What is Bitcoin Mining (Bitcoin Mining) and How is it done?
What is Bitcoin Mining and How is it Made? How to remove Bitcoin? How is Bitcoin produced? What is cryptocurrency mining? What is Bitcoin mining? Can I do Bitcoin mining too? How much does Bitcoin mining save? These questions were started to be asked more frequently with the big exit Bitcoin experienced. In particular, I am frequently questioned by those who hear about the Bitcoin rich in the news and by their spouses, friends and friends who are confused with what they read on the internet.
In fact, what everyone is trying to say is this; “I want to get rich with Bitcoin mining too, but I don’t know where to start…” But the point is, if you’re not really in a very exceptional situation, you’re probably too late to do Bitcoin mining. Before we talk about why this is so, what is Bitcoin mining for short, it is useful to consider this.
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In this article, we will include the concept of Bitcoin mining, but if you are looking for detailed answers on how Bitcoin works and what it is, we recommend you to take a look at this article , the most comprehensive Turkish resource ever written
How To Make Bitcoin Mining?
In fact, rather than how Bitcoin mining is done; why it is so important deserves a long article on its own. Because one of the key points of what makes Bitcoin such an important technology and a great invention is the concept known as Proof-of-Work … In this article, I will protect the mental health of our readers who do not want to think about the technical part of the business roughly, at least for now.
Bitcoin mining, looking for a digital needle in a digital hay pile…
Before I get into the subject, there is one thing I would like to draw attention to very briefly: Extracting Bitcoin, that is, getting some Bitcoin by mining is not the only purpose of mining. Bitcoin miners are also helping to keep a decentralized account ledger called Blockchain, which is also one of the features that make BTC BTC. For now, let’s just think of the mining concept as “finding / extracting / printing Bitcoin”
Bitcoin mining, in fact, to summarize, consists of searching for and finding a number that has a feature on your computer, and what makes this number featured is that it is very difficult to find and it is getting harder to find.
Bitcoin Mining is Getting Harder and Harder
The reason why it is difficult and difficult is not by chance. This is because it was a security measure set by Satoshi Nakamoto when designing the Bitcoin protocol . This security measure (ie is difficult to present), according to their head “Bitcoin press” Amas performs the operation (and / or Blockchain You can not manipulate …) they have.
In fact, think of what is called mining as a game of chance on your computer or, as I wrote above, in a straw of numbers, again looking for a needle with numbers. Assume that each search move you make here is directly proportional to your processor power. In this case, the more processor power you put into this job, the more likely you will be to find a needle in the hay stack.
Meanwhile, imagining that the digital hay stack is huge and the needle is tiny will help you grasp the event. And it is not possible to “start searching from one corner of the haystack” and shorten your process / increase your chances by using optimization methods like this. This will be a bad example, but imagine that the needle is constantly and randomly displaced.
Another analogy used for mining is to draw lots to your computer. Although it is technically more accurate, I did not prefer this because it brought to mind a system that “the lucky one will win”. The reason it is not based on a lot of luck is that the pool drawn to the lot is very large, the fact that those who invest only a lot of labor (processor power) in the lottery business will win this so-called “draw” constantly.
In the current situation (at the level of difficulty and reward that the BTC protocol has set for today), the miner who found this pin (ie ” winning the draw” ) wins 25 BTC awards. This figure was 50BTC in the early days of Bitcoin and will gradually decrease [next reward step is expected to start in 2017, and then the reward will drop to 12.5BTC]. If you came here without getting bored, at least you have some idea about Bitcoin mining / digging. But to summarize; Mining is difficult and requires a lot of processor power, its difficulty is increasing gradually, while this amount of reward decreases.
History of Crypto Mining
We mentioned that bitcoin mining is getting harder starting from the first day. The reason for this is that more and more people around the world are increasingly investing in processing power. In this direction, the system automatically adjusts the level of difficulty in order to slow down the launch of a large number of Bitcoins in a short time and maintain 1 block rate in 10 minutes.
What is CPU Mining?
In the early days of Bitcoin, it was possible to mining with any computer (still possible, of course, but not financially profitable at all, because its cost is much more than its income). Even Bitcoin-QT, which we can call the official Bitcoin client, was open to the user open to self-mining. What we call CPU mining is the CPU of the computer used, that is, the central processing unit of the computer.by making use of the power to get the mathematical operations we mentioned above to the computer and as a result to obtain Bitcoin. But soon more people got more information about Bitcoin and caught up in the mining stream, which increased the network’s overall processing speed, increasing the level of difficulty. But the end of the CPU mining era was not only with this. There is another factor that causes this…
What is GPU Mining?
Graphics cards solve the mathematical problems required for mining Bitcoin (and some other coins), they are more efficient than processors (CPUs). The reason for this is that the GPUs (Graphics Processing Unit), that is, the processors hosted by the graphics cards, are more efficient in floating point calculations and the operations required to extract Bitcoin use these calculations intensely. To explain this, in other words, the reason why GPUs are more effective in mining than CPUs will be understood by those who do not know the subject; “If GPUs are strong and fast mining workers, CPUs are more skilled, white collar workers. CPUs are perhaps more educated and knowledgeable, but GPUs for mining are much more effective. ” We can sum it up.
Anyway, in a nutshell; After the knowledge that GPUs, that is, graphics cards work much faster and more efficiently in this kind of process, to the masses, which coincides with the days when the efficiency of CPU mining (due to the increase in Bitcoin difficulty) has decreased, people have had huge GPU mining rigs ( private computers collected for mining). With these rigs created by pooling and pooling the GPU power of many computers connected to one computer and / or many video cards, GPU miners lived their golden days. We can say that this process lasted very profitably from late 2010 to early 2013. At least for the masses… Today, Bitcoin mining has reached the level of difficulty that only ASICs can achieve profitability.
(I am now talking about FPGA mining without mentioning it here, because we can not say that it does not reach wide masses and the shoes are thrown by ASICs, but I can still add a short update to this part of the article in the coming days.)
What is ASIC Mining?
If the question of what is ASIC miner is confusing, we can say the following for an ASIC miner device based on the example of the mining worker above; Consider a worker who has been trained for mining, even just mining a special substance (coin) since his birth.
ASICs (application-specific integrated circuit), in other words, application-integrated integrated circuits can be considered as processors (and devices consisting of minimal hardware such as power supply, casing, etc.) specially produced for the tasks that are expected to be performed, they work faster and more efficiently than any other processor type (especially in terms of heat and energy consumption).
ASIC devices specially produced for Bitcoin mining started to meet users since the beginning of 2013 (intensive April-May), and Bitcoin mining has changed irreversibly. The faster and advantageous GPU mining is compared to CPU mining, we can say the same for the difference between ASIC – GPU. That’s why GPU and CPU miners have now become useless, and the cycle has been the cycle of ASIC devices. (You can still use your CPU and / or GPU mining devices to mine altcoins, more profitable in some, less profitable in some …).
The disadvantage of ASIC devices is that specific coins cannot be used for a job other than mining. For this reason, if an ASIC miner surpasses the level of profitability for a coin, operating that device returns only electricity costs, not losses. But this is also the subject of another post that will cover the issue of profitability and Bitcoin mining.
The Future of Bitcoin Mining
For now, it seems that the speed war of ASIC manufacturers will continue for a while. The manufacturers announce their new products every 3-5 months and receive the pre-orders and deliver the products to the customers after months. An alternative is to rent the mining shares of mining companies.
Apart from that, to mention briefly now, if you personally buy any mining device and enter the BTC mining event, 99% probability will result in financial damage. But this does not mean that the same applies to all coins. You can choose other coins for mining.
Conclusion: It was a relatively long post, but we managed to scratch the surface of the Bitcoin mining issue. I say the surface because, as you can imagine, the subject is a much, much deeper subject. Another factor that adds depth to this work is that there are many different mining dynamics for many different coins. Although the process is similar, both the development of coins and profitability etc. There are big differences in matters.