What is Bitcoin Mining and how is it done?

"What is bitcoin mining and how is it done? How to remove a Bitcoin? How to produce bitcoin? What is bitcoin mining? What is bitcoin mining? Can I do Bitcoin mining too? "These questions began to be asked more frequently with Bitcoin's big outing. Especially, I hear the Bitcoin rich in this issue and in the news, I often get interrogated by my friend 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 be rich by doing Bitcoin mining, but I do not know where to start ..."

But the point is, if you are not really exceptional, you are probably too late to make Bitcoin mining / digging (which I think mining is a more accurate concept).

Before we talk about why this is so, briefly Bitcoin mining is what it is worth considering.

Bitcoin Mining - Searching for digital needle in digital hay stack ...
In fact, Bitcoin is not much more about how mining is done; why he deserves a long essay on his own which is so important. One of the key points of what makes Bitcoin so important technology and a big breakthrough 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 too much about the technical part of this topic, at least for now.

Before entering the topic, there is one thing that I would like to draw attention to very briefly: removing bitcoin, that is, mining a bitcoin by mining is not the only goal of mining. The Bitcoin miners are also trying to keep a decentralized account book called Blockchain, one of the features that makes BTC BTC, why it is and why it is another matter. For now, let's just think of the mining concept as "finding / removing / printing bitcoin" ...

Luck is not the reason why it is difficult and difficult. That's why the Bitcoin protocol was designed by Satoshi Nakamoto as a security measure. This security measure (that is, it is difficult to find) is that everyone can do the "bitcoin push" operation (and / or manipulate the Blockchain ...) according to their heads.

Think of what is actually called mining as a chance game that you play with your computer, or a number of digits in a haystack of numbers, like I wrote above.

Suppose here that each search hammer you make is directly proportional to your processor power. In this case, the more processor power you put into this job, the more likely you will find a needle in the hay stack.

In the meantime, the concept will help you imagine that the digital stack of hay is huge and the needle is small. And it is not possible to "start looking at a corner of the haystack", and in similar ways, use optimization methods to shorten your process / increase your chances. This will be a bad example, but think that the needle is shifting constantly and randomly.

Another analogy used for mining is to draw lots of your computer. Though technically more correct, I did not opt for it because it brought a "lucky winner" system to mind. The reason why you are not based on too much luck is that the lot being pooled is so big that the so-called "withdrawal" will constantly win those who put labor (processor power) in the amount of money that is only for the lottery.

In the current situation (at the level of difficulty and award BTC protocol sets for today), the miner who finds this pin (that is, "winner of the draw") wins 25 BTC awards. This figure was 50 BTC in the early days of Bitcoin and will go down [the next award step is expected to start in 2017 and the prize will then drop to 12.5 BTC].
If you have come here till now, at least it means that you have some idea of bitcoin mining. But to summarize; mining is difficult and requires a lot of CPU power, the difficulty is getting bigger and the amount of reward is getting smaller.

Think of what is actually called mining as a chance game that you play with your computer, or a number of digits in a haystack of numbers, like I wrote above.

Brief History of Bitcoin Mining
We have mentioned that bitcoin mining has been constantly challenging since the first day. For this reason, the number of people all over the world who are going to go, is starting to put more and more processor power into this business. The system automatically adjusts the level of difficulty in order to slow down the expulsion of a large number of Bitcoins in a short time to the market and to maintain a speed of 1 block per 10 minutes.

What is CPU Mining? Processor (actually the central processing unit) about mining:
In the early days of Bitcoin, it is possible to mining with any computer (still possible, but not financially profitable because the cost is much higher than the revenue). Even Bitcoin-QT, which we can call the official Bitcoin client, was presented to the user clearly by the mininge.

What we mean by CPU mining is the CPU of the computer being used, that is, taking advantage of the power of the central processing unit of the computer to perform the above-mentioned mathematical operations on the computer and finally obtain Bitcoin.

But shortly afterwards, more and more people became acquainted with Bitcoin and became involved in the mining movement, which increased the level of difficulty by increasing the overall transaction speed of the network. But the end of the CPU mining cycle was not just about it. There is another factor that causes this ...

What is GPU Mining? About video card mining:
Graphics cards solve the mathematical problems that are required for the mining of bitcoins (and some other coins), and are more efficient than processors (CPUs). This is why graphics processing units (GPUs) must be more efficient in floating point calculations, and the processes required to extract bitcoins must use these calculations extensively.

To explain this, that is why the GPUs are more effective in the mining process than the CPUs; "If GPUs are strong and fast mine workers, CPUs are more qualified, white-collar workers. CPUs are perhaps more educated and knowledgeable, but GPUs for mining are much more effective. "

Anyway, in summary; After the widespread spread of the knowledge that GPUs, or graphics cards, work much faster and more efficiently in such processes, this is roughly equivalent to days when the efficiency of the CPU mining (due to the increased Bitcoin difficulty) has been diminishing. People have seen massive GPU mining rigs special computers for mining). GPU minerals have been experiencing golden days, with many of these graphics cards being connected to a computer and / or created with a pool of GPU power from many computers. We can say that this process lasted from late 2010 to early 2013 very profitably. At least for large quantities ...

Nowadays, Bitcoin mining is now the only level of difficulty that ASICs can achieve profitability ...

(I'm not talking about FPGA mining at this point, because we can say that it does not reach wide masses and that ASICs are putting checkers at checkers, but I can still add a short update to this part of the article in the coming days ...)

ASIC Mining - Application-specific integrated circuit mining:
If the ASIC miner nurse question is freaking out, we can get out of the mining worker example above and say something for an ASIC miner device; From the day of its birth, only the mining of mining, or even just the mining of a special material (coin) has been cultivated, consider a specialized worker in this direction.

Application-specific integrated circuits (ASICs) can be thought of as processors (and, in addition, minimal equipment consisting of power supplies, casings, etc.) specially manufactured only for tasks that are expected to be fulfilled, they are both faster and more efficient than all processor types (especially in terms of heat and energy consumption).

ASIC devices specially designed for bitcoin mining have begun to meet users from the beginning of 2013 (from April to May), and Bitcoin mining has changed irreversibly. If the GPU mining is faster and more advantageous than CPU mining, we can say the same thing for the difference between ASIC and GPU. As a result, the GPU and CPU minerals have become useless and the cycle of ASIC devices has become overcurrent. (You can still use CPUs and / or GPU mining devices to simulate altcoin, but some are more profitable, others are less profitable ...).

The disadvantage of ASIC devices is that specific COINs can not be used for a job other than mining. For this reason, if an ASIC miner loses the level of profitability for a coin, then operating that device is not profit but returns only as an electricity cost. But that's another story I'll discuss about profitability and bitcoin mining.

What will happen in the future?
For now it seems that ASIC manufacturers' speed battles will continue for a while. The producers announce their new products every 3-5 months and get the pre-orders and deliver the products to the customers after the month. An alternative is to rent mining shares of mining companies.

Apart from that, we will briefly mention that, personally, if you take any mining equipment and enter the BTC mining event, 99% will likely result in a financial damages infusion. But that does not mean that the same thing applies to all coins. You can choose other coins for mining.

Conclusion: It was a relatively long article, but we managed to dig up the surface of Bitcoin mining. I say the surface because, as you might guess, it's a very, very much deeper issue. Another factor that adds depth to this work is the 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 the issues.