on it because the slower the computer, the smaller the chances are of actually getting some kind of reward. If buying and maintaining your own mining hardware doesn't appeal to you, then cloud mining may be the way. If you are planning to convert your mined bitcoins to any other currency in the future, this variable will have a significant impact on profitability. Pros: Its easy, with little or no technical knowledge required. If more miners join, it will get harder to solve the problem; if many of them drop off, it will get easier. Additional types of mining, frequently asked mining questions, dont like to read? By about 2011-12, people figured out that banks of computer graphics cards (or GPUs) were more efficient at performing the math functions mining required, and rigged up whole rooms full of them. Bitcoins had a few advantages over the so-called real currency, and for those who deal with bitcoins, these advantages make it far superior to regular money. So thats Bitcoin mining in a nutshell. Bitcoin Questions Answers, q: How much are bitcoins worth?
Once you are signed up with a pool, youll get a username and password for that specific pool, which you will use later. How frequently does the pool find a block (i.e., how frequently do I get rewarded)? Cloud Mining or Buying Shares in a Mining Operation. Today, asic miners are the current mining standard. This is a risk for any mining operation. While in theory, this is possible, due to the low processing power phones have compared to asic miners, youll probably end up draining your phones battery much faster and make a very small fraction of bitcoin in return. Pros: You have your very own mining machine, and as such you know exactly how much hashing power you own, and how much it should be earning. In fact, Satoshi, the inventor of Bitcoin, and his friend Hal Finney were a couple of the only people mining Bitcoin back at the time with their own personal computers. In order to make it easier for miners to get bitcoins, some took advantage of the peer-to-peer algorithm that this currency was based upon, and created what are now known as mining pools. In a sense, this was done to keep inflation in check. New generations of asics hit the market regularly, which increase the network hashing power again.