Mining Bitcoin

Without mining crypto, the cryptocurrency ecosystem that we all enjoy today would simply not be possible. As one of the key unique selling points of cryptocurrency, mining underpins the platform on which digital currencies like Bitcoin, Ethereum and Litecoin stand.

However, compared to the fascination associated with crypto coins themselves, mining is a relatively unexplored and underloved topic, and something that crypto enthusiasts may well just take for granted - possibly owing to its seeming complexity. In this article, we will aim to simplify the mining process, providing an overview of what it is and how it works in basic terms, its vital role in the crypto ecosystem, and what its future in a finite industry is.

Mining Bitcoin is a hot topic in the crypto industry. This is particularly true when you consider that there is a finite amount of Bitcoins left to be mined, making the last remaining coins valuable property indeed. While lucrative if successful however, mining bitcoin is an expensive hobby.

Mining crypto is generally an expensive undertaking. It requires a significant, powerful computer setup, which will undoubtedly use considerable amounts of electrical energy. Often, such power can only be generated by a crypto mining farm, which are essentially huge computer rig setups that carry much more power - and energy cost - than a normal setup home-based setup.

Mining BTC, or even LTC mining for example, both require a powerful setup to complete the complex math problem that will ‘unlock’ the next Bitcoin. As a BT miner, the reward for successfully mining Bitcoin is you will receive a Bitcoin token that is equivalent to the Bitcoin price at the time. With the Bitcoin price currently climbing day by day, it is a source of temptation for people to get into mining crypto, however sometimes the cost required to mine a Bitcoin successfully outweighs the benefit.

What is Bitcoin Mining

Bitcoin Mining is the process of creating new Bitcoin. As previously highlighted, very powerful computer setups tackle complex mathematical problems relating to the most recent Bitcoin transaction history that essentially confirm the validity of the previous transactions and release new crypto into circulation. This process is the same for other crypto too.

Mining Bitcoin, and mining crypto in general, is not an easy task, however it is rewarding should it be completed successfully. Mining Bitcoin successfully will see you rewarded with a Bitcoin that is valued at the Bitcoin price at the time of completing the mining process.

It is very expensive to generate the kind of power required for mining Bitcoin. This is not to say that is impossible to do, nor does it make it unappealing to prospective miners who are interested in mining Bitcoin. However, all miners must be aware that mining Bitcoin is not something that can be done cheaply! With that being said, mining Bitcoin isn’t the only option out there for people who want to be involved in mining cryptocurrencies.

Here are some key things to remember when considering Bitcoin mining:

  • Mining successfully sees you rewarded with Bitcoins - however this doesn’t always cover the cost of mining itself
  • You will need a powerful computer setup at home or as part of a mining farm to generate the kind of energy required to commit to the efforts required
  • Bitcoin isn’t the only cryptocurrency that can be mined, and there are many alternative ways to mine new cryptocurrencies

Bitcoin Mining Alternatives

Being a crypto miner isn’t simply limited to mining bitcoin! There is the option, for example, to mine Litecoin (LTC), an alternative yet still very popular crypto to bitcoin. LTC mining follows the same process as mining bitcoin, with a powerful computer system being key to successfully mining new crypto. As with mining Bitcoin also, LTC mining holds the reward of earning Litecoin at the end of the process. LTC mining is one of many alternatives available to traders who are looking to get into mining.

Another alternative to Bitcoin mining in its traditional setup is cloud mining free. Cloud mining free allows traders to be involved in the mining process, without having to commit to the initial outlay in fees - hence its attraction. While there is greater reward for mining crypto like Bitcoin in the traditional way, cloud mining free gives many more people skin in the game without having the cash required.

Mining Crypto on Mobile

Mining crypto is mostly powered by computers, however a very popular search term amongst prospective miners is mining bitcoin android, as they seek an alternative to the traditional mining model. Often, traders will find the latest Bitcoin price on their phone, but they won’t have the means to mine them there. Fortunately for traders who want to mine on their mobile, the bitcoin price is not affected by the method which it is mined, so there is the opportunity for miners to mine a share of a bitcoin at a much cheaper price.

Best Way to Mine Crypto

As has been discussed, mining crypto using traditional methods requires a powerful setup. However, with the introduction of cloud mining into the ecosystem, there are now alternative methods in which miners can go about their profession. Mining on your phone via this method now becomes a possibility, however if you are looking for the more powerful and most lucrative method of crypto mining, a full rig setup is required.

FAQs

Is Bitcoin Mining Legal?

This depends on the region in which you are operating. Some countries like China have imposed a full ban on anything crypto related, however other countries are more friendly to the idea.

How Bitcoin Mining Works?

Bitcoin mining is performed by very powerful computer systems that validate previous transaction histories to unlock the next Bitcoin and add it into circulation. The computer systems must solve complex algorithmic related puzzles to mine successfully.

Bitcoin Mining Explained:

Bitcoin mining is performed by very powerful computer systems that validate previous transaction histories to unlock the next Bitcoin and add it into circulation. The computer systems must solve complex algorithmic related puzzles to mine successfully.

What does Bitcoin Mining mean?

Bitcoin mining is the process of creating new Bitcoin. As Bitcoin are digital currencies that cannot be printed, they have to be created through mining, and the total amount of Bitcoin that will be added into circulation will be capped at 21,000,000.