Everyone is talking about Bitcoin now, the cryptocurrency born as a virtual currency to pay for digital services anonymously and securely, which has now become an incredible investment opportunity for everyone, experts and amateurs, who have been making profits for months thanks to the unstoppable rise in value of this coin. While the discourse on investing in Bitcoin is linked to concepts of economics, much more interesting from a technological point of view, for those who want to deepen, it is a research on how to create Bitcoins, on how to generate them from scratch. The surprising fact of Bitcoin, in fact, is that there is no central bank of issue and that money can be created in a technological way, using a computer.
It is not a fake news, in fact it is absolutely true that it is enough to use a computer to earn money while staying comfortably at home leaving the PC to work until the money comes out, especially considering that at the moment a bitcoin is worth more than 13000 Euro.
Because then we are not all rich "> bitcoin mining", it is a rather demanding technological activity.
Trying to be as simple and clear as possible, after having understood, more or less, what bitcoins and cryptocurrencies are, we find out how to mine Bitcoins .
Although the concept is quite simple, the practice of bitcoin mining requires a lot of work and an initial investment in hardware equipment which must then be updated regularly according to the conditions of the bitcoin market. Bitcoin mining is the process of authenticating and legitimizing bitcoin monetary transactions, to be understood a bit like the job of the cashier in the bank.
Whenever a new transaction is generated, it must be added to the last blockchain that records every bitcoin exchange.
Transactions are recorded in files called " blocks " which are then sent to the miners. Blocks are like the pages of the stock transaction register or of an accounting book (which is the blockchain), organized in a linear sequence over time (also known as a block chain or blockchain ). New transactions are constantly processed by miners in new blocks that are added to the end of the chain and can never be changed or removed once accepted by the network.
READ ALSO: Meaning of Blockchain, what it is and what it is used for
Miners use their specialized hardware and data keys called " nonces " to encrypt the block of transaction data in a " hash ", an identification sequence that also includes all the block's data. This hash is then added to the block by authenticating it, so that it can be officially added to the blockchain. Miners are paid when they complete a block, but the work rate can vary based on the number of people around the world making bitcoin transactions. At the moment the pay rate is around 12.5 bitcoins for each hash successfully implemented, this value will be halved in 2020 and every 4 years).
As can be seen from this brief introduction, the creation of Bitcoin requires a good experience in the technological world, especially when it comes to hardware and encryption.
Therefore, not only initial investments, but also the knowledge of the English language and a high-level IT technical background is required to create Bitcoin, an activity that can only be successful if prepared in detail.
Do not forget, then, the consumption of electricity that requires a computer always on at maximum power.
On Amazon you can search and buy computers dedicated to mining, while those with more technical skills can also do it alone.
Even if nothing prevents you from trying (to learn at least), the computer to be used to mine Bitcoin should not be what we use every day at home, because we need a much more powerful machine, dedicated and always turned on at its maximum capacity.
Saving money on hardware equipment is a losing strategy, because in the world the creation of Bitcoin is like a world competition and those who work with a computer not up to par will not see a penny even after years of work.
There are many resources that you need to consult before buying hardware that can undermine Bitcoin.
On the 99bitcoins website there is a calculator that can tell us how much money a miner can make.
In this site, however, there are all the tips to create the best possible hardware to generate Bitcoin
There are many alternatives between Bitcoin Wallets, both online and software and it would be better to learn how they work before i
Some of the best are Steem an online wallet and Breadwallet or other wallets are recommended on the Bitcoin.org website.
As a program for mining we can download GUIMiner for Windows, quite intuitive, or even Easyminer, CGMiner or MacMiner for Mac.
To avoid scams, it is important to find reliable pools that are large enough to receive more frequent payments.
Some popular and trusted pool names Slushpool, Bitminer and Kano.
In this guide, for reasons of space and also of competence, explanations on how to use mining software, on how to register for a wallet, on how to register for a pool and above all on how to receive rewards are missing. Those who after this reading still think they can earn with the creation of BitCoin and have not been discouraged by the required requirements, can therefore start to really study the subject starting from some reference sites such as:
- Bitcoin.it in Italian and then, to learn more and understand better, the Bitcoin.it version in English.
- Bitcoinmining.com to know everything about how to mine.
- blochchain.info
It is not a fake news, in fact it is absolutely true that it is enough to use a computer to earn money while staying comfortably at home leaving the PC to work until the money comes out, especially considering that at the moment a bitcoin is worth more than 13000 Euro.
Because then we are not all rich "> bitcoin mining", it is a rather demanding technological activity.
Trying to be as simple and clear as possible, after having understood, more or less, what bitcoins and cryptocurrencies are, we find out how to mine Bitcoins .
1) Step one: understand the amount of effort required
As mining is perhaps the most tiring job there is, even mining bitcoins is certainly not an activity that everyone can do.Although the concept is quite simple, the practice of bitcoin mining requires a lot of work and an initial investment in hardware equipment which must then be updated regularly according to the conditions of the bitcoin market. Bitcoin mining is the process of authenticating and legitimizing bitcoin monetary transactions, to be understood a bit like the job of the cashier in the bank.
Whenever a new transaction is generated, it must be added to the last blockchain that records every bitcoin exchange.
Transactions are recorded in files called " blocks " which are then sent to the miners. Blocks are like the pages of the stock transaction register or of an accounting book (which is the blockchain), organized in a linear sequence over time (also known as a block chain or blockchain ). New transactions are constantly processed by miners in new blocks that are added to the end of the chain and can never be changed or removed once accepted by the network.
READ ALSO: Meaning of Blockchain, what it is and what it is used for
Miners use their specialized hardware and data keys called " nonces " to encrypt the block of transaction data in a " hash ", an identification sequence that also includes all the block's data. This hash is then added to the block by authenticating it, so that it can be officially added to the blockchain. Miners are paid when they complete a block, but the work rate can vary based on the number of people around the world making bitcoin transactions. At the moment the pay rate is around 12.5 bitcoins for each hash successfully implemented, this value will be halved in 2020 and every 4 years).
As can be seen from this brief introduction, the creation of Bitcoin requires a good experience in the technological world, especially when it comes to hardware and encryption.
Therefore, not only initial investments, but also the knowledge of the English language and a high-level IT technical background is required to create Bitcoin, an activity that can only be successful if prepared in detail.
Do not forget, then, the consumption of electricity that requires a computer always on at maximum power.
2) Step two: Choose your hardware
The heart of the activity of generating Bitcoin is the bitcoin miner or the mining rig, or the computer that manages all the work of mining money.On Amazon you can search and buy computers dedicated to mining, while those with more technical skills can also do it alone.
Even if nothing prevents you from trying (to learn at least), the computer to be used to mine Bitcoin should not be what we use every day at home, because we need a much more powerful machine, dedicated and always turned on at its maximum capacity.
Saving money on hardware equipment is a losing strategy, because in the world the creation of Bitcoin is like a world competition and those who work with a computer not up to par will not see a penny even after years of work.
There are many resources that you need to consult before buying hardware that can undermine Bitcoin.
On the 99bitcoins website there is a calculator that can tell us how much money a miner can make.
In this site, however, there are all the tips to create the best possible hardware to generate Bitcoin
Step three: choose the Wallet
The Wallet is the program to be used to manage bitcoin transactions.There are many alternatives between Bitcoin Wallets, both online and software and it would be better to learn how they work before i
Some of the best are Steem an online wallet and Breadwallet or other wallets are recommended on the Bitcoin.org website.
Step four: download the mining software
While the Wallet is needed to manage Bitcoin transactions and wallets, mining software is what it takes to mine and create money.As a program for mining we can download GUIMiner for Windows, quite intuitive, or even Easyminer, CGMiner or MacMiner for Mac.
Step five: Join a mining pool
At this point, in theory, we should be ready to create Bitcoin, but with a single computer this can become impossible or too laborious and slow. Thus, mining pools were born, that is, organized groups of people who share hardware resources and also rewards.To avoid scams, it is important to find reliable pools that are large enough to receive more frequent payments.
Some popular and trusted pool names Slushpool, Bitminer and Kano.
In this guide, for reasons of space and also of competence, explanations on how to use mining software, on how to register for a wallet, on how to register for a pool and above all on how to receive rewards are missing. Those who after this reading still think they can earn with the creation of BitCoin and have not been discouraged by the required requirements, can therefore start to really study the subject starting from some reference sites such as:
- Bitcoin.it in Italian and then, to learn more and understand better, the Bitcoin.it version in English.
- Bitcoinmining.com to know everything about how to mine.
- blochchain.info
