Bitcoin mining is so called because it is in many ways similar to gold mining except for one crucial detail: all of it exists in a virtual setting and not underground.
As per the Bitcoin protocol, there can never be more than 21 million Bitcoins available to trade. Until that limit is reached, Bitcoin miners will be at it unearthing new Bitcoins. Mining is, in fact, their primary incentive for continually adding blocks to the blockchain.
Nodes refer to immensely powerful computers that keep the Bitcoin software on wheels simply by getting involved in the distribution of information. Ironically, it is possible for these nodes to be run by just about anyone. A node will share the information of a Bitcoin transaction to other nodes familiar to it who will, in turn, share the information the same way. As you can imagine, the news of a single Bitcoin transaction gets disseminated quite swiftly.
There are also mining nodes which assemble any outstanding transactions into blocks and contribute them to the blockchain. They do this by solving a complex mathematical problem to which the answer is known as a “nonce”. This could be any integer between 0 and 4,294,967,296. Indeed, it is a hard puzzle to solve. But the reward for doing so will be a new Bitcoin.
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How to Mine Bitcoin in the UK
If you want to get started with bitcoin mining you have two options:
Before you commence mining for Bitcoin, you must first obtain the relevant hardware. Today, that consists of Custom Bitcoin ASIC chips which are 100 times more capable than older devices and will consume a lot less electricity.
2. Cloud mining
An alternative to mining Bitcoin yourself is to invest in Bitcoin cloud mining contracts. While this method is a lot simpler, it poses a significantly higher risk as it does not afford you any control over the hardware. Bitcoin cloud mining does have its own history of scams.
However, if you are still keen on trying it, here are some of the most prominent Bitcoin mining companies to consider.
At Hashflare, you can opt for SHA-256 mining contracts as well as SHA-256 coins (which are more profitable). The minimal amount you can buy is 10 GH/s.
Genesis is the biggest Bitcoin cloud mining company in the world. It offers users a choice of three Bitcoin cloud mining plans which are all well-priced. You can also go opt for a Zcash mining contract if you prefer.
Hashnest is a mining company run by Bitmain, which is also the producer of the Antminer Bitcoin miners. At present, Hashnest offers over 600 Antminer S7s for rent. You can check out the latest prices and vacancies offered on the official Hashnest website.
Minex is known to be an inventive assembler of blockchain schemes that are offered as an economic recreation game. Clients are able to buy Cloudpacks with which they can build a catalogue of pre-determined groups of cloud mining casinos, farms, and lotteries.
Regardless of whether you choose to generate Bitcoin using mining hardware or through a company, always stay updated on the latest price shifts and other news regarding Bitcoin. Also, never invest more than you are prepared to lose.