Bitcoin mining techniques are methods in which Bitcoin can be harvested from the internet. There are quite a few options available but only using state of the art computer hardware.
Bitcoin Mining Techniques
Bitcoin is a virtual currency asset, it exists on public ledgers known as blockchains. Blockchains are stored on computers all over the world and can be accessed using the internet. One Bitcoin can be divided in 100,000,000 units known as Satoshi. The smallest unit was named after the man who invented Bitcoin.
Bitcoin transactions are recorded on blockchains using processes which have come to be known as Bitcoin mining techniques. Owners of Bitcoin store their currency in Bitcoin wallets, each has a complex and unique identity. When a transaction is made between wallets it will be confirmed on a blockchain by solving a complicated mathematical equation. The result is stored in a hash code which also sits on the blockchain. The hash is a unique series of numbers and letters which are validated by system protocol. It looks rather like a long password, most have more than 60 digits.
When Bitcoin was first launched it was not difficult to mine new Bitcoin and claim them for yourself. Over time the system protocols have become so complex that the mathematical solutions are very difficult to complete. Now, very powerful computing hardware is required, beyond the capability of normal home PCs. These days application specific integrated circuit (ASIC) technology is used in the design of suitable hardware for mining.
The problem with computer mining is that computers use energy and a considerable amount is required to make money from it. The more powerful the hardware, the more energy it uses.
There are several ways in which money can be made from mining techniques.
Bitcoin Pool Mining
This is a technique where fellow Bitcoin miners share resources and work as a team. MinerGate is a mining pool created by a group of virtual currency enthusiasts. It was the first mining pool to provide merged mining services. This means that while mining you can mine different coins simultaneously.
In order to join a mining pool you will need to download software. You will need to be running a Windows 64 operating system, MacOS X or Linux. They have a benchmark system which analyses your computer and the network to assess how much you might earn during your fist year. Be wary about your electricity costs because it will affect your profit. The main thing to understand is that your operating cost is the big variable.
The MinerGate website will give you masses of information to learn all about Bitcoin pool mining but we could not say that it is user-friendly. You will have to persevere with it to learn all you need to know to get started. Having said that, it is a very comprehensive website for learning about Bitcoin pool mining. There many others websites offering pool mining.
Cloud mining will be much more appealing to those who want to try it out without a lot of technical knowledge. The best Cloud mining operator we found was Genesis Mining.
You can purchase a lifetime plan to share the use of powerful mining hardware which uses ASIC technology. There are three optional plans depending on how much speed and bandwidth you wish to use. You can also purchase a plan which is tailor-made for you. Other virtual currencies can also be mined using this system and you can switch between them. There is a small maintenance fee which will be deducted from your Bitcoin mining profits.
The beauty of this system is that you can mine virtual currency from the time you invest. Very little input is required. Genesis mining servers tend to be located in places where electricity is cheap and free cooling is plentiful.
Mining hardware using ASIC technology can be purchased new or second-hand. A degree of knowledge is required to set up the system. It can take a lot of time and effort to get started, but you do have hardware ownership. If you are a hands on enthusiast other mining techniques may be less attractive.
As with Bitcoin pool mining you will be responsible for the running and maintenance costs, including electricity charges. This may be a good option for you if you really want hands-on experience in BTC mining techniques.
PLEASE NOTE: If you do decide to mine Bitcoin you will need a Bitcoin wallet. You can get one here in minutes.