How to mining bitcoin and what tools are needed to do mining is very important for bitcoin (BTC) enthusiasts to know.
Well, in this review, you will find out what bitcoin mining is, how it works, to how to become a bitcoin miner.
Top 10 Crypto Assets with the Largest Market
Bitcoin is still the crypto asset with the largest market capitalization. From day to day, this digital asset is getting more exciting and increasing graphically, including in Indonesia.
Regarding all crypto assets in Indonesia, data from the Ministry of Trade shows that as of May 2021, crypto asset transactions reached IDR 370 trillion.
The trend of buying and selling crypto assets is also predicted to grow. Meanwhile, in 2020, Indonesian people who transacted crypto assets reached 4 million people, with a transaction value of IDR 65 trillion.
What is Mining?
Bitcoin mining is the process when new bitcoins are put into circulation. In addition, this process is also a way for the network to confirm recent transactions and is an essential component in the maintenance and development of the bitcoin blockchain ledger.
Later, miners or miners who successfully add new blocks to the network in bitcoin assets will get rewards in return. However, in some cases, even if miners verify a transaction block, they may not get a bonus.
This is because you must be the first miner to do so to be rewarded—it’s an implementation of proof of work. For information, the Bitcoin mining process has become increasingly difficult and complex over the years.
How Bitcoin Mining Works
As for how bitcoin mining works, namely by utilizing blockchain, in this case, many bitcoin transactions occur concurrently, which will then be grouped into the same group, which is termed as blockchain. The bitcoin miners then verified the group.
Later, the blockchain verifies transactions in groups, not individuals. Once verified, they will be added to the verified blockchain. This is how blockchain works in bitcoin mining.
How to Become a Bitcoin Miner?
Here are some steps to take for those of you who want to become a bitcoin miner.
1. Prepare hardware for bitcoin mining
- CPU (Central Processing Unit)
If a computer wants to miner bitcoin, it must have a capable CPU so that it can be resolved quickly when there is a mathematical problem when mining.
- GPU (Graphics Processing Unit)
This computer processing unit can work faster than the CPU earlier. When you can solve math problems more quickly, you can win the mining race faster and win prizes in the form of bitcoins.
- FPGA (Field Programmable Gate Array)
This system of computer processing units can be used to mine bitcoins. Like the CPU and GPU, this FPGA works to solve math problems to earn bitcoins.
- ASIC (Application Specific Integrated Circuit)
ASIC is a unique hardware for bitcoin mining. The tool has become the best bitcoin miner and trusted bitcoin mining today. For those of you who currently want to win the race and mine bitcoins a lot, the hardware used is ASIC.
2. Download the bitcoin miner software
Even if you have the best mining hardware to get bitcoins, the hardware is meaningless without good software.
Well, you can get the software by downloading it. The best bitcoin miner software & application that you can download is available on several paid or free bitcoin mining websites.
This bitcoin mining software is needed to access the bitcoin network and transaction database. This software also needs to join in bitcoin farming. There are various types of the bitcoin software, which are distinguished by the operating system, including Mac OS, Windows OS, and Linux OS.
Bitcoin Miner App
Is it possible to mine bitcoin using a cellphone? If you think mining crypto assets always requires a particular machine with a powerful chipset, that’s not entirely wrong. The reason is the goal itself is to make the mining process faster and more efficient later.
However, on any Android smartphone, anyone can now mine Bitcoin. That’s because smartphones have evolved to become more potent over time. On an Android cellphone with qualified specifications, mining Bitcoin or crypto is no longer impossible, for example, in the following application.
The MinerGate application is very familiar to Indonesian bitcoin miners because of its popularity on PCs. MinerGate is also available in the form of a bitcoin miner apk, launched in 2014.
It is an Android bitcoin miner that allows its users to mine bitcoins without lowering the hash level of the leading coin. The use of the application is also straightforward. The reason is that you download the application and create an account. You will then get two choices, namely, doing mobile mining or buying cloud mining.
2. Crypto Miner
Indonesian bitcoin miners are also very familiar with this one application. However, if you want to use this application, you have to spend around $ 2.28 because not all bitcoin algorithms can be used for free.
Crypto Miner has a simple interface and operating system, even for beginners. This application also provides flexibility in determining the number of chains you want to include in the bitcoin mining process.
Bitcoin Mining Advantages
If you want to know the benefits of mining bitcoin, you can calculate it with online calculators that are now widely available.
However, several things must be entered to calculate the profit of bitcoin mining income using the bitcoin mining calculator, including
- Hashing power: the power of the hardware used
- Power consumption: the amount of electrical power used by hardware for mining
- Cost per kWh: the amount of electricity consumed
- Pool fee: fee for using the mining pool followed
That’s a review of how to mine bitcoin that is important to know. Check out articles about crypto assets, blockchain, and others only at Indodax Academy.