About Bitcoin Mining Efficiency

If you're mining Bitcoin, you do not need to figure the entire value of the 64-digit number (the hash). I repeat: You do not need to figure the total value of a hash.

Bear in Mind that ELI5 analogy, where I wrote the number 19 on a piece of paper and put it in a sealed envelope

In Bitcoin mining terms, that metaphorical undisclosed number in the envelope is called the target hash.

What miners are doing with these huge computers and dozens of cooling fans is guessing at the hash. Miners create these guesses by randomly generating as many"nonces" as possible, as fast as possible. A nonce is short for"number only used once," and the nonce is the key to generating these 64-bit hexadecimal numbers I keep talking about.

The Bitcoin Mining Power Diaries

The first miner whose nonce generates a hash which is less than or equivalent to the target hash is awarded credit for completing that block, and is awarded the spoils of 12.5 BTC. .

In theory you could Attain the same goal by rolling a 16-sided expire 64 days to arrive at random numbers, but why on earth do you want to do that

The screenshot below, taken by the site Blockchain.info, might help you put all of this information together at a glance. You're looking at a summary of everything which happened when obstruct 490163 was mined. The nonce that generated the "winning" hash was 731511405. The goal hash is shown on top.

As you see here, their contribution into the Bitcoin community is they confirmed 1768 transactions for this block. If you truly want to find all 1768 of those transactions for this block, then go to this page and scroll down to the heading"Transactions." .

There's no minimum goal, but there's a maximum target determined by the Bitcoin Protocol. No target can be higher than this number:

Here are some examples of randomized hashes and the criteria for if they will lead to success for the miner:

You would have to find a fast mining rig , more realistically, join a mining pool--a bunch of miners that combine their computing power and divide the mined bitcoin. Mining pools are similar to people Powerball clubs whose members buy lottery tickets en masse and consent to share any winnings. A disproportionately high number of blocks are mined by link pools rather than by individual miners. .

In other words, it is literally only a numbers game.  You cannot guess the pattern or make a prediction based on previous target hashes. The difficulty level of the most recent block at the time of writing is 2,874,674,234,416, i.e. the chance of any given nonce producing a hash beneath the target is just 1 in 2,874,674,234,416--significantly less than 1 in 2 trillion. .

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The aforementioned website Cryptocompare offers a very helpful calculator that allows you to plug in numbers like your hash rate, power prices etc. to estimate the costs and benefits.

Mining benefits are paid to the miner who discovers a solution to the puzzle first, and also the likelihood that a participant will be the one to find the solution is equivalent check to the portion of the total mining power on the network.  Participants with a small percentage of their mining power stand a tiny chance of discovering the next block on their own.  For instance, a mining card that one could purchase to get a few thousand bucks would represent less than 0.001percent of their network's mining power.  With such a small chance at finding the next block, it could be a long time before that miner finds a block, and the difficulty going up makes things even worse.  The miner may never recover their investment.  The answer to this problem is mining pools.  Mining pools are run by third parties and coordinate groups of miners.  By working together in a pool and sharing the payouts amongst participants, miners can find a steady stream of bitcoin starting the afternoon that internet they trigger their miner.  Statistics on some of the mining pools can be seen on Blockchain.info. .

Sure. As mentioned, the simplest way to get Bitcoin is to buy it on an exchange such as Coinbase.com. Alternately, you can consistently leverage the"pickaxe plan". This relies on the old saw that during the 1848 California gold rush, the smart investment was not to pan for goldbut instead to make the pickaxes taken for mining.

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In a crypto context, the pickaxe equivalent are a company that manufactures equpiment utilized for Bitcoin mining. You can start looking into companies which make ASICs miners or GPU miners. .