What is Bitcoin mining? How to dig them like? [2020]

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What is bitcoin mining?

Currently, in the world bitcoin currency Already quite popular, the attraction from this digital currency is rocking the e-commerce world. More and more people play bitcoin, houses Bitcoin investment willing to spend hundreds of millions or even a few billion to "feed" these bitcoin mining rig, make huge profits from this bitcoin mining.

What is bitcoin mining?

Bitcoin mining, plowing bitcoin also known as Bitcoin mining (English is Bitcoin Mining) is a term that describes the process of processing and confirming payments quickly on the bitcoin network.

Thus, it can be said that mining bitcoin 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 implemented by an application installed on the computer so anyone can participate in the bitcoin mining system.

After a period of digging on traditional computers, some companies around the world have created hardware specifically for Bitcoin mining, which facilitates significantly faster block creation and transaction processing, increasing efficiency than conventional bitcoin plowing. To confirm the transaction and mount on blockchain chain, the dedicated bitcoin plow Must solve particularly complex cryptographic problems.

What is bitcoin mining?

Why is it called bitcoin mining?

It is called that because this is the process for you Mining new Bitcoin from the system. But to put it more correctly, the exploit is just part of the transaction validation process.

Because you see the main goal of mining is to maintain the ledger in a decentralized way. Because the exploit is based on a form of decoding. Each time a different miner decodes and is granted the right to update the blockchain.

Of course, miners with more computing power will succeed more often. But due to the law of probability, it is very unlikely that the same operator will succeed at all times.

How to participate in bitcoin mining

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

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

If you guess correctly, you will earn bitcoins and be able to write more 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 rewarded with a new bitcoin service every 10 minutes.

Many Bitcoin transactions occur at the same time. These transactions are included in the block. It is these blocks that Bitcoin miners have to verify. They verify transactions in blocks instead of verifying them individually.

When a block is verified, it will be added to a sequence of previously verified blocks. That is why the technology concept behind bitcoin is blockchain.

See more: What is blockchain?

How does the explanation for the blockchain technology behind bitcoin help people better understand the mining process? Now let's see how the exploit works:

How does bitcoin mining work?

I will explain the easiest for you to understand. For example, you are the one who exploits:

When your mining computer gives the right solution to a problem. Your computer will determine which pending transactions will be added to the next block of transactions on the blockchain.

You will now 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 that other computers can authenticate it. Each computer that confirms your solution updates the 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? to understand the details offline. This is a reward for you for taking the time and energy to solve problems.

In addition, you are paid any transaction fees attached to the transactions you have inserted into the next block. All transactions in the block you have entered are currently validated by the Bitcoin network and are virtually irreversible.

So the end of a mining process already. While brief, there are many problems due to the value, the rarity and the difficulty of mining Bitcoin. I will give you some points about it later.

Difficulty level increases

The new brothers are in the ecosystem of bitcoin mining and think this is a free money. People who have read through the process mentioned above will think that now I need to register where to mine, where to confirm transactions. But actually it's not that fast so it costs all that, kkk.

The inventor of Bitcoin is Satoshi Nakamoto have established mining rules in such a way that the more the network is exploited, the higher the difficulty will be. Guessing the answer to the mathematical problem of exploitation is even more complicated.

In short, the difficulty of the mining process is to adjust itself according to the cumulative mining power that the network possesses. If more miners get involved, it will be harder to solve the problem. This is a difficulty in exploitation. However, there are several solutions to this problem.

Adjust the difficulty

  • The hard part is adjusting itself to create a steady stream of new Bitcoin into the system. In a sense, this was done for control inflationary.
  • The simpler understanding is that miners with more powerful hardware will win the math. This also means you'll need to buy more expensive hardware (this explains the following section).

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

  • Mining difficulty is set so that the average. A new block will be added every 10 minutes. For every 2016 blocks created (about 14 days), the difficulty is automatically refined by the network based on the capacity of the entire network. If it is less than 10 minutes, it will increase the difficulty. And over 10 minutes, it will lower the difficulty.
  • The goal is to keep the interval between newly created blocks 10 minutes. From March 3 to March 2014, the average number of noncees (which is the amount added to the hash block, which meets the difficulty level limits) that the miner has to hash test before creating the new block. increased from 3 billion to 2015 billion (Wikipedia reference data). Terrible is not it.

What is the cost of mining Bitcoin?

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

  • Computer hardware cost: For starters, the cost of Bitcoin mining hardware will be over 12 million (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 consider it.
  • Use space: cool place, room temperature to be cool (using air conditioner, exhaust fan, ..).
  • Take care of your system: To take care of you or your team, you need basic skills from installing Windows to installing software. Or to know how to fix basic errors, while high technology will need technical guidance. The time you spend on it is like 24/24.
  • Finally, if you are lucky, you have bitcoin, so try.

Mining pool

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

See more: What is a mining pool?

Guide to dig bitcoin at home

I will give the idea of ​​the process if you want to start mining bitcoin:

Step 1: Calculate profit

Digging without profit, then do nothing to dig. Before getting started with Bitcoin mining, you need to research a few things. The best way is to discuss what happened. You should participate in learning from the community. Or learn from experienced people

Bitcoin mining is very expensive, you should keep this in mind. If you do not have a large amount of assets to use for the rig. Whether or not to calculate the cost of cheap electricity, do not think about mining bitcoin.

Next is to own yourself a mining rig:

Step 2: List of Common Bitcoin Plows 2020

Mining Bitmain Antminer S9; 13.5 - 14 TH

The current Bitmain Antminer S9 be considered Bitcoin mining machine best in the world. Bitmain is a Chinese company and is leading the development of ASIC miners, and Antminer S9 is the best machine they have ever produced. The device is designed to be simple, so you can use it very easily and the installation time only takes a few minutes to finish.

Bitmain Antminer S9

Machine specifications are as follows:

  • Hashrat to: 13.5 TH / s - 14 TH / s
  • 16 nm chip: 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, nearly three times that of the previous S7. It also consumes only 1.300 watts of electricity, which is significantly less than some competitors 'ASICs, which makes it a lot more efficient than competitors' machines.

There are some devices with higher computing power, or better power efficiency, but when combining these two factors, currently no one can compare to the Antminer S2. With Antminer S1, its users can earn an expected profit of about 9 Bitcoin per day.

Pagolin Miner M3X; 12 - 13 TH

The chips are used to design out Pagolin Miner much bigger than its contemporaries. While the S9 and other devices use 16nm ASIC chips, the M3X has nearly 200 28nm chips. The M3X consumes about 1.800 W to 2.000 W of power, which makes it become mining machine and bitcoin consume the most fuel on this list. However, with a computing power of between 12 and 13,5 TH / sec, it also deserves to be one of the most powerful mining equipment.

Pagolin Miner M3X

Besides, Pagolin Miner Also much 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 to send them to you, the price will be $ 5.

Mining machine Bitmain Antminer T9; 11.5 - 12.5 TH

Although not as strong and less effective Antminer S9, but Antminer T9 Also a popular choice among machines Bitcoin mining, bitcoin mining, mining Ethereum, peaches Litecoin now because it has a longer warranty feature (180 days vs 90 days for S9). For those who plan to mine for a long time, the T9 offers greater reliability and more stable investment, as well as more affordable costs.

Bitmain Antminer T9

Machine specifications are as follows:

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

Hashrat to of T9 at about 11,5 TH / sec, with power consumption of 1.450w. According to Bitmain's website, the future of computing power Antminer T9 can increase to nearly 12,5 TH per second, although the power consumption will also increase to 1.576 watts to reach that hashrate.

Antminer R4 - 8.6 TH

This is kind machine, coin mining Very popular, suitable for mining at home. 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
  • 16 nm chip: 126 x BM1387
  • Power Consumption: 845 W
  • Efficiency: 0.1 J / GH
  • Operating temperature: 10 degrees C to 40 degrees C
  • Weight: 9 kg

Avalonminer 741- 7.3 TH

Avalonminer 741 is the machine type bitcoin mining dedicated Created by Canaan, a Bitmain competitor, it is a Chinese company that produces powerful and efficient mining equipment at reasonable prices.

Avalon 741

Specifications of Avalonminer 741 are as follows:

  • Hashrat to: 7.3 TH / s
  • 16 nm chip: 88 x A3212
  • Power Consumption: 1150 W
  • Efficiency: 0.16 J / GigaHash
  • Operating temperature: -5 degrees C to 40 degrees C
  • Weight: 4.3 kg

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

The performance of Avalonminer 741 is 0.15 W / Gh, 20% lower cost than the old versions. Avalonminer 741 is an innovative machine designed with a strong aluminum cover, custom radiator with air cooling technology ..

The noise that the machine Avalonminer 741 emitting quite small range only 50 db to 60 db, which makes it possible for you to dig coins at home without affecting the neighboring houses.

Avalonminer 721 - 6 TH

Avalonminer 721 was launched in 2016. The outstanding feature is compact, lightweight. Avalonminer 721 uses 16 nm chips, higher power efficiency than the S7 series.

Avalonminer 721

Digging machine specifications:

  • Hashrat to: 6 TH / s
  • 16 nm chip: 72 x A3212
  • Electric used: 850 W - 1000 W
  • Operating temperature: -5 degrees C to 40 degrees C
  • Mass: 4.3 kg

Bitmain Antminer S7 - 4.73 TH

Antminer S7 miner When it was launched in 2015, the price of Bitcoin (BTC) was just $ 225 at the moment, so the S7 excavator at that time was the best in the community. Virtual currency mining most preferred. Currently, Antminer S7 is no longer the best option due to the development of the community.

Bitmain Antminer S7

The S7 specifications 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 C to 40 degrees C

Although less effective and not as powerful as its new versions, the S9 and T9, the Antminer S7 is an alternative to virtual currency miner current top. Because it is one type of miner that has the main advantage of being very durable. Many S7 excavators have been in operation for over 2 years and still work very well. Because of this, it has been selected by many people to mine coins safely, without being too rushed.

In addition, because the computing power is about 4,7 TH / sec and the power consumption is 1.300 W, you will not have to move the machine to any well-ventilated place like T9 or S9. Its features include metal casing 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 device is 63 db.

Step 3: Get a bitcoin wallet

Of course, when it comes to results, you have to transfer it to your wallet. You should see Top 9 safest and most secure btc wallets in 2020. Should use the wallets I listed in the list. Because it's reputable and has good feedback from users.

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

Step 4: You can set up a mining pool

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

Profits will be shared equally by everyone based on donations. Basically, you will earn a more suitable amount of Bitcoin and will be more likely to receive a return on your investment. There is a saying "If you want to go fast, go alone if you want to go away, let's go together", kkk.

Need to plan specific goals offline. Because it's probably a form of fraudulent Ponzi disguised, hidden in the form of pool mining pool.

Latest BitCoin And Profit Miner List - Auto Update

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

Machine nameDigWattagePriceInterest
AntMiner S17eBitcoin64 TH / s2000$See Here
Antminer S15Bitcoin28 TH / s1035$See Here
AntMiner S11Bitcoin19 TH / s502$See Here
AntMiner S9Bitcoin13.5TH / S270$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 make bitcoin money without investing a lot of money?

When joining the bitcoin network, not everyone has enough money to invest in buying staging bitcoin miner a few hundred million like that or if you just want to dig bitcoins to earn a bit more income just for entertainment, here are some The fastest way to earn bitcoins without having to invest a lot of money.

The fastest way to earn bitcoins for free
The fastest way to earn bitcoins for free

1. Sell goods to earn bitcoins

If you are struggling do not know how to earn bitcoins, Where is bitcoin mining?, how to earn bitcoins For free, you can sell valuable things in return for bitcoin. If you are interested in crafting, earn BTC on Etsy or you are a merchant, you can sign up to join one of the bitcoin payment providers like BitPay.

2. Earn bitcoins through free bitcoin digging sites

Another way for you to earn bitcoins is to register your account on sites that give you free bitcoins, which is very simple, you just need to Create a bitcoin wallet on blockchain.info, then visit the free bitcoin mining website and enter your wallet address to proceed to receive bitcoin. The amount of bitcoins you receive is more or less depending on whether the website allows you to receive more or less and the reset time of each page. You can see How to earn free bitcoin for newbies.

3. Play games to earn bitcoins

How to earn bitcoins? You can both play games and earn bitcoins through mobile applications on both operating systems, iOS and Android. Your job is to download these apps to your phone then play and earn bitcoin then very simple, right? To know how to earn bitcoins Free via mobile applications you can refer to this article: Application to earn bitcoins by phone on iPhone and Android

Conclusion

There are actually many ways for you to earn Bitcoin digital currency free of charge but 3 ways above Blogtienao.com will continue in the following article. But these only help you earn very little bit of bitcoins, want a lot of you to invest in professional bitcoin miners and learn more about how it works or you can also buy bitcoins on bitcoin exchanges. Prestige in Vietnam and the world. That is Virtual money blog answered questions "What is bitcoin mining?","What is plowing bitcoin to do?","how to earn bitcoins","how to make money bitcoin”, .. for you guys.

In addition to the way Bitcoin investment By buying a miner, you can too buy and sell Bitcoin to make a profit is also a way for many people to use, a form of long-term investment without knowing the hardware and graphics cards as complex as digging Bitcoin.

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