Cryptocurrency Mining

In the Bitcoin world, one block is generated approximately every 10 minutes on average. All mining computers are trying to pack and submit this block, and the first person who successfully generates this data block can get a bitcoin reward. Initially, a Bitcoin reward of 50 Bitcoins can be generated approximately every 10 minutes.

 

However, since July of 2016, the number of Bitcoins issued by the network has been halved, that is, every 10 minutes, each block contains only 12.5 Bitcoins, which means that Bitcoins mined with the same computing power will also decrease accordingly.

 

Initially, we could mine Bitcoin with a computer CPU. Satoshi Nakamoto, the founder of Bitcoin, used his computer CPU to mine the world’s first genesis block. Of course, you can also use the CPU and GPU of home computers to mine, but the returns are very low.

 

Each miner on the network receives and verifies a batch of transactions, and then starts mining. The miner needs to repeatedly experiment with random filling values to solve. Generally, random numbers are generated to try to fill the generated random numbers into the area. Block header and then calculate the hash. If the calculation is successful, the mining is successful, and the mining results are broadcast to the entire network. After the nodes on the entire network are verified, this block is connected to the top of the block and an agreement is reached on the entire network.

 

However, the era of CPU mining has long passed, and GPU mining is no longer mainstream. Bitcoin mining is now an era of ASIC mining and large-scale cluster mining. No matter what is used for mining, hashing power is the foundation of mining. The greater the mining machine’s computing power, the greater the probability of mining Bitcoin, and the more Bitcoin will be mined.

 

In theory everyone can mine

So in theory, everyone can mine with their own computer. But there is a problem ahead. The relationship between computing power and power consumption. Any computer or mining machine used to mine will need to consume a lot of electricity. After mining, the cost of electricity you consume is already far away. Exceeded the value of the coin. This is why the way of CPU mining has been abandoned-the rate of return is too low.

 

Now if you want to invest in virtual currency mining, you generally need to buy a mining machine. In addition, you also need a suitable venue and special personnel to take care of and maintain it. Of course, the appropriate electricity price is also essential. However, the average investor will encounter a series of difficult problems from the beginning of purchasing the mining machine.

 

  • The first is that the better miners on the market are facing the problem of stock shortages. Even if they ask customer service, the answer is “notification of arrival”.
  • Second, the current electricity consumption of Bitcoin mining far exceeds the electricity consumption of all electric vehicles in the world. Morgan Stanley’s latest report predicts that in 2018, Bitcoin’s electricity demand is expected to triple, and the annual electricity consumption is equivalent to the annual electricity demand of Argentina. So it is very important to find a low-cost hosting company. However, except for large cloud computing enterprises supported by the government, which can get electricity costs below 0.3 yuan, no individual should be able to get electricity costs below 0.4 yuan, unless electricity is obtained through some illegal ways.
  • Third, mining machine hosting will face other risks, such as how to ensure that the hosting company does not run away from donations, how to ensure that its mining revenue can be balanced with expenditures, and even exceed.

Therefore, if an individual wants to mine, it is best to buy a professional mining machine and find a reliable company to host it. But there is also a little risk involved.