Mining cryptocurrency

Mining is a way of invest in bitcoin and cryptos. It can be done from just about anywhere. In a garage, bedroom, cellar or warehouse. All you need is suitable equipment, an electricity meter with a corresponding subscription and a stable internet connection.

Becoming a minor doesn't happen overnight. To be competitive, it is necessary to invest in quality IT equipment, and above all to have a good command of your subject. If the mining adventure tempts you, we explain what options are available to you.

It is possible to purchase and assemble your own Rigs equipment:

·        The case;

·        Graphics cards;

·         The all-in-one motherboard like the BTC 37 which already has to integrate the CPU, 8 to 12 PCIe GPU slots;

·        A 4GB RAM stick;

·        ATX, server or asic power supply;

You must be well trained in assembling a Rig, it is like a desktop computer.

The second option consists of ordering a mining machine already ready to use like the ASICS, which are all-in-one machines where you just need to plug in a power cable (the most recent ASICS have the 'power supply directly integrated) you also need an RJ45 cable and of course put your Wallet of the cryptocurrency that you mined.

Before buying a machine, 4 essential factors will need to be taken into account:

·        Hashrate rate: the speed at which the machine carries out its mining work designated in MH / GH / TH;

·        Its price ;

·        Quelle cryptos currency that can be mined with Bitcoin, Ethereum, Dogecoin;

·        Performance : capacity of the machine to optimally transform energy into power to maximize profits we speak of electrical efficiency on specific algorithms in other words the price of your electricity (price 0.15€/KVa on your contract energy subscribed) compared to what the machine brings in cryptocurrency.

Everything about mining

Mining consists of securing the blockchain network that you have chosen (Bitcoin, Ethereum,) in exchange for 'an award. We talk about mining, since the participants are in some way “looking for” Bitcoin, Ethereum, etc. and manage to acquire a few fragments provided they find the blocks (for Bitcoin it's every 10 minutes +/-) like miners equipped with their pickaxes who find gold nuggets!

The work of minors

Cryptocurrencies are mined using extremely powerful specialized computers, with the aim of processing each transaction carried out on his network. How do they achieve this? In short, they must solve complex mathematical problems, inaccessible to a human brain. Resolving these issues allows the creation of new transaction blocks within the blockchain. For a block to be secure, you must find a key that will “seal” the block and create a new one. The network user who manages to find this key will be rewarded.

This process is called “proof of work”, or proof of work for Anglophobes. The euro and the dollar are traditional currencies created in central banks, while Bitcoin rewards the work of miners who participate in the security and proper functioning of its blockchain.

The emission rate determines how many fragments of Bitcoins, Ethereum, … etc. miners can hope for their work. It is the network algorithm that defines this emission rate. It is impossible to modify it, nor can we create bitcoins, Ethereum, etc. without proof of work.

Bitcoin has a limited number of tones, set at 21 million. This figure will be reached by 2140, but to delay the end of Bitcoin's creation, its issuance to miners is halved approximately every four years. We then speak of Bitcoin halving, or division of the mining premium. The latest one took place on May 12, 2020, where the reward increased from 12.50 BTC per block to 6.25 BTC per block.

Understanding the Proof-of-Work mechanism

The process on which Bitcoin mining is based, the proof of work, contains several stages: each new block is created using the digital fingerprint - the hash - of the previous block, which allows the block in question to be validated. This process also provides proof to certify the validity of the block concerned, and its predecessor. To summarize, here are the steps for creating a block;

• A transaction takes place between two network users,

• This transaction is embedded in a block,

• Miners check validity of the transaction,

• Minors integrate the header from the most recent block to the new block like “hash”,

• They search and find the solution of the mathematical problem posed,

• A new block is then added to the blockchain before being broadcast throughout the network.