Forms of bitcoin mining

The first bitcoin transaction took place in 2009 where two pizzas were exchanged for 10 000 bitcoins. That was the beginning of bitcoin transactions which needed to be verified to ensure that the sender had enough bitcoins to send before the bitcoins are released. This verification was done through the process of mining and the miners used their desktop computers to verify the transactions. Since there were a few miners and it was easy to solve a bitcoin block and get paid with new bitcoins, which were 50 bitcoins per block and released every ten minutes. As more and more transactions took place, more miners joined to compete for the new bitcoins. This meant the difficulty of solving a block increased and the desktop computers were no longer effective. Next, graphic cards with higher computing power were created, but did not last long as the bitcoin soared in value and attracted a lot of miners and the difficulty jumped from billions to trillions. The current mining difficulty stands at 5 883 988 430 955.

To mine bitcoin at such difficulty levels requires massive computing power that is only provided by Antminers. To increase the chances of solving a block, you need to have many of these computers connected online. Together with the high electricity consumption of mining, these expensive Antminers make the process of mining bitcoins very expensive. As a result, it is difficult to go solo and successfully solve a block. You need to explore the options available for you to do mining.

You can choose between pool mining and cloud mining. Mining pools are groups of cooperating miners who pool the resources to mine bitcoin and then share mining profits in proportion to their contributions. When you join a mining pool you own the mining equipment. There are several mining pool companies available, but they are unfortunately not open to the public to join. On the other hand, cloud mining is where you pay a company that owns mining equipment to use their equipment to mine bitcoin for you. The company will then pay you according to how much you have paid. Cloud mining enables people to earn bitcoins without mining hardware, mining software, electricity, bandwidth or other offline aspects.

For you to mine bitcoin you need to know how these two methods work and which one can suit you and which companies are available out there for you to choose from. For an in-depth outline of these different mining types, visit our webpage (https://www.dubeminer.com) and subscribe to our newsletter and ask questions if you want.