How to Mine Bitcoin – Is Mining Bitcoin Worth it in 2022？?
No matter how many times the base has been adjusted how deep is the price adjusted? The interest of investors has not disappeared from this asset with Bitcoin, as evidenced by the Bitcoin price that continues to hit new highs. If your friends are interested in mining Bitcoin but still don’t know how to mine Bitcoin How is it worth mining Bitcoin in 2022 besides mining Bitcoin, is there any other way that can help us make faster profits? This time we will invite you to discuss this matter.
- What is bitcoin mining?
When a transaction occurs on the Bitcoin network, it takes a huge amount of computing power to verify the transaction and create new blocks to store data on the network which is being processed from the computer of miners will play a part in this through an activity known as Bitcoin mining.
Bitcoin mining is an entry into the origin where Bitcoin was created with the creation of new blocks in the network. And unlike other ore mining, it is not physically mined. Rather, it uses a computer to decode mathematical equations to obtain them.
Computers used for mining Bitcoin are equipped with special programs that contain trial and error algorithms trial-and-Error Algorithm) to solve mathematical equations. It has the ability to compute more than a million times to solve a given code.
If you are successful in solving those equations you will receive a “Block Reward”, a new Bitcoin coin that has just been created with the addition of new blocks to the network. Which you can then store, transfer, or trade further.
Originally in 2009 mining cryptocurrency, 1 new block miners will receive 50 BTC as a reward of Bitcoin, but the payout per block is halving gradually every 4 years. Halfway through 2020, the reward for new blocks will be reduced to 6.25 BTC only and will continue to decline until the amount of Bitcoin in the system reaches the initial 21 million BTC limit. Compared to today, there are more than 19 million BTC in circulation in the system.
- How does Bitcoin mining work?
To make it easy to understand we will explain how Bitcoin mining works by giving an example. Suppose that Mr. A wants to buy things from Mr. B, causing Mr. A to transfer money to Mr. B in the amount of 2 Bitcoin. For understanding read below;
Mr. A Wallet announces payment of 2 Bitcoins to Mr. B’s Wallet (transactions) to all Full Node linked to Mr. A’s Wallet. Full Node is a special wallet that Sends and receives transactions that contain all the data of the blockchain.
2) Spread information
Full Node will verify Mr. A’s transaction with any other pending transactions. If Mr. A’s transaction does not conflict with other transactions, Full Node will distribute Mr. A’s transaction data through the Bitcoin network.
3) Miners work
The miner has all the data of the blockchain and checks the new transactions that have just been announced on the network. Miners will work to collect all valid and new transactions into the current block. Miners will compete for the correct answer of the current block. Where there will be only one winner this means that miners with high mining power have a better chance of finding the correct answer faster.
4) Verify Blockchain
After the miner has successfully solved the problem of the current block containing Mr. A’s transaction, it will announce the block to the network if most of the full node agrees with the block. The block will be added to the blockchain. The transaction status of Mr. A has been confirmed once.
How to mine Bitcoin?
Bitcoin mining investing is a competition. Whoever solves the mathematical equation first will be the winner. And get a share of the prize in BTC coins. Therefore, the equipment used to mine Bitcoin should be the least efficient. It has a high processing capacity.
In addition to processing capabilities, Electricity is another important factor in mining and since we have to use computers to mine almost all day. Using electricity cheaply can save mining costs. Whereas, for example, in Thailand, where electricity prices are not so cheap, Bitcoin mining has to calculate the cost here to assess whether mining is worth the cost of electricity or not. Electricity is the main cost of mining Bitcoin.
Weather for Bitcoin mining is another factor that can give Bitcoin mining an advantage. Winter countries are quite advantageous for this activity because the cold air can help reduce the heat of the equipment while mining as well and help keep the temperature of the computer too hot to deteriorate faster than usual. While hot countries may need to find equipment to reduce the temperature which will be another cost to bear. After considering the relevant factors already let’s take a look at some of the ways to mine Bitcoin.
1) Prepare the mining tools properly
The first thing to do before you start mining is to prepare your mining equipment. A few years ago, the digital trend was not as booming as it is today. Just having a powerful computer and graphics card is enough to mine massive amounts of Bitcoin. But for the present, Bitcoin mining may not be as rewarding as it has been since the share of mined coins will decrease over time as the mining competition becomes more intense to make Bitcoin mining more efficient and cost-effective. Miners need to find equipment that provides a very strong processing quality. In a way that is sufficient for mining competitions with other miners, which can often be followed by a price that can be up to tens of thousands of dollar. The device that satisfies this requirement and is well known in the industry is the ASIC, which is a processor that consumes less power. But it has the ability to mine more coins than a normal computer.