The age of cryptocurrencies is upon us. If you do not want to feel left out, check out our article on the biggest and most popular cryptocurrency in the world, Bitcoin. Find out what it is, how Bitcoin is mined and how you can get in on the trend.

What bitcoin is all about

Bitcoin, the world’s biggest cryptocurrency (which means electronic currency) was first introduced by a mysterious person with a pseudonym Satoshi Nakamoto in 2008. By 2009, they perfected their code, made the rules and released the software into the wild.

Do you know what the best part is?

Bitcoins are not connected to any banks. This means that they are not dependent on inflation, there are no ludicrous transaction rates, and your personal information is not compromised with each transaction.

Bitcoins can be earned by ‘mining’, which is essentially solving incredibly complex mathematic problems with the help of a computer or special hardware. If you think about it, bitcoin is essentially electricity that is converted into code, which, in turn, has a certain value.

Bitcoins also have subunits. 1/1000 of one bitcoin is called millibitcoin, and 1/10000000 is satoshi (named after bitcoin’s creator). The value of bitcoins is constantly changing. As of writing this article, the price of one bitcoin (BTC) is over 5,500 USD.

But how can you get your hands on bitcoins? Let’s find out!

How bitcoins are generated

Bitcoins can be mined by literally anyone with a strong enough computer. Mining for bitcoins involves solving math problems that require lots of computing power. These problems are also called ‘proof-of-work’. Each problem has a solution with 64 digits, and the goal is to guess the number that is equal or lower than the target. If a regular home computer works round the clock, it should be able to solve one of these problems in a few days.

When the problem is solved, the user gets a block reward. At the start of the operation (2009), the reward was 50 BTC. After every 210,000 blocks mined, which is approximately every four years, the reward becomes half as much. Thus, at the moment, it is 12.5 BTC. The next big change will come in 2020.

Did you know?

The supply of bitcoins is limited. The total amount of bitcoins that can ever be mined is 21 million. Currently, over 16.6 million BTC are available.

What is also fascinating is that the more people get into mining, the smaller their chances of arriving at the solution first is. Every two weeks or so, when 2,016 blocks are mined, the system adjusts the difficulty of the mining process. This means that the more computational power there is, the harder the task becomes.

If you only have one computer for mining, you can mine the equivalent of about 75 USD cents a day (excluding the costs for electricity). If you have about 36 computers working at the same time, you can earn up to $500 in clean profit.

As you can see, it is hard to get rich fast on your own with only your desktop PC. Which is why there are three options:

You can get a lot of powerful computers; You can get special mining hardware that is made specifically to minimise the cost and maximise the profit; You can join others in their search for bitcoins.

The last option is the most frequently used one. When people combine their hardware for bitcoin mining, they create a pool. The reward they get is divided between all the participants. Sure, this brings in less profit, but what it does bring is steady payments and not irregular spikes of big wins and then long periods of silence.

Bitcoin mining software

While there are plenty of mining hardware options on the market right now, not everyone can or wants to invest in such kind of machinery. After all, why buy anything when you can simply use your own computer? Certainly, it might be a little less productive, but it sure is a good first step.

If you want to use your computer for bitcoin mining, you will need to an install important software that will allow you to do it. Regardless of whether you belong to a pool or mine solo, you need this software to connect your hardware to the Bitcoin network. Here are the top five multiplatform applications that can do that.

Bitcoin Miner. Works on Windows 8.1, Windows 10 and Mac OS. It is a simple app with a user-friendly interface. It also has an important feature that indicates whether your mining brings you any profit.

Works on Windows 8.1, Windows 10 and Mac OS. It is a simple app with a user-friendly interface. It also has an important feature that indicates whether your mining brings you any profit. BTCMiner. Works on Windows and Mac OS. This is an open source application that works with modules ZTEX USB-FPGA, version 1.5. You can check out its main features on the developer’s website.

CGMiner. Works on Windows, Linux and Mac OS. This is one of the most popular mining programs at the moment. It uses the CPU miner’s original code as its base.

Works on Windows, Linux and Mac OS. This is one of the most popular mining programs at the moment. It uses the CPU miner’s original code as its base. BFGMiner. Works on Windows, Linux and Mac OS. It is somewhat similar to the previous app, only this one is designed for ASICs.

Works on Windows, Linux and Mac OS. It is somewhat similar to the previous app, only this one is designed for ASICs. EasyMiner. Works on Windows, Linux and Mac OS. This is basically the graphic user interface for the previous two instalments. One of its defining features is that it gives you a graphic representation of how your mining is moving along.

If you know any other reliable options, feel free to share them in the comments at the end of this article.

Bitcoin mining sites

If you do not feel like purchasing the mining equipment or spending time and resources on mining, you can always turn to cloud mining. It means that you can either rent mining equipment from a provider, create a virtual server with mining software or lease some hashing power.

The latter option is by far the most popular one. In simple terms, you just pay somebody else to mine bitcoins for you. All you need to do is to register on a certain website, invest some money and start earning bitcoins. Of course, you will earn less than if you were mining bitcoins yourself, but this method can save you a lot of hassle.

Nevertheless, despite being a much simpler and sometimes even more cost-effective option, not all cloud mining sites are trustworthy. Therefore, we offer you a list of four tried-and-true websites you can use.

Hashing24. After creating an account, you need to choose a hashing plan that is suitable for you, and you can begin mining. If you do not feel all that ready to invest money in this yet, you can use their Demo mining feature. That way, you will learn more about mining and not risk your money.

After creating an account, you need to choose a hashing plan that is suitable for you, and you can begin mining. If you do not feel all that ready to invest money in this yet, you can use their Demo mining feature. That way, you will learn more about mining and not risk your money. Genesis Mining. This is one of the most popular and trustworthy websites out there. After registering, you can buy hashing power to mine not only bitcoin, but also other cryptocurrencies, such as Ethereum, Monero, Litecoin, Zcash and Dash.

This is one of the most popular and trustworthy websites out there. After registering, you can buy hashing power to mine not only bitcoin, but also other cryptocurrencies, such as Ethereum, Monero, Litecoin, Zcash and Dash. Hashflare. Just like the previous website, this one provides you with an opportunity to mine different cryptocurrencies. Apart from Bitcoin, Hashflare also supports Dash, ZEC, Litecoin and Ethereum.

Just like the previous website, this one provides you with an opportunity to mine different cryptocurrencies. Apart from Bitcoin, Hashflare also supports Dash, ZEC, Litecoin and Ethereum. Nicehash. This website boasts one the largest list of algorithms; it uses 29 algorithms in total. It supports many different cryptocurrencies, including those mentioned previously.

Bitcoin Blockchain wallet

After you have mined your bitcoins, you need to store them somewhere, right? There are many wallets for your bitcoins out there. You can access your Bitcoin wallet from any platform of your choice. One of the most popular Bitcoin wallets is Blockchain wallet. Introduced in 2011, it had over 10 million accounts by the end of 2016.

If you want to create a free account, go to blockchain.info/wallet or blockchainbdgpzk.onion if you are using Tor. You can register for free and start using your wallet immediately. You can also download their apps on Android and iOS to keep an eye on your finances on-the-go.

And that is all we have time for today! Now you know a little bit more about Bitcoin and bitcoin mining. Have you learned anything new? Have you considered going into Bitcoin mining? Are you already doing it? Let us know! We would love to hear from you on this topic.

View original content here: naij.com

Vivian Falae