Mining is a way of investing in bitcoin and cryptos. It can be done from just about anywhere. In a garage, bedroom, basement or warehouse. All you need is suitable equipment, an electricity meter with a corresponding subscription and a stable internet connection.
Becoming a minor cannot be improvised overnight. To be competitive, it is necessary to invest in quality computer equipment, and above all to master your subject well. If the adventure of mining tempts you, we explain what options are available to you.
It is possible to buy and assemble your own Rigs equipment:
• The box ;
• Graphics cards;
• The all-in-one motherboard like the BTC 37 which has already integrated the CPU, 8 to 12 GPU PCIe slots;
• A 4GB RAM module;
• ATX, server or asic power supply;
You have to be well trained in assembling a Rigs, it's like a fixed computer.
The second option is to order a mining machine already ready to use like the asics, which are all-in-one machines or there is just a power supply by plugging in a power cable (the newer asics have the directly integrate power supply) you also need an RJ45 cable is of course to put your Wallet of the crypto currency that you mined.
Before buying a machine, it will be necessary to take into account 4 essential factors:
• The hashrate rate: the speed at which the machine performs its mining work designated in MH / GH / TH;
• His price ;
• Which cryptos currency it is possible to mine with Bitcoin, Ethereum, Dogecoin;
• Yield: ability of the machine to optimally transform energy into power to maximize profits, we talk about electrical efficiency on specific algorithms, in other words the price of your electricity (price €0.15/KVa on your subscribed energy contract) compared to what the machine brings in in crypto currency.
All about mining
Mining consists of securing the blockchain network you have chosen (Bitcoin, Ethereum,) in exchange for a reward. We are talking about mining, since the participants are “looking” in a way for Bitcoin, Ethereum, etc. and manage to acquire a few fragments provided they find the blocks (for Bitcoin it is every 10 minutes +/-) like the miners equipped with their pickaxes who find gold nuggets!
The work of minors
Cryptocurrency is mined using extremely powerful specialized computers, in order to process each of the transactions carried out on its network. How do they get there? In short, they must solve complex mathematical problems, inaccessible to a human brain. Solving these problems 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 shards of Bitcoins, Ethereum, etc. miners can hope for their work. It is the network algorithm that defines this transmission rate. It is impossible to modify it, nor can you 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 was on May 12, 2020, where the reward went from 12.50 BTC per block to 6.25 BTC per block.
Understand the Proof-of-Work mechanism
The process on which Bitcoin mining is based, the proof of work, contains several steps: each new block is created using the digital fingerprint - the hash - of the previous block, which validates the block in question. This method also provides proof to attest to the validity of the block concerned, and of its predecessor. To simplify, here are the steps for creating a block;
• A transaction takes place between two network users,
• This transaction is integrated in a block,
• Miners verify the validity of the transaction,
• Miners embed the most recent block header into the new block as “hash”,
• They seek and find the solution to the mathematical problem posed,
• A new block is then added to the blockchain before being broadcast on the entire network.