Bitcoin Mining Guide for Dummies: Two Simple Steps
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Bitcoin mining was a very popular and common deal on the Internet a few years ago. It was obvious and reasonable. People observed how fast and high the price of cryptocurrency rose up from less than a single Dollar for a coin to more than a thousand US Dollars per Bitcoin. That boom attracted thousands of miners who started to mine the cryptocurrency in order to gain precious digital coins. The reward was 50 Bitcoins for a solved block therefore the value of success was $40,000, when the price of Bitcoin was about $800. Not surprisingly that attracted so many people into the industry.
Today, we are going to discuss the question on how to start a business if you have never heard about Bitcoin, mining and all that stuff before. In other words, this is a simple but rather full and complete guide for a beginner who would like to try his or her luck in the difficult and competitive world of Bitcoin mining. So, our Bitcoin Mining for Dummies lecture starts right here.
First of All, About Bitcoin
If you are new to this industry, you probably need to have a full explanation of what Bitcoin is and how it works. Well, in short, Bitcoin is a decentralized currency which does not have any running financial or government institutions like the US Dollar or Euro. The cryptocurrency is a special way to transfer or store your funds and money and is encrypted. This feature is the main advantage of the cryptocurrency. Bitcoin can not be forged like fiat money therefore all transactions are completely safe and secure. This advantage is a result of mining, exactly the business we are talking about. Miners around the world use their computing capacity to prove all transactions which are provided by the whole network. When you buy a cup of hot chocolate in a shop which accepts Bitcoin, your money translates from your online wallet through Bitcoin mining centers to a shop’s address. During this transfer, miners are solving difficult algorithms to understand whether your Bitcoins are real or not. When it is confirmed, your transaction gets into a blockchain and saves forever on the network. In this way, you can trace all purchases and transfers of any proper Bitcoins. It makes the whole system very reliable and popular for people as well.
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So, now we understand and know what Bitcoin and mining is, we are able to explain a few simple steps on how to start your own Bitcoin production. To begin you have to comply with two requirements. First, you have to download a particular software and second, you have to acquire the equipment for mining; in other words you need the proper hardware.
Download the Apps You Need
Software is the simplest and cheapest step here. We recommend that you download onlyof Bitcoin which is reliable and safe so you’ll not have any problems with your working computer. The official client is quite big therefore it’ll take a good period of time to download the whole package of files.This is the best solution for you if you’re just beginning. After you download and install, feel free to start Bitcoin mining even with your own computer. The process is quite simple so you probably won’t have any questions. The main obstacle here is to earn Bitcoins and if you have already completed the first step, you will definitely be asking why is there no reward and how long should my computer work. The answer can be found in the next section and that’s the second step.
Hardware is Hard
Hardware is the key point in the business so if your equipment is not fast and of a high-capacity, you will probably never see a single Bitcoin out of your working personal computer. That’s the bottom line. Hashrate or difficulty of the network today is significantly higher and moreover it is still growing. The more people try to earn from this type of business the more power and capacity they need to get their Bitcoins as a reward. They simply drive away or speed up the difficulty. People buy more and more efficient, productive and faster equipment and it leads to the speeding-up or acceleration.
To be on the front line you have to acquire the best and the latest equipment you can afford. Moreover, it’s also important to be on good terms with the producer in order to get your items shipped as soon as possible. If you receive your equipment after a month or later after production, it may simply be outdated by that time. Therefore these rigs, ASICs or whatever, will not recoup their cost over time. You probably do not want to sponsor the producers without any return so keep that in mind and think about fast delivery.
To choose the best equipment we’d like to recommend to you this to help understand the comparison between different hardware. Most of them are already outdated and are not shipped anymore but it is still helpful to understand how this market works and what you need to pay attention to.
After receiving good equipment you’re ready to start. In fact, even if you have a very fast and the latest equipment, it may still be not profitable. In order to gain more a reliable and stable profit, we recommend you find a Bitcoin mining pool for miners like you.
There you will be able to gain a little profit depending on your share of the hashrate in a pool but this profit will be constant and steady.
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