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What to consider before starting Bitcoin Mining

Bitcoin Mining

What is Bitcoin Mining

There are many cryptocurrencies available for mining, such as ethereum and litecoin, not only the Bitcoin, others are referred to as "AltCoins".

 

In order that any cryptocurrency gets mined, it has to operate in a proof-of-work concept, which requires miners to solve complex math equation with hardware and decryption program, the miners are then rewarded a part of the transaction in digital currency, such as Bitcoins, which are transferred to the miner's crypto-currency wallet as a block reward for processing the transactions request and sending a valid confirmation.

 

When we are proceeding to what we call "Bitcoin Mining"; the gears (GPU, CPU, ASIC,..) use their processing power to create the hashes and process data of the user's transactions, this is a resource intensive task, in fact processing only one Bitcoin can take the equivalent of 1.5 Average US household electricity consumption.

 

Before investing in digital currencies, it is always a good start to see how the market has moved since the last information you got as it changes constantly, some coins can pay a lot more a day than the others, there's a lot of variation to take into consideration, and that is what makes it hard to estimate your potential revenue.

 

 

You are paid for every transaction hashed.

 

 

 

See the impact of hardware on mining;

 

What are the requirement

Bitcoin mining requires 5 things;

 

1 - Mining Hardware

2 - Crypto Coin Wallet

3 - Mining Program or OS

4 - Electricity

5 - Internet

 

Everyone can mine, but not everyone can make profits.

 

Before realizing any collossal investment, you may want to contact different electricity company in order to potentially obtain a better price per kilowatts then at retails.

 

Hashing keys requires a lot of cryptography processing, the faster you can get it done and at a cheaper cost, the higher your profits can be.

 

 

You might have already thought of using an old computer to mine crypto or just a GPU that you don't use, however, the truth is that old hardware will consume more electricity and take more time to achieve the same result that new hardware such as ASIC technology can do.

 

 

The technology evolves fast and the hardware too, there's component build specifically for Bitcoin Mining, those are generally the best regarding the ratio; {Processing vs Electricity Consumption}.

 

 

Investing in new hardware's for mining might whort it for you or not, It mainly depends on your actual electricity cost and the possibility of better hardware appearing in the future. The price given per transaction completed successfully has dropped and the math equations have become more complex with the times, compared to the precedent years.

 

With the good equipment and the good electricity price per kw/h, you can generate passive income while sleeping and regularly.

 

Pros & Cons of Cryptocurrency Mining

How to start Bitcoin Mining

They exist thousands of programs, platforms, and ways for mining bitcoins, centralized, decentralized, In a mining pool, cloud mining, etc. This article aims at offering you the information to consider before starting cryptocurrency mining.

 

Here is the simplest technic visually explained in the video below to start mining today.

 

Very customizable, the program automatically changes for the best paying rate coins available, you can also set it to start mining only when your device is idle and a lot more such as a mining OS, minimizing the impact on your life.

 

The power of asymmetric math!

How to estimate cost and profits

As the price of CryptoCoins is changing constantly, such as every stock market, we can only proceed to an Estimation.

 

However, these tools will provide you a good overall idea of your potential revenue with the current stats, help you to calculate the cost of electricity, and make an extrapolation of the statistics based on your current hardware and cost, to see if it would be profitable for you.

 

 

  • Electricity cost estimator and Bitcoin Miner | NiceHash

 

  • Wide range of tools to estimate and maximize your revenue| MyCryptoBuddy

 

 

 

 

I sincerely hope that this article is being helpful for you until now, you can also have a look at our Affiliate Program as an additional revenue!

Proof of work vs Proof of stakes

 

 

 

In order that a Cryptocurrency requires miners to join their network, they must be using a Proof-of-work concept, which we have mainly discussed in this article until now, but what about proof of stakes?

 

Proof-of-stakes run entirely without the need of having bitcoin miners. Those algorithms both have as goal to ensure trust in the exchange network.

 

The users desiring to forge crypto currencies have to first deposit an amount of money, it is then locked for a period of time, the algorithm chooses the next block to be added to the blockchain, then the coin forger process the transaction and validate the block.

 

They can only process transactions that contain a lower amount than they have deposited in. If any fraudulent activity is been detected, the person will lose more than he wins and the client is refunded, making it an interesting alternative to bitcoin mining adapted by Satoshi Nakamoto.

 

However, companies are mainly starting with Proof-of-work as we need a tremendous amount of money for changing to it. The odds of Proof-of-stake are that there can be a 51% attack, no one must have access to more than 50% of the tokens or the person can then take advantage of the algorithm.