Understanding how bitcoin mining works

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Understanding how bitcoin mining works

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Content:

• This 19-year-old earns $54,000 a year mining bitcoin as a full-time job — here's what it's like
• What is Bitcoin mining?
• Why China Is Cracking Down on Bitcoin Mining and What It Could Mean for Other Countries
• How Does Bitcoin Mining Work?
• How To Mine Bitcoins
• A beginner's guide to bitcoin and cryptocurrency
• What is Bitcoin? how does it make money and how is it produced or 'mined'?
• How does a transaction get into the blockchain?
• A ‘false solution’? How crypto mining became the oil industry’s new hope
• How Long Does It Take to Mine One Bitcoin

WATCH RELATED VIDEO: What is Bitcoin Mining?

This 19-year-old earns $54,000 a year mining bitcoin as a full-time job — here's what it's like

Adrian Kingsley-Hughes is an internationally published technology author who has devoted over two decades to helping users get the most from technology -- whether that be by learning to program, building a PC from a pile of parts, or helping them get the most from their new MP3 player or digital camera.

I'm old enough to remember being given a couple of bitcoins when they were worth next to nothing. Needless to say, I don't have them anymore. Now, with bitcoin and other cryptocurrency prices skyrocketing again, there's renewed interest in cryptomining, which is a way to accumulate cryptocurrency without having to pay for it. The best crypto credit cards. Read More. Let's take a look at what makes a good cryptomining rig, and what hardware it takes if you want to be serious about mining.

In the most basic terms, you are using a computer or computers to solve cryptographic equations and record that data to a blockchain. Taking this a bit deeper, miners verify the hashes of unconfirmed blocks and receive a reward for every hash that is verified.

The process is computationally intensive, requiring state-of-the-art hardware if you are planning on making much headway with mining.

Mining, as it was back in the days of the gold rush, is not for the faint of heart. And as with all high-end systems, it's less a case of how much do you want to spend, and more a case of how fast do you want to spend. So, what hardware do you need to mine cryptocurrency?

OK, the "rig" is essentially a customized PC. Where things deviate from the norm is when it comes to the graphics cards.

You're going to need quite a powerful GPU for mining, and likely you are going to be buying more than one. A lot more. In fact, you can think of a mining rig as a relatively cheap PC with one or more high-performance GPUs attached.

You need to connect multiple graphics cards to a single system, which means you also need a motherboard to handle that. You'll also be looking at more than one power supply unit PSU if you're planning to push things to the extremes. There are also some other mining-specific items you'll need to make the mining rig ready for mining. OK, let's start with the motherboard.

The Asus B Mining Expert is a beast of a motherboard, capable of having 19 graphics cards connected to it. That's a lot. The board isn't new -- it was released in -- and it is finicky when it comes to setting up it needs a specific layout of AMD and Nvidia graphics cards ,.

Asus has published recommend GPU layouts for , , and card for this board, and while other layouts might work, I recommend staying with what the manufacturer suggests, as veering away from this is a recipe for a serious -- not to mention expensive -- headaches.

Yes, prices are soaring for this motherboard, but that's part and parcel of bitcoin mining. A lot less powerful, but a fraction of the price. This quad-core Core i5 is perfect for this setup and works great with the motherboard chosen above. You're not going to overspend on RAM either. SKILL fits the bill. Also: Best external hard drives. Depending on how many graphics cards you have installed, you may need multiple PSUs. It's tempting to find the cheapest possible, but since they are going to be pushed hard, I recommend paying a little more.

These Segotep PSUs are middle-of-the-road good value, yet they offer reliable performance. The modular nature also means that you're not turning the mining rig into a spaghetti of wires.

This is where a bitcoin mining rig differs from a regular PC in that you can't have all the graphics cards directly attached to the motherboard, so these risers allow you to connect them indirectly. You're going to need one of these for every card you connect other than the card that goes into the x16 PCI-e slot.

This six-pack of powered risers are great and provide stable power to your graphics cards. I do not recommend using non-powered risers. I've had nothing but problems with stability using them in the past in cryptomining rigs, so don't make the same mistake I made!

This is a great card and everything you're looking for in a mining rig. Loads of potential for overclocking, stable, and great cooling. Another nice side benefit is that it's quite an efficient card, which means lower power consumption and reduced mining costs. Best cheap gaming laptop Level up for less. Covid testing: How to get free at-home rapid test kits. Phone interview tips: How to land a second interview.

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What are you looking for? Preferences Community Newsletters Log Out. Written by Adrian Kingsley-Hughes , Contributor. Adrian Kingsley-Hughes Contributor Adrian Kingsley-Hughes is an internationally published technology author who has devoted over two decades to helping users get the most from technology -- whether that be by learning to program, building a PC from a pile of parts, or helping them get the most from their new MP3 player or digital camera.

Full Bio. Posted in Hardware 2. Cryptocurrency has been -- and continues to be -- a wild ride. ZDNet Recommends. What is cryptomining? What is a cryptomining rig? The board isn't new -- it was released in -- and it is finicky when it comes to setting up it needs a specific layout of AMD and Nvidia graphics cards , Asus has published recommend GPU layouts for , , and card for this board, and while other layouts might work, I recommend staying with what the manufacturer suggests, as veering away from this is a recipe for a serious -- not to mention expensive -- headaches.

Note: Asus recommends running Windows 10 with this motherboard. View now at Newegg. View now at Walmart. RAM G. View now at Amazon View now at Newegg. How to build a cryptomining rig: Our favorite components. Watch Now. My Profile Log Out. Join Discussion for: How to build a cryptomining rig: Bitcoin Add Your Comment.

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What is Bitcoin mining?

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Why China Is Cracking Down on Bitcoin Mining and What It Could Mean for Other Countries

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How Does Bitcoin Mining Work?

Cryptocurrency reached a peak in And this year bitcoin -- and cryptocurrency in general -- penetrated deeply into financial services as well as the culture, gaining an expanding foothold in popular art, commerce and other corners of the mainstream. If you're looking for a primer on bitcoin and cryptocurrencies, you're in the right place. We'll take a look at the basics -- what bitcoin is, where it comes from and how to buy it -- as well as a range of other topics including valuation, legality and its practical applications.

How To Mine Bitcoins

To really understand what is special about Bitcoin, we need to understand how it works at a technical level. How does Bitcoin work? What makes Bitcoin different? How secure are your Bitcoins? How anonymous are Bitcoin users? What determines the price of Bitcoins?

A beginner's guide to bitcoin and cryptocurrency

Luckily for us, however, bitcoins seem to be going up in value and should maintain their value over time, unlike your mint condition Tiny the stuffed Chihuahua. But how do you get bitcoins? You can begin by buying them outright, but the market is currently wild. In short, you should probably mine. But what is bitcoin mining? Think of it as work done by groups of people to find large prime numbers or trying keys to decrypt a file. In fact, many wager that the DDOS attacks on many bitcoin-related services are direct action by hackers to inject instability in order to reduce the price.

What is Bitcoin? how does it make money and how is it produced or 'mined'?

Bitcoin mining, in and of itself, is not harmful and involves using a computer to solve difficult mathematical equations for the user to earn bitcoin. The user earns bitcoin by verifying transactions on the blockchain, which is a digital ledger—similar to a bankbook—that keeps track of all the transactions of a given cryptocurrency. Each time a hash is solved, the user who solves it earns bitcoin.

How does a transaction get into the blockchain?

RELATED VIDEO: Cryptocurrency Mining For Dummies - FULL Explanation

We use cookies and other tracking technologies to improve your browsing experience on our site, show personalized content and targeted ads, analyze site traffic, and understand where our audiences come from. To learn more or opt-out, read our Cookie Policy. Congress members sent a letter to companies mining Bitcoin in the US. Democratic lawmakers are pushing Bitcoin mining companies in the US to divulge how much electricity they use in an effort to assess how that will impact nearby residents and the environment.

A ‘false solution’? How crypto mining became the oil industry’s new hope

Author and self-styled investment diva Kiana Danial was recently asked by a television interviewer about her expectations for bitcoin over the next 12 months. Never let logical or linguistic consistency get in the way of a good story. The price of bitcoin, the most well-known of cryptocurrencies, has almost doubled this year, attracting attention from both serious investors and Uber-driving bartenders. No matter how painful or boring it might be, it is important to read the following paragraph. Anyone can create cryptocurrency via a process called mining.

How Long Does It Take to Mine One Bitcoin

Cryptojacking is a type of cybercrime that involves the unauthorized use of people's devices computers, smartphones, tablets, or even servers by cybercriminals to mine for cryptocurrency. Like many forms of cybercrime, the motive is profit, but unlike other threats, it is designed to stay completely hidden from the victim. Cryptojacking is a threat that embeds itself within a computer or mobile device and then uses its resources to mine cryptocurrency.