Having bitcoin or making money with bitcoin - many crypto supporters have already fulfilled this wish. You have used these two options: invest in cryptocurrency or mine in cryptocurrencies. The first Bitcoin miners came out with a normal computer and graphics card. Meanwhile, mining relies on bundled ASICs. The question of whether Bitcoin mining is currently worthwhile can be answered in the affirmative.
To do this, you need to know how mining must be done correctly. Mining bitcoins at home on your own PC is no longer profitable. But it's not just Bitcoin mining that is fiercely competitive. This is increasingly true for mining other cryptocurrencies. With Bitcoin Mining Pools or Bitcoin Cloud Mining, there are two profitable options. Mining-interested users can buy their own Bitcoin miner or rent computing power.
- Generate digital coins on the computer
- mines by mining cryptocurrency without their own money Coins with your own computer, in pools or in the cloud
- Mining alternative: Buy Bitcoin at a crypto exchange
Table of contents
- Earn money with Bitcoin & Co.
- Bitcoin Miner: What does it mean?
- Why is Bitcoin mining done?
- Is Bitcoin Mining 2019 profitable or not?
- Buy Bitcoin Miner: What equipment is used?
- The Bitcoin Mining Hardware
- The Bitcoin Mining Software
- Bitcoin Mining Pool or Cloud Mining
- Conclusion on Bitcoin Miner: Mining with and without own hardware
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Money earn with Bitcoin & Co.
Money with cryptocurrencies can be earned in different ways. A user can earn by receiving the equivalent of his work performance in bitcoins.
- On special platforms, users solve tasks and receive bitcoins.
- He could have his wages or parts of them paid out as bitcoins. For this, this form of wage payment must allow your own employer.
- Sell goods and services in your own online shop for bitcoins
Another option is to earn cryptocoins as a Bitcoin miner. Only a high-tech computer is required for bitcoin mining and the mining of coins can begin. Electricity and maintenance costs must be deducted from the income that Bitcoin mining brings in.
In Germany, mining Bitcoin is not worthwhile due to high electricity costs. For interested Bitcoin miners, there are several alternatives to get involved in Bitcoin mining at low cost. This includes mining pools and cloud mining, with some dangers lurking here as there are numerous “black sheep” among mining companies. It has often happened that a mining company is not looking for coins, but only for that
Mining pools promise Bitcoin shares based on a certain package price or membership fee purchased. The profit is shared among the members. One advantage of Bitcoin Cloud Mining can be seen in the Savings in electricity, cooling and maintenance costs, whereby the actual rental costs for cloud use can ultimately be quite expensive.
What net income before taxes (or final losses) is possible and how the ratio of costs and benefits can be determined online with a Bitcoin mining calculator. The calculator (for example on the website of Cryptocompare.com) includes electricity costs, hash speed it, etc. to estimate the costs and benefits. The hash rate must be entered in order to calculate the income from cloud mining. In the case of pool mining, the pool fee is also added. The calculator calculates the profit online based on the current level of difficulty.
Bitcoin Miner : What does this mean?
In connection with making money with cryptocurrencies, there is often talk of "mining". Mining means mining translated into German. The term describes the work of miners who dig underground for raw materials such as gold and other metals. In addition to miners, there is now a new type of miner who is also on a treasure hunt. They do it in a completely different way and not underground. One reason is: they are looking for completely different treasures.
The miner goes to the mine every day to mine raw materials, similar to mining Bitcoin. Certain adjustments are necessary for the terms. Mining describes the mining of raw materials, Bitcoin mining the mining of Bitcoin. A bitcoin miner is a miner and mines the raw material bitcoin. Its mine is the cryptocurrency Bitcoin. Alternatively, it is the Ethereum or Litecoin mine. Depending on the mine, different tools are required.
Miners (individuals or companies) are the actual participants in the mining or mining of crypto coins and are of existential importance for a crypto ecosystem like the Bitcoin blockchain. They use high-tech computers or bitcoin mining hardware instead of a shovel for their mining or to create new bitcoins. The miners provide the computing power necessary to maintain the blockchain. They enable the verification and securing of thousands of daily transactions and finally they ensure the immunity of the ecosystem against hackers. Only the miners are able to bring a new offer to the market.
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Why is Bitcoin mining carried out?
The miner is rewarded twice. On the one hand, he receives the new Bitcoin created in the Bitcoin protocol and the associated transaction fees. The miner secures bitcoins without having to purchase them on an exchange, for example.
The Bitcoin protocol specifies the speed and volume with which newly mined coins are accessible to the market. Successful miners receive new bitcoins every ten minutes. Time is only a determining part of the algorithm, because the Bitcoin transfer takes place regardless of the number of miners and computing power. While the time factor always stays the same, the probability of receiving a reward changes.
The volume of new bitcoins that can be transferred to successful Minder halves approximately every four years or after the creation of around 210,000 blocks. In 2009, the reward for a Bitcoin ("mined" by Satoshi for the first time) was 50 Bitcoin (BTC). Bitcoin halving will reduce it to 25 BTC in 2012 and to 12.5 BTC in 2016.
There will be another halving in 2020, so the reward will only be 6.25 BTC. Miners may benefit from the higher prices of a lower volume. The protocol specifies that the maximum amount of coins mined will be 21 million bitcoins. In mid-2018, 17 million bitcoins had already been created. Assuming a constant creation rate and the reduced volume, it could take more than 120 years before the last Bitcoin was created.
Bitcoin miners receive transaction fees in addition to the newly created Bitcoins. As is well known, all payment providers and banks work with fees, so that they take huge profits from the billions of daily transactions. Bitcoin and other cryptocurrencies want to be a cheaper alternative. The use of bitcoins is not free, as some users may think. Not every miner has to charge fees. In the future, transaction fee revenue will play an increasingly important role in mining earnings.
Is Bitcoin Mining 2019 profitable or not?
A blanket answer cannot be given due to the many variables. The costs for the required hardware and energy prices vary very much in relation to the regions and countries of the world. In addition, mining earnings depend on a growing number of mining colleagues involved. They ultimately compete for the same reward. With increasing competition, the chances for a miner to get new bitcoins and transaction fees decrease. There are no other Bitcoin stocks, so miners have to fight for or dispense with the same treasure.
Whether Bitcoin mining is currently generating profits cannot be said with certainty. In the first years from 2009, most Bitcoin miners made significant profits. A certain group of miners is also likely to benefit from their work at present, otherwise the continued operation of mining would be a purely end in itself and not an economic one. Basically, Bitcoin Mining is less profitable today compared to the years before 2018 and at the same time the competition is bigger than ever before. It is becoming increasingly difficult to find a new block of Bitcoin.
The most important variable to determine the profitability of mining is the Bitcoin price. At the end of 2017, the price of a Bitcoin had risen to $ 19,000. The reward for the miner of 12.5 Bitcoin was thus worth almost 240,000 US dollars. In August 2019, the Bitcoin price hovers around $ 10,000. The value of 12.5 bitcoin corresponds to around $ 125,000.
Limits, even for the most sophisticated bitcoin mining hardware and the latest bitcoin mining software, are likely to result from the combination of increasing costs of the increasingly powerful computers, the immense Energy consumption and growing competition. In the future, the incentive for miners and blockchain operators will shift from the creation of new bitcoins to transaction fees. As the volume of Bitcoin transactions increases, transaction fees increase. If the volume decreases, they fall accordingly.
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Buy Bitcoin Miner : What equipment is used?
Bitcoin mining requires special computers and bitcoin mining software that are designed to solve complex mathematical problems. Enormous computer resources are required for this. While only cryptography enthusiasts worked as miners in the early years, people and companies are now investing in corresponding warehouses and in Bitcoin mining hardware ASICs. When companies started to make their mark on the market, numerous individual miners had to rethink due to a lack of non-competitiveness. They found a solution by joining together in open mining pools and concentrating resources.
The inventor of Bitcoin Satoshi wanted the coins to be mined on normal computer CPUs. Due to the increasingly difficult and more complex computing processes, this is no longer profitable. You can get more hashing power from graphics cards. The current best hardware ASICs (Application Specific Integrated Circuits) have overtaken them.
The Bitcoin ASICs are used in thermoregulated data centers that are connected to low-price electricity. A complete mining setup includes processor, graphics cards, memory, power supply, memory, cabling and fan. If you want to buy your own Bitcoin Miner and use it profitably to mine digital raw materials under certain conditions (electricity price), you have to invest between 2,000 and 3,000 euros. Future crypto miners can buy the necessary equipment for their Bitcoin Miner on all major sales portals from Amazon to eBay and on other tech portals .
The Bitcoin Mining Hardware
Good mining hardware is characterized by a high hash rate and good efficiency. The efficiency of the miner is evident from the lower energy costs per hash. ASICs form the current mining standard, the efficiency of which increases with each newly developed generation. Efficient bitcoin generators in the current market include:
- Avalon 6
- AntMiner 6 & 7
Market-leading Bitcoin mining hardware companies include:
- Bitmain, producer of the AntMiner Bitcoin miners based in China, also a poll provider.
- BitFury, one of the largest mining hardware developers and chips producers.
- Spondoolies Tech, a hardware producer in Israel.
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The Bitcoin Mining Software
In order to be able to operate your own mining, you need the appropriate mining hardware, corresponding Bitcoin software and a JSON-RPC connection. A certain amount of technical know-how is required, and some time and capital is added to programs that are subject to a fee. The ordinary miner may mine for more than a year without receiving a bitcoin reward. The other mining option is mining in a Bitcoin mining pool.
If the hardware for Bitcoin mining has reached the user, he must download special software for use in mining Bitcoin. Well-known and free programs are CGminer and BFGminer. The EasyMiner one-click program, which runs under several operating systems from Windows to Linux to Android, offers a graphical user interface.
Bitcoin mining pool or cloud mining
Whoever joins a Bitcoin mining pool (group of Bitcoin miners) shares the work and receives a corresponding profit sharing. One of the completely decentralized mining pools is p2pool. Other recommended pools that fully validate blocks are BitMinter, CK Pool, Eligius and Slush Pool.
How to start with Bitcoin Mining?
Beginners who want to mine themselves should test the entire process extensively. The cheapest way is with a used ASIC miner. For example, there are different prices and qualities to buy on eBay. If the test was successful, the user could join a Bitcoin mining pool. If you want to do without your own hardware, you rent or buy a cloud mining farm.
What is an ASIC Miner?
A Bitcoin ASIC Miner (Application Specific Integrated Circuits) is a hardware development that is particularly well suited for mining bitcoins. With these Bitcoin generators, the hash rate, power efficiency and price are essential. Antminer, Avalon and Jackson are currently the most modern ASIC miners.
Build Bitcoin Miners yourself?
Bitcoin mining hardware can be easily built by tech-savvy users. To do this, several graphics processors are connected together. Expertise is required to craft a regular PC. For a mining rig, i.a. requires: NVIDIA graphics cards, ASUS graphics cards, PCI Express Riser, mainboard CPU RAM DDR4, SSD / hard drive, power supply / PSU, housing and WLAN USB stick. All equipment ultimately depends on which coin is to be mined. Among other things, you will need Mining software to match the selected mining pool.
Conclusion on Bitcoin Miner: Mining with and without your own hardware
It is worth mining Bitcoins on your own computer no longer in Germany. Even modern PC equipment offers insufficient computing power, and the electricity costs for German households are high. Electricity prices will hardly go down in this country, so mining Bitcoin will remain unprofitable in the long term. Electricity prices cannot be brought in a favorable direction, so it depends on how you generate bitcoins.
The market has everything that is needed for bitcoin mining. There are powerful ASICs and special chips. Nevertheless, the chance of receiving bitcoins as a reward is low, since the number of competing miners is very high and is constantly increasing. To earn money with Bitcoin mining, the user can join a mining pool with his ASIC. Bitcoin is given as a reward for the computing power provided.
Buy without your own Bitcoin miner, the participation in cloud mining is sufficient. The mining hardware is rented or bought in a mining farm abroad with favorable electricity prices and climatic conditions. If you want to mine profitably, join a mining pool with good mining hardware or take part in cloud mining.
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