Bitcoin mining is the process of verifying bitcoin transactions, and adding them to the blockchain, the public ledger that bitcoin is based on. This process keeps the bitcoin network secure and creates new bitcoin as well.
When you want to send, spend, or receive bitcoin there is work to be done. Accounts have to be verified, the transaction needs to be made, and the blockchain needs to be updated and okayed by everyone on the bitcoin network. This is where bitcoin miners come in.
Bitcoin transactions happening around the world are all bundled together roughly every ten minutes. One of these bundles is called a block. When the blocks are linked together they form a chain of transactions, the blockchain. Blocks are filled up with transactions until they are full and then new transactions are added to the next block.
The process of bundling transactions, verifying them and adding them to the blockchain is what mining is all about. Miners do this work because they are rewarded for it. They get paid in bitcoin for every block added to the block chain and every transaction they process. Mining releases new bitcoin into the system and miners are paid in these newly made bitcoins.
There are many miners out there, all competing to add the next block to the blockchain and release new bitcoin. Right now about 18.5 million bitcoin have been released. This process will continue until roughly 2140 when all the 21 million bitcoin have been made. After that miners will be paid in transaction fees but there won’t be any new bitcoin made. There will only ever be 21 million bitcoin.
Mining gets harder the more miners there are and the pay out for mining a block gets smaller as more blocks are mined. When bitcoin started the reward for mining one block was 50 bitcoins. Today it is 6.25 bitcoins. The block reward gets cut in half every 210,000 blocks or every four years or so. This is known as ‘the halvening’. This keeps bitcoin’s supply low, keeping bitcoin rare, protects against inflation and will potentially make bitcoin more valuable over time. You can watch the count down to the next one at thehalvening.com.
Two things have to happen for a bitcoin miner to earn bitcoins. The first is they must verify one megabyte (MB) worth of transactions. This technically could be just one transaction but more likely will be several thousand transactions. The second thing that has to happen before a miner is rewarded and a block of transactions is added to the block chain, is miners have to solve an extremely difficult math problem called “proof of work”. What they are trying to do is guess a number that is the same or less that a number randomly created by the bitcoin network called a target hash. It sounds easier than it is. The target hash is a 64 digit hexadecimal number. Here’s an example:
As you can see it’s a huge number and it’s a real gamble trying to guess it. You have roughly a 1 in 18 trillion chance of guessing correctly on your first try. In fact you are 45,000 times more likely to win the Powerball Lottery. That’s why you need very specialized, very powerful computers called ASIC computers to do the guessing. Because this guess work is so difficult groups of miners will often combine their computing power in a mining pool and split the mining reward between them. Most blocks are now mined by pools. In fact most of bitcoin’s computing power comes from mining pool and large companies based in China. No one know exactly but it’s estimated that 65% of bitcoin mining happens there.
Here are the big take aways for bitcoin mining:
Mining verifies, secures, and maintains the blockchain in a decentralized way.
Mining creates new bitcoin by solving very difficult computational puzzles and rewards the miners for their work.
Here are the all the factors involved in mining bitcoin. Hash rate, block reward, mining difficulty and mining difficulty increase, electricity cost, power consumption, pool fees, and bitcoin’s price.
If you’re interested in mining bitcoin here’s how you get started.
- Calculate the profitability – you will need to consider the factors mentioned above. Once you have all your numbers in hand you can find many mining profitability calculators
- Buy mining hardware – You will need a specialized mining rig. Expect to pay between several hundred and several thousand dollars on mining hardware to make your mining operation profitable
- Get mining software – You will need a platform to access the blockchain and take care of all your mining details. There are many options for a variety of operating systems.
- Find a crypto wallet – You will need a place to store your mined coins. A cold wallet, one kept offline is the safest place for them.
- Join a mining pool – This is the best option for success. One mining rig on its own will not be profitable.
- Start mining!
Top Cryptocurrency Miners
|1||Linzhi||Phoenix||2600 MH/s||3000 W||US$190.00|
|2||Innosilicon||A11||2100 MH/s||2300 W||US$155.00|
|3||Innosilicon||A10 Pro 6G||720 MH/s||1300 W||US$51.00|
|4||Innosilicon||A10 Pro||500 MH/s||950 W||US$36.00|
|5||Innosilicon||A10||480 MH/s||750 W||US$35.00|
|6||MicroBT||Whatsminer M30S++||112 TH/s||3472 W||US$19.66|
|7||Bitmain||Antminer S19 Pro||110 TH/s||3250 W||US$19.69|
|8||MicroBT||Whatsminer M30S+||100 TH/s||3400 W||US$16.83|
|9||Bitmain||Antminer S19||95 TH/s||3250 W||US$15.94|
Linzhi Phoenix Ethash 2600 MH/s 3000 W0.867 MH/W218.6 USDPoolin ETH195.27 USDETH190.92 USDHiveon ETH 2 Innosilicon A11 June 2021 Ethash 2100 MH/s 2300 W0.913 MH/W176.86 USDPoolin ETH158.01 USDETH154.5 USDHiveon ETH 3 Innosilicon A10 Pro 6GB Ethash 720 MH/s 1300 W0.554 MH/W59.41 USDPoolin ETH52.95 USDETH51.74 USDHiveon ETH 4 Innosilicon A10 Pro Ethash 500 MH/s 950 W0.526 MH/W41.14 USDPoolin ETH36.66 USDETH35.82 USDHiveon ETH 5 Innosilicon A10 Ethash 480 MH/s 750 W0.64 MH/W39.89 USDPoolin ETH35.58 USDETH34.78 USDHiveon ETH 6 MicroBT Whatsminer M30S++ SHA-256 112 TH/s 3472 W0.032 TH/W28.98 USDDGB19.69 USDZergpool SHA-25619.66 USDMining Rig Rentals SHA-256 7 Antminer S19 Pro SHA-256 110 TH/s 3250 W0.034 TH/W28.84 USDDGB19.72 USDZergpool SHA-25619.69 USDMining Rig Rentals SHA-256 8 MicroBT Whatsminer M30S+ SHA-256 100 TH/s 3400 W0.029 TH/W25.15 USDDGB16.86 USDZergpool SHA-25616.83 USDMining Rig Rentals SHA-256 9 Antminer S19 SHA-256 95 TH/s 3250 W0.029 TH/W23.85 USDDGB15.97 USDZergpool SHA-25615.94 USDMining Rig Rentals SHA-256 10 StrongU STU-U1++ Blake (14r) 52 TH/s 2100 W0.025 TH/W23.77 USDDCR12.25 USDPoolin DCR12.03 USDHC 11 Canaan AvalonMiner 1246 SHA-256 90 TH/s 3420 W0.026 TH/W21.77 USDDGB14.31 USDZergpool SHA-25614.29 USDMining Rig Rentals SHA-256 12 MicroBT Whatsminer D1 Blake (14r) 48 TH/s 2200 W0.022 TH/W21.31 USDDCR10.68 USDPoolin DCR10.48 USDHC 13 MicroBT Whatsminer M30S 2020 SHA-256 88 TH/s 3344 W0.026 TH/W21.29 USDDGB13.99 USDZergpool SHA-25613.97 USDMining Rig Rentals SHA-256 14 Antminer T19 SHA-256 84 TH/s 3150 W0.027 TH/W20.42 USDDGB13.46 USDZergpool SHA-25613.43 USDMining Rig Rentals SHA-256 15 Hummer Miner H9 Pro SHA-256 84 TH/s 3360 W0.025 TH/W19.92 USDDGB12.95 USDZergpool SHA-25612.93 USDMining Rig Rentals SHA-256 16 StrongU Hornbill H8 Pro SHA-256 84 TH/s 3360 W0.025 TH/W19.92 USDDGB12.95 USDZergpool SHA-25612.93 USDMining Rig Rentals SHA-256 17 Canaan AvalonMiner 1166 Pro SHA-256 81 TH/s 3400 W0.024 TH/W18.82 USDDGB12.11 USDZergpool SHA-25612.08 USDMining Rig Rentals SHA-256 18 MicroBT Whatsminer M31S SHA-256 78 TH/s 3276 W0.024 TH/W18.12 USDDGB11.65 USDZergpool SHA-25611.63 USDMining Rig Rentals SHA-256 19 Antminer S17+ SHA-256 73 TH/s 2920 W0.025 TH/W17.31 USDDGB11.26 USDZergpool SHA-25611.24 USDMining Rig Rentals SHA-256 20 StrongU Hornbill H8 SHA-256 74 TH/s 3330 W0.022 TH/W16.66 USDDGB10.52 USDZergpool SHA-25610.5 USDMining Rig Rentals SHA-256 21 Goldshell HS3 Handshake 2 TH/s 2000 W0.001 TH/W15.91 USDHNS6.53 USDPoolin HNS6.23 USDF2Pool HNS 22 Antminer Z15 Equihash 420 KH/s 1510 W0.278 KH/W15.55 USDMining Rig Rentals Equihash12.33 USDViaBTC ZEN11.52 USDLuxor ZEN 23 Antminer DR5 Blake (14r) 35 TH/s 1610 W0.022 TH/W15.53 USDDCR7.77 USDPoolin DCR7.63 USDHC 24 MicroBT Whatsminer M20S SHA-256 70 TH/s 3360 W0.021 TH/W15.25 USDDGB9.45 USDZergpool SHA-2569.43 USDMining Rig Rentals SHA-256 25 Cheetah Miner F5+ SHA-256 66 TH/s 2838 W0.023 TH/W15.17 USDDGB9.7 USDZergpool SHA-2569.68 USDMining Rig Rentals SHA-256 26 Canaan AvalonMiner 1166 SHA-256 68 TH/s 3196 W0.021 TH/W14.98 USDDGB9.34 USDZergpool SHA-2569.33 USDMining Rig Rentals SHA-256 27 Antminer S17e SHA-256 64 TH/s 2880 W0.022 TH/W14.41 USDDGB9.1 USDZergpool SHA-2569.08 USDMining Rig Rentals SHA-256 28 Innosilicon T3+Pro 67T SHA-256 67 TH/s 3300 W0.02 TH/W14.4 USDDGB8.84 USDZergpool SHA-2568.83 USDMining Rig Rentals SHA-256 29 Antminer T17+ SHA-256 64 TH/s 3200 W0.02 TH/W13.64 USDDGB8.33 USDZergpool SHA-2568.32 USDMining Rig Rentals SHA-256 30 Canaan AvalonMiner 1146 Pro SHA-256 63 TH/s 3276 W0.019 TH/W13.12 USDDGB7.9 USDZergpool SHA-2567.88 USDMining Rig Rentals SHA-256 31 Antminer S17 Pro SHA-256 53 TH/s 2094 W0.025 TH/W12.63 USDDGB8.23 USDZergpool SHA-2568.22 USDMining Rig Rentals SHA-256 32 Antminer S17 SHA-256 56 TH/s 2520 W0.022 TH/W12.61 USDDGB7.96 USDZergpool SHA-2567.95 USDMining Rig Rentals SHA-256 33 Antminer S17 53 TH/s SHA-256 53 TH/s 2385 W0.022 TH/W11.93 USDDGB7.54 USDZergpool SHA-2567.52 USDMining Rig Rentals SHA-256 34 Antminer S17 Pro 50 TH/s SHA-256 50 TH/s 1975 W0.025 TH/W11.92 USDDGB7.77 USDZergpool SHA-2567.76 USDMining Rig Rentals SHA-256 35 Cheetah Miner F5I SHA-256 60 TH/s 3480 W0.017 TH/W11.63 USDDGB6.66 USDZergpool SHA-2566.64 USDMining Rig Rentals SHA-256 36 Bitfury Tardis SHA-256 80 TH/s 6300 W0.013 TH/W11.53 USDDGB4.9 USDZergpool SHA-2564.87 USDMining Rig Rentals SHA-256 37 Innosilicon T3+ 57T SHA-256 57 TH/s 3300 W0.017 TH/W <a class=”coin_