How to Mine Bitcoin | Digital Trends

With cryptocurrencies entering the mainstream with a bang, more and more people every single day develop an interest in this new and strange world of blockchain. A lot of these people come to cryptos because they had heard that it’s possible to make money from them. If you’re one of those people, you’re in luck, because today I want to tell you how to mine cryptocurrency.

We’ll start by covering the term itself – we’ll talk about what is cryptocurrency mining and why people bother mining cryptocurrency in the first place. Then I’ll tell you about the different ways you can mine cryptocurrency – their pros, their cons and so on. Lastly, we’ll talk about some of the more popular coins when it comes to crypto mining.

To put it into very simple terms, crypto mining is a process in which a machine performs certain tasks to obtain a little bit of cryptocurrency.

The days of mining bitcoin with your PC are over.

As bitcoin mining difficulty has increased over time, individual mining at home has become unable to keep up with large-scale mining operations that use dedicated mining hardware.

If you are still interested in using your PC to mine other cryptocurrencies though, you are in luck. Fortunately, there are still digital currencies that you can mine in this way. Here’s the scoop on three of the best of these cryptocurrencies.

Monero stands out among other cryptocurrencies as it is widely considered as the most advanced anonymous digital currency. Monero is based on a proof-of-work algorithm known as CryptoNight, which is designed with certain specifications that make it difficult for Monero mining using ASICs to work well.

Some websites might be using your CPU to mine cryptocurrencies like Bitcoin without your knowledge.

Mining of cryptocurrencies like Bitcoin can be lucrative.

But there’s a catch: it requires time and a lot of computing power.

If you could somehow spread those computing demands out among hundreds — and sometimes even thousands or millions — of unknowing users, it would greatly reduce the cost and time of mining expensive coins.

As nefarious as that sounds, it’s exactly what several websites were discovered to be doing by IT security company ESET in September last year.

Previously, criminals would go about hijacking someone else’s computer to mine coins through a malicious program that was installed.

Mining is the process of using a computer to perform complex calculations on blocks of data which maintain the Bitcoin network. Miners are rewarded for their efforts with a certain amount of Bitcoin cryptocurrencies.

Bitcoin (BTC) is fast becoming the province of people using specialized ASIC (application-specific integrated circuit) devices, although if you have one or more powerful graphics cards you may still be able to generate a small profit by assembling your own mining device. You’ll learn more about this in the following steps.

The actual profit you make will depend on a number of factors. The first is your ‘hash rate’ – in other words, the actual processing power of your machine. Computers designed for mining, or ‘rigs’ as they’re commonly known, require large amounts of electricity, which will increase running costs.

If you want to know how to mine Bitcoin, you have two different steps you can take: Go through a cloud mining company, or buy and use your own hardware. We’ll look at both options and why, though neither are cheap, cloud mining represents the safest investment for your money.

Remember, research is important! Just as when it comes to buying Bitcoin or altcoins, you need to be aware that nothing in the world of cryptocurrencies is guaranteed. Any investment could be lost, so make sure you do your reading before pulling out your credit card and have a secure Bitcoin wallet standing by.

When Bitcoin was first introduced in 2009, mining the world’s first and premier cryptocurrency needed little more than a home PC — and not even a fast one at that. Today, the barrier for entry is far higher if you want to make any kind of profit doing it.

One reply on “How to Mine Bitcoin | Digital Trends”

How to Mine Bitcoin | Digital Trends

The days of mining bitcoin with your PC are over.

As bitcoin mining difficulty has increased over time, individual mining at home has become unable to keep up with large-scale mining operations that use dedicated mining hardware.

If you are still interested in using your PC to mine other cryptocurrencies though, you are in luck. Fortunately, there are still digital currencies that you can mine in this way. Here’s the scoop on three of the best of these cryptocurrencies.

Monero stands out among other cryptocurrencies as it is widely considered as the most advanced anonymous digital currency. Monero is based on a proof-of-work algorithm known as CryptoNight, which is designed with certain specifications that make it difficult for Monero mining using ASICs to work well.

With cryptocurrencies entering the mainstream with a bang, more and more people every single day develop an interest in this new and strange world of blockchain. A lot of these people come to cryptos because they had heard that it’s possible to make money from them. If you’re one of those people, you’re in luck, because today I want to tell you how to mine cryptocurrency.

We’ll start by covering the term itself – we’ll talk about what is cryptocurrency mining and why people bother mining cryptocurrency in the first place. Then I’ll tell you about the different ways you can mine cryptocurrency – their pros, their cons and so on. Lastly, we’ll talk about some of the more popular coins when it comes to crypto mining.

To put it into very simple terms, crypto mining is a process in which a machine performs certain tasks to obtain a little bit of cryptocurrency.

Mining and cryptocurrency are dirty words to many of my readers.

Extra dirty to people looking to build their own gaming PC in a retail landscape that’s seen the prices of graphics cards from AMD and Nvidia inflate to atrocious levels. Seriously, it’s now significantly cheaper to buy the majority of boutique or mass-market systems than it is to build them yourself.

Perhaps it’s not the right time to go DIY.

Maybe you have no desire to assemble a crazy mining rig.

But for those of you with gaming PCs, you might be surprised how much money you can make mining with it, and how easy it is .

When I stopped mining for crypto coins back in 2013, getting a client up and running was a challenge. Basic knowledge of Linux and terminal commands were requirements.

If you want to know how to mine Bitcoin, you have two different steps you can take: Go through a cloud mining company, or buy and use your own hardware. We’ll look at both options and why, though neither are cheap, cloud mining represents the safest investment for your money.

Remember, research is important! Just as when it comes to buying Bitcoin or altcoins, you need to be aware that nothing in the world of cryptocurrencies is guaranteed. Any investment could be lost, so make sure you do your reading before pulling out your credit card and have a secure Bitcoin wallet standing by.

When Bitcoin was first introduced in 2009, mining the world’s first and premier cryptocurrency needed little more than a home PC — and not even a fast one at that. Today, the barrier for entry is far higher if you want to make any kind of profit doing it.

Mining is the process of using a computer to perform complex calculations on blocks of data which maintain the Bitcoin network. Miners are rewarded for their efforts with a certain amount of Bitcoin cryptocurrencies.

Bitcoin (BTC) is fast becoming the province of people using specialized ASIC (application-specific integrated circuit) devices, although if you have one or more powerful graphics cards you may still be able to generate a small profit by assembling your own mining device. You’ll learn more about this in the following steps.

The actual profit you make will depend on a number of factors. The first is your ‘hash rate’ – in other words, the actual processing power of your machine. Computers designed for mining, or ‘rigs’ as they’re commonly known, require large amounts of electricity, which will increase running costs.

One reply on “How to Mine Bitcoin | Digital Trends”

How to Mine Bitcoin | Digital Trends

Cryptocurrency mining is painstaking, costly and only sporadically rewarding. Nonetheless, mining has a magnetic appeal for many investors interested in cryptocurrency because of the fact that miners are rewarded for their work with crypto tokens. This may be because entrepreneurial types see mining as pennies from heaven, like California gold prospectors in 1849. And if you are technologically inclined, why not do it?

However, before you invest the time and equipment, read this explainer to see whether mining is really for you. We will focus primarily on Bitcoin (throughout, we’ll use “Bitcoin” when referring to the network or the cryptocurrency as a concept, and “bitcoin” when we’re referring to a quantity of individual tokens).

The primary draw for many Bitcoin miners is the prospect of being rewarded with valuable bitcoin tokens.

Chances are you hear the phrase “bitcoin mining” and your mind begins to wander to the Western fantasy of pickaxes, dirt and striking it rich. As it turns out, that analogy isn’t too far off.

Far less glamorous but equally uncertain, bitcoin mining is performed by high-powered computers that solve complex computational math problems (that is, so complex that they cannot be solved by hand, and indeed complicated enough to tax even incredibly powerful computers). The luck and work required by a computer to solve one of these problems is the equivalent of a miner striking gold in the ground — while digging in a sandbox. At the time of writing, the chance of a computer solving one of these problems is about 1 in 13 trillion, but more on that later.

The result of “bitcoin mining” is twofold.

The role of miners is to secure the network and to process every Bitcoin transaction.

Miners achieve this by solving a computational problem which allows them to chain together blocks of transactions (hence Bitcoin’s famous “blockchain”).

For this service, miners are rewarded with newly-created Bitcoins and transaction fees.

Miners are paid rewards for their service every 10 minutes in the form of new bitcoins.

What is the point of Bitcoin mining? This is something we’re asked everyday!

There are many aspects and functions of Bitcoin mining and we’ll go over them here. They are:

Traditional currencies–like the dollar or euro–are issued by central banks.

Cryptocurrency mining, or cryptomining, is a process in which transactions for various forms of cryptocurrency are verified and added to the blockchain digital ledger. Also known as cryptocoin mining, altcoin mining, or Bitcoin mining (for the most popular form of cryptocurrency, Bitcoin), cryptocurrency mining has increased both as a topic and activity as cryptocurrency usage itself has grown exponentially in the last few years.

Each time a cryptocurrency transaction is made, a cryptocurrency miner is responsible for ensuring the authenticity of information and updating the blockchain with the transaction.

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By signing up, you will receive emails about CoinDesk products and you agree to our terms & conditions and privacy policy

By signing up, you will receive emails about CoinDesk products and you agree to our terms & conditions and privacy policy

To cut through some of the confusion surrounding bitcoin, we need to separate it into two components. On the one hand, you have bitcoin-the-token, a snippet of code that represents ownership of a digital concept – sort of like a virtual IOU. On the other hand, you have bitcoin-the-protocol, a distributed network that maintains a ledger of balances of bitcoin-the-token.

If you want to know how to mine Bitcoin, you have two different steps you can take: Go through a cloud mining company, or buy and use your own hardware. We’ll look at both options and why, though neither are cheap, cloud mining represents the safest investment for your money.

Remember, research is important! Just as when it comes to buying Bitcoin or altcoins, you need to be aware that nothing in the world of cryptocurrencies is guaranteed. Any investment could be lost, so make sure you do your reading before pulling out your credit card and have a secure Bitcoin wallet standing by.

When Bitcoin was first introduced in 2009, mining the world’s first and premier cryptocurrency needed little more than a home PC — and not even a fast one at that. Today, the barrier for entry is far higher if you want to make any kind of profit doing it.

With cryptocurrencies entering the mainstream with a bang, more and more people every single day develop an interest in this new and strange world of blockchain. A lot of these people come to cryptos because they had heard that it’s possible to make money from them. If you’re one of those people, you’re in luck, because today I want to tell you how to mine cryptocurrency.

We’ll start by covering the term itself – we’ll talk about what is cryptocurrency mining and why people bother mining cryptocurrency in the first place. Then I’ll tell you about the different ways you can mine cryptocurrency – their pros, their cons and so on. Lastly, we’ll talk about some of the more popular coins when it comes to crypto mining.

To put it into very simple terms, crypto mining is a process in which a machine performs certain tasks to obtain a little bit of cryptocurrency.

One reply on “How to Mine Bitcoin | Digital Trends”

How to Mine Bitcoin | Digital Trends

With so many available cryptocurrencies and new ones emerging all the time, it’s not easy to choose which one to mine. Here are some tips showing you how to choose which currencies are most profitable to mine in your particular case.

There might be thousands of cryptocurrencies out there, but you can’t mine all of them.

One of the big limitations is your hardware.

Obviously, you can’t mine currency your hardware is not suited for.

For instance, if you have an ASIC miner, then you don’t have much choice because these can mine one or few currencies only.

If you have GPUs, even if they are high level, for many currencies such as Bitcoin, you can’t compete with ASICs.

Cryptocurrency mining is the process through which transactions are verified and added to a blockchain public ledger. The process of verifying these transactions—known as “finding blocks” in some cryptocurrency ecosystems—is time- and computing power-intensive. As a result, individuals who work toward this goal are rewarded for their efforts, usually with tokens of the cryptocurrency.

While the rewards of mining appear lucrative, the process is complex.

With so many available cryptocurrencies and new ones emerging all the time, it’s not easy to choose which one to mine. Here are some tips showing you how to choose which currencies are most profitable to mine in your particular case.

There might be thousands of cryptocurrencies out there, but you can’t mine all of them.

One of the big limitations is your hardware.

Obviously, you can’t mine currency your hardware is not suited for.

For instance, if you have an ASIC miner, then you don’t have much choice because these can mine one or few currencies only.

If you have GPUs, even if they are high level, for many currencies such as Bitcoin, you can’t compete with ASICs.

Hello and welcome to this guide to the best coin to mine.

First things first, I must point out that cryptocurrency mining is a huge topic and to understand it fully would take a much longer article than this one.  

That said, I’m hoping that this will serve as the perfect introduction to the topic.

Ultimately, I hope it will help you to decide the best coin to mine.

During the guide, I’ll cover a lot of different aspects of Bitcoin and altcoin mining. Together, we’ll look at: 

Before we get started looking at how to choose the best coin to mine, I first need to explain what exactly mining is, for those who are brand new to the topic. Let us begin!

Mining is a vital feature of many cryptocurrencies. Put simply, it’s the process by which transactions are checked to see that they follow certain rules of the network.

With cryptocurrencies entering the mainstream with a bang, more and more people every single day develop an interest in this new and strange world of blockchain. A lot of these people come to cryptos because they had heard that it’s possible to make money from them. If you’re one of those people, you’re in luck, because today I want to tell you how to mine cryptocurrency.

We’ll start by covering the term itself – we’ll talk about what is cryptocurrency mining and why people bother mining cryptocurrency in the first place. Then I’ll tell you about the different ways you can mine cryptocurrency – their pros, their cons and so on. Lastly, we’ll talk about some of the more popular coins when it comes to crypto mining.

To put it into very simple terms, crypto mining is a process in which a machine performs certain tasks to obtain a little bit of cryptocurrency.

Is cryptocurrency mining profitable now? Both yes and no.

It depends on what and how you mine plus your electricity bills may vary depending on where your rigs or farms are located. Bitcoin (BTC) is not the most profitable mining coin anymore: mining difficulty is so high it requires the whole farms jam-packed with juggernauts servers to get a block. Luckily, there’s a bunch of great altcoins making profitable mining possible.

Although mining is not as dirt-cheap and profitable option as it used to be a few years ago, it’s still a legitimate way of earning crypto and enjoying almost passive income.

Miners are now smarter & way more experienced in crypto trading. They prefer mining the most promising cryptocurrencies only as there’re done wasting precious hashpower, time and investments on new coins with a low trading volume.

My friend Tony yelled, “You want to do what? On what?” Like myself, Tony was a cryptocurrency fan who wanted to make more crypto coins without having to make a fuss over it.

Unlike myself, Tony wasn’t really too keen on mining anything other than Bitcoin. When he’d mine Bitcoin, he’d use his mining rig that cost the better part of $2,000.

The reason he balked was because I told him that I was going to mine cryptocurrency using my Android phone.

He looked at me as if lobsters decided to crawl out of my ears.

Then, he asked the golden question of the day…

I told him that it was very possible, and that mobile mining has been around for quite a while. Here’s what beginners should know.

While you can mine cryptocurrency on your phone, there are still limits to what your phone is capable of getting you.

New to Komodo? We’ve got you covered, whether you’re a developer, an enterprise business or just an enthusiast.

For many, the term mining conjures up images of dimly lit tunnels and coal clad rail carts. As such, it’s not particularly surprising that those outside the blockchain industry lack an understanding of cryptocurrency mining.

So, what exactly is cryptocurrency mining if it doesn’t involve digging for precious metals or coal?

The answer, in short, is that cryptocurrency mining is a competitive process that validates transactions and results in the creation of cryptocurrency. Essentially, it’s a race among a large peer to peer network of computers to solve a mathematical equation.

Before getting started with mining cryptocurrency, you should set yourself up with a few mining toys. When you’ve got everything up and running, mining becomes rather easy because everything happens automatically. The only thing left to do is pay your electric bills at the end of each month.

Some tech junkies mine just for the heck of it, but at the end of the day, most people mine cryptos with profit in mind. But even if you fall in the former group, you may as well get a reward out of your efforts, eh? Mining profitability can change drastically based on cryptocurrency value, mining difficulty, electricity rates, and hardware prices at the time you’re setting up your mining system. You can go to websites like CoinWarz to see which cryptos are best to mine at a given time.

If you want to know how to mine Bitcoin, you have two different steps you can take: Go through a cloud mining company, or buy and use your own hardware. We’ll look at both options and why, though neither are cheap, cloud mining represents the safest investment for your money.

Remember, research is important! Just as when it comes to buying Bitcoin or altcoins, you need to be aware that nothing in the world of cryptocurrencies is guaranteed. Any investment could be lost, so make sure you do your reading before pulling out your credit card and have a secure Bitcoin wallet standing by.

When Bitcoin was first introduced in 2009, mining the world’s first and premier cryptocurrency needed little more than a home PC — and not even a fast one at that. Today, the barrier for entry is far higher if you want to make any kind of profit doing it.

One reply on “How to Mine Bitcoin | Digital Trends”

How to Mine Bitcoin | Digital Trends

Cryptocurrencies only exist in the digital world – which is why, from their creation to their distribution, each and every process is completed electronically. A crucial part of this process is called cryptocurrency mining.

Miners are responsible for solving complex mathematical problems using mining software. This is how a transaction is verified on the network and sent to the blockchain.

Miners are then rewarded for their work with cryptocurrencies.

According to Blockchain.info, blocks can hold thousands of transactions.

However, the number changes since every cryptocurrency has a different block size and transaction speed.

There are two important types of mining on different consensus algorithms: Proof of Work (PoW) and Proof of Stake (PoS). Simply put, PoW requires miners to solve problems, which requires a great amount of computational power.

Cryptocurrencies only exist in the digital world – which is why, from their creation to their distribution, each and every process is completed electronically. A crucial part of this process is called cryptocurrency mining.

Miners are responsible for solving complex mathematical problems using mining software. This is how a transaction is verified on the network and sent to the blockchain.

Miners are then rewarded for their work with cryptocurrencies.

According to Blockchain.info, blocks can hold thousands of transactions.

However, the number changes since every cryptocurrency has a different block size and transaction speed.

There are two important types of mining on different consensus algorithms: Proof of Work (PoW) and Proof of Stake (PoS). Simply put, PoW requires miners to solve problems, which requires a great amount of computational power.

With cryptocurrencies entering the mainstream with a bang, more and more people every single day develop an interest in this new and strange world of blockchain. A lot of these people come to cryptos because they had heard that it’s possible to make money from them. If you’re one of those people, you’re in luck, because today I want to tell you how to mine cryptocurrency.

We’ll start by covering the term itself – we’ll talk about what is cryptocurrency mining and why people bother mining cryptocurrency in the first place. Then I’ll tell you about the different ways you can mine cryptocurrency – their pros, their cons and so on. Lastly, we’ll talk about some of the more popular coins when it comes to crypto mining.

To put it into very simple terms, crypto mining is a process in which a machine performs certain tasks to obtain a little bit of cryptocurrency.

Cryptocurrency mining is painstaking, costly and only sporadically rewarding. Nonetheless, mining has a magnetic appeal for many investors interested in cryptocurrency because of the fact that miners are rewarded for their work with crypto tokens. This may be because entrepreneurial types see mining as pennies from heaven, like California gold prospectors in 1849. And if you are technologically inclined, why not do it?

However, before you invest the time and equipment, read this explainer to see whether mining is really for you. We will focus primarily on Bitcoin (throughout, we’ll use “Bitcoin” when referring to the network or the cryptocurrency as a concept, and “bitcoin” when we’re referring to a quantity of individual tokens).

The primary draw for many Bitcoin miners is the prospect of being rewarded with valuable bitcoin tokens.

Mining cryptocoins is an arms race that rewards early adopters.

You might have heard of Bitcoin, the first decentralized cryptocurrency that was released in early 2009. Similar digital currencies have crept into the worldwide market since then, including a spin-off from Bitcoin called Bitcoin Cash. You can get in on the cryptocurrency rush if you take the time to learn the basics properly.

If you had started mining Bitcoins back in 2009, you could have earned thousands of dollars by now. At the same time, there are plenty of ways you could have lost money, too. Bitcoins are not a good choice for beginning miners who work on a small scale. The current up-front investment and maintenance costs, not to mention the sheer mathematical difficulty of the process, just doesn’t make it profitable for consumer-level hardware.

If you want to know how to mine Bitcoin, you have two different steps you can take: Go through a cloud mining company, or buy and use your own hardware. We’ll look at both options and why, though neither are cheap, cloud mining represents the safest investment for your money.

Remember, research is important! Just as when it comes to buying Bitcoin or altcoins, you need to be aware that nothing in the world of cryptocurrencies is guaranteed. Any investment could be lost, so make sure you do your reading before pulling out your credit card and have a secure Bitcoin wallet standing by.

When Bitcoin was first introduced in 2009, mining the world’s first and premier cryptocurrency needed little more than a home PC — and not even a fast one at that. Today, the barrier for entry is far higher if you want to make any kind of profit doing it.

New to Komodo? We’ve got you covered, whether you’re a developer, an enterprise business or just an enthusiast.

For many, the term mining conjures up images of dimly lit tunnels and coal clad rail carts. As such, it’s not particularly surprising that those outside the blockchain industry lack an understanding of cryptocurrency mining.

So, what exactly is cryptocurrency mining if it doesn’t involve digging for precious metals or coal?

The answer, in short, is that cryptocurrency mining is a competitive process that validates transactions and results in the creation of cryptocurrency. Essentially, it’s a race among a large peer to peer network of computers to solve a mathematical equation.

One reply on “How to Mine Bitcoin | Digital Trends”

How to Mine Bitcoin | Digital Trends

Cryptocurrencies only exist in the digital world – which is why, from their creation to their distribution, each and every process is completed electronically. A crucial part of this process is called cryptocurrency mining.

Miners are responsible for solving complex mathematical problems using mining software. This is how a transaction is verified on the network and sent to the blockchain.

Miners are then rewarded for their work with cryptocurrencies.

According to Blockchain.info, blocks can hold thousands of transactions.

However, the number changes since every cryptocurrency has a different block size and transaction speed.

There are two important types of mining on different consensus algorithms: Proof of Work (PoW) and Proof of Stake (PoS). Simply put, PoW requires miners to solve problems, which requires a great amount of computational power.

Cryptocurrencies only exist in the digital world – which is why, from their creation to their distribution, each and every process is completed electronically. A crucial part of this process is called cryptocurrency mining.

Miners are responsible for solving complex mathematical problems using mining software. This is how a transaction is verified on the network and sent to the blockchain.

Miners are then rewarded for their work with cryptocurrencies.

According to Blockchain.info, blocks can hold thousands of transactions.

However, the number changes since every cryptocurrency has a different block size and transaction speed.

There are two important types of mining on different consensus algorithms: Proof of Work (PoW) and Proof of Stake (PoS). Simply put, PoW requires miners to solve problems, which requires a great amount of computational power.

With cryptocurrencies entering the mainstream with a bang, more and more people every single day develop an interest in this new and strange world of blockchain. A lot of these people come to cryptos because they had heard that it’s possible to make money from them. If you’re one of those people, you’re in luck, because today I want to tell you how to mine cryptocurrency.

We’ll start by covering the term itself – we’ll talk about what is cryptocurrency mining and why people bother mining cryptocurrency in the first place. Then I’ll tell you about the different ways you can mine cryptocurrency – their pros, their cons and so on. Lastly, we’ll talk about some of the more popular coins when it comes to crypto mining.

To put it into very simple terms, crypto mining is a process in which a machine performs certain tasks to obtain a little bit of cryptocurrency.

If you want to know how to mine Bitcoin, you have two different steps you can take: Go through a cloud mining company, or buy and use your own hardware. We’ll look at both options and why, though neither are cheap, cloud mining represents the safest investment for your money.

Remember, research is important! Just as when it comes to buying Bitcoin or altcoins, you need to be aware that nothing in the world of cryptocurrencies is guaranteed. Any investment could be lost, so make sure you do your reading before pulling out your credit card and have a secure Bitcoin wallet standing by.

When Bitcoin was first introduced in 2009, mining the world’s first and premier cryptocurrency needed little more than a home PC — and not even a fast one at that. Today, the barrier for entry is far higher if you want to make any kind of profit doing it.

Mining cryptocoins is an arms race that rewards early adopters.

You might have heard of Bitcoin, the first decentralized cryptocurrency that was released in early 2009. Similar digital currencies have crept into the worldwide market since then, including a spin-off from Bitcoin called Bitcoin Cash. You can get in on the cryptocurrency rush if you take the time to learn the basics properly.

If you had started mining Bitcoins back in 2009, you could have earned thousands of dollars by now. At the same time, there are plenty of ways you could have lost money, too. Bitcoins are not a good choice for beginning miners who work on a small scale. The current up-front investment and maintenance costs, not to mention the sheer mathematical difficulty of the process, just doesn’t make it profitable for consumer-level hardware.

Cryptocurrency mining is painstaking, costly and only sporadically rewarding. Nonetheless, mining has a magnetic appeal for many investors interested in cryptocurrency because of the fact that miners are rewarded for their work with crypto tokens. This may be because entrepreneurial types see mining as pennies from heaven, like California gold prospectors in 1849. And if you are technologically inclined, why not do it?

However, before you invest the time and equipment, read this explainer to see whether mining is really for you. We will focus primarily on Bitcoin (throughout, we’ll use “Bitcoin” when referring to the network or the cryptocurrency as a concept, and “bitcoin” when we’re referring to a quantity of individual tokens).

The primary draw for many Bitcoin miners is the prospect of being rewarded with valuable bitcoin tokens.

Although the process by which new cryptocurrency tokens or coins are generated is called mining, it bears little resemblance to the work done by those who physically mine for precious metals like gold. The comparison does hold, however; digital currency miners use computers to solve complex mathematical problems and they are rewarded for their work with a small stake of tokens. Mine the right cryptocurrency at the right time, the thinking goes, and you can stand to make a lot of money. What’s more, the effort associated with cryptocurrency mining seems to be frontloaded: Yes, it takes time and money to learn about and build a mining rig, but once everything is up and running, you can simply leave it to do its thing and wait for the money to pour in.

One reply on “How to Mine Bitcoin | Digital Trends”