What is Mining Bitcoin?
Bitcoin mining is the process by which new blocks of bitcoins are generated and put into circulation, but it is also an important component in the maintenance and development of the blockchain ledger. It is done using highly sophisticated or dedicated computers that solve extremely complex computational mathematical problems with greater "ease".
Cryptocurrency mining is expensive, time-consuming, and only sporadically rewarding. Nonetheless, mining has magnetic appeal for many investors interested in cryptocurrencies due to the fact that miners are rewarded for their work with crypto tokens. This may seem far-fetched but entrepreneurs may have a different point of view, they see mining as pennies falling from the sky.
Before you venture into mining with your time and equipment, read this explanation to see if mining is really for you.
Is mining bitcoin worth it?
If you want to start mining in the first place, you have to own a mining rig. Although in the beginning of the Bitcoin history, miners used ordinary domestic computers, and later graphic cards, today you will not acquire any Bitcoin with these machines (or more precisely you may gain something, but it will be a really small amount in a very long period of time).
Nowadays, Bitcoins are mined by special hardware designated just for mining Bitcoins or other currencies based on the same algorithm. It is called ASIC (Application-Specific Integrated Circuit chips), uses less energy and mines Bitcoins much faster. This device is expensive and its manufacturing is time-consuming, however, its speed is astonishing. The most powerful machines manage to solve as many as 14 terahashes per second (which means it does 1012 attempts to solve a block per second) and its development goes ahead constantly.
In addition to taking into account the cost of the hardware and its performance before investing, it is also necessary to consider the electrical consumption of this same.
Hobby Bitcoin mining can still be fun and even profitable if you have cheap electricity and get the best and most efficient Bitcoin mining hardware.
Bitcoin mining is competitive. It’s not ideal for the average person to mine since China’s cheap electricity has allowed it to dominate the mining market.