It is shared by the mining machine hosting network Xiaobian (58kuangji. com). One of the best and most legal ways to make money with Bitcoin is to mine Bitcoin. Bitcoin miners earn 12.5 bitcoins every block they complete. Of course, early adopters are the most prominent winners. Before June 2016, bitcoin mining completed a single piece to attract 25 bitcoins. Before 2012, miners earned 50 bitcoins. At present, it is a bit complicated to build a mining farm, but it is not impossible. What is a Bitcoin Mine? And what needs to be done to build a mine.

1、 What is a Bitcoin mining mine?

Mining is one of the two core components of Bitcoin blockchain protection. In short, it can be seen as the process of actually building a blockchain by discovering new blocks and adding them to previous blocks. Another component is a node that tracks all transaction history and verifies new transactions. Miners spend resources to create new blocks for the transactions to be put in, and are rewarded for their efforts in the newly minted Bitcoin.

The mining field is a room or warehouse dedicated to mining cryptocurrency. The mine can be your basement, with 2 ASIC machines; It can also be a large warehouse with dozens of GPUs and ASICs. The mining site contains large power supplies, huge fans for cooling equipment and not only miners to operate and maintain. To some extent, the mining site is like a small mining pool, and the miners basically live in a building.

Bitcoin mining is a simple concept. Without a good explanation, it seems very complex. In essence, mining is a process of verifying transactions in order to add them to a public ledger called blockchain. Transactions are added in blocks. To verify Bitcoin transactions, you only need a networked computer and install a software program connected to the blockchain.

Bitcoin mining is also the process of issuing new bitcoin into circulation. As mentioned above, 12.5 bitcoins will be released every time the miners complete a large transaction. One transaction block is equivalent to 1MB, with an average of 1400 transactions.

2、 How to build a Bitcoin mine?

Mining Bitcoin is not only valuable, but also rewarding for miners. If you add transaction costs, you can turn mining into a profession.

Basic tools for starting mining

1. Bitcoin wallet: wallet is a mobile application, hardware device or network application with password protection for storing Bitcoin.

2. A mining software program: BTC miners and CG miners are examples of software that support the ASIC you need.

3. Miners use their computing power to quickly complete a Bitcoin block. When they complete a Bitcoin block, they share the reward.

4. Mining machine: Now, professional miners use ASIC machines to mine. ASICs are powerful equipment specially designed for mining cryptocurrencies.

5. Computer with Internet access

6. Power: You need at least 1000 kilowatts of electricity a week to run a small mining site.

7. Cooling fan: The mining equipment will release a lot of heat. You need a good fan to keep the miner and your house cool.

Important terms in mining

1. Difficulty in mining

The reason why professional bitcoin miners no longer use CPU or GPU computers can be attributed to the difficulty of bitcoin mining. The blockchain has been developed to automatically adjust so that Bitcoin blocks can be completed in only 10 minutes. Therefore, the mathematical problems solved by CPU and GPU five years ago have been strengthened to the extent that only ASICs can handle them.

Application Specific Integrated Circuits (ASICs) contain much higher computing speeds than CPU computers. ASIC contains a special chip, which can solve the mathematical problem of verifying transactions with billions of hash rates per second. Some ASICs support a hash rate of trillions per second. With high speed, as long as the mining difficulty does not exceed their speed, they can be fairly ready to verify the transaction.

2. Power consumption

Bitcoin mining machines consume a lot of energy. A single ASIC machine costs a lot of electricity every month. A good machine should have high computing power and low energy consumption. If you build a mining site with several ASICs, you will spend a high proportion of electricity bills every month.

3. Value of Bitcoin

Like all cryptocurrencies, Bitcoin's value fluctuates. The current price of Bitcoin is much lower. Assume that prices may fall, which may have a negative impact on the profitability of your business.

conclusion

A simple mining site does not require a lot of capital to start. It is also feasible to run a farm in the basement with low-cost ASIC machines. However, mining is a rapidly changing industry. Bitcoin mining algorithms change almost every week. The price of the best ASIC is not low. Therefore, before you decide to start mining Bitcoin, you should have a detailed understanding.