What is Bitcoin and how does it work?
Bitcoin is the most famous digital currency in the world, coins that are generated by “mining” through intensive calculations that we make from our devices or in the cloud. The price varies depending on supply and demand, there are several alternative currencies to Bitcoin that are generated in a similar way and can be more profitable depending on the market. To store the Bitcoin or other digital coins it is necessary to have a purse either locally or on the web. Bitcoin can be used in stores that accept this currency or change for legal money such as Euros.
Fluctuation of the value of the Bitcoin.
Thanks to the open source design of the Bitcoin and other currencies it is possible to visualize the value of these products in a transparent way in real time, we can use many monitoring systems and value in what we want to invest our mine. To summarize we have the Bitcoin that can be generated with two methods, the classic SHA-256 and the new Scrypt that is more expensive but can generate more benefits.
- Some of the programs generated by Bitcoin automatically choose the lowest currency per performance as we will see.
Mining Hardware: Costs and Performance
To mine Bitcoin we can use our own hardware in both Android and PC, the professionals of the mining use ASIC system that are machines designed specifically to deal with the algorithms that generate the coins, to another level also we have the users who use the power Of AMD graphics cards dedicated to this purpose. This hardware has a lot of power and can generate interesting benefits but it has some drawbacks:
- Its high initial price that requires quite huge money to investment,
- It can easily be damaged by continued work and
- The electric consumption that can cut back on income and even make non-domestic mining.
Such as you buy Antminer S9 ~13.5TH/s @ .098W/GH 16nm ASIC Bitcoin Miner the Hash Rate is 13.5TH/s ±7% and the Power Consumption is 1323W ±7%, per the calculation from cryptocompare.com we can mine Ƀ0.005001 ($9.25)per day or Ƀ 1.83 ($3,377.12) per year, the ROI may be almost a year but if you invest more you also can get huge money.
It is also necessary to count that it is obligatory to have internet connection, the data flow is not high but connection is required to verify the results that are generated in real time.
Bitcoin Miner App
The simplest and uncomplicated way to generate Bitcoin or other currencies quickly in hobbie plan from an Android or a PC with Windows is installing programs like MinerGate a software that gives us the option to automatically select the most profitable currency and it invests the time Process in that currency. The coins generated are kept in their corresponding purse and when certain profits have been generated we can withdraw them. This system also allows us to buy mining in the cloud.
- Download MinerGate and install it on our devices.
- We create an account that we will use for all the machines that we put to mine.
- We enable Smart mining to automatically select the most profitable currency.
- In the program we can define how many CPU or GPU cores we want to put to work.