I bet most of you have heard of Bitcoins by now, right? It’s a decentralized currency that has the potential of toppling government issued currencies. Some people say it is the most risky Internet endeavor ever undertaken, but is it really? There is a lot of money to be made if you know what you are doing, and it doesn’t require a big investment either. It all boils down to how efficient your Bitcoin mining rig is, and how fast you expand it. It pretty much comes down to processing speed.
Anyone can start Bitcoin mining if they have a somewhat powerful computer and a will to succeed. It’s not really hard work since it’s just to download an app and start. Believe it or not, there are some truly impressive rigs out there that cost up to about $25,000. We’re talking about a customized computer whose only purpose is to solve math problems as fast as possible.
The problem with Bitcoin mining isn’t the software, but the hardware running the whole operation. Power and heat are the two factors that weigh heavily on any computer, and building the most optimized rig is a race against the clock these days. In short, the difficulty of mining Bitcoins lies in the way the whole economy of Bitcoins is built. In order to keep the supply down and not inflate the whole market of Bitcoins, a certain algorithm pushes out Bitcoins randomly in a software controlled manner, if that make sense. Basically what it means is that every 14 days or so the difficulty of mining a Bitcoin gets harder – this is to retain the actual value of the Bitcoins themselves.
It would be easier for you to understand how Bitcoin mining works and why you should start mining if you watch at a video produced by Bitcoin Mining. It explains the whole process as simple as humanly possible. When you get started, it will be all about processing power and how many math problems your computer (rig) can solve every second.
The faster your computer is, the more Bitcoins you will accumulate when mining. Each Bitcoin is valued at roughly $136.00 (when I am writing this), and some of the more inexpensive rigs will reward you with about 4 Bitcoins a month for an investment of around $1,000. It’s simple. Just start the process and start earning money. The supply of Bitcoins will stop being generated when it hits 21 million, and that will be around the year 2140 with the current algorithm.
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Categorised in: Technology
This post was written by Richard Darell