The Bitcoin is a virtual currency, created by a slow computer process called “mining”. The international currency is not regulated by banks and can be used to purchase goods from anywhere in the world. It also trades like a stock or material currency.
The Bitcoin’s creator, under the pseudonym Satoshi Nakamoto, is widely unknown to the public. Few in the world know the developer’s actual identity, and only the handful of users have talked with him. As of April 2011, Nakamoto said he has “moved on to other things” and has vanished from the Internet.
Understanding bitcoins is just one aspect of jumping into the market. How can you make the most of your mining software to earn more bitcoins?
What is Bitcoin Mining?
How did that fiver in your wallet get there? The U.S. government decide at same point to print and distribute it, and every business in the country (and others) agreed to accept it in exchange for goods and services. Bitcoin mining is intentionally resource intensive so that the number of blocks found each day by miner remains steady. This mimics the rate of availability of commodities like gold.
So you want to become a bitcoin miner?
Buy Hardware: To begin mining, you have to use either a GPU card FPGA or ASIC machine. If you’re just starting out, and ASIC miner will best for you.
Download Free Software: Your computer can become a bitcoin mining zombie, even when you are not at the computer. If your want to mine more bitcoins, you need to buy some hardware. Most popular software is: BFGminer, CGminer, EasyMiner.
Get a Wallet: You need a bitcoin wallet so you can keep track of and store the bitcoins you make more mining. Make sure you store your address in a safe and secure place and consider making a hard copy to be stored in a secret place. If your computer crashes and you lose access to your bitcoin wallet, you will lose your bitcoins. No one gets them; it is like burning money.
Join a Pool: As more and more miners began competing for the limited supply of blocks, people found that they were working for months without finding a block and receiving no reward for their mining efforts. This make mining something of a gamble. To even the odds, miners started organizing themselves into pools so that they could share rewards more evenly. Blocks are solved much faster by miners in pools, and bitcoins are distributed according to the amount of work each person put in.