Interested in Bitcoin Mining?
You’ve come to the right place! This section of our website covers the basics about mining for bitcoins, including information on all the software (and hardware) you’re going to need to get started with this exciting new virtual currency.
If you check the Bitcoin markets, you’re going to find that a single Bitcoin is trading for hundreds of dollars currently. This is one of the biggest reasons that people are getting so excited about mining for bitcoins in their spare time.
What You Need to Get Started
To mine bitcoins, you’re going to first need software, like BitcoinX. Once this is installed on your computer, you’ll have an opportunity to start verifying blocks as they become available. New blocks are created about every ten minutes on average. You’ll be solving a difficult math problem using the computing power of your computer. Other people will be working on solving the problem at the same time, however, so you will have competition.
Currently, you can get a 25 BTC reward for verifying a block if you’re the lucky person to find the answer first. However, it’s important to note that this amount will be halved periodically over time until it goes down to zero. At that point, many believe that a transaction fee will be created in order to give miners a reward when they verify transactions and add a block to the block chain.
In the very early days of Bitcoin, not a lot of people were mining. This made it possible for people to be able to use their own computer to solve the math problems and get rewarded with bitcoins. However, as more people became involved, it was discovered that certain graphics cards were much better at solving the math problems. This began an “arms race” with people trying to come up with more efficient ways to mine bitcoins.
Over time, some people formed companies and spent a lot of money on computer hardware, starting up entire data centers in order to mine bitcoins. Other companies began to build (and sell) hardware with custom made processors that were made just for Bitcoin mining. The result of these two things happening is that it became increasingly difficult for single individuals to have enough computational power to successfully mine bitcoins faster than the competition.
Some people began using the dedicated Bitcoin mining hardware hooked up to their own computer, but even this became risky because of the cost of the hardware and the electricity required to run it. This is when Bitcoin Mining Pools started to form. Basically, people began working together, combining their processing power toward a common goal. If the group were able to successfully mine bitcoins, the reward was split between members of the group.
Beyond Bitcoin Mining Basics
Want to know more? Here’s a look at some of the other pages in this section.
Bitcoin Mining Pools – Mining bitcoins has become really competitive. This is why a lot of people have started to band together in order to be able to compete against the big players.
BTC Configurations – On this page, we have some information on different configurations of hardware and software that you’ll want to use to get the most bitcoins as possible.
LTC Configurations – We also have some information about different computer configurations for mining LTC, which is short for LiteCoins, a competitor to Bitcoin that’s really similar.
On the three pages above, you’re going to get everything you need to know to get started so that you can start mining bitcoins for profit right away. The good news is that the value of bitcoins is going up all the time. If you can mine them, you’re going to be able to make money.
If you want more advanced information, you’re going to want to check out our Bitcoin ebook that has even more information about Bitcoin mining and all the other things you need to know to fully understand cryptocurrency. The ebook is full of useful tips, advice and a look at where Bitcoin is headed in the future.