What is Bitcoin mining? Explained Simply

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what is bitcoin mining

In digital currencies, an interesting hidden aspect is their mining process called mining. What is it? Who can become a crypto miner? Is it profitable? There are many questions about mining. That is why we will try to bring you closer to this topic.

What is Bitcoin mining actually doing?

The best way to start is to explain what mining Bitcoin means? In general, the number of Bitcoin coins is limited and will not exceed 21 million. In addition, just a few years ago these digital currencies did not have much value and it was quite easy to get it.

Now the situation has changed dramatically. BTC has significantly increased in value and its price is likely to continue to rise. More and more people treat virtual currencies as a way to make a serious investment. That is why they are starting to take an interest in mining. So what is the so-called “mining”? It can be described as sharing the computing power of a computer to solve predetermined cryptographic problems. This is a powerful job and not every computer is adapted to this process.

winning blocks cryptocurrency

Source: Investopedia
 

The process itself is based on programmed algorithms, without a central institution, which has a total sum and distributes coins according to undefined criteria. An interesting comparison to mining Bitcoin is the lottery. Mining Bitcoins consists in solving complicated and very complex mathematical puzzles. Nevertheless, it is a very energy-intensive and difficult process.

BTC mining excavators

One of the devices for extracting digital assets is a crypto excavator. It’s a type of machine that has specific computing power. Their main task is to solve complex mathematical puzzles – hash. Such action is required to confirm the transaction in a given network. It is known that by using the computing power of the machine, Bitcoin miners emit new units of digital currencies. A good example is the Bitcoin network, where each new, one block generates 12.5 BTC.

The whole procedure uses distributed computing, which can simultaneously use the power of several devices. The performance of excavators is measured in hashes per second. They are created on the basis of a set of graphics cards or can be dedicated devices that have specialized chips and can perform calculations on a given algorithm – ASICs.

Bitcoin mining on the phone

Can you mine BTC on the phone? Of course, because phones also have their own computing power. Therefore, mining crypto on a smartphone is possible. If you would like to try BTC mining on your phone, just download an application that will allow you to use the given power of the device for mining. Of course, this form of BTC mining is not very profitable because your phone does not have the power that cryptocurrency excavators have. However, you can see how this process works. A popular application for crypto mining, available on the android system is MinerGate.

An interesting fact is that Apple has issued a statement in which it informed that their brand’s phones should not be used to extract digital assets.

Crypto mining on a computer

You can also extract crypto, including BTC, on desktop computers. It is worth noting that the computing power of a computer is much higher than that available on phones. PCs have quite powerful processors and graphics cards, but they are still less powerful than crypto excavators. The most important thing in the computer’s digital currency mining is, of course, good parameters, nowadays most of such devices have them.

Crypto mining can be done through a browser. If we choose this option we do not have to invest in new, specialized equipment.
bitcoin mining

Source: Bitconist
 

Is BTC mining profitable?

When Bitcoin was created in the first few years, it was much easier to mine than it is now. In the beginning, it was enough to use an ordinary computer that had a pretty good graphics card. This made it possible to dig up several BTCs. Why was Bitcoin mining ever simpler and faster? Mainly because of the price of BTC, which was low then.

Currently, Bitcoin mining is not that easy and when you use an ordinary computer just it doesn’t pay off. Sometimes even using specialized cryptovalent excavators is not profitable because the price of electricity may be too high.

Can you earn money from crypto mining?

In fact, the most important thing in this process is our investment capacity. Own contribution is definitely the most important. If you use telephones or computers, you have to be aware that the output will simply be small, which will also result in low earnings.

Is it possible to earn money from mining with a cryptocurrency excavator? Here the most important thing is accurate analysis. You have to take into account the cost of the equipment and electricity itself and what value BTC has. If we take these 3 issues into account, we can make impact simulations.

Magdalena Aleksander

About The Author

Magdalena Aleksander
Junior Marketing Specialist

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