Everything you need to know about mining bitcoin

The growth that Bitcoin has had since its appearance and its exponential leap in recent years, it can be easily explained because the number of companies and services that join to accept payments and carry out transactions with this cryptocurrency is increasing; As a result of the growth of its demand, its value continues to grow.

As part of this growth, many of the people who do not want to invest in Bitcoin look for other alternatives to get it, and they dedicate themselves to what in the crypto world is known as «Mining»

The cryptocurrency mining consists of creating a competition between the nodes of the blockchain of this cryptocurrency, where a very rigorous testing and verification base is created, to add a new block to the blockchain, which has a bitcoin reward for the miner.

Adding a new block to this chain involves a series of mathematical problems and uses processing power because a person cannot do them manually, so a computer that can test a large number of variables is needed to solve this problem.

How much is it worth to mine bictoins?

Initially, the reward for mining was 50 bitcoins per solved block and every four years this reward is halved through a process called “halving”, and only by this factor each time there is less money to be made.

While the cost of building a mining rig is not the same as buying a bitcoin, if a strong investment is necessary which also has many implicit expenses such as:

• Hardware powerful enough to solve those math problems.
• Electricity, because computers work 24 hours a day.
• An exclusive and ventilated space where the rig can operate constantly, since they are very noisy.
• Hardware maintenance every three to six months.
• When considering setting up a mining farm, you need professional personnel who know about electricity, software, programming and engineering.

Another factor to consider when mining cryptocurrencies, is that the competition is increasing. The main mining farms are located in China and have hundreds of graphics cards running around the clock.

Is it still profitable to mine bitcoins?

About whether it is profitable to mine bitcoin, it all depends on the volume of the investment, for a small investor, a standard mining rig could cost around 50 thousand euros. At this level of competition, a single person who wants to do mining from their personal computer will only waste time, and the profits are very low in contrast to the time spent and the wear and tear of their equipment.

Usually, a mining system has a yield of approximately 50% after two or three years of being established. It all depends on the category of investor in question.

Bitcoin mining is currently a complicated and expensive activity. For mining cryptocurrencies, it is best to know the trends on Altcoins and do a thorough research always thinking about the cost / benefit ratio.