What is Bitcoin mining?
Bitcoin mining is a computer process used for verifying and secure bitcoin transactions from one user to another user in a decentralized system network. In this process, the transaction data is stored in a large public data ledger which is called Blockchain. The group of each transaction is called a block. All transactions are very safe and remain in this ledger. In bitcoin mining, each node competes with each other on the same network with its hardware. They perform in processing BTC transactions. The node with faster hardware tries more in every second to process transactions and the winning hardware can get bitcoins from its network as a reward. When a block is created it then gets added to the blockchain. The block is created by solving a computation problem with the hardware. In starting 50 bitcoins were rewarded for mining. Over time the power of computation and electricity is becoming very costly so the reward of bitcoins gets halved after every 4 years. This is called Bitcoin Mining.
Bitcoin Mining Hardware
Mining is the process of adding past transactions into public transactions ledger. This process is done by some special hardware called Bitcoin mining hardware. Different types of users use different hardware according to their speed and efficiency. Different types of Bitcoin miner hardware are listed below.
1. CPU Mining
Eary bitcoin users were allowed to use their CPU for mining Bitcoins. Over time due to the advent of GPU, the use of CPU decreased. The bitcoins produced by CPU mining became lower than the cost of electricity consumed. So the CPU mining was removed from user interfaces.
2. GPU Mining
GPU mining was the successor over CPU mining. In GPU mining the speed and power of producing Bitcoins increased.
3. FPGA Mining
FPGA Mining is very fast as well as an efficient way of mining as compared to CPU and GPU Mining. It consumes less power than CPU and GPU mining and its hash rate is also better than CPU and GPU mining hardware.
4. ASIC Mining
ASIC is an Integrated circuit microchip designed for Bitcoin mining that was first released in 2013. They are very fast and accurate than previous technologies.
5. Cloud mining
Bitcoin cloud mining is also sometimes called a cloud hashing technique. It enables the miners to buy the output of Bitcoin mining power from Bitcoin mining hardware placed in remote data centers. In this process, all Bitcoin mining is done remotely in the cloud.
6. Mining Pools
Over time due to the increasing cost of electricity, it becomes more difficult for an individual miner to get any bitcoin. It becomes like a gamble of getting Bitcoins. To overcome this problem miners organized themselves into a pool. It is called a mining pool. In this way, users can share bitcoin rewards more evenly.
Bitcoin mining software for Windows, Mac, and Linux
List Free Bitcoin Mining Applications
ASIC Bitcoin Mining Software
Bitcoin Cloud Mining Software
- Genesis Mining
- Hashing 24
- Bitcoin Cloud Mining
Is bitcoin mining legal or not?
Bitcoin mining is Illegal in few countries and it is legal in other countries. In many countries, it is legal if you use your own resources like hardware and electricity. The other way of mining is called illegal if anyone steals the resources of others for mining. In this method the bitcoins generated are legal but the way of mining is illegal. Bitcoin mining is currently banned in Russia. Some Russian authorities are demanding strong punishment like a multi-year jail for the people who use bitcoins. Iceland has currently prohibited the locals from trading in bitcoins. In India, the government has given negative views about bitcoins but currently, there is no ban in India. Bitcoin mining is legal in countries like North America and most of the Western European countries the Bitcoin mining is legal.