There is one best way to make money with Bitcoin mining, and that is to mine them. For most readers, I doubt this is a viable option, so you can read this section if you have an interest in learning about mining, but feel free to skip ahead.
As I mentioned earlier, mining Bitcoin means that you are lending your computer power to verifying other user’s transactions, while searching for the solution to the mathematical problem. The miner that finds this solution first will publish the next block, and receive a 25BTC reward.
25BTC created approximately every 10 minutes is a lot of money, so it’s easy to understand why many people want to be Bitcoin miners. If You are looking for make money online checkout this guide.
Here’s the bad news: The train has already left the station when it comes to Bitcoin mining. It’s very unlikely that anyone who would start today and invest the significant resources of time, computing power, electricity, and money into running a mining rig will recoup that cost for a very, very long time – if ever.
If that’s true, then why are there so many miners out there? Because mining used to be very profitable. Previously, miners used the CPUs to run the program that mined coins. After awhile, someone realized that using a GPU (the graphics card), would actually solve the mathematical solution much more quickly. More people began running GPU rigs with multiple video cards. As more people entered the mining market, the chances of anyone getting the block reward dwindled.
Miners worked around this problem by joining mining pools. They contributed their computer power to the pool of miners, and in return if the next block was found by the pool, they divided the block reward amongst everyone participating. This worked well for awhile, although mining pools dealt with new problems such as storage space, and cooling their rigs down.
Then a new development in mining came along: Application Specific Integrated Circuits, or ASICs. These rigs were specifically designed to mine Bitcoin – and that is all they can do! Because they do nothing but mine Bitcoin, they don’t require nearly as much energy as a standard mining rig. A rig that uses little power and is orders of magnitude better than the previous technology was a significant step forward for miners, but it came with a price. These new machines are in high demand, and so they are expensive – very expensive. Finding a quality ASIC could easily cost thousands of dollars.
This creates a dilemma for anyone looking to enter into the mining market, because now there are so many other players and such advanced technology that the chances of you actually getting a block reward are very small unless you make a significant investment (both upfront and continuing). You would be far better off taking those thousands of dollars and simply buying the Bitcoin directly!
I don’t recommend readers attempt to mine Bitcoin. That is becoming a specialized service taken on by increasing larger players with access to infrastructure. Gone are the days where running the Bitcoin client on your laptop computer could easily bring in hundreds of Bitcoin.
As I mentioned earlier, mining Bitcoin means that you are lending your computer power to verifying other user’s transactions, while searching for the solution to the mathematical problem. The miner that finds this solution first will publish the next block, and receive a 25BTC reward.
25BTC created approximately every 10 minutes is a lot of money, so it’s easy to understand why many people want to be Bitcoin miners. If You are looking for make money online checkout this guide.
Here’s the bad news: The train has already left the station when it comes to Bitcoin mining. It’s very unlikely that anyone who would start today and invest the significant resources of time, computing power, electricity, and money into running a mining rig will recoup that cost for a very, very long time – if ever.
If that’s true, then why are there so many miners out there? Because mining used to be very profitable. Previously, miners used the CPUs to run the program that mined coins. After awhile, someone realized that using a GPU (the graphics card), would actually solve the mathematical solution much more quickly. More people began running GPU rigs with multiple video cards. As more people entered the mining market, the chances of anyone getting the block reward dwindled.
Miners worked around this problem by joining mining pools. They contributed their computer power to the pool of miners, and in return if the next block was found by the pool, they divided the block reward amongst everyone participating. This worked well for awhile, although mining pools dealt with new problems such as storage space, and cooling their rigs down.
Then a new development in mining came along: Application Specific Integrated Circuits, or ASICs. These rigs were specifically designed to mine Bitcoin – and that is all they can do! Because they do nothing but mine Bitcoin, they don’t require nearly as much energy as a standard mining rig. A rig that uses little power and is orders of magnitude better than the previous technology was a significant step forward for miners, but it came with a price. These new machines are in high demand, and so they are expensive – very expensive. Finding a quality ASIC could easily cost thousands of dollars.
This creates a dilemma for anyone looking to enter into the mining market, because now there are so many other players and such advanced technology that the chances of you actually getting a block reward are very small unless you make a significant investment (both upfront and continuing). You would be far better off taking those thousands of dollars and simply buying the Bitcoin directly!
I don’t recommend readers attempt to mine Bitcoin. That is becoming a specialized service taken on by increasing larger players with access to infrastructure. Gone are the days where running the Bitcoin client on your laptop computer could easily bring in hundreds of Bitcoin.
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