Bitcoin mining – the most searched keyword by Vietnamese users on Google at the end of 2017 and the beginning of 2018, just behind the word “What is Bitcoin”, some other words like “plow bitcoin”, “bitcoin digger”, “How to mine bitcoin effectively”, “how to mine bitcoin”, “bitcoin mining software”, “free bitcoin mining”, “bitcoin virtual currency”, “earn free BTC”, .. were also found. earn a lot. So what exactly is Bitcoin Mining? What is bitcoin mining? How to mine bitcoins? This article I Love Bitcoin will learn about these concepts with you.
Basic knowledge of mining coins (virtual money, cryptocurrencies)
To understand What is bitcoin mining?, first you need to understand the basic theory of mining coins (virtual currency, cryptocurrency, cryptocurrency or digital currency) already. Mining is a process by which cryptocurrencies are created on decentralized networks by independent individuals or in large mining groups, a miner known as a “ node” (node).
There are two main purposes of mining:
- To make more coins
- To confirm the validity of transactions using money in circulation
I give an example with Bitcoin (BTC), BTC transactions are grouped into blocks and these blocks will be confirmed by miners, when miners confirm this transaction they will receive a “reward” and this reward is in BTC.
What is Bitcoin Mining?
Once you have some understanding of the basics of mining, we will continue with the concept of bitcoin mining. Bitcoin Mining (bitcoin mining) or in Vietnam also known as plow bitcoin, bitcoin mining, mining,..there are many names to refer to this term in the field Cryptocurrency. Bitcoin mining is a term used to describe the processing and confirmation of payments on the Bitcoin network. This allows information about transactions to be authenticated and stored on the system Blockchain.
Bitcoin mining is operated by a computer application or hardware dedicated to bitcoin mining, making it faster and more efficient to process and confirm transactions than traditional computers. Anyone can participate in Bitcoin mining by operating an application on the computer. In addition to operating on traditional computers, some companies have designed hardware specifically for Bitcoin mining, making it faster and more efficient to process transactions and create new blocks than conventional computers. . To be able to confirm transactions and attach to the Blockchain chain, these devices must solve complex cryptographic math problems.
In the Bitcoin network, miners will have to compete with each other for the block mining reward, because only the first top miner will receive the reward for solving the problem given by the system. . The reward that miners receive is an amount of BTC corresponding to the transaction fee they process. Also get additional rewards for every Bitcoin block mined.
What is a Bitcoin Miner or a Bitcoin Bull?
Bitcoin Miner Hay is also known as Buffalo Plows Bitcoin is a device that helps miners to mine by solving the system’s algorithm and earn Bitcoins more efficiently. There are two types Cryptocurrency Mining Machine:
1. Dedicated Bitcoin Miners
This type is designed for Bitcoin Mining, cannot mine other cryptocurrencies nor do any other work. Some types of machines can be mentioned such as AntMiner S7, SP20 Jason, Avalon 6, …
The characteristics of these machines are fast, stable mining speed, and the price abroad is from $250 to $500. However, the disadvantage is that it can only mine bitcoins, do not use it for other purposes and when it needs to be liquidated, it is very difficult. So in Vietnam, few “miners” buy this machine.
2. PC Bitcoin Miner
Type Bitcoin mining buffalo This is very popular in Vietnam and is invested massively, it is attached with one or more VGA with strong configuration. Then install mining software on this machine and run it 24/7 to mine bitcoins and other cryptocurrencies.
Its disadvantages are high price, high power consumption, hot running, and not as fast as a dedicated machine. But the advantage is mining many other virtual currencies (usually few people dig bitcoin because it has too high difficulty, but people focus on mining low-value but much easier coins such as ETH, ETC, etc.) XMR…), easy to liquidate,…
Should I invest in Bitcoin miners in 2020?
Bitcoin Mining It is also a form of Bitcoin investment besides long-term trading and holding. At the end of 2017, the form invest in Bitcoin mining helped many people make extremely good profits, then the price of Bitcoin grew steadily and strongly, mining bitcoin or any other cryptocurrency was profitable. But at the time of writing this article (November 22, 2018), the price of bitcoin dropped sharply, sometimes reaching $4,000, making bitcoin mining a “heavy loss”, many investors had to “bite their teeth” to sell. remove the cheap coin miner because the profit earned is even “not enough electricity”.
Not only mining, but current traders and holders are also “downside down” because the market is constantly falling, but trading and holding can still be earned when the market gets better in the short term, while mining is not. not so, when investing in a mining machine, you will have to pay a lot of costs, so if the profit is not enough to pay, at least the operating fee, it is difficult to maintain and leads to “disappointment”, especially small investors. Perhaps, for those who have not yet participated in investing buy coin miner should temporarily monitor the market for a while, see how it evolves, then it’s not too late to make a decision to dig.
How to mine Bitcoin without having to invest?
If you want to own Bitcoin without having to invest in a mining machine, there is still how to mine bitcoins for freeHere are some of the most popular ways to earn free bitcoins:
1. Earn Bitcoin through free coin mining sites
Currently, there are quite a few websites that allow you get free Bitcoins, to receive BTC from these sites is quite simple, your job is just to visit these websites and then reload the page from time to time, each time the page loads you will receive a small amount of BTC and when enough is allowed withdraw, you can withdraw to your personal wallet, so before participating you must create Bitcoin wallet already. I will recommend the pages earn reputable free bitcoins for you in a later post.
2. Play games and earn free Bitcoins
It sounds a bit ridiculous right, but it’s true, given the form earn Bitcoins hey, you just need to have a smartphone, then download the game applications to receive bitcoins and then open it to play, there will be a specified period of time, when you play enough of that time, you will receive corresponding BTC. I will have a tutorial later.
Epilogue
Ok. Here is the article “What is Bitcoin Mining, Bitcoin Plowing? What is a Bitcoin Miner? Should I invest in buying a Coin miner in 2018?“, hope it will bring readers a lot of useful information. In general, for newcomers, these technical concepts are quite difficult to understand, and the work of mining bitcoin through “coin mining” is not for newbies, requires you to have knowledge of computers, hardware, of course, you can still dig if you take the time to research and learn.
If you have any questions, don’t hesitate to leave a comment below, I will help you. Do not forget Like, Share and 5 star rating for posts to support Blog I Love Bitcoin, if you find the article useful. Good luck.
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The article has references from Bitcoinvietnamnews
