{"id":1233,"date":"2019-09-30T22:29:56","date_gmt":"2019-09-30T22:29:56","guid":{"rendered":"http:\/\/167.71.175.137\/clue\/?p=1233"},"modified":"2022-06-29T09:38:36","modified_gmt":"2022-06-29T09:38:36","slug":"what-is-bitcoin-mining","status":"publish","type":"post","link":"https:\/\/coindataflow.com\/clue\/what-is-bitcoin-mining","title":{"rendered":"What Is Bitcoin Mining And How Does It Work &#8211; Full 2021 Guide"},"content":{"rendered":"\n<p>Many investors think about what is cryptocurrency mining and what is Bitcoin mining. If you want to know how these processes differ and whether it is beneficial for you, read our review to the end. We will talk in detail about Bitcoin mining for beginners. You will also learn how to start <a href=\"https:\/\/coindataflow.com\/en\/currency\/bitcoin\" class=\"rank-math-link\">Bitcoin<\/a> or another crypto mining.<\/p>\n\n\n\n<!--more-->\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_11 counter-hierarchy counter-decimal ez-toc-transparent\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\"><i class=\"ez-toc-glyphicon ez-toc-icon-toggle\"><\/i><\/a><\/span><\/div>\n<nav><ul class=\"ez-toc-list ez-toc-list-level-1\"><li class=\"ez-toc-page-1 ez-toc-heading-level-2\"><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/coindataflow.com\/clue\/what-is-bitcoin-mining#What-is-bitcoin-mining\" title=\"What is bitcoin mining?\">What is bitcoin mining?<\/a><\/li><li class=\"ez-toc-page-1 ez-toc-heading-level-2\"><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/coindataflow.com\/clue\/what-is-bitcoin-mining#How-much-a-miner-earns\" title=\"How much a miner earns\">How much a miner earns<\/a><\/li><li class=\"ez-toc-page-1 ez-toc-heading-level-2\"><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/coindataflow.com\/clue\/what-is-bitcoin-mining#What-Coin-Miners-Do\" title=\"What Coin Miners Do\">What Coin Miners Do<\/a><ul class=\"ez-toc-list-level-3\"><li class=\"ez-toc-heading-level-3\"><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/coindataflow.com\/clue\/what-is-bitcoin-mining#Mining-Is-Used-to-Issue-new-Bitcoins\" title=\"Mining Is Used to Issue new Bitcoins\">Mining Is Used to Issue new Bitcoins<\/a><\/li><li class=\"ez-toc-page-1 ez-toc-heading-level-3\"><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/coindataflow.com\/clue\/what-is-bitcoin-mining#Miners-Confirm-Transactions\" title=\"Miners Confirm Transactions\">Miners Confirm Transactions<\/a><\/li><li class=\"ez-toc-page-1 ez-toc-heading-level-3\"><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/coindataflow.com\/clue\/what-is-bitcoin-mining#Miners-secure-the-network\" title=\"Miners secure the network\">Miners secure the network<\/a><\/li><li class=\"ez-toc-page-1 ez-toc-heading-level-3\"><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/coindataflow.com\/clue\/what-is-bitcoin-mining#What-Is-a-64Digit-Hexadecimal-Number\" title=\"What Is a 64-Digit Hexadecimal Number?\">What Is a 64-Digit Hexadecimal Number?<\/a><\/li><\/ul><\/li><li class=\"ez-toc-page-1 ez-toc-heading-level-2\"><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/coindataflow.com\/clue\/what-is-bitcoin-mining#How-to-Mine-Bitcoins\" title=\"How to Mine Bitcoins\">How to Mine Bitcoins<\/a><ul class=\"ez-toc-list-level-3\"><li class=\"ez-toc-heading-level-3\"><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/coindataflow.com\/clue\/what-is-bitcoin-mining#Get-Bitcoin-Mining-Hardware\" title=\"Get Bitcoin Mining Hardware\">Get Bitcoin Mining Hardware<\/a><\/li><li class=\"ez-toc-page-1 ez-toc-heading-level-3\"><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/coindataflow.com\/clue\/what-is-bitcoin-mining#Select-a-mining-pool\" title=\"Select a mining pool\">Select a mining pool<\/a><\/li><li class=\"ez-toc-page-1 ez-toc-heading-level-3\"><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/coindataflow.com\/clue\/what-is-bitcoin-mining#Get-a-Bitcoin-wallet\" title=\"Get a Bitcoin wallet\">Get a Bitcoin wallet<\/a><\/li><li class=\"ez-toc-page-1 ez-toc-heading-level-3\"><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/coindataflow.com\/clue\/what-is-bitcoin-mining#Get-Bitcoin-Mining-Software\" title=\"Get Bitcoin Mining Software\">Get Bitcoin Mining Software<\/a><\/li><li class=\"ez-toc-page-1 ez-toc-heading-level-3\"><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/coindataflow.com\/clue\/what-is-bitcoin-mining#Is-Bitcoin-Mining-Legal-in-your-Country-Make-Sure!\" title=\"Is Bitcoin Mining Legal in your Country? Make Sure!\">Is Bitcoin Mining Legal in your Country? Make Sure!<\/a><\/li><li class=\"ez-toc-page-1 ez-toc-heading-level-3\"><a class=\"ez-toc-link ez-toc-heading-14\" href=\"https:\/\/coindataflow.com\/clue\/what-is-bitcoin-mining#Is-Bitcoin-Mining-Profitable-for-You\" title=\"Is Bitcoin Mining Profitable for You?\">Is Bitcoin Mining Profitable for You?<\/a><\/li><\/ul><\/li><li class=\"ez-toc-page-1 ez-toc-heading-level-2\"><a class=\"ez-toc-link ez-toc-heading-15\" href=\"https:\/\/coindataflow.com\/clue\/what-is-bitcoin-mining#Is-Bitcoin-Mining-a-Waste-of-Electricity\" title=\"Is Bitcoin Mining a Waste of Electricity?\">Is Bitcoin Mining a Waste of Electricity?<\/a><\/li><li class=\"ez-toc-page-1 ez-toc-heading-level-2\"><a class=\"ez-toc-link ez-toc-heading-16\" href=\"https:\/\/coindataflow.com\/clue\/what-is-bitcoin-mining#Mining-on-a-mobile-phone-%E2%80%93-Android-or-iOS\" title=\"Mining on a mobile phone &#8211; Android or iOS\">Mining on a mobile phone &#8211; Android or iOS<\/a><\/li><li class=\"ez-toc-page-1 ez-toc-heading-level-2\"><a class=\"ez-toc-link ez-toc-heading-17\" href=\"https:\/\/coindataflow.com\/clue\/what-is-bitcoin-mining#What-is-Proof-of-Work\" title=\"What is Proof of Work?\">What is Proof of Work?<\/a><\/li><li class=\"ez-toc-page-1 ez-toc-heading-level-2\"><a class=\"ez-toc-link ez-toc-heading-18\" href=\"https:\/\/coindataflow.com\/clue\/what-is-bitcoin-mining#Mining-Difficulty\" title=\"Mining Difficulty\">Mining Difficulty<\/a><ul class=\"ez-toc-list-level-3\"><li class=\"ez-toc-heading-level-3\"><a class=\"ez-toc-link ez-toc-heading-19\" href=\"https:\/\/coindataflow.com\/clue\/what-is-bitcoin-mining#How-Can-You-Compete-with-Millions-of-Miners\" title=\"How Can You Compete with Millions of Miners?\">How Can You Compete with Millions of Miners?<\/a><\/li><\/ul><\/li><li class=\"ez-toc-page-1 ez-toc-heading-level-2\"><a class=\"ez-toc-link ez-toc-heading-20\" href=\"https:\/\/coindataflow.com\/clue\/what-is-bitcoin-mining#How-Much-Does-it-Cost-to-Mine-1-Bitcoin\" title=\"How Much Does it Cost to Mine 1 Bitcoin?\">How Much Does it Cost to Mine 1 Bitcoin?<\/a><\/li><li class=\"ez-toc-page-1 ez-toc-heading-level-2\"><a class=\"ez-toc-link ez-toc-heading-21\" href=\"https:\/\/coindataflow.com\/clue\/what-is-bitcoin-mining#How-Many-Bitcoins-Can-You-Mine-in-a-Day\" title=\"How Many Bitcoins Can You Mine in a Day?\">How Many Bitcoins Can You Mine in a Day?<\/a><\/li><li class=\"ez-toc-page-1 ez-toc-heading-level-2\"><a class=\"ez-toc-link ez-toc-heading-22\" href=\"https:\/\/coindataflow.com\/clue\/what-is-bitcoin-mining#Block-reward-halving\" title=\"Block reward halving\">Block reward halving<\/a><\/li><li class=\"ez-toc-page-1 ez-toc-heading-level-2\"><a class=\"ez-toc-link ez-toc-heading-23\" href=\"https:\/\/coindataflow.com\/clue\/what-is-bitcoin-mining#Mining-centralization\" title=\"Mining centralization\">Mining centralization<\/a><\/li><li class=\"ez-toc-page-1 ez-toc-heading-level-2\"><a class=\"ez-toc-link ez-toc-heading-24\" href=\"https:\/\/coindataflow.com\/clue\/what-is-bitcoin-mining#Conclusion\" title=\"Conclusion\">Conclusion<\/a><\/li><\/ul><\/nav><\/div>\n\n\n\n\n<h2><span class=\"ez-toc-section\" id=\"What-is-bitcoin-mining\"><\/span><strong>What is bitcoin mining?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Bitcoin miners get coins without giving back money directly. The difficulty is that the mining of Bitcoins will still require investments from you. You need not cheap a mining rig. For the venture to be profitable, you need specialized equipment that uses a CPU. With the current competition, the cost of Bitcoin and the increasing complexity of the algorithm, PC and mobile apps will not lead you to the purpose. An even more advanced Bitcoin mining equipment operates based on an ASIC.<\/p>\n\n\n\n<figure class=\"wp-block-image\"><img width=\"1024\" height=\"646\" src=\"https:\/\/coindataflow.com\/clue\/wp-content\/uploads\/2019\/09\/Bitcoin-Difficulty-1024x646.png\" alt=\"Bitcoin Difficulty\" class=\"wp-image-1272\" srcset=\"https:\/\/coindataflow.com\/clue\/wp-content\/uploads\/2019\/09\/Bitcoin-Difficulty-1024x646.png 1024w, https:\/\/coindataflow.com\/clue\/wp-content\/uploads\/2019\/09\/Bitcoin-Difficulty-300x189.png 300w, https:\/\/coindataflow.com\/clue\/wp-content\/uploads\/2019\/09\/Bitcoin-Difficulty-768x484.png 768w, https:\/\/coindataflow.com\/clue\/wp-content\/uploads\/2019\/09\/Bitcoin-Difficulty.png 1129w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><figcaption>Bitcoin Difficulty<\/figcaption><\/figure>\n\n\n\n<p>The bitcoin mining process generates new blocks in the blockchain. The digital system should be faster than others to guess the 64-digit code from beeches and numbers, which is less than the previous one. Mining coins has two goals:<\/p>\n\n\n\n<ol><li>Authentication of committed transactions with the help of Bitcoin math algorithms.<\/li><li>Create an additional amount of cryptocurrency per turnover as a reward for Bitcoin miners.<\/li><\/ol>\n\n\n\n<h2><span class=\"ez-toc-section\" id=\"How-much-a-miner-earns\"><\/span><strong>How much a miner earns<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Bitcoin miners get a block reward. It means that the profit for the operation comes when the block is completed. Today payout per transaction is 12.5 coins. This indicator periodically decreases. Find out the exact data at bitcoinclock.com.<\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter is-resized\"><img src=\"https:\/\/coindataflow.com\/clue\/wp-content\/uploads\/2019\/09\/Bitcoin-Miner-Reward.png\" alt=\"Bitcoin Miner Reward\" class=\"wp-image-1274\" width=\"850\" height=\"529\" srcset=\"https:\/\/coindataflow.com\/clue\/wp-content\/uploads\/2019\/09\/Bitcoin-Miner-Reward.png 829w, https:\/\/coindataflow.com\/clue\/wp-content\/uploads\/2019\/09\/Bitcoin-Miner-Reward-300x187.png 300w, https:\/\/coindataflow.com\/clue\/wp-content\/uploads\/2019\/09\/Bitcoin-Miner-Reward-768x478.png 768w\" sizes=\"(max-width: 850px) 100vw, 850px\" \/><figcaption>Bitcoin Miner Reward<\/figcaption><\/figure><\/div>\n\n\n\n<p>To find out how much you earn in fiat currency, you need to multiply price the Bitcoin in 2019 by the cost of one block. This year, <a href=\"https:\/\/currencyprediction.co\/what-is-bitcoin\/\" target=\"_blank\" rel=\"noopener\">Bitcoin<\/a> is worth more than 10 thousand USD. But do not forget to deduct the expenses of hardware and electricity to get real profitability.<\/p>\n\n\n\n<figure class=\"wp-block-image is-resized\"><img src=\"https:\/\/coindataflow.com\/clue\/wp-content\/uploads\/2019\/09\/Global-Cryptocurrency-Mining-Sites-1024x507.png\" alt=\"Global Cryptocurrency Mining Sites\" class=\"wp-image-1303\" width=\"850\" height=\"421\" srcset=\"https:\/\/coindataflow.com\/clue\/wp-content\/uploads\/2019\/09\/Global-Cryptocurrency-Mining-Sites-1024x507.png 1024w, https:\/\/coindataflow.com\/clue\/wp-content\/uploads\/2019\/09\/Global-Cryptocurrency-Mining-Sites-300x148.png 300w, https:\/\/coindataflow.com\/clue\/wp-content\/uploads\/2019\/09\/Global-Cryptocurrency-Mining-Sites-768x380.png 768w, https:\/\/coindataflow.com\/clue\/wp-content\/uploads\/2019\/09\/Global-Cryptocurrency-Mining-Sites.png 1598w\" sizes=\"(max-width: 850px) 100vw, 850px\" \/><figcaption>Global Cryptocurrency Mining Sites (Source: <a href=\"https:\/\/www.jbs.cam.ac.uk\/faculty-research\/centres\/alternative-finance\/publications\/global-cryptocurrency\/#.XZDXA0YzYuU\" target=\"_blank\" rel=\"noopener\">University of Cambridge<\/a>)<\/figcaption><\/figure>\n\n\n\n<p>The effectiveness of the equipment is affected by the hash rate and energy intensity of Bitcoin getting GPU. To calculate how much BTC or cash you will get, use the online calculator.<\/p>\n\n\n\n<p>It is unlikely that you will be able to make many coins yourself. So you have to join the power mining pool. Some calculators include a fee for using a similar service in advance.<\/p>\n\n\n\n<h2><span class=\"ez-toc-section\" id=\"What-Coin-Miners-Do\"><\/span><strong>What Coin Miners Do<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>To answer the question, how to mine Bitcoins, you must first understand how mining Bitcoin works. Cryptocurrency developer created a system in which participants verify the authenticity of each other&#8217;s transactions. For this (if you were the first) you get a reward. Similarly, the mine systems of the remaining altcoins work.<\/p>\n\n\n\n<figure class=\"wp-block-image is-resized\"><img src=\"https:\/\/coindataflow.com\/clue\/wp-content\/uploads\/2019\/09\/What-miners-do.png\" alt=\"What miners do\" class=\"wp-image-1306\" width=\"850\" height=\"431\" srcset=\"https:\/\/coindataflow.com\/clue\/wp-content\/uploads\/2019\/09\/What-miners-do.png 966w, https:\/\/coindataflow.com\/clue\/wp-content\/uploads\/2019\/09\/What-miners-do-300x152.png 300w, https:\/\/coindataflow.com\/clue\/wp-content\/uploads\/2019\/09\/What-miners-do-768x389.png 768w\" sizes=\"(max-width: 850px) 100vw, 850px\" \/><figcaption>What miners do<\/figcaption><\/figure>\n\n\n\n<p>What is mining for bitcoin? Bitcoin miners with their actions provide:<\/p>\n\n\n\n<ol><li>The emergence of new units of cryptocurrency.<\/li><li>Audit and authentication of transactions.<\/li><li>The security guarantee of the Bitcoin network.<\/li><\/ol>\n\n\n\n<h3><span class=\"ez-toc-section\" id=\"Mining-Is-Used-to-Issue-new-Bitcoins\"><\/span><strong>Mining Is Used to Issue new Bitcoins<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Mine Bitcoin is possible every 10 minutes. To do this, the miner must use the processing power of its computer or rig. Mining for Bitcoins cannot be carried out more often or at the time you wish (in contrast to the issue of paper money by the central banks of countries).<\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter\"><img width=\"572\" height=\"346\" src=\"https:\/\/coindataflow.com\/clue\/wp-content\/uploads\/2019\/09\/How-Does-Bitcoin-Mining-Work-e1569779211451.png\" alt=\"How Does Bitcoin Mining Work\" class=\"wp-image-1308\" srcset=\"https:\/\/coindataflow.com\/clue\/wp-content\/uploads\/2019\/09\/How-Does-Bitcoin-Mining-Work-e1569779211451.png 572w, https:\/\/coindataflow.com\/clue\/wp-content\/uploads\/2019\/09\/How-Does-Bitcoin-Mining-Work-e1569779211451-300x181.png 300w\" sizes=\"(max-width: 572px) 100vw, 572px\" \/><figcaption>How Does Bitcoin Mining Work<\/figcaption><\/figure><\/div>\n\n\n\n<p>Consider a simplified diagram; how does mining work.<\/p>\n\n\n\n<ol><li>You need to verify a transaction that does not exceed 1 MB. Theoretically, it can be only one transaction or several thousand (it all depends on the amount of data).<\/li><li>You must also be the first of miners who solve the problem. This item in the crypto community is called proof of work.<\/li><\/ol>\n\n\n\n<p>Only by completing both requirements will you receive a reward.<\/p>\n\n\n\n<h3><span class=\"ez-toc-section\" id=\"Miners-Confirm-Transactions\"><\/span><strong>Miners Confirm Transactions<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Mining for Bitcoin is a verification of transactions and their inclusion in blocks. These blocks form the Bitcoin network. It means that a deal is considered absolutely safe only after it falls into any of the blocks (this means that the transaction fell into the blockchain and return coins or using them twice is impossible).<\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter\"><img width=\"878\" height=\"557\" src=\"https:\/\/coindataflow.com\/clue\/wp-content\/uploads\/2019\/09\/Average-confirmation-time.png\" alt=\"Average confirmation time\" class=\"wp-image-1310\" srcset=\"https:\/\/coindataflow.com\/clue\/wp-content\/uploads\/2019\/09\/Average-confirmation-time.png 878w, https:\/\/coindataflow.com\/clue\/wp-content\/uploads\/2019\/09\/Average-confirmation-time-300x190.png 300w, https:\/\/coindataflow.com\/clue\/wp-content\/uploads\/2019\/09\/Average-confirmation-time-768x487.png 768w\" sizes=\"(max-width: 878px) 100vw, 878px\" \/><figcaption>Average confirmation time<\/figcaption><\/figure><\/div>\n\n\n\n<p>In order for Bitcoin transaction to be considered safe and entered the blockchain, one or more confirmations are necessary. According to the transaction amount, the required number of proofs is equal to:<\/p>\n\n\n\n<ul><li>One &#8211; if the amount is less than 1000 USD;<\/li><li>Three &#8211; a deal within 10,000 USD;<\/li><li>Six &#8211; the transaction amount is limited to 1 million USD.<\/li><\/ul>\n\n\n\n<h3><span class=\"ez-toc-section\" id=\"Miners-secure-the-network\"><\/span><strong>Miners secure the network<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>The cryptocurrency network has a distributed structure. The more individual participants, the more reliable the protection. To mine Bitcoins, you need a lot of computing power (and a high hash rate, respectively, to be the first). If anyone wants to hack into the network, it will be difficult and expensive. A hacker will need the power of at least 51% of the entire network. Thus, the more participants connect to the network (each brings additional power), the more difficult it is to crack the system.<\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter is-resized\"><img src=\"https:\/\/coindataflow.com\/clue\/wp-content\/uploads\/2019\/09\/51-Attack.png\" alt=\"51 Attack\" class=\"wp-image-1312\" width=\"850\" height=\"241\" srcset=\"https:\/\/coindataflow.com\/clue\/wp-content\/uploads\/2019\/09\/51-Attack.png 992w, https:\/\/coindataflow.com\/clue\/wp-content\/uploads\/2019\/09\/51-Attack-300x85.png 300w, https:\/\/coindataflow.com\/clue\/wp-content\/uploads\/2019\/09\/51-Attack-768x217.png 768w\" sizes=\"(max-width: 850px) 100vw, 850px\" \/><figcaption>51% Attack<\/figcaption><\/figure><\/div>\n\n\n\n<h3><span class=\"ez-toc-section\" id=\"What-Is-a-64Digit-Hexadecimal-Number\"><\/span><strong>What Is a 64-Digit Hexadecimal Number?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>An example of such a record:<\/p>\n\n\n\n<p>0000000000000000066fca717cd0120e96e17c5912303f9f877af56e4fd558ce<\/p>\n\n\n\n<p>Since using only digits limits us to a range of 0-9, the hexadecimal system requires to start to use letters of the Latin alphabet a, b, c, d, e, f.<\/p>\n\n\n\n<h2><span class=\"ez-toc-section\" id=\"How-to-Mine-Bitcoins\"><\/span><strong>How to Mine Bitcoins<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The most natural Bitcoin mining guide: this industry is only profitable for large Bitcoin mining companies. They have many powerful installations, combining their capabilities, and cheap electricity.<\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter\"><img width=\"800\" height=\"600\" src=\"https:\/\/coindataflow.com\/clue\/wp-content\/uploads\/2019\/09\/Mining-Farm.jpg\" alt=\"Mining Farm\" class=\"wp-image-1313\" srcset=\"https:\/\/coindataflow.com\/clue\/wp-content\/uploads\/2019\/09\/Mining-Farm.jpg 800w, https:\/\/coindataflow.com\/clue\/wp-content\/uploads\/2019\/09\/Mining-Farm-300x225.jpg 300w, https:\/\/coindataflow.com\/clue\/wp-content\/uploads\/2019\/09\/Mining-Farm-768x576.jpg 768w\" sizes=\"(max-width: 800px) 100vw, 800px\" \/><figcaption>Mining Farm<\/figcaption><\/figure><\/div>\n\n\n\n<p>The process of meaning guesses the target hash in the shortest time. You need to generate a hash below the target randomly. With every guessed hash, complexity increases.<\/p>\n\n\n\n<h3><span class=\"ez-toc-section\" id=\"Get-Bitcoin-Mining-Hardware\"><\/span><strong>Get Bitcoin Mining Hardware<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>The easiest answer to the question: What is a miner? Any GPU or <a href=\"\/clue\/bitcoin-mining-hardware\">ASIC rigs<\/a>. Moreover, ASIC equipment is designed specifically for efficient Bitcoins mining. GPU can be used for other purposes (in particular, to obtain <a href=\"https:\/\/coindataflow.com\/en\/currency\/ethereum\" class=\"rank-math-link\">Ether<\/a>).<\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter is-resized\"><img src=\"https:\/\/coindataflow.com\/clue\/wp-content\/uploads\/2019\/09\/The-Most-Produced-Mining-Hardware-Equipment-e1569781730364.png\" alt=\"The Most Produced Mining Hardware Equipment\" class=\"wp-image-1301\" width=\"669\" height=\"208\" srcset=\"https:\/\/coindataflow.com\/clue\/wp-content\/uploads\/2019\/09\/The-Most-Produced-Mining-Hardware-Equipment-e1569781730364.png 563w, https:\/\/coindataflow.com\/clue\/wp-content\/uploads\/2019\/09\/The-Most-Produced-Mining-Hardware-Equipment-e1569781730364-300x93.png 300w\" sizes=\"(max-width: 669px) 100vw, 669px\" \/><figcaption>The Most Produced Mining Hardware Equipment (Share of Manufacturers)<\/figcaption><\/figure><\/div>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter is-resized\"><img src=\"https:\/\/coindataflow.com\/clue\/wp-content\/uploads\/2019\/09\/Supported-Mining-Algorithms.png\" alt=\"Supported Mining Algorithms\" class=\"wp-image-1314\" width=\"762\" height=\"377\" srcset=\"https:\/\/coindataflow.com\/clue\/wp-content\/uploads\/2019\/09\/Supported-Mining-Algorithms.png 632w, https:\/\/coindataflow.com\/clue\/wp-content\/uploads\/2019\/09\/Supported-Mining-Algorithms-300x149.png 300w\" sizes=\"(max-width: 762px) 100vw, 762px\" \/><figcaption>Supported Mining Algorithms (Share of Hardware Equipment)<\/figcaption><\/figure><\/div>\n\n\n\n<p>A modern installation cannot cost less than a few thousand dollars. Older models are affordable for around $ 500, but people will only get losses by using them.<\/p>\n\n\n\n<h3><span class=\"ez-toc-section\" id=\"Select-a-mining-pool\"><\/span><strong>Select a mining pool<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>To start earning at least a little money, it is not enough for a beginner to buy and set up the necessary equipment and software. It is guaranteed that your computing power will not be enough for a successful hashing.<\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter\"><img width=\"676\" height=\"528\" src=\"https:\/\/coindataflow.com\/clue\/wp-content\/uploads\/2019\/09\/Hashrate-Distribution.png\" alt=\"Hashrate Distribution\" class=\"wp-image-1315\" srcset=\"https:\/\/coindataflow.com\/clue\/wp-content\/uploads\/2019\/09\/Hashrate-Distribution.png 676w, https:\/\/coindataflow.com\/clue\/wp-content\/uploads\/2019\/09\/Hashrate-Distribution-300x234.png 300w\" sizes=\"(max-width: 676px) 100vw, 676px\" \/><figcaption>Hashrate Distribution<br>( An estimation of hashrate distribution amongst the largest mining pools )<\/figcaption><\/figure><\/div>\n\n\n\n<p>Mining Pool is a community in which a lot of such small members as you have joined forces. When the pool wins the race, all participants receive a reward in proportion to the contribution that each of them made. For participation, you pay small commissions (most often, about 2%).<\/p>\n\n\n\n<h4><strong>What are Coin Mining Pools?<\/strong><\/h4>\n\n\n\n<p>Theoretically, mining is possible for every participant separately. But even the newest equipment for several thousand dollars (for example, Antminer) has a capacity of less than 0.001% of the total network capacity. You can never recoup your expenses.<\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter\"><img width=\"601\" height=\"357\" src=\"https:\/\/coindataflow.com\/clue\/wp-content\/uploads\/2019\/09\/Diversification-small-and-large-miners.png\" alt=\"Diversification small and large miners\" class=\"wp-image-1316\" srcset=\"https:\/\/coindataflow.com\/clue\/wp-content\/uploads\/2019\/09\/Diversification-small-and-large-miners.png 601w, https:\/\/coindataflow.com\/clue\/wp-content\/uploads\/2019\/09\/Diversification-small-and-large-miners-300x178.png 300w\" sizes=\"(max-width: 601px) 100vw, 601px\" \/><figcaption>Diversification small and large miners<\/figcaption><\/figure><\/div>\n\n\n\n<p>Even large mining pools do not always achieve the goal. But they have many more chances. These communities unite the forces of all participants and distribute income between them. In this way, each newcomer, having joined the pool, begins to receive income almost immediately.<\/p>\n\n\n\n<h3><span class=\"ez-toc-section\" id=\"Get-a-Bitcoin-wallet\"><\/span><strong>Get a Bitcoin wallet<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>If you still do not know where to store the coins that you are to mine, then <a href=\"\/clue\/best-bitcoin-wallets\">study digital wallets in more detail<\/a>. It can be:<\/p>\n\n\n\n<ul><li>Hardware wallets that connect to your computer via USB;<\/li><li>Software that you have to set up on your home PC;<\/li><li>Mobile applications that work on your phone (they are most accessible of all and convenient, but less than others protected from a scam).<\/li><\/ul>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter\"><img width=\"755\" height=\"501\" src=\"https:\/\/coindataflow.com\/clue\/wp-content\/uploads\/2019\/09\/Wallet-options-between-2017-and-2018.png\" alt=\"Wallet options between 2017 and 2018\" class=\"wp-image-1317\" srcset=\"https:\/\/coindataflow.com\/clue\/wp-content\/uploads\/2019\/09\/Wallet-options-between-2017-and-2018.png 755w, https:\/\/coindataflow.com\/clue\/wp-content\/uploads\/2019\/09\/Wallet-options-between-2017-and-2018-300x199.png 300w\" sizes=\"(max-width: 755px) 100vw, 755px\" \/><figcaption>Wallet options between 2017 and 2018<\/figcaption><\/figure><\/div>\n\n\n\n<p>To work with a digital wallet, you will need a public address from \/ to which coins will be received. To access transactions, you will use a secret key (password).<\/p>\n\n\n\n<h3><span class=\"ez-toc-section\" id=\"Get-Bitcoin-Mining-Software\"><\/span><strong>Get Bitcoin Mining Software<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>There is software for popular operating systems. Using software, the user connects to the pool. In the settings, you must specify such data, such as the hash rate and the wallet address to which the reward will be credited.<\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter\"><img width=\"833\" height=\"580\" src=\"https:\/\/coindataflow.com\/clue\/wp-content\/uploads\/2019\/09\/Account-setup-BTC.com_.png\" alt=\"Account setup BTC.com\" class=\"wp-image-1318\" srcset=\"https:\/\/coindataflow.com\/clue\/wp-content\/uploads\/2019\/09\/Account-setup-BTC.com_.png 833w, https:\/\/coindataflow.com\/clue\/wp-content\/uploads\/2019\/09\/Account-setup-BTC.com_-300x209.png 300w, https:\/\/coindataflow.com\/clue\/wp-content\/uploads\/2019\/09\/Account-setup-BTC.com_-768x535.png 768w\" sizes=\"(max-width: 833px) 100vw, 833px\" \/><figcaption>Account setup BTC.com<\/figcaption><\/figure><\/div>\n\n\n\n<h3><span class=\"ez-toc-section\" id=\"Is-Bitcoin-Mining-Legal-in-your-Country-Make-Sure!\"><\/span><strong>Is Bitcoin Mining Legal in your Country? Make Sure!<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>If in doubt, is a Bitcoin mining legal in your country, check your local laws or contact a lawyer. In most states, buying, selling, and mining coins is legal. But some governments have banned cryptocurrency activities.<\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter is-resized\"><img src=\"https:\/\/coindataflow.com\/clue\/wp-content\/uploads\/2019\/09\/Bitcoin-Legality-Around-the-World.png\" alt=\"Bitcoin Legality Around the World\" class=\"wp-image-1319\" width=\"850\" height=\"505\" srcset=\"https:\/\/coindataflow.com\/clue\/wp-content\/uploads\/2019\/09\/Bitcoin-Legality-Around-the-World.png 962w, https:\/\/coindataflow.com\/clue\/wp-content\/uploads\/2019\/09\/Bitcoin-Legality-Around-the-World-300x178.png 300w, https:\/\/coindataflow.com\/clue\/wp-content\/uploads\/2019\/09\/Bitcoin-Legality-Around-the-World-768x457.png 768w\" sizes=\"(max-width: 850px) 100vw, 850px\" \/><figcaption>Bitcoin Legality Around the World<\/figcaption><\/figure><\/div>\n\n\n\n<h3><span class=\"ez-toc-section\" id=\"Is-Bitcoin-Mining-Profitable-for-You\"><\/span><strong>Is Bitcoin Mining Profitable for You?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>To calculate and compare profits and losses, you must understand: \u201cWhat is Bitcoin and how it works.\u201d Your profit depends on three main factors:<\/p>\n\n\n\n<ol><li>The cost of cryptocurrency;<\/li><li>The price of electricity that your installation consumes;<\/li><li>The cost of buying equipment.<\/li><\/ol>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter is-resized\"><img src=\"https:\/\/coindataflow.com\/clue\/wp-content\/uploads\/2019\/09\/Miner-Revenue.png\" alt=\"Miner Revenue\" class=\"wp-image-1320\" width=\"850\" height=\"543\" srcset=\"https:\/\/coindataflow.com\/clue\/wp-content\/uploads\/2019\/09\/Miner-Revenue.png 909w, https:\/\/coindataflow.com\/clue\/wp-content\/uploads\/2019\/09\/Miner-Revenue-300x192.png 300w, https:\/\/coindataflow.com\/clue\/wp-content\/uploads\/2019\/09\/Miner-Revenue-768x491.png 768w\" sizes=\"(max-width: 850px) 100vw, 850px\" \/><figcaption>Miner Revenue<\/figcaption><\/figure><\/div>\n\n\n\n<p>You also need to predict a rise or fall in the value of coins. On the one hand, growth can entail an increase in profits. But on the other hand, the competition will increase, so it is difficult to predict anything.<\/p>\n\n\n\n<h2><span class=\"ez-toc-section\" id=\"Is-Bitcoin-Mining-a-Waste-of-Electricity\"><\/span><strong>Is Bitcoin Mining a Waste of Electricity?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Think about the issue of paper money as well as financial costs. It consumes paper, ink in the printer, electricity for the printer, paid for the work of employees who put watermarks and other protection on banknotes. It also pays the work of people who develop these measures of protection against fakes and so on.<\/p>\n\n\n\n<div id=\"supsystic-table-8_30120\" class=\"supsystic-tables-wrap \" style=\" visibility: hidden; \" ><table id=\"supsystic-table-8\" class=\"supsystic-table compact border stripe lightboxImg cell-border\" data-id=\"8\" data-view-id=\"8_30120\" data-title=\"Bitcoin double SHA256 ASIC mining hardware short\" data-currency-format=\"$1,000.00\" data-percent-format=\"10.00%\" data-date-format=\"DD.MM.YYYY\" data-time-format=\"HH:mm\" data-features=\"[&quot;after_table_loaded_script&quot;,&quot;auto_width&quot;]\" data-search-value=\"\" data-lightbox-img=\"\" data-head=\"on\" data-head-rows-count=\"1\" data-pagination-length=\"50,100,All\" data-auto-index=\"off\" data-searching-settings=\"{&quot;columnSearchPosition&quot;:&quot;bottom&quot;,&quot;minChars&quot;:&quot;0&quot;}\" data-lang=\"default\" data-override=\"{&quot;emptyTable&quot;:&quot;&quot;,&quot;info&quot;:&quot;&quot;,&quot;infoEmpty&quot;:&quot;&quot;,&quot;infoFiltered&quot;:&quot;&quot;,&quot;lengthMenu&quot;:&quot;&quot;,&quot;search&quot;:&quot;&quot;,&quot;zeroRecords&quot;:&quot;&quot;,&quot;exportLabel&quot;:&quot;&quot;,&quot;file&quot;:&quot;default&quot;}\" data-merged=\"[]\" data-responsive-mode=\"2\" data-from-history=\"0\" ><thead><tr><th data-cell-id=\"A1\" data-x=\"0\" data-y=\"1\" data-db-index=\"1\" class=\"bold htCenter htMiddle\" data-cell-type=\"text\" data-original-value=\"Product\" data-order=\"Product\" >Product <\/th><th data-cell-id=\"B1\" data-x=\"1\" data-y=\"1\" data-db-index=\"1\" class=\"bold htCenter htMiddle\" data-cell-type=\"text\" data-cell-format-type=\"number\" data-original-value=\"Advertised Mhash\/s\" data-order=\"Advertised Mhash\/s\" >Advertised Mhash\/s <\/th><th data-cell-id=\"C1\" data-x=\"2\" data-y=\"1\" data-db-index=\"1\" class=\"bold htCenter htMiddle\" data-cell-type=\"text\" data-cell-format-type=\"number\" data-original-value=\"Mhash\/J\" data-order=\"Mhash\/J\" >Mhash\/J <\/th><th data-cell-id=\"D1\" data-x=\"3\" data-y=\"1\" data-db-index=\"1\" class=\"bold htCenter htMiddle\" data-cell-type=\"text\" data-cell-format-type=\"number\" data-original-value=\"Mhash\/s\/$\" data-order=\"Mhash\/s\/$\" >Mhash\/s\/$ <\/th><th data-cell-id=\"E1\" data-x=\"4\" data-y=\"1\" data-db-index=\"1\" class=\"bold htCenter htMiddle bg-ededed\" data-cell-type=\"text\" data-cell-format-type=\"number\" data-original-value=\"Watts\" data-order=\"Watts\" >Watts <\/th><th data-cell-id=\"F1\" data-x=\"5\" data-y=\"1\" data-db-index=\"1\" class=\"bold htCenter htMiddle\" data-cell-type=\"text\" data-cell-format-type=\"number\" data-original-value=\"Price (USD)\" data-order=\"Price (USD)\" >Price (USD) <\/th><\/tr><\/thead><tbody><tr ><td data-cell-id=\"A2\" data-x=\"0\" data-y=\"2\" data-db-index=\"2\" class=\"\" data-cell-type=\"text\" data-original-value=\"AntMiner S9\" data-order=\"AntMiner S9\" >AntMiner S9 <\/td><td data-cell-id=\"B2\" data-x=\"1\" data-y=\"2\" data-db-index=\"2\" class=\"\" data-cell-type=\"text\" data-cell-format-type=\"number\" data-original-value=\"14000000\" data-order=\"14000000\" >14000000 <\/td><td data-cell-id=\"C2\" data-x=\"2\" data-y=\"2\" data-db-index=\"2\" class=\"\" data-cell-type=\"text\" data-cell-format-type=\"number\" data-original-value=\"10182\" data-order=\"10182\" >10182 <\/td><td data-cell-id=\"D2\" data-x=\"3\" data-y=\"2\" data-db-index=\"2\" class=\"\" data-cell-type=\"text\" data-cell-format-type=\"number\" data-original-value=\"5833\" data-order=\"5833\" >5833 <\/td><td data-cell-id=\"E2\" data-x=\"4\" data-y=\"2\" data-db-index=\"2\" class=\"bg-ededed\" data-cell-type=\"text\" data-cell-format-type=\"number\" data-original-value=\"1375\" data-order=\"1375\" >1375 <\/td><td data-cell-id=\"F2\" data-x=\"5\" data-y=\"2\" data-db-index=\"2\" class=\"\" data-cell-type=\"text\" data-cell-format-type=\"number\" data-original-value=\"2400\" data-order=\"2400\" >2400 <\/td><\/tr><tr ><td data-cell-id=\"A3\" data-x=\"0\" data-y=\"3\" data-db-index=\"3\" class=\"\" data-cell-type=\"text\" data-original-value=\"AntMiner U3\" data-order=\"AntMiner U3\" >AntMiner U3 <\/td><td data-cell-id=\"B3\" data-x=\"1\" data-y=\"3\" data-db-index=\"3\" class=\"\" data-cell-type=\"text\" data-cell-format-type=\"number\" data-original-value=\"63000\" data-order=\"63000\" >63000 <\/td><td data-cell-id=\"C3\" data-x=\"2\" data-y=\"3\" data-db-index=\"3\" class=\"\" data-cell-type=\"text\" data-cell-format-type=\"number\" data-original-value=\"1000\" data-order=\"1000\" >1000 <\/td><td data-cell-id=\"D3\" data-x=\"3\" data-y=\"3\" data-db-index=\"3\" class=\"\" data-cell-type=\"text\" data-cell-format-type=\"number\" data-original-value=\"1658\" data-order=\"1658\" >1658 <\/td><td data-cell-id=\"E3\" data-x=\"4\" data-y=\"3\" data-db-index=\"3\" class=\"bg-ededed\" data-cell-type=\"text\" data-cell-format-type=\"number\" data-original-value=\"63\" data-order=\"63\" >63 <\/td><td data-cell-id=\"F3\" data-x=\"5\" data-y=\"3\" data-db-index=\"3\" class=\"\" data-cell-type=\"text\" data-cell-format-type=\"number\" data-original-value=\"38\" data-order=\"38\" >38 <\/td><\/tr><tr ><td data-cell-id=\"A4\" data-x=\"0\" data-y=\"4\" data-db-index=\"4\" class=\"\" data-cell-type=\"text\" data-original-value=\"Avalon741\" data-order=\"Avalon741\" >Avalon741 <\/td><td data-cell-id=\"B4\" data-x=\"1\" data-y=\"4\" data-db-index=\"4\" class=\"\" data-cell-type=\"text\" data-cell-format-type=\"number\" data-original-value=\"7300000\" data-order=\"7300000\" >7300000 <\/td><td data-cell-id=\"C4\" data-x=\"2\" data-y=\"4\" data-db-index=\"4\" class=\"\" data-cell-type=\"text\" data-cell-format-type=\"number\" data-original-value=\"6350\" data-order=\"6350\" >6350 <\/td><td data-cell-id=\"D4\" data-x=\"3\" data-y=\"4\" data-db-index=\"4\" class=\"\" data-cell-type=\"text\" data-cell-format-type=\"number\" data-original-value=\"5035\" data-order=\"5035\" >5035 <\/td><td data-cell-id=\"E4\" data-x=\"4\" data-y=\"4\" data-db-index=\"4\" class=\"bg-ededed\" data-cell-type=\"text\" data-cell-format-type=\"number\" data-original-value=\"1150\" data-order=\"1150\" >1150 <\/td><td data-cell-id=\"F4\" data-x=\"5\" data-y=\"4\" data-db-index=\"4\" class=\"\" data-cell-type=\"text\" data-cell-format-type=\"number\" data-original-value=\"1450\" data-order=\"1450\" >1450 <\/td><\/tr><tr ><td data-cell-id=\"A5\" data-x=\"0\" data-y=\"5\" data-db-index=\"5\" class=\"\" data-cell-type=\"text\" data-original-value=\"Avalon761\" data-order=\"Avalon761\" >Avalon761 <\/td><td data-cell-id=\"B5\" data-x=\"1\" data-y=\"5\" data-db-index=\"5\" class=\"\" data-cell-type=\"text\" data-cell-format-type=\"number\" data-original-value=\"8800000\" data-order=\"8800000\" >8800000 <\/td><td data-cell-id=\"C5\" data-x=\"2\" data-y=\"5\" data-db-index=\"5\" class=\"\" data-cell-type=\"text\" data-cell-format-type=\"number\" data-original-value=\"6670\" data-order=\"6670\" >6670 <\/td><td data-cell-id=\"D5\" data-x=\"3\" data-y=\"5\" data-db-index=\"5\" class=\"\" data-cell-type=\"text\" data-cell-format-type=\"number\" data-original-value=\"4730\" data-order=\"4730\" >4730 <\/td><td data-cell-id=\"E5\" data-x=\"4\" data-y=\"5\" data-db-index=\"5\" class=\"bg-ededed\" data-cell-type=\"text\" data-cell-format-type=\"number\" data-original-value=\"1320\" data-order=\"1320\" >1320 <\/td><td data-cell-id=\"F5\" data-x=\"5\" data-y=\"5\" data-db-index=\"5\" class=\"\" data-cell-type=\"text\" data-cell-format-type=\"number\" data-original-value=\"1860\" data-order=\"1860\" >1860 <\/td><\/tr><tr ><td data-cell-id=\"A6\" data-x=\"0\" data-y=\"6\" data-db-index=\"6\" class=\"\" data-cell-type=\"text\" data-original-value=\"Ebit E9+\" data-order=\"Ebit E9+\" >Ebit E9+ <\/td><td data-cell-id=\"B6\" data-x=\"1\" data-y=\"6\" data-db-index=\"6\" class=\"\" data-cell-type=\"text\" data-cell-format-type=\"number\" data-original-value=\"9000000\" data-order=\"9000000\" >9000000 <\/td><td data-cell-id=\"C6\" data-x=\"2\" data-y=\"6\" data-db-index=\"6\" class=\"\" data-cell-type=\"text\" data-cell-format-type=\"number\" data-original-value=\"6900\" data-order=\"6900\" >6900 <\/td><td data-cell-id=\"D6\" data-x=\"3\" data-y=\"6\" data-db-index=\"6\" class=\"\" data-cell-type=\"text\" data-cell-format-type=\"number\" data-original-value=\"6428\" data-order=\"6428\" >6428 <\/td><td data-cell-id=\"E6\" data-x=\"4\" data-y=\"6\" data-db-index=\"6\" class=\"bg-ededed\" data-cell-type=\"text\" data-cell-format-type=\"number\" data-original-value=\"1300\" data-order=\"1300\" >1300 <\/td><td data-cell-id=\"F6\" data-x=\"5\" data-y=\"6\" data-db-index=\"6\" class=\"\" data-cell-type=\"text\" data-cell-format-type=\"number\" data-original-value=\"1400\" data-order=\"1400\" >1400 <\/td><\/tr><tr ><td data-cell-id=\"A7\" data-x=\"0\" data-y=\"7\" data-db-index=\"7\" class=\"\" data-cell-type=\"text\" data-original-value=\"Ebit E9++\" data-order=\"Ebit E9++\" >Ebit E9++ <\/td><td data-cell-id=\"B7\" data-x=\"1\" data-y=\"7\" data-db-index=\"7\" class=\"\" data-cell-type=\"text\" data-cell-format-type=\"number\" data-original-value=\"14000000\" data-order=\"14000000\" >14000000 <\/td><td data-cell-id=\"C7\" data-x=\"2\" data-y=\"7\" data-db-index=\"7\" class=\"\" data-cell-type=\"text\" data-cell-format-type=\"number\" data-original-value=\"10500\" data-order=\"10500\" >10500 <\/td><td data-cell-id=\"D7\" data-x=\"3\" data-y=\"7\" data-db-index=\"7\" class=\"\" data-cell-type=\"text\" data-cell-format-type=\"number\" data-original-value=\"3600\" data-order=\"3600\" >3600 <\/td><td data-cell-id=\"E7\" data-x=\"4\" data-y=\"7\" data-db-index=\"7\" class=\"bg-ededed\" data-cell-type=\"text\" data-cell-format-type=\"number\" data-original-value=\"1330\" data-order=\"1330\" >1330 <\/td><td data-cell-id=\"F7\" data-x=\"5\" data-y=\"7\" data-db-index=\"7\" class=\"\" data-cell-type=\"text\" data-cell-format-type=\"number\" data-original-value=\"3880\" data-order=\"3880\" >3880 <\/td><\/tr><tr ><td data-cell-id=\"A8\" data-x=\"0\" data-y=\"8\" data-db-index=\"8\" class=\"\" data-cell-type=\"text\" data-original-value=\"Ebit E10\" data-order=\"Ebit E10\" >Ebit E10 <\/td><td data-cell-id=\"B8\" data-x=\"1\" data-y=\"8\" data-db-index=\"8\" class=\"\" data-cell-type=\"text\" data-cell-format-type=\"number\" data-original-value=\"18000000\" data-order=\"18000000\" >18000000 <\/td><td data-cell-id=\"C8\" data-x=\"2\" data-y=\"8\" data-db-index=\"8\" class=\"\" data-cell-type=\"text\" data-cell-format-type=\"number\" data-original-value=\"11100\" data-order=\"11100\" >11100 <\/td><td data-cell-id=\"D8\" data-x=\"3\" data-y=\"8\" data-db-index=\"8\" class=\"\" data-cell-type=\"text\" data-cell-format-type=\"number\" data-original-value=\"3440\" data-order=\"3440\" >3440 <\/td><td data-cell-id=\"E8\" data-x=\"4\" data-y=\"8\" data-db-index=\"8\" class=\"bg-ededed\" data-cell-type=\"text\" data-cell-format-type=\"number\" data-original-value=\"1620\" data-order=\"1620\" >1620 <\/td><td data-cell-id=\"F8\" data-x=\"5\" data-y=\"8\" data-db-index=\"8\" class=\"\" data-cell-type=\"text\" data-original-value=\"5230\" data-order=\"5230\" >5230 <\/td><\/tr><tr ><td data-cell-id=\"A9\" data-x=\"0\" data-y=\"9\" data-db-index=\"9\" class=\"\" data-cell-type=\"text\" data-original-value=\"WhatsMiner M3\" data-order=\"WhatsMiner M3\" >WhatsMiner M3 <\/td><td data-cell-id=\"B9\" data-x=\"1\" data-y=\"9\" data-db-index=\"9\" class=\"\" data-cell-type=\"text\" data-original-value=\"11500000\" data-order=\"11500000\" >11500000 <\/td><td data-cell-id=\"C9\" data-x=\"2\" data-y=\"9\" data-db-index=\"9\" class=\"\" data-cell-type=\"text\" data-cell-format-type=\"number\" data-original-value=\"\" data-order=\"\" ><\/td><td data-cell-id=\"D9\" data-x=\"3\" data-y=\"9\" data-db-index=\"9\" class=\"\" data-cell-type=\"text\" data-cell-format-type=\"number\" data-original-value=\"\" data-order=\"\" ><\/td><td data-cell-id=\"E9\" data-x=\"4\" data-y=\"9\" data-db-index=\"9\" class=\"bg-ededed\" data-cell-type=\"text\" data-original-value=\"1785\" data-order=\"1785\" >1785 <\/td><td data-cell-id=\"F9\" data-x=\"5\" data-y=\"9\" data-db-index=\"9\" class=\"\" data-cell-type=\"text\" data-original-value=\"\" data-order=\"\" ><\/td><\/tr><\/tbody><\/table><!-- \/#supsystic-table-8.supsystic-table --><\/div><!-- \/.supsystic-tables-wrap --><!-- Tables Generator by Supsystic --><!-- Version:1.10.14 --><!-- http:\/\/supsystic.com\/ -->\n\n\n\n<p>At this time, the costs of creating a cryptocurrency already include the purchasing power of coins, their security, protection against inflation and the release of new coins into circulation!<\/p>\n\n\n\n<h2><span class=\"ez-toc-section\" id=\"Mining-on-a-mobile-phone-%E2%80%93-Android-or-iOS\"><\/span><strong>Mining on a mobile phone &#8211; Android or iOS<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>To try how to mine a Bitcoin, you can use your smartphone. So you get an idea of \u200b\u200bthe process. But it is unlikely that at least something will work, and the battery will be very quickly discharged.<\/p>\n\n\n\n<h2><span class=\"ez-toc-section\" id=\"What-is-Proof-of-Work\"><\/span><strong>What is Proof of Work?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>This process is guessing the desired alphanumeric combination for the shortest time among other network participants. The probability of getting an SHA-256 hash equal to or lower than the target value is minimal. Therefore, the whole process consists of many trial and error.<\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-video is-provider-youtube wp-block-embed-youtube wp-embed-aspect-16-9 wp-has-aspect-ratio\"><div class=\"wp-block-embed__wrapper\">\n<iframe title=\"Mining Bitcoin with pencil and paper\" width=\"1200\" height=\"675\" src=\"https:\/\/www.youtube.com\/embed\/y3dqhixzGVo?feature=oembed\" frameborder=\"0\" allow=\"accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture\" allowfullscreen><\/iframe>\n<\/div><figcaption> Mining Bitcoin with pencil and paper <\/figcaption><\/figure>\n\n\n\n<h2><span class=\"ez-toc-section\" id=\"Mining-Difficulty\"><\/span><strong>Mining Difficulty<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The amount of coins is limited to 21 million. So that continually improving equipment does not speed up the extraction of the last coin too much, the algorithm is complicated continuously. Besides, writing blocks to the blockchain cannot occur more than once every ten minutes.<\/p>\n\n\n\n<figure class=\"wp-block-image\"><img width=\"955\" height=\"503\" src=\"https:\/\/coindataflow.com\/clue\/wp-content\/uploads\/2019\/09\/The-correlation-between-bitcoin-price-and-difficulty.png\" alt=\"The correlation between bitcoin price and difficulty\" class=\"wp-image-1324\" srcset=\"https:\/\/coindataflow.com\/clue\/wp-content\/uploads\/2019\/09\/The-correlation-between-bitcoin-price-and-difficulty.png 955w, https:\/\/coindataflow.com\/clue\/wp-content\/uploads\/2019\/09\/The-correlation-between-bitcoin-price-and-difficulty-300x158.png 300w, https:\/\/coindataflow.com\/clue\/wp-content\/uploads\/2019\/09\/The-correlation-between-bitcoin-price-and-difficulty-768x405.png 768w\" sizes=\"(max-width: 955px) 100vw, 955px\" \/><figcaption>The correlation between bitcoin price and difficulty<\/figcaption><\/figure>\n\n\n\n<h3><span class=\"ez-toc-section\" id=\"How-Can-You-Compete-with-Millions-of-Miners\"><\/span><strong>How Can You Compete with Millions of Miners?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Before you begin to act, you should think about how to mine for Bitcoin among a large number of competitors. The chance of winning in checking each transaction is approximately 1: 6 trillion and decreases with each transaction. For singles, the only way to compete successfully is to combine their power with the same individualists in mining pools.<\/p>\n\n\n\n<h2><span class=\"ez-toc-section\" id=\"How-Much-Does-it-Cost-to-Mine-1-Bitcoin\"><\/span><strong>How Much Does it Cost to Mine 1 Bitcoin?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>For calculation, we will choose one of the modern Antminer S17 Pro devices. By the way, it is not necessary to use your own equipment. You can try cloud mining.<\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter is-resized\"><img src=\"https:\/\/coindataflow.com\/clue\/wp-content\/uploads\/2019\/09\/AntMiner-S17-Pro-53TH.png\" alt=\"AntMiner S17 Pro 53TH\" class=\"wp-image-1328\" width=\"675\" height=\"506\" srcset=\"https:\/\/coindataflow.com\/clue\/wp-content\/uploads\/2019\/09\/AntMiner-S17-Pro-53TH.png 900w, https:\/\/coindataflow.com\/clue\/wp-content\/uploads\/2019\/09\/AntMiner-S17-Pro-53TH-300x225.png 300w, https:\/\/coindataflow.com\/clue\/wp-content\/uploads\/2019\/09\/AntMiner-S17-Pro-53TH-768x576.png 768w\" sizes=\"(max-width: 675px) 100vw, 675px\" \/><figcaption>AntMiner S17 Pro 53TH<\/figcaption><\/figure><\/div>\n\n\n\n<p>Equipment cost Hash rate Power consumption Electricity price Pool membership fee<\/p>\n\n\n\n<p>$ 1900 56 TH \/ s 2212 W $ 0.1 \/ kWh 2%<\/p>\n\n\n\n<p>For calculations, we used the calculator https:\/\/procrypto.company\/mining\/548-kalkulyator-majninga-bitcoin. As a result, we see that for the year under current circumstances it is possible to get 0.00043226 BTC. In this situation, it will take about 12 years to get only one coin. If nothing changes, the cost of maintaining the apparatus and electricity will amount to several thousand dollars annually.<\/p>\n\n\n\n<h2><span class=\"ez-toc-section\" id=\"How-Many-Bitcoins-Can-You-Mine-in-a-Day\"><\/span><strong>How Many Bitcoins Can You Mine in a Day?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The number of daily coins in the previous calculation is 0.00000118.<\/p>\n\n\n\n<h2><span class=\"ez-toc-section\" id=\"Block-reward-halving\"><\/span><strong>Block reward halving<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Every next, 210,000 blocks reduce the reward by half. It occurs on average once every four years &#8211; check <a href=\"http:\/\/bitcoinhalvingdates.com\/\" class=\"rank-math-link\" target=\"_blank\" rel=\"noopener\">Bitcoin Halving Dates<\/a>.<\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter is-resized\"><img src=\"https:\/\/coindataflow.com\/clue\/wp-content\/uploads\/2019\/09\/stock-to-flow-model.png\" alt=\"stock to flow model\" class=\"wp-image-1326\" width=\"850\" height=\"546\" srcset=\"https:\/\/coindataflow.com\/clue\/wp-content\/uploads\/2019\/09\/stock-to-flow-model.png 679w, https:\/\/coindataflow.com\/clue\/wp-content\/uploads\/2019\/09\/stock-to-flow-model-300x193.png 300w\" sizes=\"(max-width: 850px) 100vw, 850px\" \/><figcaption>stock to flow model<\/figcaption><\/figure><\/div>\n\n\n\n<h2><span class=\"ez-toc-section\" id=\"Mining-centralization\"><\/span><strong>Mining centralization<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>At first, the system was conceived as entirely decentralized. But specialized mining farms (many connected installations) placed in China began to receive up to 50% of all coins. Then, system participants from other countries started pooling using the software. It has shifted the emphasis in their favor. However, given the distribution of income between all participants, nothing is threatened by the security of the system.<\/p>\n\n\n\n<h2><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span><strong>Conclusion<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Depending on the cost of Bitcoins and the electricity needed to receive them, the profitability of mining changes. Sometimes it\u2019s more profitable to buy coins on the exchange. Cheaper coins (Ether, Zcash, Monero) can be obtained without highly specialized equipment. For this, it is enough to purchase a graphics processor or several. However, the situation with Bitcoins can change, and their mining will again become profitable for everyone.<br><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Many investors think about what is cryptocurrency mining and what is Bitcoin mining. If you want to know how these processes differ and whether it is beneficial for you, read our review to the end. We will talk in detail about Bitcoin mining for beginners. You will also learn how to start Bitcoin or another &#8230; <a title=\"What Is Bitcoin Mining And How Does It Work &#8211; Full 2021 Guide\" class=\"read-more\" href=\"https:\/\/coindataflow.com\/clue\/what-is-bitcoin-mining\">Read more<span class=\"screen-reader-text\">What Is Bitcoin Mining And How Does It Work &#8211; Full 2021 Guide<\/span><\/a><\/p>\n","protected":false},"author":2,"featured_media":1263,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mi_skip_tracking":false},"categories":[4,7],"tags":[],"modified_by":"Alex","_links":{"self":[{"href":"https:\/\/coindataflow.com\/clue\/wp-json\/wp\/v2\/posts\/1233"}],"collection":[{"href":"https:\/\/coindataflow.com\/clue\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/coindataflow.com\/clue\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/coindataflow.com\/clue\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/coindataflow.com\/clue\/wp-json\/wp\/v2\/comments?post=1233"}],"version-history":[{"count":22,"href":"https:\/\/coindataflow.com\/clue\/wp-json\/wp\/v2\/posts\/1233\/revisions"}],"predecessor-version":[{"id":2595,"href":"https:\/\/coindataflow.com\/clue\/wp-json\/wp\/v2\/posts\/1233\/revisions\/2595"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/coindataflow.com\/clue\/wp-json\/wp\/v2\/media\/1263"}],"wp:attachment":[{"href":"https:\/\/coindataflow.com\/clue\/wp-json\/wp\/v2\/media?parent=1233"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/coindataflow.com\/clue\/wp-json\/wp\/v2\/categories?post=1233"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/coindataflow.com\/clue\/wp-json\/wp\/v2\/tags?post=1233"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}