When you hear the word mining, you may think of something far different than what Bitcoin mining is. Perhaps your mind heads in the direction of Minecraft, or to a man swinging a pickaxe in older times. However, neither of those things even directly relate to the mining of Bitcoin.
Peoples initial understanding of Bitcoin mining may be heavily skewed considering that it is nothing like people think it is. So, unlike mineable material such as gold, coal, or jewels, Bitcoin can’t be mined by digging up the ground with a pickaxe. In fact, it is purely digital, but that doesn’t mean that it is easy.
When you mine Bitcoins, you must use a mining rig which is composed of intelligent mining hardware and software. When miners (who are very skilled mathematicians) mine Bitcoin, they are compensated for their time and efforts which Bitcoins which seems only fair to me. It can seem fairly overcomplicated, but this comprehensive guide will give you an in-depth and informative look into Free Bitcoin mining.
So, let’s get into it!
What is Bitcoin mining?
To understand even the basics of Bitcoin mining, you must also have a good understanding of blockchain technology. Blockchain is a specific type of intelligent technology that is used for cryptocurrencies such as Litecoin, Bitcoin, Ethereum, and more. It basically exists to ensure every single transaction is legitimate and safe.
It records every single transaction into a database, copies the database, and sends copies to all computers, nodes, or in its network. All of these things and others combined make sure that every single transaction is safe, secure, and validated. It also means that no middleman is required to verify transactions which means that financial institutions, such as banks, are no required in this process.
While Bitcoin is seeing a huge rise, mining for Bitcoin definitely has its downsides, and one, in particular, is causing quite the fuss. It is beneficial to miners, consumers, and merchants; however, it can significantly harm the environment while digging occurs. This is because it heavily increases electricity usage.
If statistics would be more helpful, here is a big one for you. It is assumed that Bitcoin miners use more electricity than the entire country of Argentina every year, and if that doesn’t amaze you and slightly terrify you, nothing will.
How to mine it
The first step to start mining Bitcoin is to hire a cloud mining company and one of the most popular seems to be Genesis Mining. Because of the fact that they are based in Iceland, they use renewable energy sources such as geothermal energy, and hydropower to efficiently power their counterpart who solely rely on electricity. Their mining procedures are far more energy-efficient, cost-effective, and cleaner for the environment.
You then need to move to pick a mining package where you can quickly sign up for a free account. You can choose from a wide selection of different mining packages and the prices will depend on the Bitcoin market, the cost and difficulty to mine, and your preferred rate.
Once you’ve done that, your next step is to choose a mining pool. When you join a mining pool, you will be allowed to combine your rigs together and boost your output. You will be expected to split your block rewards with miners that are also in your pool, however, it will usually generate more block rewards this way.
The last step is to choose a good Bitcoin wallet. To be able to withdraw and store your bitcoins that have been mined for you, you will need a Bitcoin wallet. A Bitcoin wallet is yet another type of intelligent software that is the perfect place for you to store, receive, and send bitcoins.
Another big question on everyone’s mind is if Bitcoin mining is worth it or not. It is an awesome place to get started, however, it can definitely have its downsides. If you do it right, it can be amazing, but if you are to use the wrong software or pick the wrong hardware, it is not likely to work for you.
Even if it isn’t working for you just yet, you will be able to pay companies that will happily mine it for you.