In the world of cryptocurrencies, bitcoin mining is an essential process. It generates new coins, and at the same time, it helps to validate bitcoin transactions. You can use mining for growing your profit by getting new coins. And how can you mine bitcoins? There are several (better and worse) options to generate new coins: mining on your own, bitcoin cloud mining, bitcoin browser mining and a few other methods.
How Does Bitcoin Mining Work?
Mining is a process of solving difficult mathematical problems, which results in issuing digital currency. Computers mine for coins by competing with each other, the one who solves the puzzle, gets a coin. At the same time, the power is used for generating transactions.
Mining Bitcoin On Your Own
For this process, you need bitcoin mining hardware. It can be a personal computer or a laptop. However, it is unlikely to get any results at all. So is it worth trying? The short answer is no, but not because it’s difficult.
How to start bitcoin mining? You can buy hardware, install software and start mining bitcoins on your own right away. If you want to try, start with this tutorial. But the problem here is the power that you need for mining. As we said earlier, to get bitcoin, miners use special software to solve math problems and are issued a certain number of bitcoins in exchange. This provides a smart way to issue the currency and also creates an incentive for more people to mine. But it takes a lot of resources. For small-time players, it is simply not profitable enough. The cost of power consumption makes this a difficult business.
As computers around the world mine for coins by competing, mining on your own can be painfully slow and inefficient. With increasing mining difficulty, mining with lower-performance devices can take a very long time before block generation. What you should do in the first place is to join the bitcoin mining pool – a pooled mining service that allows multiple users to work together to mine bitcoins more efficiently. But even with pooled mining, competing with big corporations with the latest state-of-the-art bitcoin dedicated hardware can be difficult.
The Bitcoin hash rate is at all-time high
It’s generally understood that a higher Bitcoin hash rate results in a more secure network thus leading to higher investor confidence, driving up demand as a result. A higher hash rate means greater competition among miners to validate new blocks. It also increases the number of resources needed to successfully attack the network.
Bitcoin Cloud Mining
If you do not own a lot of hardware, cloud mining is the best option to generate bitcoins. Cloud mining providers have designed hardware and software specifically for BTC mining (also cloud hashing). Their equipment uses less power and makes the mining process faster and more efficient.
As soon as you purchase GHS (a unit of bitcoin mining facilities), the process of mining starts right away. Unlike buying your hardware, with cloud-based GHS you will not face such problems as waiting for the delivery, installation problems, dealing with equipment maintenance, etc. In other words, you are leasing a set amount of computer power for some time.
There are many cloud mining service providers, a lot of them are merely scams without any hardware at all. Choose wisely!
We only list a few providers here, please check our dedicated page for bitcoin cloud mining for a complete list of more providers and much more information.
We get this question a lot: can I mine bitcoin just by using a browser, such as Chrome or Firefox. Browser-based bitcoin mining is the practice of utilizing web browsers as bitcoin miners through means of plugins, applets or scripts. There is usually no download and configuration needed. But since browser mining is highly ineffective the amount of generated coins is very minimal, you should treat this mostly for fun.
Update: Sadly, all bitcoin browser mining providers went down – we will update this thread when new players appear. Till then, you can browser mine other cryptocurrencies at Minergate.
Bitcoin Mobile Mining
Currently, it is not possible to mine bitcoin using only your mobile phone. However, you can mine some altcoins at Minergate. You’ll be able to mine Monero (XMR), Ethereum Classic (ETC), Bitcoin Gold (BTG), Bytecoin (BCN) and some other cryptocurrencies with your smartphone with the Android mobile mining application.
Is Mining Bitcoin Profitable?
Unfortunately, this is a difficult question to answer. Bitcoin mining profitability depends on many factors. In order to find out mining profitability bitcoin mining profitability calculators were invented. They take into account many parameters such as the cost of your hardware, electricity cost and other network related variables that you do not have an influence of. By calculating this, they give you an estimate of your projected profit. Here is one at CryptoCompare. This article will also help you to calculate mining profitability. See how much we make with cloud mining.
Bitcoin Mining Shares
You can participate in a bitcoin mining pool also by purchasing shares of companies that invest in bitcoin mining companies. This way you will not be buying bitcoin mining facilities directly.
McCoinCloud now offers digital shares. You can become a co-owner with not only tokens but endorsed shares backed with company assets.
Havelock Investments also offered mining shares in the past, but they look dead at the moment.
These companies invest in bitcoin mining facilities and other bitcoin-related businesses. You can buy shares of their investment funds and get dividends and profits. There is no minimum investment. Spend something minimal and see if you like them. They join cloud mining services and buy hardware and contracts instead of you and share profits with you. The question is: why you would invest with them and not invest directly? The answer is that figuring out what cloud mining companies are worth investing (what are profitable?) is not that easy and they do it instead of you.
- How to start mining altcoins? Mine Ethereum, Monero, Bitcoin, Dashcoin, Ethereum Classic and other popular cryptocurrencies on your PC using console miner.
- Indirectly you can invest in bitcoin mining by putting your bitcoins into bitcoin savings account. This way your coins will be used by various Chinese mining companies to fund their operations. You get interest in exchange.
- Beside bitcoin mining, there are other options to get bitcoins.
- You can also trade bitcoin mining facilities. See GHS trading.