The Process of Making Bitcoins Out of Thin Air

 

Bitcoin offers great security to the transactions which occur in its network. This security is provided by validating the transaction. We use an algorithm known as Proof of work for validating transactions. But the process of making Bitcoins out of thin air.

You may be interested to read: Why We Need Cryptocurrency Wallet?

 

Why would someone validate the transaction?

When a transaction is validated, they reward the contributor of computational power which helped to invalidate the transaction, this process we called mining.

If you are contributing computational power to the network, we will know you as a miner.

For every validated block, the reward is 12.5 Bitcoins, this reward gets halved every 4 years.

 

How can you mine bitcoins?

Don’t use your regular GPUs for mining, there’s a negligible chance of this reaping you any profits

If you are serious about mining, you make:

  • Check the feasibility of mining in your region, using online mining profit calculators
  • Setup a safe bitcoin wallet preferably hardware wallets. You can use hardware wallets like Ledger Nano S which comes with an LED screen to check your balance and to approve transactions
  • Invest in a Bitcoin ASIC, they are powerful processors made especially for mining bitcoin. A popular bitcoin-based ASIC is Antminer S9, which can provide great hash rates as compared to traditional GPUs
  • Install a legit mining software
  • Join a mining pool, mining on your own is not feasible since it only gives you lesser chances of getting rewards. When you join a mining pool, the combined computational power increasing your chances of reaping rewards. Be clear about the policies of the mining pool that you are planning to join

Happy mining and investing!!!!

Make sure that you invest only that amount on which you can take the maximum risk, as this is a very risky investment, and the thoughts written above are purely my thoughts and experiences.

 

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