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What is Bitcoin Mining? How to dig them? 2021

What is Bitcoin Mining?

Currently, in the world bitcoin coin already quite popular, the attraction from this digital currency is shaking the world of e-commerce. More and more people are playing bitcoin, folks bitcoin investment willing to spend hundreds of millions or even a few billion dong to "feed" these people bitcoin mining rigs, making huge profits from this bitcoin mining.

What is Bitcoin Mining?

bitcoin mining, plow bitcoin also known as Bitcoin Mining (English is Bitcoin Mining) is a term that describes the fast processing and confirmation of payments on the bitcoin network.

Thus, it can be said that bitcoin mining is the use of computers to detect BTC. This term reminds us of gold mining. Plowing bitcoin is like digging for gold, a miner needs intelligence, experience, time and most importantly, perseverance.

Bitcoin Mining is done by an application installed on the computer so anyone can participate in the bitcoin mining system.

After a period of mining activities on traditional computers, a number of companies around the world have created hardware specifically for mining. bitcoin mining, which supports significantly faster block generation and transaction processing, increasing efficiency over conventional bitcoin mining. To confirm the transaction and mount on blockchain chain, the dedicated bitcoin plow must be able to solve particularly complex cryptographic problems.

What is Bitcoin Mining?

Why is it called bitcoin mining? 

It's called that because it's the process that helps you Mining new Bitcoins from the system. But to be more precise, the mining part is only part of the transaction confirmation process.

As you see the main goal of mining is to maintain the ledger in a decentralized way. Since mining is based on a form of decryption. Each time a different miner decrypts and is granted permission to update the blockchain.

Of course, miners with more computing power will succeed more often. But due to the law of probability, it is highly unlikely that the same miner will be successful every time.

How to join bitcoin mining

Anyone who wants to participate in updating the ledger of Bitcoin transactions, known as the Blockchain, can do so.

All you need is to guess a random number, solve the equation generated by the system. This is done by your computer. The more powerful your computer, the more predictions you can make in a second, increasing your chances of winning.

If you guess correctly, you will earn bitcoins and can continue writing about Bitcoin transactions on the blockchain. The solution to the equation is very difficult to achieve but very easy to confirm.

How does bitcoin mining work?

Miners are paid a reward for their service of new bitcoins every 10 minutes.

Multiple Bitcoin transactions happening at the same time. These transactions are included in the block. It is these blocks that Bitcoin miners must verify. They verify transactions in blocks rather than verifying them individually.

Once a block is verified, it is added to a chain of previously verified blocks. That is why there is a concept that the technology behind bitcoin is blockchain.

See more: What is Blockchain?

The explanation for the blockchain technology behind bitcoin will help people better understand how mining works? Now let's see how mining works:

How does bitcoin mining work?

I will make it as simple as possible for you to understand. With the main example you are the miner:

When your mining computer gives the correct solution to a problem. Your computer determines which pending transactions should be added to the next block of transactions on the blockchain.

Now it is you who will update the Bitcoin transaction ledger (or temporarily become the owner of that bitcoin). The transaction block you created, along with your solution, is sent to the entire network so other computers can validate it. Each computer validating your solution updates its copy of the Bitcoin transaction ledger with the transactions you have chosen to include in the block.

The system generates a fixed amount of Bitcoin (Currently 12.5-will decrease over time). You should read more concepts Halving what? for details. This is your reward for the time and energy you put into solving the problem.

In addition, you are paid any transaction fees attached to the transactions you inserted in the next block. All transactions in the block you just entered are now confirmed by the Bitcoin network and are virtually irreversible.

That's the end of a mining process. Although it is brief, it creates a lot of problems because the value, rarity, and difficulty of Bitcoin mining increases. I will review it for you guys a little bit about it in the next section.

Difficulty increased

I'm new to the bitcoin mining ecosystem and thought it was a free coin. People who briefly read the process I mentioned above will think that now I need to register where to mine, where to confirm transactions. But it's not really that fast, it costs all that stuff, kkk.

Inventor of Bitcoin is Satoshi Nakamoto built the mining rules in such a way that the more the network mines, the higher the difficulty increases. It is more complicated to guess the answer to the mining math problem.

In short, the difficulty of the mining process is self-regulating according to the accumulated mining power that the network possesses. If more miners are involved, it will be harder to solve the problem. This is the difficulty in exploitation. However, there are also some solutions to this problem.

Difficulty adjustment 

  • The difficulty here is to self-regulate to create a steady stream of new Bitcoins into the system. In a sense, this was done to control inflationary.
  • To put it simply, miners with more powerful hardware will win the computational solution. This also means that you will need to buy more expensive hardware (this will be explained later).

The following difficulty adjustment concept makes it hard for bitcoin to die:

  • Mining difficulty is set to average. A new block will be added every 10 minutes. Every 2016 blocks are generated (about 14 days), the difficulty is automatically fine-tuned by the network based on the capacity of the entire network. If less than 10 minutes, it will increase in difficulty. For more than 10 minutes, it will lower the difficulty.
  • The purpose is to keep the interval between newly created blocks to 10 minutes. From March 3 to March 2014, the average number of nonce (the number added to the block hash that meets the difficulty limits) that miners had to test hash before generating a new block was increased from 3 billion billion to 2015 billion billion (Wikipedia Reference). Terrible, isn't it?

What does Bitcoin mining cost include?

Let's see what is the cost of Bitcoin mining? The main costs associated with bitcoin mining are the first two. And then I'll add a little more:

  • Computer Hardware Cost: For starters, the cost of Bitcoin mining hardware will be over 12 million VND (over 600 USD). And it will be a lot more expensive if you want to buy better hardware.
  • Electricity Consumption: Bitcoin mining uses a lot of electricity. If electricity in your area is too expensive, you should think twice.
  • Use space: Cool place, room temperature to keep the machine cool (use air conditioner, exhaust fan, ..).
  • Take care of your system: To take care of you or your team, you need to have basic ability from installing windows to installing software. Or you have to know how to fix basic errors, and if you are highly technical, you will need technical guidance. The time you spend on it is like 24 hours a day.
  • Finally, if you are lucky, you have bitcoins, so try it.

Mining pool

Bitcoin mining is like a competition. Even if you have the best buffalo, you are still at a huge disadvantage compared to professional Bitcoin mining farms. That's why Mining pool was born.

See more: What is mining pool?

Instructions for mining bitcoin at home

I will give an idea according to the process if you want to start mining bitcoin:

Step 1: Calculate profit 

Digging without profit, what's the point of digging? Before you get started with Bitcoin mining, you need to research a few things. The best way is to discuss the problem. You should participate in learning from the community. Or learn from someone who has gone before

Bitcoin mining is extremely expensive, you should keep this in mind. If you do not have a large amount of assets to use for the mining rig. Or if you don't calculate the cost of cheap electricity, don't think about mining bitcoin.

Next is owning a mining rig:

Step 2: List of Popular Bitcoin Plows 2021

Miner Bitmain Antminer S9;13.5 – 14 CARD

The current Bitmain Antminer S9 be considered Bitcoin Mining Machine best in the world. Bitmain is a Chinese company that is a leader in the development of ASIC miners, and the Antminer S9 is the best they have produced to date. The machine is designed to be simple, so you can use this machine very easily and the installation time only takes about a few minutes to complete.

Bitmain Antminer S9

The specifications of the machine are as follows:

  • Hashrat to: 13.5 TH/s – 14 TH/s
  • Chips 16 nm: 189 x BM1387
  • Electric used: 1323 W 7% W
  • Efficiency: 0.098 J/GH 7%
  • Operating temperature: 0 degrees C to 40 degrees C

Hashrat to of this machine is 13-14 TH/s, almost three times that of the previous S7. It also consumes only 1.300 watts of power, significantly less than some of the competition's ASICs, which makes it far more efficient than the competition's machines.

There are some machines with higher computing power, or better energy efficiency, but when the two factors are combined, there is currently no machine that can compare with the Antminer S2. With Antminer S1, its users can make an expected profit of about 9 Bitcoin per day.

Pagolin Miner M3X; 12 – 13 CARDS

The chips used to design out Pagolin Miner much larger than its contemporaries. While the S9 and others use 16nm ASIC chips, the M3X has close to 200 28nm chips. The M3X consumes approximately 1.800 W to 2.000 W of power, which makes it a coin and bitcoin miner the most fuel-efficient on this list. However, with computing power between 12 and 13,5 TH/s, it also deserves to be one of the most powerful miners.

Pagolin Miner M3X

Besides, Pagolin Miner It's also a lot more affordable than the products. But the cost of electricity will also be much higher than other products, the price of each M3X is at least $ 1.020, if you are willing to wait until May for them to ship the product to you, the price will be $ 5.

Miner Bitmain Antminer T9; 11.5 – 12.5 CARDS

Although not as powerful and less effective Antminer S9, but Antminer T9 is also a popular choice among machines mining coins, mining bitcoins, mining Ethereum, dig Litecoin now because it features a longer warranty (180 days vs 90 days for the S9). For those who plan to mine coins for a long time, T9 offers more reliability and a more stable investment, as well as a more affordable cost.

Bitmain Antminer T9

The specifications of the machine are as follows:

  • Hashrat to: 11.5 TH/s -12.5 TH/s
  • Chips 16 nm: 171 x BM1387
  • Electric used: 1450 W – 1576 W
  • Efficiency: 0.126 J/HOT
  • Operating temperature: 0 degrees C to 40 degrees C

Hashrat to of the T9 at around 11,5 TH/s, with 1.450w power consumption. According to Bitmain's website, the future computing power of Antminer T9 could go up to almost 12,5 TH per second, although power consumption would also increase to 1.576 watts to reach that hashrate.

Antminer R4 Miner – 8.6 CARD

This is kind coin mining machine, buffalo very popular, suitable for home mining. Although it is quite heavy and loud, the noise it produces is quite small, only about 51 db.

Antminer R4

The specifications of this machine are as follows:

  • Hashrat to: 8.6 TH/s
  • Chips 16 nm: 126 x BM1387
  • Power Consumption: 845 W
  • Efficiency: 0.1 J/HOT
  • Operating temperature: 10 degrees C to 40 degrees C
  • Weight9 kg

Avalonminer 741- 7.3 CARDS

Avalonminer 741 is a machine dedicated bitcoin mining created by Canaan company, a Bitmain competitor, it is a Chinese company that specializes in producing powerful and efficient mining equipment at reasonable prices.

Avalon 741

Avalonminer 741 specifications are as follows:

  • Hashrat to: 7.3 TH/s
  • Chips 16 nm: 88 x A3212
  • Power Consumption: 1150 W
  • Efficiency: 0.16 J/GigaHash
  • Operating temperature: -5 degrees Celsius to 40 degrees Celsius
  • Weight4.3 kg

Avalonminer 741 using 16 nm chip and adding some important software compared to the old versions, the design details are greatly optimized

Avalonminer 741's efficiency is 0.15 W/Gh, 20% lower cost than older versions. The Avalonminer 741 is an innovative machine designed with a rugged aluminum housing, a custom heatsink with air-cooled technology..

The noise that the machine Avalonminer 741 The emission is quite small, only about 50 db to 60 db, which makes it possible for you to dig coins at home without affecting the neighbors next door.

Avalonminer 721 – 6 CARDS

Avalonminer 721 was launched in 2016. With outstanding features of compact, lightweight. Avalonminer 721 uses a 16 nm chip, which is more power efficient than the S7 series.

Avalonminer 721

Specifications of excavator:

  • Hashrat to: 6 TH/s
  • Chips 16 nm: 72 x A3212
  • Electric used: 850 W – 1000 W
  • Operating temperature: -5 degrees Celsius to 40 degrees Celsius
  • Mass4.3 kg

Bitmain Antminer S7 – 4.73 CARDS

Miner Antminer S7 was launched in 2015, at this time the price of Bitcoin (BTC) was only at $225, so the S7 miner at that time was the best in the community. Virtual currency mining most preferred. Currently, Antminer S7 is no longer the best choice due to the development of the community.

Bitmain Antminer S7

The specifications of the S7 are as follows:

  • Hashrate: 4.73 TH/s 5%
  • Chips: 162 x BM1385
  • Power Consumption: 1293W 10%
  • Efficiency: 0.25 W/GH 10%
  • Operating temperature: 7 degrees Celsius to 40 degrees Celsius

Although less efficient and not as powerful as its newer versions S9 and T9, the Antminer S7 is an alternative to the Cryptocurrency Mining Machine leading today. Because it is a type of coin miner whose main advantage is very good durability. Many S7 excavators are more than 2 years old and still perform very well. That's why it is chosen by many people to mine coins safely, without having to be too hasty.

Plus, with about 4,7 TH/s of computing power and 1.300 W of power consumption, you won't have to move it anywhere like the T9 or S9. Its features include a metal housing and dual cooling fans. The machine can operate at temperatures from 7 to 40 degrees Celsius, you can mine coins at home very easily. The sound intensity of the machine is 63 db.

Step 3: Get a bitcoin wallet 

Of course, when the results are available, they must be transferred to the wallet. You guys should watch Top 9 safest and most secure btc wallets in 2020. Should use the wallets I listed in the list. Because it is reputable with certifications and good feedback from users.

You can keep it in your wallet and become one holder without regard to the bitcoin price. Or move to the floor to sell and trade. Refer Top bitcoin trading and trading floors in Vietnam and the world.

Step 4: You can set up a mining pool

When you join the mining pool. The combined work of everyone or every miner on the team will get your team to find the original solution and earn bitcoin rewards and transaction fees.

Profits will be shared equally among everyone based on contribution. Basically, you will earn a more consistent amount of Bitcoin and will be more likely to get a return on your investment. There is a saying "If you want to go fast, go alone. If you want to go far, go together".

You need to plan specific goals. Because maybe it's a disguised form of Ponzi scam, hiding in the form of a mining pool.

List of Latest And Profitable BitCoin Miners – Auto Update

Blogtienao has updated the list of the latest bitcoin and virtual currency miners, including the machine name, capacity, machine price, and interest rate automatically updated, you can refer to it.

Machine nameDigWattagePriceInterest
AntMiner S17eBitcoin64 TH / s2000$See Here
Antminer S15Bitcoin28 TH / s1035$See Here
AntMiner S11Bitcoin19 TH / s502$See Here
AntMiner S9Bitcoin13.5TH/WORLD270$See Here
AntMiner Z11Zcash135k Sol1515$See Here
AMD 570 / 580Ethereum180 Mh/s300$See Here
AntMiner L3+Litecoin504 Mh/s300$See Here
AntMiner T17BTC, BCH40 TH / s951$See Here

How to earn bitcoin without investing a lot of money?

When new to the bitcoin network, not everyone has enough money to invest in buying a platform bitcoin mining machine such a few hundred million or there are those of you who just want to dig bitcoin to earn a little more income and have fun, here are some fastest way to earn bitcoin without having to invest a lot of money.

Fastest way to earn bitcoins for free
Fastest way to earn bitcoins for free

1. Sell to earn bitcoin

If you are struggling to not know how to earn bitcoinswhere to mine bitcoinhow to earn bitcoins for free then you can sell valuable things in exchange for bitcoins. If you are interested in crafting then earn BTC on the Etsy site or you are a merchant you can sign up for one of the bitcoin payment providers like BitPay.

2. Earn bitcoins through free bitcoin mining sites

Another way for you to earn bitcoins is to register an account on sites that give you free bitcoins, this is also very simple, you just need to create a bitcoin wallet on blockchain.info, then visit free bitcoin mining websites and enter your wallet address to receive bitcoins. The amount of bitcoin received more or less depends on the website that gives you more or less and the reset time of each page. You can see How to earn free bitcoins for newbies.

3. Play games to earn bitcoin

How to earn bitcoins? You can both play games and earn bitcoins through mobile applications on two operating systems, iOS and Android. Your job is to download these apps to your phone, then play and earn bitcoins, it's very simple, isn't it. To know how to earn bitcoins For free via mobile applications, you can refer to this article: Apps to earn bitcoin by phone on iPhone and Android

Conclusion

There are actually quite a few ways for you to earn Cryptocurrency Bitcoin Free in addition to the 3 ways above but maybe Blogtienao.com Will write more in the next post. But these ways only help you to earn very little bitcoin, to have a lot you have to invest in a professional bitcoin digger and learn more about how it works or you can also buy bitcoins on bitcoin exchanges reputation in Vietnam and the world. That's it Cryptocurrency Blog answered the questions"What is Bitcoin Mining?","What is bitcoin plow to do?","how to earn bitcoins","how to earn bitcoins,..for you guys.

Beyond the way Bitcoin investment By buying a excavator, you can also Buy and sell Bitcoins To make a profit is also a way used by many people, a form of long-term investment without the need for knowledge of complex hardware and graphics cards like when mining Bitcoin.

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Hi, I'm Hen Vai, Founder of Blogtienao (BTA), I'm very passionate about community, that's why blogtienao was born in 2017, hope the knowledge on BTA will help you.
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