CryptoCoinsInfoClub.com

Mining Bitcoin

Everything You Need To Know About Bitcoin Mining

Everything You Need To Know About Bitcoin Mining

Where do bitcoins come from? With paper money, a government decides when to print and distribute money. Bitcoin doesn't have a central government. With Bitcoin, miners use special software to solve math problems and are issued a certain number of bitcoins in exchange. This provides a smart way to issue the currency and also creates an incentive for more people to mine. Bitcoin miners help keep the Bitcoin network secure by approving transactions. Mining is an important and integral part of Bitcoin that ensures fairness while keeping the Bitcoin network stable, safe and secure. Bitcoin mining is the process of adding transaction records to Bitcoin's public ledger of past transactions or blockchain. This ledger of past transactions is called the block chain as it is a chain of blocks. The block chain serves to confirm transactions to the rest of the network as having taken place. Bitcoin nodes use the block chain to distinguish legitimate Bitcoin transactions from attempts to re-spend coins that have already been spent elsewhere. Visualize and Download High-Resolution Infographic Bitcoin mining is intentionally designed to be resource-intensive and difficult so that the number of blocks found each day by miners remains steady. Individual blocks must contain a proof of work to be considered valid. This proof of work is verified by other Bitcoin nodes each time they receive a block. Bitcoin uses the hashcash proof-of-work function. The primary purpose of mining is to allow Bitcoin nodes to reach a secure, tamper-resistant consensus. Mining is also the mechanism used to introduce Bitcoins into the system: Miners are paid any transaction fees as well as a "subsidy" of newly created coins. This both serves the purpose of disseminating new coins in a decentralized manner as we Continue reading >>

Bad News For Bitcoin Miners: It's No Longer Profitable To Create The Cryptocurrency, By Some Estimates

Bad News For Bitcoin Miners: It's No Longer Profitable To Create The Cryptocurrency, By Some Estimates

Bitcoin has dropped to a point where it's not that profitable to produce, according to some estimates. "Bitcoin currently trades essentially at the break-even cost of mining a bitcoin, currently at $8,038 based on a mining model developed by our data science team," Fundstrat's Thomas Lee said in a report Thursday. Fundstrat's model incorporates three factors: the cost of equipment, electricity and other overhead such as maintaining cooling facilities. The cryptocurrency traded mildly lower, near $8,000, Thursday, according to CoinDesk's bitcoin price index, which tracks prices from four major global exchanges. Earlier, bitcoin hit a low of $7,676.52, its lowest since Feb. 8, according to CoinDesk data. Bitcoin is created through an energy-intensive "mining" process that uses high computing power to solve a complex mathematical equation, proving an anonymous miner used the process the network agreed upon to build the blockchain record of transactions. Miners then get bitcoin in reward for successfully completing the equation. If the cost to create bitcoin exceeds the reward, miners theoretically lose incentive. "In some cases the miners may simply turn off the machines until the price comes back a bit," said Shone Anstey, co-founder and president of Blockchain Intelligence Group. "It's got to be getting to the point that some of them may be losing money." Bitcoin mining today requires custom hardware that can cost several hundred to a few thousand dollars. And like much technology, more efficient equipment is always coming out. In fact, the need to regularly replace equipment accounts for more than half the cost of mining, according to Fundstrat's model, said Sam Doctor, head of quantitative data science. He assumes electricity costs of 6 cents per kilowatt hour and oth Continue reading >>

Bitcoin Mining Bitcoin.com

Bitcoin Mining Bitcoin.com

Bitcoin cloud mining can be a tricky thing to determine if its completely safe in the Bitcoin world, and if it is, will it be cost effective? The return on your investment can be longer than other alternatives such as buying and selling Bitcoin. This can be due to the fees involved, the time it takes to mine, the upfront costs and the value of Bitcoin during that time. The upside is that if the costs are reasonable, the cloud mining operation has good rewards and the price of Bitcoin rises, you will more than likely end up making a healthy return on your investment. Your first task is to find a reputable cloud mining provider. One of the best ways to make sure you have a reputable service is to look on industry news sites, forums, and reddit sub-forums to check out lists of cloud services and customer feedback on them. Continue Reading Bitcoin mining profitability is something that is always in flux. With Bitcoin having such a high difficulty and large total hashrate, at times profitability can come down to several things. The first set of data you will want to use for discovering if Bitcoin mining can be profitable for you or not is the following but not limited to: cost of Bitcoin ASIC miner(s), cost of electricity to power miner (how much you are charged per kwh), cost of equipment to run the miner(s), cost of PSU (power supply unit), cost of network gear, cost of internet access, costs of other supporting gear like shelving, racks, cables, etc., cost of building or data center if applicable. Continue Reading Bitcoin mining is competitive and the goal is that you want to solve or find a block before anyone elses miner does. Then you will get the block reward and transaction fees from the block. During the last several years we have seen an incredible amount of hashr Continue reading >>

China's 2nd Largest Bitcoin Mining Hardware Producer Plans To Launch $1 Bln Ipo In Hong Kong

China's 2nd Largest Bitcoin Mining Hardware Producer Plans To Launch $1 Bln Ipo In Hong Kong

China's 2nd Largest Bitcoin Mining Hardware Producer Plans To Launch $1 Bln IPO In Hong Kong Chinas second-largest BTC mining hardware maker plans to list a $1 bln IPO on the Hong Kong Stock Exchange, local media reports. Canaan Creative, Chinas second-largest Bitcoin (BTC) mining hardware manufacturer plans to seek an Initial Public Offering (IPO) on the Hong Kong Stock Exchange. The companys decision to conduct an IPO in Hong Kong, instead of in the US, was reported by South China Morning Post (SCMP) Wednesday, May 9. If successful, the company would reportedly be the first ever blockchain-related company to be listed on the citys markets, SCMP states further. Sources familiar with the matter, who asked to remain unidentified because Canaans listings plans have not yet been made public, told SCMP that the company is seeking to raise $1 bln for its IPO, and that it had previously been considering both Hong Kong and US markets. According to SCMP, in 2016, Canaan had sought to list an IPO on Chinas yuan-denominated A-share market, but the attempt fell through after regulators contested the deals proposed valuation. In 2017, the company again attempted a listing on Chinas New Third Board market, which again fell through, even though the market targets startups and is relatively less stringently regulated. Canaan Creative is based in the eastern Chinese city of Hangzhou, and the company released unaudited results in January that showed a 600-fold increase in its annual net income of 410 mln yuan ($64 mln) in 2017. SCMP states that the majority of Canaans clients come from China, a country that has long been a crypto mining superpower due to its cheap electricity supply. In 2017, China was reported to have filed the most patent filings for blockchain technology of any coun Continue reading >>

The Magic Of Mining - Bitcoin

The Magic Of Mining - Bitcoin

A HUGE aircraft hangar in Boden, in northern Sweden, big enough to hold a dozen helicopters, is now packed with computers45,000 of them, each with a whirring fan to stop it overheating. The machines (pictured) work ceaselessly, trying to solve fiendishly difficult mathematical puzzles. The solutions are, in themselves, unimportant. Yet by solving the puzzles, the computers earn their owners a reward in bitcoin, a digital crypto-currency. The machines in Boden are in competition with hundreds of thousands more worldwide. The first to solve a puzzle earns 25 bitcoins, currently worth $6,900. Since bitcoins invention in 2008 by a mysterious figure calling himself Satoshi Nakamoto, people have increasingly traded it for real money, albeit at a wildly varying price (see chart). Although there are only $3.8 billion-worth of them in circulationabout twice the value of Paraguayan guaranes in usebitcoins have three useful qualities in a currency: they are hard to earn, limited in supply and easy to verify. But stability is important too: just over a year ago a bitcoin was worth four times as many dollars as now. But then Mt Gox, the crypto-currencys biggest exchange, collapsed and the bitcoin bubble burst. Critics make comparisons with 17th-century tulip mania, and predict that bitcoin mania will fizzle out in similar fashion. On January 5th Bitstamp, another bitcoin exchange, halted operations and reported that 19,000 of the currency units had vanished in an apparent hacking attack. The price collapse and the exchanges woes do not tell the whole story, though: increasing numbers of businesses are accepting payment in bitcoin, including Time Inc and Microsoft; and whatever the fate of bitcoin, the technology may spawn a range of alternative crypto-currencies and provide the bas Continue reading >>

Bitcoin (btc) Mining Pool Minergate

Bitcoin (btc) Mining Pool Minergate

Username: either email address or userID.workerID format could be used. userID could be found in your profile settings workerID is to be set by yourself, could be omitted. Password: optional To join MinerGate BTC Mining Pool you need a username (either email address or userID.workerID) and password. To receive userID please pass a short registration or log in. Buy hashing power contracts through Nicehash and mine with us. If you need assistance in connecting your cloud-based ASIC machines, please reach our support at [email protected] MinerGate uses PPLNS reward method on Bitcoin mining pool. The confirmed pool fee is 1%. No additional fees are applied for withdrawals. The MinerGate team introduced a new solution the dynamic difficulty change an algorithm of the computational complexity adjustment to help get the maximum from your SHA-256 mining hardware. Account data and coins are well-secured with e-mail confirmation and two-factor authorization. Youll be the only person to have access to your mined Bitcoins. Pooled mining of Bitcoin requires a professional approach. The pools infrastructure is based on highly secured pool servers located in Europe, China and US, providing 24/7 availability and 99.9% working uptime. Were constantly looking for professional miners to join our pool. If you know someone who has large SHA-256 hashing power and eager to mine Bitcoin, we have an exclusive offer for both of you. Contact us via [email protected] Solo mining requires enormous hashrate to find a block Bitcoin solo-mining becomes more and more difficult, even if you have some rented hashrates or several ASICs working simultaneously. The reward is the highest among other cryptocurrencies, despite the high computational difficulty. So itll take almost a year with 1 PH/s Continue reading >>

Heres How Much It Costs To Mine A Single Bitcoin In Your Country

Heres How Much It Costs To Mine A Single Bitcoin In Your Country

Heres how much it costs to mine a single bitcoin in your country Looking to mine bitcoin on the cheap? Head to Venezuela So-called bitcoin mining is a hot topic of in the cryptocurrency world. Thats chiefly because of the rising electricity costs associated with creating new digital coins. Lately, miners have flocked to Iceland, known for its relatively moderate climate and the abundance of hydropower. In fact, bitcoin mining energy consumption is set to exceed private consumption, an energy expert told the BBC . And according to the Bitcoin Energy Consumption Index , global energy usage of all bitcoin mining already is equivalent to the power uptake of the country of Denmark, with a population of 5.7 million, and will eventually approach Bangladesh, a country of 163 million people. In search of cost savings, cryptocurrency miners traverse the globe to take advantage of cheaper energy. Those virtual miners perform a crucial function within the blockchain, or the decentralized ledger technology that underpins most cryptocurrencies, by solving complex problems to validate transactions on the network, In exchange for this function, which powers miners are rewarded with bitcoins. However, because bitcoins protocol operates on a proof-of-work basismeaning it requires an expenditure of computing powerboth the power and difficulty of problems increase as miners approach the maximum number of bitcoins meant to exist at 21 million. Currently, there are about 16.9 million bitcoins in existence. The mainstream attention around bitcoin as it hit a peak level at $20,000 last December has led to an outcropping of digital miners and mining operations. So, where is the cheapest place to mine bitcoin? According to research conducted by Elite Fixtures , the cost of mining a bitcoin vari Continue reading >>

This Is What Happens When Bitcoin Miners Take Over Your Town

This Is What Happens When Bitcoin Miners Take Over Your Town

The Friday Cover is POLITICO Magazine's email of the week's best, delivered to your inbox every Friday morning. By signing up you agree to receive email newsletters or alerts from POLITICO. You can unsubscribe at any time. Patrick Cavan Brown for Politico Magazine This Is What Happens When Bitcoin Miners Take Over Your Town Eastern Washington had cheap power and tons of space. Then the suitcases of cash started arriving. EAST WENATCHEE, WashingtonHands on the wheel, eyes squinting against the winter sun, Lauren Miehe eases his Land Rover down the main drag and tells me how he used to spot promising sites to build a bitcoin mine, back in 2013, when he was a freshly arrived techie from Seattle and had just discovered this sleepy rural community. The attraction then, as now, was the Columbia River, which we can glimpse a few blocks to our left. Bitcoin miningthe complex process in which computers solve a complicated math puzzle to win a stack of virtual currencyuses an inordinate amount of electricity, and thanks to five hydroelectric dams that straddle this stretch of the river, about three hours east of Seattle, miners could buy that power more cheaply here than anywhere else in the nation. Long before locals had even heard the words cryptocurrency or blockchain, Miehe and his peers realized that this semi-arid agricultural region known as the Mid-Columbia Basin was the best place to mine bitcoin in Americaand maybe the world. The trick, though, was finding a location where you could put all that cheap power to work. You needed an existing building, because in those days, when bitcoin was trading for just a few dollars, no one could afford to build something new. You needed space for a few hundred high-speed computer servers, and also for the heavy-duty cooling system t Continue reading >>

Cnbc Explains: How To Mine Bitcoins On Your Own

Cnbc Explains: How To Mine Bitcoins On Your Own

CNBC Explains: How to mine bitcoins on your own Bitcoins act like cash, but they are mined like gold. So how does someone get into the current bitcoin rush? If properly done and willing to take the investment risk, you could wind up with a few bitcoins of your ownwhich currently have an average weekly price of $945 on the largest bitcoin exchange. When the algorithm was created under the pseudonym Satoshi Nakamotowhich in Japanese is as common a name as Steve Smiththe individual(s) set a finite limit on the number of bitcoins that will ever exist: 21 million. Currently, more than 12 million are in circulation. That means that a little less than 9 million bitcoins are waiting to be discovered. Since 2009, the number of bitcoins mined has skyrocketed. That's the way the system was set upeasy to mine in the beginning, and harder as we approach that 21 millionth bitcoin. At the current rate of creation, the final bitcoin will be mined in the year 2140. There are three primary ways to obtain bitcoins: buying on an exchange, accepting them for goods and services, and mining new ones. "Mining" is lingo for the discovery of new bitcoinsjust like finding gold. In reality, it's simply the verification of bitcoin transactions. For example, Eric buys a TV from Nicole with a bitcoin. In order to make sure his bitcoin is a genuine bitcoin, miners begin to verify the transaction. It's not just one transaction individuals are trying to verify; it's many. All the transactions are gathered into boxes with a virtual padlock on themcalled "block chains." Miners run software to find the key that will open that padlock. Once their computer finds it, the box pops open and the transactions are verified. For finding that "needle in a haystack" key, the miner gets a reward of 25 newly generated Continue reading >>

Bitcoin Mining Definition | Investopedia

Bitcoin Mining Definition | Investopedia

Bitcoin mining is the process by which transactions are verified and added to the public ledger, known as the block chain, and also the means through which new bitcoin are released. Anyone with access to the internet and suitable hardware can participate in mining. The mining process involves compiling recent transactions into blocks and trying to solve a computationally difficult puzzle. The participant who first solves the puzzle gets to place the next block on the block chain and claim the rewards. The rewards, whichincentivize mining, are both the transaction fees associated with the transactions compiled in the block as well as newly released bitcoin. (Related: How Does Bitcoin Mining Work? ) The amount of new bitcoin released with each mined block is called the block reward. The block reward is halved every 210,000 blocks, or roughly every 4 years. The block reward started at 50 in 2009, is now 25 in 2014, and will continue to decrease. This diminishing block reward will result in a total release of bitcoin that approaches 21 million. How hard are the puzzles involved in mining? Well, that depends on how much effort is being put into mining across the network. The difficulty of the mining can be adjusted, and is adjusted by the protocol every 2016 blocks, or roughly every 2 weeks. The difficulty adjusts itself with the aim of keeping the rate of block discovery constant. Thus if more computational power is employed in mining, then the difficulty will adjust upwards to make mining harder. And if computational power is taken off of the network, the opposite happens. The difficulty adjusts downward to make mining easier. In the earliest days of Bitcoin, mining was done with CPUs from normal desktop computers. Graphics cards, or graphics processing units (GPUs), are Continue reading >>

Getting Started With Bitcoin Mining

Getting Started With Bitcoin Mining

You will learn (1) how bitcoin mining works, (2) how to start mining bitcoins, (3) what the best bitcoin mining software is, (4) what the best bitcoin mining hardware is, (5) where to find the best bitcoin mining pools and (6) how to optimize your bitcoin earnings. Bitcoin mining is difficult to do profitably but if you try then this Bitcoin miner is probably a good shot. Before you start mining Bitcoin, it's useful to understand what Bitcoin mining really means. Bitcoin mining is legal and is accomplished by running SHA256 double round hash verification processes in order to validate Bitcoin transactions and provide the requisite security for the public ledger of the Bitcoin network. The speed at which you mine Bitcoins is measured in hashes per second. The Bitcoin network compensates Bitcoin miners for their effort by releasing bitcoin to those who contribute the needed computational power. This comes in the form of both newly issued bitcoins and from the transaction fees included in the transactions validated when mining bitcoins. The more computing power you contribute then the greater your share of the reward. Step 1 - Get The Best Bitcoin Mining Hardware Purchasing Bitcoins - In some cases, you may need to purchase mining hardware with bitcoins. Today, you can purchase most hardware on Amazon . You also may want to check the bitcoin charts . To begin mining bitcoins , you'll need to acquire bitcoin mining hardware. In the early days of bitcoin, it was possible to mine with your computer CPU or high speed video processor card. Today that's no longer possible. Custom Bitcoin ASIC chips offer performance up to 100x the capability of older systems have come to dominate the Bitcoin mining industry. Bitcoin mining with anything less will consume more in electricity tha Continue reading >>

What Is Bitcoin Mining? Here's Everything You Need To Know | Digital Trends

What Is Bitcoin Mining? Here's Everything You Need To Know | Digital Trends

Even if you have gotten your head around what cryptocurrencies like Bitcoin actually are, youd be forgiven for wondering what Bitcoin mining is all about. Its far removed from the average Bitcoin owner these days, but that doesnt change how important it is. Its the process that helps the cryptocurrency function as intended and what continues to introduce new Bitcoins to digital wallets all over the world. So, what is Bitcoin mining? Its the process by which transactions conducted with Bitcoin are added to the public ledger. Its a method of interacting with the blockchain that Bitcoin is built upon and for those that take part in the computationally complicated activity, there are Bitcoin tokens to be earned. Want to learn all about altcoins like Litecoin , or Ethereum? We have guides for those too. Cryptocurrency mining in general, and specifically Bitcoin, can be a complicated topic. But it can be boiled down to a simple premise: Miners, as they are known, purchase powerful computing chips designed for the process and use them to run specifically crafted software day and night. That software forces the system to complete complicated calculations imagine them digging through layers of digital rock and if all goes to plan, the miners are rewarded some Bitcoin at the end of their toils. Mining is a risky process though. It not only takes heavy lifting from the mining chips themselves, but boatloads of electricity, powerful cooling, and a strong network connection. The reward at the end isnt even guaranteed, so it should never be entered into lightly. Bitcoin works differently from traditional currencies. Where dollars and pounds are handled by banks and financial institutions which collectively confirm when transactions occur, Bitcoin operates on the basis of a public le Continue reading >>

How To Get Started With Bitcoin Mining.

How To Get Started With Bitcoin Mining.

Before you read further, please understand that most bitcoin users don't mine! But if you do then this Bitcoin miner is probably the best deal. Bitcoin mining for profit is very competitive and volatility in the Bitcoin price makes it difficult to realize monetary gains without also speculating on the price. Mining makes sense if you plan to do it for fun, to learn or to support the security of Bitcoin and do not care if you make a profit. If you have access to large amounts of cheap electricity and the ability to manage a large installation and business, you can mine for a profit. If you want to get bitcoins based on a fixed amount of mining power, but you don't want to run the actual hardware yourself, you can purchase a mining contract. Another tool many people like to buy is a Bitcoin debit card which enables people to load a debit card with funds via bitcoins. Bitcoin mining is a lot like a giant lottery where you compete with your mining hardware with everyone on the network to earn bitcoins. Faster Bitcoin mining hardware is able to attempt more tries per second to win this lottery while the Bitcoin network itself adjusts roughly every two weeks to keep the rate of finding a winning block hash to every ten minutes. In the big picture, Bitcoin mining secures transactions that are recorded in Bitcon's public ledger, the block chain. By conducting a random lottery where electricity and specialized equipment are the price of admission, the cost to disrupt the Bitcoin network scales with the amount of hashing power that is being spent by all mining participants. During mining, your Bitcoin mining hardware runs a cryptographic hashing function (two rounds of SHA256) on what is called a block header . For each new hash that is tried, the mining software will use a diff Continue reading >>

How Does Bitcoin Mining Work?

How Does Bitcoin Mining Work?

By Euny Hong | Updated October 17, 2017 — 3:51 PM EDT Cryptocurrency mining is painstaking, expensive, and only sporadically rewarding. Nonetheless, mining has a magnetic draw for many investors interested in cryptocurrency. This may be because entrepreneurial types see mining as pennies from heaven, like California gold prospectors in 1848. And if you are technologically inclined, why not do it? Well, before you invest the time and equipment, read this explainer to see whether mining is really for you. We will focus primarily on Bitcoin. (Related: How Bitcoin Works  and our helpful infographic,  What is Bitcoin? ) By mining, you can earn cryptocurrency without having to put down money for it. That said, you certainly don't have to be a miner to own crypto.  You can also  buy crypto using fiat currency (USD, EUR, JPY, etc); you can trade it on an exchange like Bitstamp using other crypto (example: Using Ethereum or NEO to buy Bitcoin); you even can earn it by playing video games or by publishing blogposts on platforms that pay its users in crypto. An example of the latter is  Steemit , which is kind of like Medium except that users can reward bloggers by paying them in a proprietary cryptocurrency called Steem.  Steem can then be traded elsewhere for Bitcoin.  In addition to lining the pockets of miners, mining serves a second and vital purpose: It is the only way to release new cryptocurrency into circulation. In other words, miners are basically "minting" currency. For example, as of the time of writing this piece, there were about 16 million Bitcoin in circulation. Aside from the coins minted via the genesis block (the very first block created by Bitcoin founder Satoshi Nakamoto himself), every single one of those Bitcoin came into being because of min Continue reading >>

Many Bitcoin Miners Are At Risk Of Turning Unprofitable

Many Bitcoin Miners Are At Risk Of Turning Unprofitable

Even with the price back above $8,000, many of the so-called miners that perform the complex calculations to generate the digital currency are at risk of turning unprofitable. If prices drop below that threshold again for an extended period, there will likely be a swifter consolidation to industrial-scale mining. That could knock out the last guy-in-a-dorm-room operations and leave holders of the currency vulnerable to the dictates of the big miners. Its totally different this year than last year, Silicon Valley venture capitalist Bill Tai said in an interview. The bitcoin mining industry was this mysterious dark cottage industry, and its about to grow up and about to have elements of institutional scalability at all levels." Smaller miners will drop out, and only five to 10 of the largest will survive and be profitable, said Tai, who serves as chairman of Hut 8 Mining Corp. , the capital financing arm in North America for Amsterdam-based Bitfury Group Ltd., one of the biggest makers of crypto-mining equipment. When the price of Bitcoin approached $19,000 last year, Bitfury had to turn some customers away as $1.9 billion of orders streamed in, he said. More concentration could also hold a lot of sway over Bitcoins price. Miners hold between 20 percent and 30 percent of all Bitcoins, according to Lucas Nuzzi , a senior analyst at Digital Asset Research. Bitfury alone has mined more than 1 million Bitcoins, Tai said. The company has already sold coins to defray operating expenses. If miners are forced to sell more, that could depress Bitcoins price. With mining power -- so-called hashrate -- aggregated in fewer hands, that also increases the risk that a few miners could band together to execute a so-called 51-percent attack -- where they would control enough of the trans Continue reading >>

More in ethereum