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Mining is the process of creating and adding new blocks to proof-of-work blockchains. Miners also add new transactions to the chain of blocks and validate them. For such activities, they are rewarded with a particular number of coins. In this article, our experts will provide you with some information about Bitcoin and how to start earning BTCs.
How to Mine Bitcoins: Types of Hardware
The first mining hardware was CPUs. One could earn BTCs by simply using part of the central processor’s computing power. The era of CPUs was long enough as there was little to zero competition, and Bitcoin was nothing more than an attempt to create an international cryptocurrency that would allow you to conduct fast and cheap transactions.
Things have changed a lot with the growing demand for cryptocurrencies. Mining has become very popular and the competition in this niche has reached enormous scales. Moreover, with each next block, the complexity of mining rises, which approaches the end of the CPU era and starts the age of GPUs and ASICS.
Nowadays, there are two main types of Bitcoin mining hardware. Some enthusiasts still create GPU farms, while companies collect rigs from ASICS (special equipment that was designed for Bitcoin and other proof-of-work cryptocurrency mining).
It should be mentioned that the average GPU rig has lower performance as compared to the average ASIC rig. Moreover, nowadays it I also impossible to mine Bitcoin using GPU rigs. It is better to invest money in buying ASICs, which were designed especially for such purposes. However, if you want to mine some other cryptocurrencies except Bitcoin, you can still use one GPU or GPU rigs to succeed.
Bitcoin Mining: Software Guide
How to mine Bitcoin? Having appropriate hardware for mining is not enough to start earning new BTCs. You still need some software that will power the whole process and connect you to the network. If you choose ASIC miners to be used for such purposes, they already have preinstalled software that can be easily connected to the blockchain.
However, if you plan to use other hardware types, you will have to opt for particular software. There are many famous and popular miners, like Nicehash, MultiMiner, GUI Miner, Easy Miner, and others.
You can also add yourself to special btc mining pools and increase your chances of getting a reward. Therefore, you will share your mining power with others and contribute to common mining performance.
Bitcoin mining is one of the most promising areas where you can earn BTC by buying enough computing power. However, nowadays, due to the increasing complexity of mining, you will have to spend a lot of money in order to build your own farm or rig. Another option is to join mining pools and to get your share, which is calculated according to your contribution.