Although bitcoin is becoming mainstream, people are still having a hard time understanding it. Because bitcoin is one of the complicated currencies around from its exchange to acquiring one. If you have been researching about the many ways to acquire bitcoin, surely bitcoin mining has crossed your radar over and over again.
What is bitcoin mining? Bitcoin mining is all about getting new bitcoins online. Bitcoin mining has three primary functions and that is the issuance of new bitcoins, confirming and security of bitcoin transactions. Miners use specialized mining computers to do so and in return will get new bitcoins for their services and hard work. At the receiving end of things are their investors like you who wants to earn bitcoin but doesn’t have the means to.
You need a bitcoin mining machine:
You can never mine bitcoin with the wrong tools. The prerequisite in mining bitcoin is with mining hardware like ASIC miner. These are specialized computers whose only purpose for existing is to mine precious bitcoins and nothing more. Although your gaming PC is pretty powerful and can mine bitcoins (technically), the earnings that you will have are very minimal versus using mining hardware.
Have a bitcoin mining software:
One of the things that you will need as well before you can operate is a bitcoin mining software. Bitcoin mining software works on three things:
- It connects you to a mining pool
- For monitoring
- Where you can enter your payout information
Use a mining pool:
One of the reasons why you get very small payouts with mining is because you never used a mining pool. What is a mining pool? A mining pool is all about sharing hash rates within the pool. Once the pool that you entered finds a block, you will get a payout based on your contribution.
If you think that learning about bitcoins and how it works on the sidelines and back end is a bit complicated, wait till you delve into bitcoin mining (if that is what you’re interested in). If that is the case, there are things that you need to know in order to put up one, and that is by having a bitcoin mining machine, a bitcoin mining software and a mining pool.