How is Bitcoin mined? What are the ways to participate?

How is Bitcoin mined? What are the ways to participate?

The concept of BTC was first clearly proposed by Satoshi Nakamoto on November 1, 2008, and was announced on January 3, 2009. The open source project and the P2P network built on it were announced based on Satoshi Nakamoto's conceptual design plan. BTC is a P2P way of virtual reality data encryption virtual currency. Peer-to-peer delivery represents a centralized payment platform.

BTC mining refers to the personal act of using a special-purpose electronic computer to conduct accounting on the data account book. The blockchain technology Internet uses miners' contribution hash rate as revenue and gives corresponding virtual currency rewards according to the functional skills provided by miners. This process is called "mining." However, mining is not as simple as many people think. Find miner manufacturers, buy miners, put them in your home, and plug them into the network to wait for profit.

There are several ways to mine Bitcoin:

1. Buy miners for mining

This method is expensive, requires a practical operation, and needs to find suitable electricity, and the miners run louder. The energy consumption of miners is very high, and the expensive electricity bills for civilian use also increase the cost of mining. Nevertheless, the profitability of mining is still very objective. According to the current currency price, the daily net income of Innosilicon A11 Pro ETH (2000Mh) can reach about $40, which is worth buying. If multiple miners run at home 24 hours a day, the noise caused is also a big problem for civilians.

2. Miner hosting

Ordinary users can also purchase miners to host them at the mining farm. Professional mining farms bring professional miner operation and maintenance services and cheap electricity to escrow consumers. However, there are many stages in this method, and it is stipulated that mining participants have high work experience, and must have the ability to select miners, sign a reputable mining farm, etc., and have the ability to identify and avoid pits in each process. Customers buy miners themselves to be hosted by mining farms. At each stage, customers pay more attention and have a more sense of control. Finally, it is recommended that miners make more comparisons in finding the hosting of the mining farm and then make a decision after careful consideration.

3. Cloud hash rate mining

This is also the easiest method. Compared with mining purchasing a miner independently has the advantages of not having to purchase a miner, no actual operation and maintenance of the miner, and will not be harmed by sudden power failures and other factors. The hash rate service platform immediately purchases a reasonable layout and sells the mining machines separately. Each cloud hash rate contract signifies the right to profit from a part of the physical line miner. The requirements for mining participation are lower and more accessible, and the profit is more stable. The cognitive ability threshold is the least friendly to novice customers. Still, the calculation rate cost is the largest, and it cannot enjoy the benefits of miner appreciation.

4. Collaborative mining

The strategy of pooled mining provides customers with a series of sub-services related to mining, including miner group purchase, miner escrow, operation and maintenance management, maintenance, transfer, connection to mining pools, etc. The only thing left is waiting for the coin to be collected. It combines the advantages of cloud hash rate and mining farm hosting, simple method, friendly to novice customers, low entry threshold, and low total cost. It can also enjoy the benefits of miners' appreciation.