How to Mine Bitcoins? For many people around the world, mining Bitcoins has become an alternative to generate virtual money from home or anywhere else in a seemingly simpleway. Usually and for more than 20 years, we use our computer every day to carry out activities of different nature and objectives, but it is a relatively recent idea to make use of them to generate money through cryptocurrency mining.
People who have been risky and adventurous enough since 2009, the year in which Bitcoin was created, have managed to generate very high profits with the purchase and obtaining of this and other virtual currencies.
This technology came to revolutionize the medium of finance, managing to gain stability thanks to the trust that the public has given to cryptocurrencies as a safe means to evade the controls and restrictions of private banking and governments, which has turned the cryptocurrency market and, especially Bitcoin, into Bitcoin. in a very attractive option to make short and long-term investments.
How much is earned by mining Bitcoins?
For a long time, disputes over the prospects and reliability of cryptocurrency have not abated. While miners have found decentralization to be the key to their stability, eliminating the risk factors associated with deliberate market fluctuations, others strongly oppose it, believing that the lack of state control creates fertile ground for manipulation. Despite this, millions of people have invested in cloud mining and have made cryptocurrency the main source of income.
Cloud mining: is it worth it?
With the increasing demand for cryptocurrencies,the difficulty of calculating the network and the capacity of the necessary equipment has increased. All this has made physical mining more difficult, as the purchase of equipment requires considerable financial investment to earn a full income, and the consumption of electricity for work and cooling requires the search for a mechanism to improve energy efficiency. Otherwise, the farm will not only not be profitable, but will also cause permanent losses.
In this context, cloud mining services have become popular, where users can rent to the company the computing power of already installed equipment with optimized work. The distribution of profits when resolving the chain is divided among all participants in proportion to the shares of their lease.
At present, mining Bitcoin on video cards is not convenient, since the complexity of its extraction is high, and the profits go mainly to those who have made large investments in equipment.
The most popular tool for mining was ASIC miners, the cost of which in the market starts at $700. At the same time, the production capacity allows you to earn between $4 and $9 a day. With an average earnings of $6 teams pay in about 4-5 months. It is impossible to keep such equipment in the living room, you need to provide uninterrupted access to electricity and the Internet. In practice, this requires additional investment and effort. In case the extraction process was interrupted, the work was in vain, and the remuneration will not accumulate.
Cloud mining services take responsibility for organizing and maintaining the uninterrupted operation of the data center. This makes it much easier for miners to make money. But do not forget that the service charges a commission for its services, thanks to which you earn and pay for your work. In most cases it is paid with the low cost of electric power, but some services set exorbitant commissions, and many of them turn out to be financial pyramids. They are also called scam services.
An additional risk for cloud mining users is the sharp depreciation of the selected cryptocurrency. Thus, the physical miner can always stop production or switch to other tokens, while cloud miners become hostages to a contract that no longer brings benefits, but it is impossible to change its terms.
Cloud mining is worth the investment only if you choose the right pricing plan in a reliable service, carefully analyzing market trends.
Is cloud mining profitable?
Cloud mining allows you to start production even with a minimal investment (from $10) and make instant profits. Although smaller than mining on your own equipment can bring (as long as all consumption costs are minimized and computing power exceeds the complexity of computing on the network), but stable (given that network complexity increases by about 10% per month).
The more powerful the equipment, the more profitable the mining operation, the greater the chances of finding the unit. Therefore, large data centers have advantages over ordinary users and are rewarded by the drive solution much more often. The system can be compared to the connection to the pool of fixed equipment, where the capacity of the entire pool depends on the number of units that are decided, and users can also receive an average distribution of income in proportion to the capacity they provide. Only in the case of cloud mining is capacity not provided, but rented.
The profitability of cloud mining depends directly on the chosen company. The cost of the rented capacity includes the cost of the consumption of refrigeration equipment and systems, accommodation.
The same costs should be covered by the physical miner, but it is easier for large companies to reduce electricity consumption. To ensure optimal consumption conditions, data centers place their equipment in regions with low rates, optimal weather, or even provide the necessary amount of electricity independently using eco-friendly methods (for example, with the help of solar panels).
Another advantage of cloud mining is the variety of contracts offered. Users can mine several types of cryptocurrencies at once, making several bets on the growth rate. And in the case of stationary mining, the equipment must be purchased according to the algorithm on which the selected cryptocurrency operates. Based on this, the variety of mining will be reduced to the coins of existing ones in an algorithm, and the transition to another type of equipment will only be possible with new investments.
The equipment also requires constant modernization and maintenance. It is not necessary to exclude both the possibility of breakage and general wear and tear, while some cloud services offer users perpetual contracts, in which the collection of the contract will only cease if the complexity of the network and the cost of work exceed the profitability of production. In the long run, this can be longer than the time it takes for purchased equipment to face the same problems due to wear and total failure.
Remuneration for cloud mining
On average, the return on investment in cloud mining takes 5-9 months at a stable exchange rate, and then, depending on the duration of the contract, there is time for net profit. The services offer contracts for one year, two years or an unlimited term.
Most services include an automatic profitability forecast calculator, which calculates approximate revenue per day based on the rate and complexity of the blockchain network. The cloud mining calculator can be found in your personal account.
You can also calculate the return on your investment yourself. To do this, it is necessary to follow the following steps:
- Calculate daily income taking into account service fee deductions.
- After dividing the amount of the investments into daily income, we will get the number of days for which they will be refunded.
- Then we divide the received indicator into 30 calendar days and get the return on investment in months.
If you invest $100 in Bitcoin production in the SHA-256 algorithm at a rate of $1.20 per 10 GH/s, we will have a total of 840 GH/s. The daily income will be approximately 0.00005964 BTC. This is 0.4795 USD per day. The monthly income will be 14.3 USD and 172.6 USD per year. The investment will pay for itself in 7 months. The recovery may be delayed if the interest rate on tokens drops dramatically, or vice versa, to break all records, should an increase occur.
The figures obtained will only be approximate, since the rate of return per day will change synchronously with the course and complexity of the network. For clearer calculations, market trends can be taken into account, but it is difficult to get an accurate forecast in a rapidly changing cryptocurrency market.
The principles of return on investment are the same for mining fixed equipment.
Profitability of cloud mining
The return on investment in cryptocurrency is volatile and varies depending on the exchange rate. To calculate the percentage of return, the profit must be divided by the amount of investment and multiplied by 100 percent.
So in the example above, as long as the duration of the contract is one year, investing $100 and receiving an annual income of $172%.
With the growth of the cryptocurrency exchange rate, the rate of return will increase, while the amount of investment will not change, and consequently the rate of return will be higher. For example, if the cost of tokens of the mined cryptocurrency has increased by 20%, while the complexity of the network has remained unchanged and production is produced at the same speed, the profit will also increase by 20% and will not be $172.6, but $207.12, respectively, and the profitability will be 207%.
In the same way, the situation can change in the opposite direction. With the growth of the complexity of the network by 10% and the stability of the exchange rate, the profit will decrease and, consequently, the percentage of profitability will be lower. The same will happen if the exchange rate of the cryptocurrency decreases.
For mining to bring an impressive percentage of profitability, it is necessary to conclude contracts for the mining of cryptocurrency, which has growth prospects. This is the easiest way to increase the profitability of the contract.
How to calculate profits
The benefit is the amount that the user will receive after deducting the investment, usage fees and withdrawal of funds from the total income. For this example, the net profit for the cloud miner will be $72 per year.
Profit is also subject to exchange rate fluctuations. For example, if the average charge for a contract is 0.00006000 PTS, the contract lasts one year, the miner will be able to produce 0.0219 PTS, which at the current bitcoin rate of 6500 USD is 142.35 dollars. Eliminating this cost of the initial investment and service commissions, the miner will receive only a small part of the net profits, since most of the production will be spent on the return on investment and contract costs, and with the increasing complexity of the network, the revenues can only recoup the investment.
But keep in mind that the cryptocurrency rate tends to rise sharply. Thus, at the end of 2017, the cost of a Bitcoin token reached 20,000 USD. If the cost of Bitcoin returns to this level, then with the daily production of 0.00006000 PTS per year the miner will earn 438 dollars. With an initial investment and unchanged costs, the return on investment of the contract will be almost three times higher and the return on investment will be significantly higher than that of the initial investment.
It’s worth taking a closer look at altokoin cloud mining. Almost all services offer not only bitcoin mining,but also the most popular and promising cryptocurrencies, such as ZCash. The complexity of altcoin mining is much lower, and many of them grow at high speed. Accumulations in a private cloud mining account often take place in bitcoins, and altcoins are automatically converted into a bitcoin account. Thus, if a user signs a contract for an easy-to-mine cryptocurrency, the rate of which during the contract period has grown by 30%, while the Bitcoin rate is almost the same, and the PTS rate has grown by 20%, the miner will receive an additional 50% of the profits in total.
Conclusions – How to Mine Bitcoins?
In short, cloud mining carries the same risks as any investment in the cryptocurrency market due to network complexity and exchange rate fluctuations. Cloud mining is convenient because it allows you to enter the cryptocurrency market with fewer initial investments, but it is also not worth having a significant income with relative peace of mind of the rate. Profits and profitability depend largely on market trends.
But if you are willing to take a risk and invest in a promising high-koin, you can expect the percentage of profits in this case to be significant.
It should also be noted that, as in the case of stationary mining, revenues are directly related to capacity. The more capacity is leased, the more tokens will be produced and the greater the amount of profits.
How long does it take to mine Bitcoins?
Newcomers to BTC mining are interested in how long it takes them to mine 1 Bitcoin. This section provides an answer for various Bitcoin issuance methods: CPU, GPU, ASIC, and cloud services.
How long does it take to mine Bitcoins with CPU?
In the first year of the emergence of Bitcoin, the complexity of cryptocurrency mining was minimal, which made it possible to adjust the mining process with the help of the CPU (central processing unit) of the computer. Using this technique, members of the network easily mined Bitcoin, which did not exceed $15 per BTC until 2013.
In 2013, the situation changed drastically – the cryptocurrency exchange rate went up, the popularity of virtual currencies increased, and the complexity of mining jumped. Mining Bitcoin using the CPU has become useless, despite the emergence of new processors. Even using CPUs like AMD FX 8350 4.00 GHz Octa-Core AM3+ Box, Intel Core i7 7700 3.6 GHz Quad-Core 1151 Box, AMD Ryzen 3 1200 YD1200BBAEBOX 3.1 GHz Quad-Core AM4 Box and others does not give results.
Answer the question, how long to mine 1 Bitcoin with the help of the CPU will not be possible, because the cost of electricity will exceed the miner’s profit several times. That is why this method has not been considered by miners for more than five years. On the other hand, using these CPUs will be useful to create a powerful farm in the ASIC-miner, allowing you to earn up to 200-300 dollars a day. But this is discussed below.
How long does it take to mine Bitcoins with a graphics card (GPU)?
In 2011, core processors with six, eight or even twelve cores were already produced. But graphics cards outperformed them many times. In particular, the Radeon HD 5970 itself showed results five times better than four 12-core CPUs. Unsurprisingly, many miners dropped the CPU and switched to the bulk GPU. At the same time, many people knew how long it took to mine 1 Bitcoin,no more than a week, because the price and complexity of the exchange rate until 2013 were small.
As of 2014, graphics cards stopped generating the expected profits, which is explained by a sharp increase in the price of Bitcoin,an increase in the popularity of the cryptocurrency and, consequently, an increase in complexity. Miners began collecting farms – special complexes that included 4 or more video cards. For 2018-2019, the following models should be considered popular GPUs:
- ASUS Radeon RX 580 8192 MB 256 bit GDDR5 ROG-STRIX-RX580-O8G-GAMING.
- ASUS GeForce GTX 1080 Ti 11264 MB 352 bit GDDR5X TURBO-GTX1080TI-11G.
- Sapphire Radeon RX 580 4096 MB 256 bits GDDR5 11265-09-20G.
- ASUS GeForce GTX 1060 3072 MB 192 bit GDDR5 PH-GTX1060-3G.
The choice of video cards is very wide, but the cost of this type of equipment is $ 300 and more. If to use on the farm more than 10 “tablets”, only in the purchase of the GPU it is necessary to spend more than 3000 dollars. And after all except the graphics processor requires good cooling, sufficient memory volume, a powerful motherboard, the qualitative processor (of those shown above), a rack for fixing and other equipment. The total cost can exceed $5000 and more.
Asked how long it would take to mine 1 Bitcoin on a powerful farm,members of the network replied in late 2016 – early 2017 that it would take no more than 12-15 months. In December 2017, when the cryptocurrency rate crossed the 20,000 mark, and the complexity after the New Year approached 2 TX/s (as of May 2, 2018 this parameter is 4,022 TX/s), the relevance of using farms on the GPU was minimized.
Nowadays, it is useless to buy expensive equipment and spend time extracting virtual money from BTC using GPU farms (no matter how powerful the equipment is). In 2018, Bitcoin can only be mined in two ways,which are described below.
How much time do we need to mine Bitcoins with ASIC equipment
One of the reasons why GPU farms are no longer relevant is the emergence of powerful assemblers, whose performance is three orders of magnitude higher. Modern graphics cards (even with a relatively high hash rate) have become useless. And manufacturers did not manufacture GPUs for cryptocurrency mining,but for modern games that require higher performance from GPUs.
Unlike video card creators, askes developers focus exclusively on cryptocurrency mining, which involves leading these teams. Below we will highlight three popular ASIC miners. It should be noted immediately that the calculation of time needed depends on several variable factors such as electricity tariff, exchange rate, etc:
- Canaan AvalonMiner 841 is a new equipment from a well-known manufacturer with a hashreit of 13 TX/s. It consumes 1.29 kWh of electricity, is compact and reliable. For the purchase of such a device you will have to pay 1,625 dollars approx..
- Bitmain Antminer S9 is another powerful computer that allows you to mine cryptocurrency at a speed of 14 TX/sec. It has a capacity of 1,372 kW and a value of 1373 USD.
- Ebit Ebang E10.1 Miner 18T. This is one of the most powerful and expensive miners in terms of price. Its purchase will cost 5,800 dollars approx., so the miner is made available for 18 TX / s. The power of the device is equal to 1.62 kW.
It is not difficult to earn 1 BTC with the help of modern equipment. The disadvantage is that it takes about three years approx. depending on several factors. It is worth understanding that the exchange rate price, complexity and other parameters change, leading to a change in the time needed to get the amount of Bitcoin.
How long does it take to mine BTC with a cloud service?
Another way to produce a virtual currency that remains profitable is to use special services to rent the available capacity. These sites work as follows. They buy modern asynchronous devices, combine them on a single farm, and then install equipment for virtual coin mining, pay for electricity, and solve organizational problems (even with regulatory authorities).
Users have to choose the appropriate service, purchase the necessary capacity, and then receive a passive income. The advantage of this income is that the main problems are solved with cloud services, and the miner only has to pay for services and other conditions of cooperation. It should be noted that, with the increasing complexity of the Bitcoin network,the profitability of these benefits is gradually decreasing. But at this stage, there is still a sense in the rental capacity.
Before considering how long it takes to mine BTC,we need to consider a number of points:
- Carefully address the choice of service, study the reviews and work only with those sites that have been operating in the market for a long time and that offer the best conditions.
- In the calculation process, a number of indicators are taken into account – hash rate, complexity of virtual currency production (at the time of calculation), current premium per block, service rate and virtual currency rate.
- In addition, the calculation takes into account the period of time during which a certain capacity is purchased and the possible decrease in profitability (which the miner takes into account personally).
The profitability of cloud mining and the answer to how long it takes to mine 1 Bitcoin depends on the price of the cloud service (the cost of the capacity provided), the complexity of the virtual currency, the purchase period and other factors (fees, service charges, etc.). Next we will make a calculation of the potential profits and calculate the time it takes to produce 1BTC.
The best Bitcoin mining services in the cloud include:
- Genesis-mining.ru is a universal platform for earning cryptocurrency,which is characterized by a wide range of fees, reliability, responsive support service, and good reputation. The official website of the service contains information about the company, a section for customers, the latest news, articles of interest and prices. There is the possibility to choose between six cryptocurrencies, one of which is Bitcoin. The Gold rate plan offers customers a capacity of 1 TX/s for $179. This option is suitable for novice miners. A more advanced rate is Platinum, where customers receive 5 TX/s for $845. There is also a Diamond plan that will cost $3,975, but the miner will have 25 TX/s at their disposal. If none of the options are suitable, you can buy the hashrait you are interested in (if you want and it is financially possible). If you calculate the performance for the maximum plan, you can get $525 per month. If the cost of the equipment is not taken into account, 1 Bitcoin can be earned in almost 17.5 months, as long as the course and complexity are maintained at their original level. The profitability of these profits is high, but we must not forget the costs that the miner has to bear in his purchasing power.
- Hashing24.com. Availability of a custom plan, competitive rates, a calculator and a question and answer section on the site, as well as a good reputation. If you buy 10 TX/s capacity here you will have to pay $2054. In this case, the daily maintenance cost will be $3.3 per day. The monthly rental income for this capacity is $210. From them it is necessary to deduct the expenses for the service, therefore the net profit will be about 110 dollars. With this income, it will take about 82.5 months to get 1 Bitcoin,which is extremely long. As for the return on investment, it can be achieved within 20 months.
- Iqmining.com. When considering the best services for BTC production by renting facilities, experts often mention iqmining.com. As with most cloud sites, there are fee plans (bronze, silver, and gold) and the opportunity to purchase an individual hashreight. Depending on the rate chosen, you will have to pay from 0.6 to 1 dollar for 10 GH/s. The price of the service will also vary: from 0.001 to 0.005 dollars for 10 GH/s per day. In the example, let’s consider the option to buy 10 TX/s in the “Gold” package. In this case, you will have to pay $600 for the service, and the cost of the service (per day) will be $1 or $30 per month. The gains to such productivity remain the same (we calculated it above) – $210. Thus, the total monthly profit without taking into account expenses is 180 dollars. Now we can calculate how long it takes to mine 1 Bitcoin. This will take about 50 months.
From the above it follows that the profitability of BTC production through cloud services is quite solid, but only when a high hashrate is purchased over a long period of time. However, there is an important nuance to consider here. The situation in the cryptocurrency market can change for better or for worse (the rate, complexity, environment will change), which will inevitably affect the profitability of this method of profit. This applies not only to cloud mining,but also to Bitcoin mining in Asikas.
Equipment to mine Bitcoins
What is mining cryptocurrencies?
How to Mine Bitcoins? Mining cryptocurrencies is an activity that has become increasingly complex due to the increase in competition, since many people see in this activity a very effective alternative of profit. Therefore, more and more powerful equipment is required and specifically designed to carry out this activity in a highly profitable way.
If you want to enter the world of cryptocurrency mining and start mining Bitcoins, you will need an ASIC (Integrated Circuit for Specific Applications) unit that is a device exactly designed for functions of this nature.
Below we name some of the most profitable Bitcoin mining equipment so that you can become a successful miner. However, you should keep in mind that these equipment are very expensive and difficult to acquire. Often, you will also need to purchase a high-quality power supply in order to ensure maximum efficiency of your mining equipment.
At the time of acquiring an ASIC equipment, the first thing you should consider is the speed with which you can obtain the return on your initial investment. This is given by the hash power of the equipment (refers to the amount of Bitcoins it can mine on a daily basis) and subtracting the electricity costs, the rates of the mining group and the degree of difficulty of the mining activity today.
In the list that we present to you we include all this information referring to several models of the best equipment available in the market so that you can analyze which would be the best option for you:
- Ebang Ebit E11++ (44Th). Release: March 2019, Hashrate: 44Th/s, Consumption: 2000W, Algorithm: SHA-256.
- Antminer S15 / T15. Release: November 2018, Hashrate: 28Th/s (S15) – 23Th/s (T15), Consumption: 1596W – 1541W, Algorithm: SHA-256.
- Bitmain Antminer S9 (14Th). Release: November 2017, Hashrate: 14Th/s, Consumption: 1372W, Noise: 85db, Algorithm: SHA-256.
- Bitmain Antminer S9i (14Th). Release: May 2018, Hashrate: 14Th/s, Consumption: 1320W, Noise: 76db, Algorithm: SHA-256.
- Ebang Ebit E10 (18Th). Release: February 2018, Hashrate: 18 T/s, Consumption: 1650W, Noise: 75db, Algorithm: SHA-256.
- Innosilicon T2 Terminator (17Th). Release: May 2018, Hashrate: 17.2Th/s, Consumption: 1570W, Noise: 72db, Algorithm: SHA-256.
ASIC Mining – Guide【2019】
At a time when cryptocurrencies had just appeared and were still a little-known and absolutely unpopular asset, mining was carried out exclusively by geeks in order to maintain and develop the very idea of cryptocurrencies and worked for the benefit of the network. At that time, digital currencies were mainly mined from graphics processors.
Now, as the popularity of cryptocurrencies begins to spill over, mining has gone from being a “hobby of computer geniuses” to being a very profitable business. It was then that the question arose about the development of innovative equipment that would allow mining to take it to a new level: industrial mining. Thus, a device based on microchips was invented in China for the mining of Bitcoin,the first asynchronous miner.
What is ASIC?
ASIC (“Application Specific Integrated Circuit”) is a chip that is configured to do a specific job – deciphering the algorithms on which cryptocurrency is based on blockchain; that’s what allows it to do it much faster and better than its multitasking counterparts.
It is worth remembering that each digital currency works on the basis of one algorithm or another. Consequently, mining asics are developed specifically for a certain algorithm.
Currently, there are ASICs for cryptocurrency mining based on the following algorithms:
- SHA-256 (Bitcoin, Bitcoin Cash, Syscoin, Peercoin, Namecoin, etc.)
- X11 (Dash coins, Pure, etc.)
- Ethash (Ethereum, Ethereum Classic, Metaverse ETP, Ubiq, etc.)
- Encryption (Litecoin, Dogecoin, B3Coin, Bitdeal, etc.)
- Equihash (Zcash, Komodo, etc.)
- Blake (2b) (Decred, Siacoin)
From the technical point of view, the ASIC miner is the block in which it is located:
- Plates (chips).
- Memory block, which provides the program work of ASIC-miner.
- Connectors for external devices.
- Housing and connecting elements.
ASIC mining consumes much less power than video card mining, so the question of whether it is better to use askes or video cards is not relevant. To catch up on hashing over performance (which is influenced by the asynchronous quality of your graphics card), you’ll need to build an entire farm of dozens of graphics processors, but the farm’s power consumption can’t reach the asynchronous level.
The first assemblies were incredibly compact and joined the system via usb. Of course, today these devices have already lost their relevance, as they have become unprofitable. The modern generation of ASIC miners already has more impressive dimensions and are divided into two types depending on the size of the device, its power, as well as power consumption:
Home equipment is more compact, works almost silently, is equipped with a power supply of up to 600 W, while its professional analogues are much heavier and noisier, but are much more powerful and energy efficient. And they also differ significantly in price.
The most popular ASIC models
At present, the most popular and reliable MANUFACTURERS of ASICs are these companies:
- Ebang Communication;
- Halong mining.
Consider the ASICs of these manufacturers in the context of miningalgorithms.
The first cryptocurrency, Bitcoin,and some other cryptocurrencies work with the SHA-256 algorithm. This algorithm is decrypted by the following ASICs:
- Antminer S9 by Asic Bitmain (14 TH/s; 1340 W);
- Bitmain Antminer Asic T9 (11.5 TH/s; 1450 W);
- Antminer V9 by Asic Bitmain (11.5 TH/s; 1450 W);
- WhatsMiner M3 ASIC miner (12.5 TH/s; 1576 W);
- DragonMint T1 from Halong Mining (16 TH/s; 1600 W);
- Ebit E10.1 Miner 18T from Ebang Communication (18 TH/s; 1600 W).
Dash works on this algorithm. Many companies have developed the most powerful miners, which in a short period of time significantly increased the complexity of the network, leading to a drop in mining profitability in X11. This algorithm is decrypted by the following ASICs:
- Bitmain Antminer Asic D3 (19.3 GH/s; 1100 W);
- A5 DashMaster x11 asic miner from Innosilicon (32.5 GH/s; 750 W);
- Dr-100 PRO from Pinidea (22 GH/s; 900 W);
- Giant X10 of Baikal (10 GH/s; 630 W).
Blake’s algorithm (2b)
- Antminer Asic A3 de Bitmain (815 GH/s; 1275 W);
- Giant-B de Baikal (80 GH/s; 300 W);
- DragonMint B52 Blake2b Miner from Halong Mining (3.83 TH/s; 1380 W).
Lycoin and many other promising cryptocurrencies work on the Scrypt algorithm.
- Bitmain’s Asic Antminer L3+ is an improved version of Asic L3 (504 MH/s; 800 W);
- A6 INNOSILICON LTCMaster (1.23 GH/s; 1500 W);
- A4+ LTCMaster by Innosilicon (620 MH/s; 750 W).
Note: Not to be confused with Cryptonote. Cryptonote is the technology and Cryptonight is the hashing algorithm used by the technology. It should be noted that Cryptonote and Scrypt consume a lot of RAM.
Such popular coins as Monero, Electroneum and Bytecoin work with the Cryptonight algorithm.
- Antinera Asic X3 de Bitmain (220 KH/s; 550 W);
- Baikal N-giant (20 KH/s; 60 W);
- DragonMint X2 Miner from Halong Mining (248 KH/s; 490 W);
- DragonMint X1 Miner by Halong Mining (124 KH/s; 245 W).
Ethash algorithm (Dagger Hashimoto)
This algorithm is currently being decoded using video cards, but this may change in the near future. Manufacturer Bitmain is working on the launch of the world’s first uptime ASIC – Antminer F3.
Best ASIC Miners in Early 2019
The miners in this set are the most advantageous in terms of performance and energy consumption. That’s what makes them the perfect choice for profitable mining.
- Ebit E10.1 Miner 18T – SHA-256 – 18 TH/s – 1600 W – Bitcoin, Bitcoin Cash
- DragonMint T1 – SHA-256 – 16 TH/s – 1600 W – Bitcoin, Bitcoin Cash
- Antminer S9 – SHA-256 – 14 TH/s – 1340 W – Bitcoin, Bitcoin Cash
- A6 LTCMaster – Scrypt – 1.23 GH/s – 1500 W – Litecoin, Verge, Einsteinium
- DragonMint B52 – Blake2b Miner Blake (2b) – 3.83 TH/s – 1380W – Siacoin
- DragonMint B29 – Blake256 Miner Blake 256 – 2.1 TH/s – 900 W – Declared
- DragonMint X1 Miner – CryptoNight – 248 KH/s – 490 W – Monero, Electroneum, Bytecoin
- Antminer X3 – CryptoNight – 220 KH/s – 550 W – Monero, Electroneum, Bytecoin
Depreciation of ASIC miners
One of the most important questions in the context of the profitability of the mining business is how quickly ASICs pay for themselves. The return on investment of the ASIC-Miner is the time after which the ASIC you have purchased compensates you for the cost of acquiring the ASIC (i.e. your initial investment). That’s when digital forex mining starts to give you the return you’ve been looking for.
It stands to reason that the return on investment varies from one device to another, as it depends on the following parameters:
- miner’s hashrate;
- the cost of a miner;
- the accuracy of the commissioning of the equipment;
- digital currency that you mine.
How to assemble an ASIC miner with your own hands
It is worth noting that the price of ASICs is high and not everyone is willing to invest such a large amount of money in their business at the initial stage. For those who want to save money, there is a very tempting option – Homemade ASIC Miner. But how do you make an ASIC? Of course, to do this, you must have an accurate idea of what kind of unit it is, and how it is designed. An ASIC miner usually consists of the following elements:
- ASIC boards, which are located in special slots parallel to each other, and on which the chips are placed. A miner usually contains several tables.
- This is a very important component of the miner, who is responsible for ensuring the full operation of the miner.
- The power supply, which converts alternating current into direct current, which guarantees the stability of its power. The miner runs on AC power, but the chips are powered by DC voltage.
- Fans, which also play an important role in ensuring the proper functioning of the device, as they are responsible for the timely removal of heat (the extraction process is accompanied by the release of large amounts of heat) and therefore protect the device against overheating. It is very important to use a reliable refrigerator in your home miner, and even better to install several fans. In addition, as a rule, each of the panels is equipped with radiators for heat removal.
- Connectors for communication with external devices. You need to understand that you will need to connect the miner to other devices and provide the necessary outputs for it.
- Enclosures. Of course, the fruit of their efforts must be placed somewhere. In the latest models, manufacturers use aluminum boxes, as they allow to improve heat exchange. You can use an aluminum case or a box made of any other thin-walled metal. It is very important that the extraction of hot air is effective (holes in the housing must be foreseen).
Before you start assembling equipment for mining, it is necessary to draw a diagram, buy all the necessary equipment, as well as determine the size of the device. If you are going to install the miner at home, it does not hurt to make it as compact as possible, in addition to taking care of the sound insulation (use a special box). In addition, it is necessary to calculate the profitability of your home ASIC,since its creation can prove ineffective.
In general, you can build an ASIC by yourself only if you know something about it. A newcomer is unlikely to be able to create a worthwhile device.
Which ASIC to buy?
If you realize that you can’t assemble a miner yourself, you can always buy a finished product. However, you also need to be smart when choosing a machine. First of all, you must decide which algorithm you are going to work with and then familiarize yourself with the miners, who decipher this algorithm. When choosing the ASIC, the following parameters of the device must be taken into account:
- Hashrate is a key indicator that determines how many coins you can mine and in how long. The higher the hash rate, the faster your ASIC will look for the values needed to sign the block, the faster you can produce coins, the shorter your miner’s payback period, and the greater the profit you’ll be able to make in the future. Older models of miners cannot boast of a good hashrate (for example, Avalon Asic hashrate, Asic Neptune, Asic S7 is much less than 10 TH/s, so buying such a miner will not be profitable for you). The most current or the most recent models produce a much more impressive hashrejt (for example, the Bitfury Asic B8 hashrejt makes the total of 49 TH/s, Asic miner x11 – around 32 TH/s), however, the energy consumption of these miners is high enough. Therefore, it is better to closely observe miners with an average hash rate (e.g. Asic d3, Asic m3).
- Microprocessor frequency. This parameter also plays an important role, as it is the processor frequency that determines the level of the hash rate. How often the ASIC processor runs depends on the performance of your drive and the number of operations your computer can perform per second. The frequency of Heshrate and that of the microprocessor are not the same. When choosing a miner, be sure to pay attention to this parameter. The higher the frequency, the better.
- Power consumption. This also affects your miner’s payback period as well as their future earnings. The higher the energy consumption of your machine, the more you will spend on paying your electricity bills. Unfortunately, here’s a double-edged sword: the more powerful your equipment is and the higher your hash rate, the more electricity it will consume. You need to choose an option that has the highest possible hash rate with the lowest possible power consumption.
- The price. Probably the most important question is how much an ASIC costs. The second important question is where to buy ASICs. The higher the hash rate, the higher the processor performance, the lower the power consumption, the more expensive the ASIC. Often, the price of equipment is also influenced by the supply/demand ratio of the market.
How to connect an ASIC miner
Connecting and configuring the ASIC is a fairly straightforward process. Of course, each device is accompanied by an instruction in which each step is described in detail, but in principle, all equipment is installed in approximately the same way, although some manufacturers or models have their own peculiarities.
The installation of asic miner is as follows:
- First of all, connect the power supply of the ASIC miner. To do this, connect the power supply connectors to the device (you will hear a characteristic click) and one of the connectors to the system control panel. As a rule, the outputs are the same and the connection sequence is not important.
- Then connect the power cord to the router.
- Perform a test run. If you have connected everything correctly, the network connection indicators will come into effect and the fans will start running at low speed.
- Determine the IP address of your miner. To manage your computer, you need to know which IP address has been assigned to your ASIC. You can use various utilities or go to the main page of the router and find the appropriate settings.
- Next, go to the miner’s web interface for control, where you can choose the settings that interest you, such as: specify the mining pool,adjust the microprocessor frequency, power, update the firmware, etc.
- Next, you will need to save the settings, after which your ASIC will restart and be ready to go. You can check the status in a special tab, where the main processes are displayed, and you can check the statistics of cryptocurrency mining in your mining poolaccount.
Please note that you need to make sure that your miner has the correct temperature setting, as the safety mechanism will be activated and your device will turn off in case of overheating.
These recommendations are quite general, so you should carefully read the instructions and only then proceed to set up your ASIC.
Despite the increasing complexity of the network and fierce competition in the industry, the mining business is now very popular among professionals, newcomers and amateurs. In this article we talked about the notorious ASIC mining,learned what it is, and discussed the most popular models of ASIC miners, learned how to assemble the ASIC or how to choose the ideal model for you. In general, the mining business can bring you a very good profit, if you approach the subject wisely and organize the process competently. In some countries, this type of business is quite promising, since electricity rates are quite low, which makes it possible to minimize the costs of mining. So if you haven’t made a final decision yet, this article will help you understand this matter.
Pages to mine Bitcoins
Nowadays cryptocurrency mining, and in particular mining Bitcoins, has progressed to such an extent that specialized equipment or the installation of a specialized program are no longer required to carry out this activity in case anyone wishes to perform it. This is because it is now possible to do it from some cloud.
A wide variety of pages to mine Bitcoins offer this service and there are several in Spain highly valued thanks to their high degree of reliability. Here are some very good alternatives:
The Hashflare website
This page has operated for many years continuously,which has helped it to position itself among the best on the internet.
Its users recommend it widely, because it is very safe and because of the fast way in which it makes payments of the rewards obtained from the mining work. This page offers several service plans,which involve different power alternatives that will vary depending on the benefits you want to earn and your investment capacity.
It is a very easy to manage page that allows extensive control of your user account at all times, while you can see in detail all the operations carried out in your name.
This website allows you to carry out a constant and real-time monitoring of the mining process, apart from allowing you to know the variations of the market in terms of the ups and downs in the value of Bitcoin.
The investment ranges from 1.94 euros to 10GH/s.
The Genesis Mining website
This page is dedicated to the mining of different cryptocurrenciesand not only to Bitcoins exclusively. Its customers widely recommend it since they have an excellent platform that has been in operation since 2014. Additionally, interacting with its users through social networks is very effective, which gives them the benefit of staying very well informed of the services of the page and fluctuations in the cryptocurrency market.
One of the great attractions that this mining page presents is that its users start this activity at the same time they configure their user account because this is how the system is configured.
This great mining service from the cloud means that a strong investment in specialized equipment in this area is not required on your part. Your investment in this web platform will generate daily profits which will be credited directly to the virtual wallet that you have assigned to your account as a user at the time of registering on the page.
The interface of this platform has been designed to be intuitive. Therefore, registering will be extremely simple and fast and the Bitcoin mining experience will be excellent.
The investment is at least 730 euros for 1,000GH/s (This contract has a duration of two years).
The Hashing24 website
This page offered by the cloud mining service is also very reliable and one of the most used.
The aspect that makes this website stand out and that makes it so reliable is that it seeks to gather resources for a constant improvement of the processing of transactions made with Bitcoins, which greatly affects an increase in its productivity and, consequently, the profits are more substantial.
You can register in a short time without any complications. After you have entered, you are required to choose between the different plans that the page offers and based on this, the profits you will receive for the mining process will be established.
The business philosophy of Hashing24 is based on making a lease of mining equipment, which is no different from what other websites do. What differentiates it from others, is that it puts at your disposal different types of contracts with different terms,and based on the one you choose, you will be granted the returns. The contract to which you decide to subscribe, you can select it at the time of configuring your user account.
Currently this website is not awarding new contracts and it is only possible to obtain mining energy through auctions.
How to Mine Bitcoins with Special Programs
If you want to dedicate yourself to that of cryptocurrency mining, there are on the Internet a lot of programs to mine Bitcoins and other existing virtual currencies that are very useful to do so.
Below we mention some of the most used. In addition, you will find a few that will allow you to mine Bitcoins for free:
EWBF’s Cuda Equihash Miner 0.4
This program is one of the pioneers of the equihash type and is also compatible with Nvidia. It works well for Nvidia graphics cards, in equihash algorithms and all their varieties. With this program it is possible to mine coins such as Minexcoin, Bitcoin Gold, Zero, Zcash, Zelcash and Zencash.
Claymore’s Dual Ethereum
At present you will not find a better ethereum GPU miner. This program is designed to be used on both AMD and Nvidia GPUs. With it you can mine any ethash coin (Ethereum, Ethereum Classic, Ellaism, Pirl, Callisto and Ubiq). It can mine, at the same time, two different coins because the dagger hashimoto algorithm consumes very little core clock.
This software is really simple and will allow you to mine Bitcoins with CPU and GPU. You can mine from any computer if you own this program.
Actually, this program is capable of mining any coin that uses the cryptonight algorithm, which contains fast access memories that make it highly efficient,similar to those of CPUs. The most important of this type are Monero, Bytecoin and Electroneum. With this mining system, from the technical point of view, it is not possible to mine Bitcoin,but if you do it from NiceHash it is possible, although the minimum cost of its pool is high.
This mining program is essential to be able to mine with ASICs devices. It was conceived to offer optimal performance by requiring minimal CPU expenditure and lower electricity consumption.
Its operation consists of a very simple to handle online interface that also has compatibility with different devices and groups to mine. Its design allows it to be used by means of external mining devices,but additionally it is capable of making use of a GPU that is connected to the machine.
BFGMiner is based on the CGMiner that we already discussed above, but this one works exclusively with ASICs mining devices. It also has support for FPGA (Field-Programmable Gate Array) drives and can be configured to operate with some graphics cards. However, the odds that you can get some benefit from it are actually very low.
This program has functions that make it possible to work with mining devices such as overclocking and make use of a remote interface. Another advantage is that it allows you to monitor the temperature of a large number of devices and can also connect with a large number of mining pools. It allows you to save a lot of system resources, by no longer connecting to pools that are impossible to reach.
If what you prefer as a Bitcoin miner is to be able to work from your mobile or your PC, you can choose to use Minergate, a site on the Internet that allows you to download and install software to mine Bitcoins.
To download the program you must register on the Minergate page and then you must carry out a really easy and fast process. With this program, it will be possible to manage your user account and observe your progress in the mining process and the operations you carry out.
If you are a mining novice, on the website you can get a guide that explains what cryptocurrencies and mining pools are,as long as your desire is to network.
This program can give you excellent profitability and effectiveness,according to the power to perform calculations that the PC you use to mine has.
This is a highly recommended option for those miners who are not very tech-savvy as it consists of a graphical interface of the BFGMiner. It has a lot of powerful features,but it is particularly recommended for those who are just starting out in Bitcoin mining.
At the moment you install and run the MultiMiner, this application will take you to enter the information corresponding to your pool,through the use of information about tools that you will use and in this way clarify some terms that you may not know.
Once this stage is completed, the application will automatically search for the mining units that are connected and will show their details in an informative table in which the pool used and the average hash powerwill be highlighted. Additionally, it will indicate the projection of what your daily profit will be according to the mining hardware you currently own.
It will allow you to connect several pools if you want and you can also choose the strategy you want to use to carry out the mining. That is, you could choose to automatically mine the currency that is most profitable at the moment or select to mine coins of little difficulty of extraction.
While you are setting up the program, the developer of the software will ask you to give 1% of your profits to their wallet, as a monetary compensation for having created this wonderful mining software. This action depends entirely on the user’s will and you can turn it on or off in a section of the program called Perks.
Although this application is functional on various platforms,it is required to do the installation of an added software so that it can operate on MacOS and Linux.
Video on How to Mine Bitcoins
How to earn Bitcoins in 2019 – all the options to get Bitcoin
Earning Bitcoins in 2019 has become much more difficult than it was a year or two ago. At that time, Bitcoin and cryptocurrencies in general were starting to rise, and anyone, even with a PC at home, could earn the salary of an average office worker. Now, with the arrival of great competition and specialized teams (ASIC miners), we have to find new ways to earn cryptocurrencies, because buying our own equipment no longer brings the same income as in 2017. All current methods of obtaining Bitcoin in 2019 will be discussed in this material. The most efficient and profitable of them require investment, but there are options where you can get bitcoins,or rather a few Satoshi without investing your own money (in this case, you are investing your time), but you have to keep in mind that you will not be able to earn anything significant without investing.
Trading on cryptocurrency exchanges and buying on exchanges
Cryptocurrency is traded on specialized exchanges,as well as on regular exchanges. Those who bought a decent amount of Bitcoin 2-3 years ago are now millionaires. But this does not mean that the climb will last longer. One thing is for sure – it is extremely risky to trade Forex or special Bitcoin exchanges without initial training. Therefore, if you only want to buy cryptocurrencies for a long time, it is much easier and more convenient to use exchangers. If you choose reliable and proven changers, the probability of fraud is reduced to zero because thousands of transactions go through them a day and if someone is deceived, they will be known almost instantly in the rating of cryptocurrency exchangers and will be excluded from the list of tested ones. We have collected the most reliable cryptocurrency exchangers. Here we present only the most current information on the options for depositing funds for conversion to Bitcoin and other cryptocurrencies:
- Visa and MasterCard
- Perfect Money
Los intercambiadores sólo admiten las monedas más populares, como por ejemplo:
How to earn Bitcoin from scratch, without in-depth knowledge?
The best variants with the minimum entry threshold for beginners and people with zero knowledge will be:
- Cloud mining (capacity rental) – For the user it all comes down to paying the bill and controlling the income received in the personal cabinet.
- Trading in cryptocurrency – buying and selling cryptocurrency on specialized sites or through brokers.
Comparison between cryptocurrency trading and classic mining
Moreover, we need to discuss the advantages of cryptocurrency trading in relation to mining. It should be noted immediately that this is an issue that affects classic mining in their equipment. As for cloud mining,the situation is very different, and it is the cloud services (the most reliable HashFlare) that we recommend investing in at the moment, but only in the tested ones with confirmed real capacity and resources. Mining on your equipment is not as interesting as it used to be, but now we will try to explain why.
Initially, those who were evaluating Bitcoin’s prospects started by buying powerful computers and preparing them for the mining of digital currencies,but now it is obvious that trading cryptocurrencies is more convenient and often more profitable than mining them on their computers. At least because when the rate of Bitcoin decreases, mining becomes less profitable, and trading does not, because at any time a deal can be opened to sell and earn income from the decrease in the rate.
In addition, it will not be necessary to constantly monitor the performance and settings of the farm for mining,as well as maintain the level of energy consumption and cooling of the room. But as you know, to trade you need start-up capital, and you can start mining with 1-2 powerful cards if you already have them, the income will of course be small and you will not be able to mine Bitcoin,as it requires specialized ASIC equipment,which is very expensive. You can mine another coin and sell it on the stock exchange or simply exchange it on a cryptocurrency exchange (the list of trusted exchangers on our website).
But if your level of technical knowledge allows, then mining on your equipment can be extremely profitable. However, it now has little to no advantage over cloud mining,and the process is much slower.
The most reliable crypto pairs for trading in 2019
In 2019, we should expect the growth and renewal of Bitcoin’s previous maximum value,but only if it is set above the technically important level of $6,000. Bitcoin prices are positively affected by the news that Amazon,the largest online retailer, could soon start accepting cryptocurrencies as payment.
China’s policy of invasion in this area is being undermined or compensated by other countries. For example, Japan is opening the first official cryptocurrency exchanges for its citizens in the near future, and several countries are preparing the legislative framework for the OIC.
Other cryptocurrencies include Ripple,which may well increase the price and cost much more than the current 25 cents, and Monero,which flew from $50 to $150 a few weeks ago and is preparing to repeat its advance. I also recommend that you go to:
- NEO – much depends on Chinese legislation in the coming months
- Ethereum – 90% of all OICs are made in ETH with the ERC20 standard
- Ethereum Classic
How to get Free Bitcoins
- Collect Bitcoins:The easiest way to get Bitcoins. Registered users are offered the possibility to enter a captcha or watch an advertisement, and once the validity period is over they are paid from 50 to 200 SATOHI. Normally, they have a timer to enter the captcha or watch the ads. In some places, you can repeat the entry every five minutes, and in others, every hour.
- Get Bitcoins with affiliate programs:If you have a blog or a highly publicized social network, this is the way for you. You can leave affiliate links to Bitcoin faucets where they will be seen by a number of people. Therefore, we are back in the reference system. For referrals, i.e. partners, the service determines their percentage.
- Get Bitcoins with Automatic Winnings:Earnings on the machine are the best option to search for virtual currency. This is a fairly simple way, which is suitable for those who want to make a profit without any action. To make money, you just need to install a special STARTAVTOBET application on your computer, and it will bring you money in automatic mode.
Getting Bitcoins – Other Ways
- ICO rewards campaigns with bonuses
- Cloud mining without investment
- Bitcoin Games
A Bitcoin wallet is a software program in which Bitcoins are stored. To be technically accurate, Bitcoins are not stored anywhere; there is a private key (secret number) for each Bitcoin address that is kept in the Bitcoin wallet of the person holding the balance. Bitcoin wallets make it easy to send and receive Bitcoins and give the user ownership of the Bitcoin balance. The Bitcoin wallet comes in many forms; desktop, mobile, web and hardware are the four main types of wallet.
Documentary on Cryptocurrencies – Bitcoin
**Once you click to watch the documentary on Cryptocurrencies and Bitcoin,wait a bit for the video to start. If you do not want to wait click directly on the link next to the logo of RTVE Cryptocurrencies**
Where to buy with Bitcoins
**Coming soon Where to buy with Bitcoins**
What is Bitcoin?
What is Bitcoin? We explain that this is an electronic currency created in 2009, whose particularity lay in the fact that it could only be used on the Internet. With the name of Bitcoin is known both the virtual currency and the system that supports it,which is a P2P network. Its creator is known under the name of Satoshi Nakamoto, which is unknown if it is a real name or is a pseudonym and if it corresponds to a single person or a group of them.
This currency, being virtual, is intangible. It cannot be touched or carried as it is done with the coins and banknotes known so far, nor can it be used as a means of payment, in the same way as those mentioned above.
However, just like normal money, the amount of Bitcoins you can have in your personal account can increase or decrease,according to the pace of your income and expenses. The most relevant difference is that you will not be able to materialize this money,as happens when you make a withdrawal from an ATM of a bank in which you have money.
But, what makes Bitcoin truly particular against other currencies, is decentralization. Bitcoin is completely out of the control of any government or banking or financial entity, whether private or state, as are the Dollar that is controlled by the Federal Reserve of the United States or the Euro that is controlled by the European Central Bank.
In the case of Bitcoin, control is carried out in an indirect way by recording the transactions of its own users,through P2P (Peer to Peer) exchanges. This structure allows the transaction to be shaped while preserving its original characteristics and the privacy of its participants, which makes it impossible for any authority to manipulate its value or for more of them to be produced, which would have an inflationary effect.
It is a reality that its value and production are based on the Law of Supply and Demand. In addition, Bitcoins have a set limit,which consists of the amount of 21 million copies that are estimated to be issued in their entirety by 2030.
The value of Bitcoin based on supply and demand is calculated through an algorithm that takes into account the number of movements and the number of transactions made with Bitcoin at any given time in real time. This causes Bitcoin to be typified as a highly unstable currency in the foreign exchange market.
An example of this is the fact that Bitcoin in April 2013 acquired a maximum value of € 134 when at the beginning of February of that same year, its value was around € 16.
How can you use Bitcoins?
To carry out payment operations using Bitcoins as a currency,all you have to do is download from the Internet some application that serves for the operating system that your computer or your mobile has.
Through one of them you can create your virtual Bitcoin wallet,which will be assigned a private key that will be linked to a public key with which you can carry out various operations. Thanks to these keys, it is not possible to counterfeit Bitcoins which makes the transactions made from one user to another are carried out under the greatest security.
Okay, but how do you get the Bitcoins?
You can get them through various ways. One of them is to buy them by exchanging common money (such as Dollars or Euros) for Bitcoins, through the different markets that exist on the Internet for this purpose.
Another way to obtain them is through the acceptance of them as a form of payment for the sale of conventional goods and / or services. That is, when carrying out common commercial operations of buying and selling, but making or receiving payment with Bitcoins.
You can also obtain this currency through an activity called “mining”,which involves using the computer to solve extremely complicated mathematical problems, in exchange for receiving Bitcoins.
Every day the number of people dedicated to this type of activity increases and, currently, it is estimated that about 25 Bitcoins are produced for every 10 minutes that elapse. This practice is becoming increasingly complicated,so it is necessary to be part of one of the colonies of miners that currently exist on the Internet.
And is Bitcoin legal?
Bitcoin is outside any institutional and/or governmental control,in fact, there is a worldwide legal vacuum around its existence and operation. Therefore, it is considered to be legal in all places where it is accepted as a valid means of payment.
An additional and very favorable aspect of making transactions with this currency, is that these are encrypted and, therefore, anonymous, so it becomes impossible to charge any type of commissions or taxes on them.
Not everything is rosy
The decentralized and anonymous nature of transactions with Bitcoins has made it the means of payment par excellence in the underworld of the Internet, in the purchase and sale of narcotics and money laundering, among other fraudulent or criminal acts.
This has caused some governments, such as the United States, to want to create regulatory measures for transactions carried out with Bitcoins.
How many Bitcoins are there?
Ten years after the arrival of Bitcoin, the questions arise: how many Bitcoins are there? how many Bitcoins have already been mined and how many more remain to be mined?
The answer can be obtained through simple calculations. To do this, we need to know two values: the total stock (21 million) and the number of Bitcoins in circulation. The source of this information may be Coinmarketcap.com. Their estimates (market capitalization, price, etc.) are usually considered by market participants as an industry standard.
According to Coinmarketcap, Bitcoin’s current reserve is 17.5 million. It constitutes a little more than 80% of the total stock – 83.33%, to be more exact.
Well, how many Bitcoins have not yet been put into circulation?
To get an answer to this question, we need to do simple calculations: remove 17.5 million to 21 million, which gives the desired value: 3.5 million bitcoins remain to be mined.
Considering that there are only a small number of Bitcoins left, does this mean that they will all run out quickly? No.
The Bitcoin protocol is designed in such a way that it does not encourage the relative growth of mining: the reward for the block decreases over time. In addition, the complexity of mining is increasing.
What will happen when all the Bitcoins have been mined?
Most participants believe that when the 21 million Bitcoin coins have been mined, the number of miners will decrease. They also believe that the industry will become largely centralized when stocks run out, which could cause serious problems in the sector. In addition, the depletion of stocks is expected to cause an increase in the price of Bitcoin,and the cost of transactions to increase.
Fiat currency works differently: it is constantly printed and distributed, and the stock has no end. Once the final nature of the Bitcoin reserve is established, its creator(s) has established a mechanism to control the number of coins, and the price will inevitably increase as the limit is reached. Miners will have to take into account the cost of transactions, which will likely increase astronomically, allowing the process to continue.
Based on these facts, it can be estimated that the remaining 3.5 million Bitcoins will take another 122 years to be exploited, i.e. that the last Bitcoin will be mined in 2140.
**How many Bitcoins there are, has been reviewed during the first half of 2019.
What is blockchain?
The entire cryptocurrency market is carried out under the philosophy of the blockchain, but what is the blockchain? The blockchain is nothing more than a record, a kind of gigantic book in which digital events are recorded that is shared or distributed among a large number of participants. It can only be updated from the consent of the majority of those involved who are part of the system, and apart, once the information is registered, it can never be deleted or modified.
Blockchains can be used to keep track of any type of transaction or digital operation. In the case of the Bitcoin blockchain, it has the infallible and verifiable record of all transactions that have been made with it,since its creation in 2009.
The information that is embodied in the blockchain is impossible to disappear in time. The blockchain is equivalent to an unalterable and indestructible record. This database only supports writing new information. It is not possible to modify or delete absolutely anything from it and what is added must be done by consensus.
The blockchain is started with one that has specific and special characteristics, but the blocks are added to the chain must have the following conformation:
- Have a code made up of numbers and letters that must be coupled to the predecessor block.
- Contain the set of transactions made and whose number is determined considering various factors.
- Present the code of letters and numbers that must be coupled with that of the block that follows.