Bitcoin mining: how to finance its equipment?On June 12, 2019 by admin
We hear about it every day in the media, and we almost all know someone who has already embarked on the adventure. Indeed, Bitcoin is the trendiest cryptocurrency and is growing in popularity. On the other hand, there are different ways to generate Bitcoins (BTC). Buying and reselling is an option. But for those who wish to take the next step, bitcoin mining can generate additional profit here. We present you in this article the operation of this method, and you explain how to equip to generate Bitcoins from your home.
How to get Bitcoins?
As a reminder, Bitcoin is a virtual currency that allows you to make your purchases in a growing number of businesses. Its main advantage is that it is a decentralized currency, transactions are made online and are therefore almost immediate. In addition, they are not subject to any transaction fees. The easiest way to get Bitcoins is to buy them at an ATM, at a currency exchange, or in online markets for Bitcoins. A second option to generate Bitcoins is the mining, which allows thanks to adequate computer equipment to win a number of Bitcoins “block”.
What is Bitcoin mining?
Mining is an alternative method of obtaining Bitcoins. Followers, called “Miners”, perform mathematical calculations for the Bitcoin network from their own computer. These calculations, which are solved by “blocks”, correspond to the verification method SHA256 allowing each Bitcoins transaction to be secured. The services rendered are then rewarded by a certain number of Bitcoins won by “block” resolved. Specifically, the calculations are made of cryptographic hash, or “block headers”, which correspond to a problem whose difficulty varies over time, all the 2016 blocks resolved. To solve these problems, the Miners use a mining program that runs continuously. It is therefore necessary to have appropriate computer equipment, because these programs push the computers in their entrenchments, and this in particular when the difficulty of the block to solve is high.
What is the necessary equipment?
To be able to start mining Bitcoins, it is necessary to invest in high-performance computing equipment. As mentioned before, the mining program runs continuously to solve problems, which, in addition to consuming a lot of electricity, can be fatal for your desktop if it is not indicated for this type of power. ‘activity.
Thus, to build what is called in the jargon of cryptocurrency a “rig” (installation for mining), you will need a processor with a CPU and a powerful GPU (components designed to accelerate the operation of the applications) to ensure a good speed of computation, a RAM with a high memory (at least 4 GB), a good graphics card, but also a sufficient space of storage and an optimal supply. This type of installation can therefore come back to several thousand euros, this also knowing that your return on investment will depend greatly on its performance. It will also count in the basic investment a non-negligible increase in your electricity bill.
To finance this high-performance computing installation, you have several options. You can buy the necessary components over time and build your “rig” little by little. Otherwise, you can also tap into your savings and mount your “rig” in one go. The last option is to take out a loan to spread your expenses over time and thus offset your monthly payments thanks to your return on investment, proportional to the performance of your equipment.
Do you have your equipment installed and ready to operate? Follow the steps below to start mining:
- Create a virtual wallet to receive mined Bitcoins
- Install a mining program on your computer
- If you are hesitant, join a “pool” and mine to several
- Launch it and start generating a profit!
By block resolved, you receive 12.5 BTC (or 82,121.45 € in April 2018). Only once the block is fully resolved will the Bitcoin be transferred to the Miner’s wallet. Be aware that this process can take weeks, so it will be patient. In addition, to achieve a real profit, it will be close to your finances: do not hesitate to calculate your profit per day including your electricity costs. If this offsets your investment in the right Bitcoin mining equipment on the time range that you had in mind, then you made the right decision!