Currently, Bitcoin coins are pretty popular in the e-commerce market. Many investors make huge profits by investing in Bitcoin. Instead of buying coins at a high cost, you can also manually mine them using computer algorithms. So exactly What is coin mining? How to mine coins at home to bring the highest efficiency?
What is Coin Mining?
Mining Coins, Coin plow, also known as Bitcoin mining, describes the fast processing and confirmation of payments on the bitcoin network. Mining Coins is like digging for gold, but we don't have to use a pickaxe, but we dig them out with computer algorithms.
Thus, it can be said that bitcoin mining uses computers to detect BTC. To be able to mine Coins requires intelligence, experience, time, and, importantly, perseverance.
Bitcoin mining is done by an application installed on the computer so anyone can participate in the bitcoin mining system.
For example: On Bitcoin's blockchain system, miners will confirm transaction information sent and received between users, including BTC quantity, time of sending and receiving, arrival address, outgoing address, … As soon as the confirmation is complete, this information will be included in a block. By mining these coins, new coins are created and added to the circulating supply of that coin. The most popular and earliest mined cryptocurrency is Bitcoin.
Why is it called bitcoin mining?
It is called coin mining because this is the process to help you exploit the new Bitcoin system. Instead, the mining part is only part of the transaction confirmation process.
The main goal of mining is to maintain the decentralized ledger based on a form of decryption. Due to the law of probability, it is improbable that the same miner will yield a higher success rate.
How to participate in bitcoin mining
Anyone can participate in Bitcoin transactions, aka Blockchain. Investors need to guess a random number to solve the equation generated by the system. You do it right on your computer, so the more robust the computer, the higher the chances of winning.
If you guess correctly, you will earn bitcoins and continue writing about Bitcoin transactions on the Blockchain.
How does bitcoin mining work?
After mining, You will be paid their service reward, a new bitcoin every 10 minutes.
Many Bitcoin transactions are happening at the same time. These transactions are then included in the block. Once a block is verified, it is added to a previously confirmed chain of blocks, called the Blockchain.
How does bitcoin mining work?
When your mining computer gives the correct solution to a problem, your computer determines which pending transactions should be added to the next block of commerce on the Blockchain.
You will then temporarily be the owner of that bitcoin. The transaction block you created is sent to the entire network so other computers can validate it. Each computer that validates your solution updates its copy of the Bitcoin transaction ledger with the transactions you have chosen to include in the block.
All transactions in the Blockchain you just entered are now confirmed by the Bitcoin network and are virtually irreversible. In addition, you are paid any transaction fees attached to the transactions you inserted in the next block.
Of course, Bitcoin mining is not simple. Satoshi Nakamoto – The inventor of Bitcoin built the mining rules so that the more the network mines, the higher the difficulty increases, the more complicated the mining becomes.
The difficulty of the mining process is to self-regulate according to the accumulated mining power that the network possesses. When more miners are involved, it becomes more challenging to solve the problem. So how to adjust the difficulty?
We need to manually adjust the difficulty to create a steady stream of new Bitcoins into the system. That is, miners with more powerful hardware will win the computational settlement.
You can adjust the difficulty as follows: Mining difficulty is set to medium. A new block will be added every 10 minutes. Every 2016 block is generated (about 14 days) the difficulty is automatically fine-tuned by the network based on the capacity of the entire network. If less than 10 minutes, it will increase in difficulty. For more than 10 minutes, it will lower the difficulty. Also, keep the interval between newly generated blocks to 10 minutes.
What does Bitcoin mining cost include?
Bitcoin includes the following costs:
- Computer hardware cost: Bitcoin mining hardware will be over 12 million VND (about 600 USD). And it will be much more expensive if you want to buy better hardware.
- Electricity Consumption: Bitcoin mining uses a lot of electricity.
- Use space: Cool place, room temperature to keep the machine cool (use the air conditioner, exhaust fan, etc.)
- Take care of your system: you need to have the essential ability from Windows to install. To install software, know how to fix basic errors, and high-tech will need technical guidance.
Mining pool mining
Bitcoin is like a competition, you can get stuck at any time. That's why the Mining pool was born.
Instructions to mine bitcoins to make money at home
To follow these steps:
Step 1: Profit calculation
Before getting started with Bitcoin mining, you need to research or discuss its issues. You can learn from the community or learn from someone with experience.
Bitcoin mining is costly, you need to own a mining rig to succeed.
Step 2: Popular Bitcoin Plows 2021
Bitmain Antminer S9;13.5 – 14 TH
Bitmain Antminer S9 is considered the best Bitcoin mining machine globally, developed by a Chinese company. The machine is designed to be simple to use very quickly, and the installation time only takes about a few minutes to complete.
- Hashrate: 13.5 TH/s – 14 TH/s
- Chip 16 nm: 189 x BM1387
- Power Consumption: 1323 W 7% W
- Efficiency: 0.098 J/GH 7%
- Operating Temperature: 0 degrees C to 40 degrees C
The Hashrate of this machine is 13-14 TH/s, almost three times that of the previous S7. The Bitmain Antminer S9 also consumes only 1,300 watts of power, significantly less than some of its ASICs, making it far more efficient than the competition's machines.
With a selling price of about $3,000, Antminer S9 can help users earn an expected profit of about 0.0009804 bitcoin/day.
Pangolin Miner M3X; 12 – 13 TH
The chips used to design the Pangolin Miner were much more significant than their contemporaries. While the S9 and others use 16nm ASIC chips, the M3X has 200 28nm chips. M3X is the most fuel-efficient bitcoin miner. However, computing power between 12 and 13.5 TH/s is also one of the most powerful miners. Pangolin Miner is also affordable ($60 – $95), but it is less of a choice because of the high cost of electricity.
Miner Bitmain Antminer T9; 11.5 – 12.5 TH
- Hashrate: 11.5 TH/s -12.5 TH/s
- Chip 16 nm: 171 x BM1387
- Power Consumption: 1450 W – 1576 W
- Performance: 0.126 J/GH
- Operating Temperature: 0 degrees Celsius to 40 degrees Celsius
MAntminer T9 is also a popular choice among bitcoin miners as it features a longer warranty (180 days vs. 90 days for S9). The T9 offers more excellent reliability and more stable investment, as well as a more affordable outlay. The selling price of Antminer T9 is about $230.
The hash rate is T9'saround 11.5 TH/s, with 1,450w power consumption.
Miner Antminer R4 – 8.6 TH
Antminer R4 – 8.6 TH is a popularly used bullion digger suitable for home mining.
- Hashrate: 8.6 TH/s
- Chip 16 nm: 126 x BM1387
- Power Consumption: 845 W
- Performance: 0.1 J/GH
- Operating temperature: 10 degrees Celsius to 40 degrees Celsius
- Weight: 9 kg
Avalonminer 741- 7.3 TH
Avalonminer 741miner is a specialized bitcoin created by the company Canaan.
- Hashrate: 7.3 TH/s
- Chip 16 nm: 88 x A3212
- Power Consumption: 1150 W
- Performance: 0.16 J/GigaHash
- Operating Temperature: -5 degrees Celsius to 40 degrees Celsius
- Weight: 4.3 kg
This machine uses a 16 nm chip and adds some important software compared to the old versions, the design details are greatly optimized. The Avalonminer 741 is an innovative machine designed with a rugged aluminum housing a custom heatsink with air-cooling technology.
Avalonminer 721 – 6 TH
Avalonminer 721 uses a 16 nm chip, which is more energy-efficient than the S7 series.
- Hashrate: 6 TH/s
- Chip 16 nm: 72 x A3212
- Power Consumption: 850 W – 1000 W
- Operating Temperature: -5 degrees Celsius to 40 degrees Celsius
- Weight: 4.3 kg
Bitmain Antminer S7 – 4.73 TH
- Hashrate: 4.73 TH / s 5%
- Chips: 162 x BM1385
- power consumption: 1293W 10%
- performance: 0:25 W / GH 10%
- operating Temperature: 7 ° C to 40 ° C
Advantages The point of the Antminer S7 is durability. So while less efficient and not as powerful as its newer versions, S9 and T9, the Antminer S7 is an alternative to today's top bitcoin miners.
In addition, because of the computing power of about 4.7 TH / sec and the power consumption of 1,300 W. The machine can operate at temperatures from 7 to 40 degrees Celsius, you can mine coins at home in a very easy way.
Step 3: Get a bitcoin wallet.
Immediately after successful bitcoin mining, Bitcoin will be saved to your wallet. You can keep it in your wallet and become a holder regardless of the bitcoin price.
Step 4: Possible Mining Poolmining pool
When you join a mining pool, each miner in the pool causes your pool to find the original solution and earn bitcoin rewards and transaction fees. Then the profit will be divided equally among everyone based on the contribution.
How to earn bitcoin without investing a lot of money?
Buying a Bitcoin mining rig is extremely expensive, you can also refer to some ways to earn bitcoins without investing a lot of money below.
Sell for bitcoin
You can sell things of value in exchange for bitcoins. Earn BTC on the Etsy site, or you can sign up to join one of the bitcoin payment providers like BitPay.
Earn bitcoins through free bitcoin mining sites
Currently, there are quite a few free bitcoin mining sites. You need to create a bitcoin wallet on blockchain.info, then visit free bitcoin mining websites and enter your wallet address to receive bitcoins. Then the amount of bitcoin you receive more or less depends on the website that gives you more or less and the reset time of each page.
Play games to earn bitcoin
You can play games to earn bitcoins on IOS and Android. You download these apps to your phone, then play games and earn bitcoins. However, this way only helps you to earn very little bitcoin.
Free coin mining is a routine and strenuous job that requires your patience. In short, if you want more, you have to invest in a professional bitcoin digger and learn more about how it works, or you can also buy bitcoins on reputable bitcoin exchanges in Vietnam and the world. Good luck!
What are the frequently asked questions about mining?
What is a block reward?
Block reward is block reward. With the Proof of Work mechanism, miners have to compete to be able to solve complex math problems to verify a block. The miner who solves it first will have the right to create a block and receive a reward for that block.
Is mining banned?
This answer depends on the country you live in. But currently, there is still no specific law on mining or Bitcoin mining in Vietnam, so it can be said that it is not banned.
However, this will also mean that if you are scammed in the process of investing or mining, the Vietnamese government will not guarantee or be responsible for you.
What methods do attackers often use to take advantage of users' computers to mine coins?
In the trend of cryptocurrencies being more and more accessible, hackers also create many fake websites, applications, and software. If you are new, it is straightforward to click on these links.
The evil hacker will then be able to obtain emails or personal information and then send emails containing malicious code. They hack into the CPU of the user's computer, click on email attachments, and mine Bitcoins from the infected computer, or worse, steal assets.
Therefore, if you receive any suspicious emails that should not be clicked on, promptly throw them in the trash.