The essence of Bitcoin mining lies in solving a certain complex crypto problem, for which there is no better approach than brute force. The professionals mine the Bitcoins not by one but by “packs”, or blocks. Initially, the block size was 50 BTC, but it downsizes after every 210 thousand units mined.
Now more than 250 thousand blocks have been extracted, which means that one block brings 25 BTC. The new block is mined approximately every 10 minutes. Due to the periodic reduction of the award for the block twice, the total amount of BTC will never exceed 21mln, ~ 55% of all BTCs already mined. According to forecasts, this figure will reach 99% by 2032.
- Related: Read about cloud mining here.
Most of the miners use Bitcoin mining calculator. Just enter the data of the bitcoin miner you are going to buy and see how soon you will repay the costs and go into the plus. Keep in mind that the initial investment is likely to be at least $2,000.
However, the meaning of mining is not only in filling the pockets of the miners: this is the only way to issue new lots of cryptocurrency.
When you deal with mining Bitcoin, you will meet the terms “software” and “hardware”. Bitcoin mining hardware ensures the mining but the Bitcoin mining software is important as well. Firstly, it connects solo miners to the Blockchain. Secondly, it connects mines with a pool to the mining pools. Still, if you a cloud mining member, you don’t need software.