When bitcoin came out, bitcoin mining was an easy way to generate an income with. People would connect their computers in their own yards and start mining.
However those days are gone now, more people started to get into bitcoin mining, the difficulty level increased to the point were mining bitcoin as an individual was not longer profitable.
What is bitcoin mining?
Bitcoin mining is a process of verifying bitcoin transactions and recording them on a public ledger called blockchain.
In a bitcoin network miners have a task of solving complex mathematical problems and securing transactions through the internet. A miner is rewarded in small amounts of bitcoin for finding solutions or the block. The bitcoins are then stored in a digital wallet where they can be accessed by the miner.
To start mining you need specialized computers, mining software, electricity and a reliable internet access.
Bitcoin mining is known to consume a lot of power so you will need high voltage of electricity to power the mining plant. You also need high quality cooling systems since the equipment heats up. All of this can be costly for an individual, besides high pressure or difficulty levels is big.
Back then it was easy for individuals to buy small mining equipment or even use their computers to mine.
Then big companies started realizing the earning potential and started creating big mining rigs. Cryptocurrency mining companies started popping up in huge numbers and the small miners were consumed by large companies. Then the large companies also found a way to start mining altcoins such as ethereum,litecoin and so on.
Now bitcoin mining is only suitable for big companies, individuals can only participate in mining pools.
Mining pools allow individuals to join up their resources and work as a team to mine bitcoin. In a mining pool the earnings are distributed according to amount of resources you have put in. Each contributor get’s their share based on the hash power they invested in.
The picture below is taken from blockchain pools, it shows legit bitcoin mining pools around the world. All bitcoin mining record their bitcoin findings on the blockchain.
If a company claims to be a legit bitcoin mining company, their mining pool should appear somewhere on this list of blockchain pools. The Unknow pools which make up 11.6% are usually individual miners, this are people who mine in their homes. As you can see, the leading bitcoin mining pool is BTC.com with 16.6%, followed by AntPool at 15%.
All bitcoin mining pools:
Instead of mining bitcoin most people have shift their focus to other methods to obtaining bitcoin. Which is why this bitcoinfella is here. I share some of the easy ways to earn bitcoin anywhere in the world.
This are some of the methods I prefer to get bitcoin:
- Buy bitcoin
- Play bitcoin games and casinos
- Participate in affiliate programs
- Trade in futures
- Work for bitcoin
- Earn free bitcoin in faucets
- Earn bitcoin via investment cloud mining
Bitcoin cloud mining
This method is not recommended since most cloud mining companies are designed to scam people.
A cloud mining company is supposedly a company with their own mining equipment that require investors to buy hash power. In return they promise to pay the investors their initial investment plus profit.
Usually this are bogus bitcoin mining companies try to lure investors into their business. After a couple of weeks, months or years the company website is nowhere to be found.
For you not to fall prey to this type of bitcoin investment you need to learn how to avoid bitcoin scams. Avoiding bitcoin scams is a processes you can learn through personal experience.
Hopefully the information provided on this page about bitcoin mining has helped you. If I were you and really interested in investing in bitcoin I would rather stick to the methods mentioned above to obtain bitcoin.
You are welcome to ask questions if you still don’t understand. Leave a comment below, I’ll be happy to respond to you.