Bitcoin Mining on Pc how viable and profitable is it? What is bitcoin mining and is it possible to earn on it without investments? What program to install on your computer for mining bitcoin? How can a novice miner choose the right equipment?
Miners mine coal, miners mine gold, miners mine cryptocurrency. Nobody prints or mint digital money. They are blocks of information protected by cryptographic code. To calculate one such unit, considerable computer power is needed. It is just them that miners provide, for which they receive a reward in the form of crypto coins.
We will tell you what bitcoin mining is in modern conditions, why BTC solo mining is already unprofitable, and how cloud mining differs from traditional mining.
We read the full article – in the final you will learn how to choose equipment for professional bitcoin mining, and which cloud mining sites are on the rise.
1. Bitcoin mining – make money at home
Today, investments in digital money are still super-profitable – over time, they become even more profitable than before. True, getting them is becoming increasingly difficult.
But let’s define the terminology.
Bitcoin mining (from the English mining – mining) is an activity that supports the operation of the blockchain system. This is voluntary work, without which the existence of the Bitcoin network is unthinkable.
Mining performs two main tasks:
- money supply production – more precisely, digital blocks that form the basis of bitcoin;
- ensuring system health – checking transaction scripts and confirming their authenticity.
Miners receive a mandatory reward for their actions. The amount of bitcoins currently in circulation is equivalent to the amount of rewards for creating new blockchains. In other words, cryptocurrency mining is the only way to produce it and put it into circulation.
The reward for creating blocks is a variable:
- in 2009 it was 50 BTC ;
- after 210,000 blocks (in 2012), the award fell to 25 ;
- in the summer of 2016, after another 210 thousand blocks, the fee of miners dropped to 12.5 bitcoins.
However, if you consider that during this time the cost of BTK has grown thousands of times, miners are unlikely to remain on the loser.
I will try to explain the essence of mining as accessible as possible.
There are a lot of participants on the Bitcoin network. But the miners are not all of them – only those who are ready to collect new transactions on their PCs, confirm their authenticity, mine new blocks from them and put them in a single registry for all users.
To become a miner, your desire is not enough: if everything was so simple, blocks would be generated in hundreds per second. But the value of cryptocurrency is precisely that getting it is not so simple.
There are several reasons for this:
- creating a blockchain is a computationally complex task requiring high production capacities;
- the entire bitcoin network takes about 10 minutes to calculate one block, while the time does not depend on the number of miners and computers;
- Today, mining a cryptocurrency in a artisanal way is no longer profitable – the power of a separate PC is not enough for calculations.
At the dawn of the cryptocurrency era, the strength of an ordinary home computer or even a laptop was enough for the extraction of bitcoins. Golden was the time for miners.
Amateur mining ceased to be profitable immediately after specific devices for mining bitcoins appeared on the market – namely, equipment from the ASIC manufacturer .
So mining has become a real profession, requiring not only appropriate training, but also investment in expensive equipment. The more productive the iron, the greater the miner ’s hash rate (power units). Mining farms are computer centers dedicated exclusively to cryptocurrency mining.
But even wealthy single miners have a hard time competing with Chinese cryptocurrency mining clusters based on power plants. These are no longer even farms, but entire mining enterprises with full-time employees and managers.
To streamline their activities and eliminate the factor of randomness in the development of bitcoins, single miners are combined into pools – communities engaged in joint mining of cryptocurrency.
2. Why Bitcoin needs miners – 4 main reasons
Experts estimate that right now miners around the world spend as much energy a year on computing as a small Central Asian republic consumes over the same period of time. Development of mining models based on solar energy is already underway.
This is because it is impossible to stop mining in any way – there are more and more bitcoins and other cryptocurrencies, and it is impossible to get digital money in another way.
We will talk in detail about the reasons why mining will always be relevant.
Reason 1. Transaction Confirmation
Any transaction between participants in the Bitcoin network must be confirmed before entering into the block.
When a miner accepts a transaction and wraps it in a block, coins become available for further use .
Reason 2. Protecting the network from false information
If a hypothetical attacker tries to feed a fake transaction to the system, his attempt will be automatically blocked at the stage of blockchain formation.
It will be even more difficult to slip a whole fake block into the system. To add a new block to the blockchain, you need to have a cryptographic signature formed on the basis of the old one.
If you do not have such a signature, then you will have to calculate it yourself – which means that you will need to repeat the entire series of calculations until the very first blockchain link created in 2009 by Satoshi Nakamoto .
It will be incredibly time-consuming and absurd work – to recount the entire algorithm in order to create one false block. It’s better to spend such power on legal mining.
Reason 3. Protecting the Bitcoin network from various types of attacks
Miners with their cryptographic encryption algorithms automatically protect the network from any hacker attacks. The system will become vulnerable only if attackers gain control of 51% of all the computing capabilities of the network. This theoretical situation is called among the miners Attack 51 .
But even having achieved such total control, hackers can only freeze bitcoin transactions and perform manipulations with their own wallet. It will not bring any special wealth to anyone.
Reason 4. Support for decentralization of the Bitcoin network
The main feature of any cryptocurrency is decentralization. Operations with digital money are not controlled or regulated by anyone, except for the system itself and miners scattered around the world.
Even turning off most of the computers involved in the calculations will not stop the transaction. At the same time, pools and data centers are distributed throughout the planet – from Greenland to New Zealand.
3. How to mine bitcoins – step by step instructions
Once upon a time, 4-8 core processors were enough for BTC mining, then there was a need for video cards. Farms, consisting of 4-10 video cards, were useful in terms of decentralization, but nowadays they are becoming more impractical, like the whole solo mining.
The real mining sector is specialized ASIC chips created exclusively for mining, more productive and economical than any modern graphics card. But even chips require tremendous computing power and tremendous energy costs.
If you want to do mining, calculate for yourself in advance whether the game is worth the candle. The number of computing power and participants is growing, and the reward is unchanged.
Is it worth it to invest in equipment and wait for a payback of a year or more? Perhaps you should consider alternative cryptocurrency mining options?
Many of BTK’s modern miners are switching to cloud mining – the extraction of digital currency using leased rather than their own equipment.
But here there is another problem: a huge number of such projects are not representatives of pools or mining farms, but intermediaries or “investment funds” with a limited lifetime.
On the one hand, the more capacities you buy, the more income you will receive. On the other hand, there is no guarantee that your chosen site will be a professional and honest resource.
A universal instruction will prevent the mistakes of novice miners.
Step 1. Choose a service for mining and register
So, mining on video cards is gradually becoming a thing of the past. Other types of mining crypto money require the participation of intermediary services – cloud mining sites, professional miner communities.
In any case, you will need to choose a service that will provide you with programs, equipment, access to facilities. The success of the future enterprise is ultimately reduced to the right choice of site for mining.
The selection criteria are universal:
- project lifetime;
- adequate feedback;
- commission for withdrawing bitcoins;
- participation in the project of famous bitcoin pools;
- organization status;
- feedback on the project in professional forums.
You should not attach special importance to bonuses and other freebies: too generous offers to beginners are a reason to beware. This is a sign of an investment fund, not a community of miners.
Step 2. Choose a pool
What are pools, I explained above. Already, bitcoins are no longer being mined. When choosing a pool, be guided by the size of commissions, the complexity of mining programs (how much they weigh and how they work), and the method of calculating remuneration.
Some cloud mining sites do not provide their members with the right to choose, but work with several specific pools. The miner can either agree to the terms of the intermediary, or look for another service.
Step 3. Decide on the program for mining.
Searching for a program yourself is also far from always necessary, since cloud mining sites themselves provide users with up-to-date software.
Experienced miners are advised to install an additional system monitoring program – it will monitor the state of the processor, monitoring its performance.
There are a lot of mining programs: the most popular CCMiner, CGMiner, 50Miner, DiabloMiner . Some are designed to work with video cards, others are modified for ASIC chips.
Step 4. Configure and run the program
Professional services provide users with detailed instructions for setting up and running the software. If the program does not work as it should, do not try to fix the errors yourself – it is better to contact professional consultants immediately.
Step 5. Get bitcoins and print them.
Miners earn bitcoins automatically. Computers work around the clock, and cryptocurrency is credited to the account at a speed corresponding to the number of hashrates purchased or equipment power.
A serious question is the transfer of BTK into real (so-called “fiat”) money. For these purposes, use cryptocurrency exchangers . There are hundreds of them on the Internet – not all are reliable and quickly work. How to choose a proven and profitable resource?
BestChange – the best in Runet monitoring exchangers. The site itself finds the most favorable quotes at the moment for the currency pair you are interested in. Along the way, indicates the cryptocurrency reserves at the cash registers of exchangers and provides the services of a calculator.
In total, the monitoring monitors the performance of 300 exchange points – unreliable, doubtful and blocked resources are not included in the rating.
Comparison of cloud and traditional mining:
|No.||Comparison options||Cloud mining||Farm creation|
|one||Expenses||Minimum (for the purchase of a hashrate)||High – purchase of equipment, preferably new|
|2||Payback||From a few days||6-12 months|
|3||Income||Medium||High if the farm has good performance|
4. Where to mine bitcoins – an overview of the TOP-3 cloud mining services
The promised review of cloud service sites.
These sites have been paying and working on the network for quite some time.
A cloud mining site with support for the Russian language with instant connection, no less prompt withdrawal of funds, detailed statistics about the operation of the account, available to the user at any time.
Operational technical support, the ability to distribute power across different pools, no hidden fees. The minimum withdrawal to the wallet is 0,0004 BTC . In addition to bitcoin, mining of other popular cryptocurrencies is available – ether, ZCASH, DASH.
In the TOP of the leaders of the international mining industry. Service for experienced users and professional miners. Only works with bitcoin. It offers many ways to replenish the balance for the purchase of capacities, including Visa and MasterCard bank cards.
Regular withdrawal of payments, round-the-clock technical support. The only negative is that there is no Russian-language version. If you do not know English, do not rely on intuition – use an online translator.
3) Genesis mining
The oldest cloud mining site. Based in Iceland, it provides users with the power to mine bitcoin online.
No problems with calculating remuneration and withdrawing money. Over a million participants, flattering reviews in international forums.
5. How to choose equipment for mining bitcoins – useful tips and tricks
Who should live well in Russia? Sorry: who is now profitable to engage in classic mining?
For those who have unlimited access to electricity and hardware, this includes students, schoolchildren, employees of computer centers who use not their own, but “host” computing resources. Inveterate players with powerful equipment, organizations associated with cryptocurrency.
For ordinary users, useful tips will help increase the efficiency of mining.
Tip 1. Consider the amount of internal memory
This is necessary for the correct operation of the programs. Experienced people advise having a memory capacity of at least 3 GB, so that everything loads quickly and starts without hesitation. Ideally, a computer should be used only for mining, and not for entertainment.
Tip 2. Pay attention to the size of RAM
RAM is also an important point. For mining, you need this indicator to be at least 4 GB.
Tip 3. Buy equipment only with a warranty.
Experts unanimously do not advise buying mining equipment from hand. Only new and with a mandatory guarantee. If the processors and cards do not provide the declared capacity or fail, you can at least restore the equipment.
Tip 4. Choose equipment with a good cooling system.
Did you know that professional miners work exclusively in swimming trunks?
And not because bitcoin farms are based in Thailand. Even in Siberia it will be unbearably hot (both for you and the gland) if you do not set up the cooling system properly. This is one of those articles on which categorically it is not recommended to save.
Classic bitcoin mining on video cards is gradually becoming a thing of the past, but other types of cryptocurrency mining are still relevant. The least expensive form of earning on bitcoins is cloud mining (rental of capacities from a pool or intermediaries).
Question to readers
What do you think about doing with bitcoins after mining – spend it or keep it in your wallet in the hope of an even more intensive increase in value?
We wish you a safe and productive mining! Thanks in advance for your comments and feedback. If you liked the article, share the link with your friends on social networks. See you soon!