Guide In Bitcoin Mining For Beginners

What many people misunderstood is that everyone in the bitcoin community is mining – this is not the case. Many of the bitcoin users are not even mining. There is a very high competition when mining bitcoins for profit. If you have access to cheap electricity and is able to install the right hardware for the job then you might be able to mine and get a profit at the same time. There are different types of hardware used in mining bitcoins. During the start of the bitcoin, the CPU was enough to mine bitcoins and it is accomplished with the original client which is Satoshi. Since the popularity of the bitcoins, miners have found ways to use better hardware and manufacturers developed far better ones thus making the CPU outdated. Mining with your CPU alone will not get you any profit even for 10 straight years of mining.

More than a year after the bitcoin network was developed, there was a discovery that graphic cards are more effective in mining bitcoins thus everything changed. CPU mining is replaced with GPU or Graphical Processing Unit. With GPUs, miners are able to mine with a power 50 to 100 more than the CPU can without consuming as much power. As fast as the transition from CPU to GPU, there comes another development which is the FPGA or Field Programmable Gate Array. With this one, miners are able to mine at a faster hashrate while consuming less power than GPU. Nowadays, the latest innovation in bitcoin mining is the ASIC or Application Specific Integrated Circuit. The only purpose in designing this chip is to perform mining and it can never be used in any other application unlike the FPGA.

You can mine in two different ways – mining on your own or joining a mining pool in the Bitcoin community or by entering mining contracts in the Bitcoin cloud network. Before getting started with bitcoin mining, make sure that you have registered for a bitcoin wallet where you can keep the bitcoins you have earned. Once that is accomplished, join a pool and connect to their network so you can start mining.