Bitcoin Mining Basics
Bitcoin mining is the process of obtaining bitcoin with a given hardware such that each generated ledger is gotten from a pool and submitted to a given network so that each proof of work is recorded. Since more than one individual mines in a given pool, it is necessary to pay each person according to the input/ effort in mining. Hence, each miner is rewarded shares which is equivalent the number of hash acquired and a function of the conditions of service. In general, various types of hardware will mine faster than others and are capable of hashing and submitting shares from a given pool to a network. The function of Bitcoin mining is to confirm each transactions on the network follow the laid down laws. To achieve this objectives, complex computer units are employed to verify the transactions and broadcast them to other computer systems. The miners using the given mining hardware systems are rewarded accordingly. i.e shares reward made by the given network. In other to curb cheating the network, a system known as “proof-of-work” is employed. Proof-of-work is required before any block of transactions is added to the blockchain. When the mining hardware are performing their proof-of-work, they guess/obtain a long string of numbers and letters. This string which consists of a hexa-decimal numbers is known as Hash. In other to make sure that blocks are found within every ten minutes, a difficulty target is employed. To create a valid block, a miner has to find a hash that is below the difficulty target. Bitcoin mining then secures transactions that are then recorded in Bitcoin's public ledger i.e the block chain.
Bitcoin Mining Hardware Types
Bitcoin Mining has evolved tremendously over the years. The quantity Bitcoin generated when Mining Bitcoin is a function of the Mining Hardware, rate of power consumption and the Bitcoin difficulty. The first type of bitcoin mining was the Central Processing Unit (CPU) MINING this was probably used by the legendary Satoshi Nakamoto to produce the first bitcoin on the blockchain. But as time passed, the total power on the network increased which in turn increased the level of difficulty in getting bitcoin. Thus it was necessary to get a better hardware which could mime faster, with relatively less power consumption. Thus the introduction of Graphics Processing Unit (GPU) mining. GPU manufacturers such as AMD, Radeon and Nvidia provide quality and efficient units for mining.
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Bitcoin Investments (Exchanger /Trade)
Bitcoins is mainly a good long term investments. In general, it is wise to buy bitcoin when the price is relatively low and sell after a considerably appreciation in price of bitcoin due to the fact that bitcoin price appreciates and depreciates within a short period of time, some investors may regard bitcoin investment as a ponzi scheme. Nevertheless, bitcoin virtual currency still remains the benchmark for all cryptocurrency and it would a good investment to simply buy or sell it. There are various legitimate exchangers where investors can buy or sell bitcoin with little or no risk of being scammed. This include:
Bitcoin Cloud Mining
To acquire a high efficient hardware and mining resource may be too expensive depending on individual taste, budgets and requirement. In this view, various mining farm establishments was formed with the sole aim of providing retail mining capacity hash power to end users. This is known as bitcoin cloud mining In Bitcoin cloud mining, Hash power is sold based on contract within a given duration. Users then mine the given cryptocurrency and any reward for mining is accredited to the user. The cloud mining farm is responsible for providing the power, maintenance and mining hardware. At the expiration of ths contract, the cloud mining farm keeps its hardware while the user who subscribes for the cloud mining keeps the generated coins
Some trusted (certified by bitcoinisok) and legitimate bitcoin cloud mining companies include: