When it comes to Bitcoin, there are two things that are important to understand – the Blockchain and mining. The Blockchain is a digital ledger that contains all Bitcoin transactions.
Mining is how new Bitcoins are created.
Miners are rewarded with Bitcoins for validating transactions and adding them to the Blockchain. Validation requires solving complex mathematical problems, and the more transactions there are, the more difficult the problems become.
The first thing that miners need is a strong computer system with a lot of processing power. They also need specialized software and access to the internet.
When a miner starts their computer, the software will connect to the internet and start downloading the Blockchain.
Once the Blockchain is downloaded, the software will start solving mathematical problems. The first miner to solve a problem will add a new block of transaction to the Blockchain and be rewarded with Bitcoins.
The process of mining can be expensive, and it requires a lot of energy. That’s why many miners join mining pools, which allow them to share resources and rewards.
Mining pools are run by companies that sell mining contracts. These companies own large warehouses full of computers that do nothing but mine Bitcoins.
When you buy a mining contract, you’re essentially renting one of these computers for a set period of time.
The biggest mining pool in the world is called F2Pool, which is based in China. Other popular pools include Antpool and Slushpool.
Is Bitcoin mining worth it? That depends on how much you’re willing to invest, and how lucky you are. If you have access to cheap electricity and a powerful computer, then it might be worth it for you. Otherwise, you’re better off just buying Bitcoins!.