freely available, so basically, anyone can check it. Also, the mining software is open source, so anyone can look it up to verify that the inputs correspond to the desired outputs. People want the freedom that the mining of Bitcoins provides, and the benefits that come with it. The reasons why they mine Bitcoins can be summarized by the characteristics of Bitcoin itself. These characteristics are practically absent or inconsistent in the conventional governmentbacked currencies ...
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What is Bitcoin Mining?

                             What is Bitcoin Mining? In traditional fiat currency systems, money is printed by the government and released into circulation whenever it is needed. Bitcoins, on the other hand, aren’t printed, rather they are mined. Computers around the world ‘mine’ for coins by competing with each other using software that solves mathematical problems. Bitcoin is mined by people, and increasingly, businesses using computing power in a distributed network. It can be transferred electronically and costs very little in transaction fees. The first groups of people to stake their claim in Bitcoin mining were cypherpunks, cryptographers, technically-minded libertarians and multi-talented hackers. Miners get rewarded in Bitcoins for each new block that they discover and for every transaction that gets finalized. Bitcoin mining usually involves two main aspects; these are: confirmin...
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