Bitcoin, one of the most popular, most talked about topics of recent years. How is Bitcoin produced? In this article, I will tell you what you need to know about Bitcoin mining (production), which is talked about everywhere, the king of crypto money exchanges, upside downtrends.
In this article, we will discuss the basic working logic of bitcoin mining, how Bitcoin is produced, programs and hardware, methods and methods for producing Bitcoin.
Bitcoin mining is for approving financial transactions within the Bitcoin market, providing transfers and producing new Bitcoins. Based on blockchain, Bitcoin mining, which operates on a decentralized system, awards the user who produces the fastest blocks and approves the transactions. Each time a new Bitcoin is produced, the difficulty levels of the blocks that are formed are also increasing, and mining requires computers with very powerful processors.
Can Bitcoin still be mined?
In other words, Bitcoin mining adds processes to the blockchain and releases the new Bitcoin. The mining process is about compiling the final processes into blocks and trying to solve a difficult puzzle in the calculation. The first participant who solves the puzzle puts the next block in the blockchain and collects the rewards. The awards encourage mining and include both processing fees (paid to the mine in the form of Bitcoin) and the newly released Bitcoin. The maximum number of Bitcoins available on the market is 21 million. Let’s answer a frequently asked question right here. Will mining end when the maximum number of Bitcoins is reached? The answer is no. Miners are needed for the continued approval of Bitcoin transactions. If there is no radical and technological update, even after reaching the maximum number of Bitcoins, the miners will be rewarded for the process they have solved, meaning they will earn Bitcoin. This will ensure that mining continues.
All Bitcoin trading, transfer transactions are recorded in the Blockchain records to which Bitcoin is affiliated and members are asked to confirm each transaction. When the Bitcoin transactions are approved by the members, the relevant amount is deducted from your wallet and added to the other party. Your store and store your Bitcoins through a digital wallet. Anyone can access this wallet’s address and even view your balance, but they don’t know who you are. The encryption of the wallet is done in two different layers. Someone can reach you with a public password, and you can only send and receive transactions with a special password.
With mining, these transfer operations are added to and processed in Blockchains, and all Bitcoin transactions that have been done so far and will be performed in the future can be viewed by anyone via blockchain records. The miner also receives a certain amount of reward BTC as a reward for completing the block at the end of this transaction.
As the number of transactions made in Bitcoin increases day by day, the block lengths are also considerably higher (think like records kept in the book). As the maximum number of BTCs approaches, the reward BTC amounts distributed per block decrease over time. All of this system is tracked and approved on the software infrastructure where Bitcoin is produced and processed.
Is Bitcoin Mining Safe?
Bitcoin mining proceeds on a decentralized structure. Anyone with an Internet connection can join the appropriate hardware. The security of the Bitcoin network depends on this decentralized structure because the Bitcoin network makes “consensus-based” decisions on the decision. If there is a disagreement or conflict over whether a block should be included in the blockchain, if the decision effectively accepts more than half of the mining power with a simple majority consensus, the decision is made to complete the block addition in mining. So the system is completely dependent on users and proceeds unanimously.
For Bitcoin mining, you first need an internet connection and the appropriate hardware/system. Bitcoin mining works on creating and validating encrypted versions of the generated blocks. These blocks include the financial transactions made within the Bitcoin system as mentioned above. Bitcoin mining is currently being done through ASIC devices. We will report this at the bottom of the article, in the next article.
There are multiple ways to do bitcoin mining;
- Bitcoin (BTC) Mining with Hardware
- Bitcoin (BTC) Mining with Cloud Mining
Computer Bitcoin (BTC) Mining (This section is similar to hardware, the hardware is used in your computer, but only computer mining will be examined under a separate title.
Hardware and Bitcoin mining is the most important event that makes a profit and maintains Bitcoin production. Between 2010 and 2013, it is now in the golden age of production with computers. So what are we talking about ASIC devices and hardware? ASIC devices are application-specific integrated circuits. They are produced with a very concrete and understandable definition only for the area they want to use. Therefore, ASIC devices used in Bitcoin mining are produced and used only for Bitcoin mining.
Of course, some ASIC devices can produce different coins, but this is the subject of a different article. Over the years, the use of Bitcoin has increased (still not at the targeted level), stock exchanges have begun trading, and the levels and heights of the produced blocks have increased. The capacity of ASIC devices had to be high. The cost of an average ASIC device, which you can now earn 0.16 BTC per month, comes back in just over 12 months with an investment of $ 1,000.
Hardware and Bitcoin mining is the most important event that makes a profit and maintains Bitcoin production. Between 2010 and 2013, it is now in the golden age of production with computers. So what are we talking about ASIC devices and hardware? ASIC devices are application-specific integrated circuits. They are produced with a very concrete and understandable definition only for the area they want to use. Therefore, ASIC devices used in Bitcoin mining are produced and used only for Bitcoin mining. Of course, some ASIC devices can produce different coins, but this is the subject of a different article. Over the years, the use of Bitcoin has increased (still not at the targeted level), stock exchanges have begun trading, and the levels and heights of the produced blocks have increased. The capacity of ASIC devices had to be high. The cost of an average ASIC device, which you can now earn 0.16 BTC per month, comes back in just over 12 months with an investment of $ 1,000.
How much does it cost to mine a Bitcoin?
Antminer series starting at $ 500, Dragonmint and Avalon series are available. Antminer’s latest device S9 starts from 20 thousand $. The prices of these devices sold abroad are high because they are attached to customs due to the entrance price to our country. It can be purchased through popular e-commerce sites in the Amazon. To produce an estimated 0.01 BTC at the end of a year, you must have at least 320 GHz of processor capacity. This need may change in the future depending on the current system size and Bitcoin prices. Prices have risen considerably because many mining equipments sells none. Of course, there is such a situation here. You cannot use this equipment directly at high prices. You must first set it up, include it in a production network or pool, and then calculate the electricity costs. You should also protect these devices, which do not operate silently and consume a lot of electricity, emit animal heat when there are multiple devices in the same room. Both the temperature and the electricity bill may come at unexpected levels.
Bitcoin (BTC) Mining with Cloud Mining
Hardware costs are high and electricity costs are high. Well, let’s say you have $ 100. Is it possible to do bitcoin mining with this money? The answer is yes. You can rent online device power by registering to cloud-based web services with multiple devices and start production. Of course, with the difficult production of Bitcoin, you should disregard certain amounts, even if it is low compared to hardware in the first place. On the S4mining homepage, there is a calculation sheet of how much investment you can produce with Bitcoin.
You cannot mine BTC with the computer. But let’s drop down the list of Bitcoin mining programs in case you want to try it out. Try it out for yourself. In Bitcoin mining, the CPU cycle is over. After the CPU, GPUs were much more effective and they were able to process multiple times, and a new era began for all coins and the price of graphics cards increased considerably. There are not many video cards in Amazon right now. your computer
To Mine Bitcoin on your own computer (note: this option is too hard);
These 3 websites can help you to mine BTC on your own computer.