Bitcoin Mining: Understanding and How It Works
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Illustration Bitcoin Mining |
Bitcoin Mining in Indonesian means bitcoin mining. Bitcoin is one type of digital currency created in January 2009 by Satoshi Nakamoto. Bitcoin offers business transaction fees that are cheaper than traditional electronic payment processes.
And bitcoin mining itself is one of the steps used to get bitcoin. Bitcoin mining is carried out by high-power computers which can solve difficult computational math problems. Therefore, the bitcoin mining process is often thought of as a process such as mining gold.
The process of splitting some mathematical problems was used as a form of effort in adding blockchain to the bitcoin business transaction mechanism. For those of you who don't understand what bitcoin mining is, read the full description below.
1. Some important things to pay attention to in bitcoin mining
For anyone who wants to know and participate directly in the bitcoin mining process, there is something important to pay attention to first. Mining bitcoin requires special tools. The goal here is that special software and hardware are needed for bitcoin mining. In addition, it takes a very powerful computer known as an Application Specific Integrated Circuit (ASIC) to solve difficult algorithms in the bitcoin mining process.
That way, bitcoin mining is not arbitrary using a computer. We cannot use ordinary computers. Of the total 21 million bitcoins in existence, currently (in 2021) some 18.7 million bitcoins have been successfully mined and are on the market.
2. Steps to mine bitcoin
After we understand the information about what bitcoin mining is and the things that need attention, at least we already have an idea about how to mine bitcoin and what tools are needed. In mining bitcoin, we have to go through each way or stage. The steps for mining bitcoin include:
1.) Consider the profit opportunities.
The first step is that we must first consider the advantages we get before starting the bitcoin mining process. We can calculate this profit using a bitcoin mining calculator.
It must be remembered, to be able to mine bitcoin requires large capital. Even the cost alone can reach several thousand US dollars. If we do not have sufficient funds and there is no access to cheap electricity, then mining is not the way of our business.
2.) Have a bitcoin mining device
After having sufficient funds, make sure we have read various discussions regarding bitcoin mining tools such as hardware and software on the internet. This has the goal so that we can know what type of hardware or software is needed. Several hardware devices are quite popular, such as the Antminer S19 and M30 S++.
We can buy the device by meeting with the manufacturer directly or buying it on several e-commerce sites such as eBay and Amazon.
3.) Have a bitcoin wallet.
The third way is to have a bitcoin wallet. It has the purpose of placing the bitcoins that we just obtained from mining. Not only that, this bitcoin wallet is not just any wallet in general. Make sure the bitcoin wallet that we have has an address that generally consists of a long series of numbers and letters.
4.) Find bitcoin miner sources
If we are successful in sourcing bitcoin miners and have worked with them, then we will have some of the algorithm problems to solve. If the source of the miner is successful in obtaining bitcoin, then the profit from the bitcoin will be divided according to the agreement of each miner.
5.) Has a mining program
the next stage is that we must have a miner program which will depend on the rig we have. Therefore, we must find an accurate mining program or software.
6.) Start mining
After we are ready with the steps mentioned earlier, then we are ready to mine bitcoins.
3. How to work bitcoin mining
In contrast to the bank that writes all financial business transactions. On bitcoin, there is no 3rd faction that writes and confirms all business transactions.
Blockchain really comes into play here. Those business transactions are further classified into the blockchain for verification by multiple bitcoin miners. Once verified, the business transaction will then be classified into the confirmed blockchain. Therefore, bitcoin mining requires a computer with special details.
4. Bitcoin mining fees
Mining bitcoin requires a large fee. We have to spend big money on three elements, such as the price of hardware, software, and access to electricity. The three elements have no standard costs. Prices may vary as the bitcoin value changes.
Up to the 3rd element only that should take quite a lot of pockets. There have also been no rumors of a government taxing bitcoin miners. That way, before we do bitcoin mining, we must think carefully.
