The unknown fact about bitcoin is that bitcoins are mined and not created or generated. Bitcoin mining is the complete process of verifying bitcoin transactions and adding them to a distributed public ledger known as a blockchain. The entire bitcoin network is based on blockchain technology. The extraction is done so that there is no fraud or duplication of transactions. It exists to confirm or verify every transaction, and the distributed public ledger is accessible to all bitcoin users.
Each transaction recorded in the ledger indicates that the transaction is legitimate and prevents users from spending their bitcoins again. Miners take care of verifying every single transaction by solving complicated mathematical problems. Miners are dedicated computers that solve algorithms and generate a new block. The miner who solves the algorithms quickly gets bitcoin as a reward.
Since its invention, the bounty was 25 bitcoins per block, which was provided to a miner, and there was a system set up that after every four years, the reward would be halved. In 2018, the reward was 12,5 bitcoins per block. If you want to become a miner, you need to know the hardware used for mining.
Here, in this article, we will discuss how mining hardware is chosen and what factors need to be taken into consideration:
Hash rate
The mathematical algorithms that need to be solved become complex after each block of transactions. Miners need to consider the complexity of the algorithms and invest in bitcoin mining hardware accordingly. Among all the features required in choosing the right equipment, one is the hash rate.
Hash percentage is the total number of computations that the mining hardware performs in each single second. This is the most crucial parameter because if your hardware hash rate is good, it increases the possibility of solving mathematical algorithms quickly. This will help to quickly resolve a block of transactions and earn bitcoins as a reward. Miners expect to get specific hash function output.
The hash function is designed to be volatile and is totally dependent on miners to try many random inputs to get the specific output you want.
Energy consumption
Buying bitcoin mining hardware is considered an investment as it will provide you with rewards in the future and also has some related costs. The better and more powerful hardware you get, the higher your electricity consumption will be. It is always recommended to buy hardware that is powerful enough, but it is also crucial to consider the power consumption of the hardware in watts. You have to consider the electricity bill you will receive after using the powerful hardware.
You can calculate the hashes you will get from electricity after using the hardware based on the estimated power consumption and hash rate. This can be done by dividing the hash count by the total number of watts.
Different hardware used for mining:
(CPU) central processing unit
CPU is the least influential category of mining hardware. For those who are unaware of what the CPU is, it is the central processing unit and implies the processor of the computer. Previously, the CPU was the only best way to mine bitcoins because it was affordable. All users required was a powerful processor to mine bitcoins.
Over time it has been less popular as miners wanted to earn more bitcoins and secure the network. This made CPU mining obsolete. Miners believe that nowadays you could mine bitcoins with the CPU but you won't even earn a single coin.
Graphics Processing Unit (GPU)
Graphics processing unit means the high-end graphics card. The GPU was designed to calculate the complicated polygons required in high-resolution video or games that enhance graphics. People consider the GPU over the CPU because they offer the greatest benefit of speed and convenience. For example, when comparing CPU and GPU, the CPU provides a lower speed of 10 MH / sec, while the GPU offers a fantastic speed of 800 MH / sec.
Due to the fantastic speed, graphics cards are widely used and this has led to the evolution of mining rigs. Mining platforms are the network of computers that have complicated calculations. These rigs can be used for two main purposes, which include serving as a computer to meet the needs and a complete dedication to mining.
