What is Bitcoin?
Bitcoin is a decentralized digital coin that uses a peer-to-peer
payment system (P2P) or an internet protocol which uses
cryptography to control the creation and transfer of money.
It is not regulated by a central organization (like other coins).
They are managed by bitcoin miners that confirm Bitcoin
transactions and add them to a decentralized transaction log
every ten minutes.
Normaly, the capitalized word (Bitcoin) refers to the
technology and network, whereas lowercase word (bitcoin)
refers to the currency itself.
1. Bitcoins are created by a process called mining.
2. Mining itself is a process of adding transaction records to Bitcoin's public ledger
of past transactions. It is designed to be resource-intensive and difficult so that
the number of blocks found each day by miners remains steady.
3. a Computer network participants verify and record payments into a public
ledger in exchange for transaction fees and newly minted bitcoins.
4. Bitcoin mining is a process that helps manage bitcoin transactions.
5. You can exchange Bitcoins through a computer without an intermediate bank
or other financial institution.
6. One bitcoin is divided into 100 million smaller units (that is eight decimal
points) called satoshis, so you can make small payments.
•Bitcoin mining is a very
competitive business and it
only makes sense if you don't
care if you make a loss or a
profit, or if you plan to do it
•It is experiencing explosive
growth in internet
─It is therefore important to
understand Bitcoin, what
mining is and the tips for
• There are specific devices
based on custom ASIC
chips which that have
dominated the industry.
• It is difficult and almost
impossible to mine with
anything less 100x the
capability of older systems.
• It's therefore crucial to
mine with purpose built
bitcoin mining hardware.
• You must first of all aquire a bitcoin mining hardware.
• In the olden days it was possible to mine using a high speed
video processor card. Nowadays it is impossible.
• There are specialty hardware designed to do nothing but
mine for bitcoins.
1. Buy hardware
• Buy the three main hardware:
GPUs, FPGAs, and ASICs
• GPUs (your computer’s CPU)
are the least powerful mining
hardware. But if you try, you
can enhance your bitcoin hash
rate by adding graphics
hardware to your computer
and equip yourself with a
motherboard that can take
multiple boards to safe on
running separate PSUs for
• FPGAs is an intergrated
circuit designed to be
configured after being built
and enables a mining
hardware manufacturer to buy
the chips in volume.
• ASICs Bitcoin miners is where there is real action.
• You will mine bitcoins with ASICs at mind-crushing speeds,
with relatively low power consumption.
• You can get the most powerful ASIC such as Gridseed Scrypt
ASIC, with a dual mining option and a faster mining speed.
2. Bitcoin mining software
• You will need to install a software to instruct the hardware you
work with. The bitcoin client and mining software are two main
software you need to install.
▫ There are several mining software you can use depending on
your operating system such as windows, Mac OS X and others.
For instance, you will need a software for Gridseed Scrypt ASIC
miner although some newer models promise to ship with
• Other smart developers even produce mining operating
systems for specific hardware used to power a USB-connected
3. Bitcoin wallet
• Bitcoin is an internet based currency and you need
a place to keep your Bitcoins.
• You can either store it locally or store it online.
• You will as well download the Bitcoin client for
your Operating System and install it.
• The Bitcoin client will download the blockchain
which can take long time because it is over 6
gigabytes of data.
5. Join a Pool
• A pool is a group that combines their computing power to make more
• You have to work with a group of other miners on available blocks,
because Bitcoins are always awarded in blocks
• Create workers to mine and enter your wallet address into your pool
The pools are mainly characterized by the fees they charge per block
and the number of users.
Pools with many users usually result in smaller payments and pools with
fewer users could result in bigger payments and they could also have a
slower discovery time
• Make sure the pool owner doesn’t steal all your bitcoins, by gaining
more experience, use the Slush’s pool and have created three
workers as sub-accounts with their own passwords.
• One of other reasons you should not go alone is
that you are awarded easier algorithms to solve
and you will usually be awarded 50 at a time.
• All of your combined work will make you more
likely to solve the bigger algorithm and earn
Bitcoins that are spread out throughout the pool
based on your contribution.
•You will make
will be more
likely to receive
a good return
It is important to calculate the
projected profitability of your
miner to see how long it will take
to pay back your investment.
•You can include the cost of
your hardware, hash rate,
power consumption, the
current bitcoin price and the
How hard it is to solve transaction blocks is determined by the network
harsh rate and ASIC devices, it is likely to increase as ASIC devices come
into the market
Bitcoin is money and you can also be a huge step forward in
making more money. You should never expect to get rich with it
because it is like any other business opportunity that include
risks. But you will stand little chance of success, mining
bitcoins, unless you work with other people.
Bitcoin has developed at a very fast rate so far and investing
time and resources on anything related to it, requires
entrepreneurship. It is upon an individual to evaluate the costs
and the risks involved in Bitcoin mining.
You can get high performance bitcoin mining hardware from
Gridseed Scrypt ASIC designed with advanced technology and
highly integrated design to provide multiple function and low
There's an increasing amount of businesses and individuals
accepting bitcoins the same way they do with dollars or euros
and if you are already set up you can start mining. You will
make a more consistent amount of Bitcoins and will be more
likely to receive a good return on your investment.