Back to the Bitcoin Mining basics a bit…
*What is Bitcoin Mining?*
Mining is the term used for running a series of calculations on a computer to verify the transactions that take place in the Bitcoin network.
About every 10 minutes, a new block of transaction data is created and the Miners who created the block are awarded a few brand new Bitcoins.
This serves the Bitcoin Network both as:
1. A system to Verify Transactions and
2. As a system for Fairly Distributing new Bitcoins.
Although it used to be profitable to mine Bitcoins with your standard personal computer, the cost of the electricity necessary to do so is now greater than the value of the Bitcoins you could mine.
Profitable Mining now requires specialized hardware that can perform more computations with greater power efficiency.
Therefore, people started to establish ”Mining Pools”.
This means that a network of people mine together. In such a network, one can play different roles.
– You can be the guy or girl who Maintains the Infrastructure or
– The one who Invests Money to get the necessary infrastructure.
Mining is a highly profitable way to get Bitcoins and make money.
However, it is hard to join such existing mining pools, as well as starting your own.
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