Money was always under the strict control of the state that issued them, controlled the level of inflation and other important processes, but even schoolchildren know how to generate bitcoins. These digital coins were specially created to allow ordinary users to take on the role of the issuer. With the help of special equipment you can mine cryptocurrency and have no one to depend on. But is this the easy way?
What is mining and why is it needed?
Gold is one of the most valuable materials on the planet, and to get it, people have to put a lot of effort. Now gold mining is fully automated, when, as a hundred-two hundred years ago, prospectors had to wash out tons of sand in any weather in order to find at least a grain of gold. With digital currencies the situation is the same: miners have to analyze millions of operations per second on their devices to catch one single signature that will help form the block and get a reward for it.
To put it simply, mining today is a huge and energy-intensive work, connected with the assembly of the blocks of the giant digital system, called the blockchain. The more participants in the process appear, the more difficult the task becomes. There is even a special index of difficulty, demonstrating so far it is now possible to extract 1 block. There are even special sites that track the dynamics and present it as a graph. Experienced miners can calculate the possibility of assembling the unit depending on the capacity of their equipment.
The role of hi-tech facilities and pools for mining
One computer or a mining rig has not solved anything for a long time. Huge rooms filled with expensive devices ASICs - all BTC farms now look like this way. It is not difficult to imagine how much electricity they consume. Even if you compare the performance of several video cards, in this case electricity bills will be huge too, and the data center needs a permanent and cheap source. That's why many large farms are located in regions where there is access to inexpensive energy.
Why do you need powerful equipment? The higher the hashrate is, the greater the chances of assembling the block you get. It is unlikely that anyone is engaged in mining solo, having such a performance. As a rule, companies rent their capacities for cloud mining. Smaller players use the services of pools. They are extremely needed to combine small capacity into one stream and generate a cryptocurrency together. The reward for the found blocks is divided among the participants in one or another proportion. To work on the pool you need to install a special software.
Bitcoin wallets: safety comes first
From the above it becomes clear that to generate bitcoins, you need to have millions of investments and buy a powerful farm, or on the basis of available equipment (of course, it's not a graphics chip or processor) to register on the pool. Anyway you will need a BTC wallet. There is a good choice of them. The easiest way is to create an online wallet for a minute or install the application on the smartphone. The alternative would be a light desktop wallet, which does not require the installation of a full blockchain history on the hard drive, but to increase the reliability and security its thick version is recommended. The most advanced users buy special devices called hard wallets. As an addition, you can print a paper wallet. The address of the wallet (not a private key, which must be carefully hidden by you, but a public address!) Is needed for the pool so that you can receive the reward.
What to do with bitcoins?
This question is the most interesting. Everyone is fond of spending money, for sure. Cryptocurrency is now in active circulation, i.е. you can give the virtual money for goods and services, and if there is no such possibility or desire, sell the generated bitcoins on exchanges, become an investor and buy tokens of promising ICOs. You can also withdraw the crypto coins on a bank card, exchange for altcoins and even sell them to other people on the P2P platform. All in all you can make a present to your relatives or friends! It will be quite unusual and completely for them to get crypto as a gift, won’t it?
Where mining is prohibited
Taking a great interest in mining, remember that not every country welcomes this business. In some countries, such as Switzerland, Germany, Japan and the United States, this work is considered legal and no one will punish you, except for the trade in banned goods and services involving crypto. But don’t look for ways, how to generate bitcoins in Bangladesh, is not worth it! There is a prison sentence for any actions related to cryptocurrencies. In China, everything is not so strict, but in this country bitcoin and blockchain are still banned. By the way, you should always keep an eye on this issue: laws in the world are different, and even if you do not know them, this does not relieve you of responsibility.