Bitcoin Mining: Useful or a Waste of Time?

Bitcoin Mining

By now you may have heard the word bitcoin hundreds of times. Again many of you know very well what Bitcoin is and what it is used for. Again, many may have been mining bitcoin for a long time. Again, there are many people who have never heard of what Bitcoin is and how it works and how all sorts of things related to Bitcoin are done and what the benefits are.

If you already have a good idea about Bitcoin and Bitcoin Mining or if you are an expert in this field, then this article is probably not for you. If you want, you can read the article and see if I have said anything wrong. If there is any mistake in my writing, please let me know in the comments section. And if you already do bitcoin mining, you can share your opinion and your experience in the comments section. And, if you have absolutely no idea about bitcoin and bitcoin mining or if you don’t know it well, you can read this article from beginning to end. Hopefully, after reading this article you will have at least some idea about this.

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So, without further ado, let’s get started. I assume you only heard the name Bitcoin. You know nothing more than that. If you know more about this, you can scroll down as you wish. And if you don’t really know, then-

What is Bitcoin?

Simply put, Bitcoin is a type of currency. Just as the US dollar is a currency, so is Bitcoin. It is commonly called cryptocurrency and is often called crypto coin. So what is the difference between our US dollar Bitcoin or cryptocurrency? The difference is that Bitcoin has no physical existence. That means you can’t see or touch it. It is a completely digital currency. That is, it is a currency dependent only on the Internet and computers. Bitcoin was first introduced in 2008 and the person or group that introduced the currency was Satoshi Nakamoto. Bitcoin is now created as a reward for mining. I will discuss this in more detail below.

No separate organization is required to transact Bitcoin. If you trade Bitcoin with someone, no one will ever be able to track your transaction. This is called a peer-to-peer transaction. This is why Bitcoin has become so popular in modern times. As a bitcoin transaction is fully processed and approved, new bitcoin is created. The new bitcoins that are created are halved every 4 years. And, the work of making new bitcoin will continue till 2140. No new bitcoins will be created after that. If you want to know more details about this you can see here.

And yes, the market price of Bitcoin goes up and down almost every day, much like the stock market. At the moment I am writing this article, the value of 1 bitcoin is equal to 18,390 US dollars. You can visit this link at any time to see how much USD Bitcoin is worth at that time.

Now you may ask, what will happen with Bitcoin? Yes. There will be a lot more with Bitcoin. If you have some bitcoins, but if the price of bitcoin goes up after a while, you can sell those bitcoins at a higher price, from which you can get a good amount. In addition, various large e-commerce sites or online shops now accept payments on Bitcoin. So with Bitcoin you can do online shopping if you want.

What is a Bitcoin Wallet?

Where do we usually store all our money? Definitely deposit it in the bank and initially deposit it in our money bag or wallet for use from time to time. The Bitcoin wallet is used for the same purpose, but in the case of Bitcoin. But if you want to deposit some bitcoin with yourself, you will definitely need a wallet or virtual bank where you can deposit all your bitcoins.

Coinbase and BlockChain are very popular for bitcoin wallets. If you have an account in either of these two, you will get a virtual account or wallet where you can safely deposit all your bitcoins. You can also send and receive bitcoin from one account to another. Much like e-wallet and online banking. In either case, you will find an unlimited bitcoin address. A bitcoin address is a personal address where you can receive all your bitcoins and send bitcoin from your wallet to someone else’s bitcoin address if you wish.

What is Bitcoin Mining?

Bitcoin Mining is simply about processing and approving bitcoin transactions. This means that when Bitcoin is traded between two people or two computers on both sides, the task of processing the transaction is Bitcoin mining. This mining is done by another machine or another computer. The question that may arise here is that when only the transaction is being processed, why is this process called Bitcoin “mining”? Because, as I said before, a new bitcoin is created as soon as an amount of bitcoin transaction is completed. This means that if you work to create a record of this bitcoin transaction and process this bitcoin transaction, it means that you are basically helping to create a new bitcoin and as a result you are getting some amount of reward from the newly created bitcoin. This is exactly why it is called mining.

But if you think that processing or approving bitcoin transactions is very easy, then you are wrong. Since this whole task is done by the computer, it may seem easy to you. But not really. Processing and approving a bitcoin transaction requires the computer or the hardware or machine on which the work is to be done to have sufficient processing power and a lot of time. This is because the process of processing this transaction is not as simple as simply marking the transaction as complete and creating a transaction report. To do this, your computer has to work through many complex algorithms and solve many complex math problems. Also, getting a new bitcoin reward by completing this transaction depends on the mining difficulty. The more complex the problem, the greater the reward for solving a transaction.

To do bitcoin mining you need a computer with strong enough hardware. Those who used to work in bitcoin mining used to solve these math problems through the processing power of their computer processors. But gradually they realized that high-end GPUs are much more useful for bitcoin mining and to solve these math problems than processors. So now GPU is mainly used in bitcoin mining. But in that case, you will need a GPU powerful enough. In addition, various companies now make special hardware for bitcoin mining. For example, ASIC (Application-Specific Integrated Circuit Chip) is specially designed for bitcoin mining. Using these high-end hardware, you can easily do bitcoin mining without doing any work yourself.

bitcoin mining

But here comes another issue, that is electricity and your precious time. Using these high-end hardware, you can mine bitcoin, but don’t forget that you will need a lot of electricity or energy to do this. You may be wondering how much more electricity will be needed to run a computer? But no, your PC will need a lot more processing power when you do bitcoin mining. Your CPU, GPU and processor will then be working at almost 100% efficiency. As a result, your hardware will be much more power-hungry than usual. Then your electricity bill is becoming another big deal.

I have given only one example above. However, in all cases, you will not lose money by mining bitcoin. You might gain. But what you earn or how little you earn after paying the electricity bill may not seem enough to you. So bitcoin mining should be done in a place or in a country where the price of electricity is low. However, if you want to do bitcoin mining, you must calculate in advance how much you will spend per month on the hardware you are using and how much bitcoin you will earn per month is enough for you compared to your expenses. If you think that’s enough, then do bitcoin mining.

And, bitcoin mining is not a very difficult task. You only need to install a trusted mining program on the computer on which you will be mining. E.g., NiceHash. Then you just need to install the program on the PC and run the software and give your bitcoin address. Then just keep running the PC and your program, as long as you want to do mining. As much Bitcoin profit as you get, it will be sent to your Bitcoin address from time to time.

Bitcoin Cloud Mining

The origin of cloud mining is to solve the problem mentioned above. Basically you don’t mine in your own setup, you invest in bitcoin in any third party organization or company and website and they will mine bitcoin for you using their hardware and mining setup and give you a certain amount of profit. For example, if you invest $100 worth of Bitcoin in 1 year of contact with them, they will give you a profit of $10 per month for the next one year. Which will be a pretty good profit at the end of your year. It sounds good to hear, but it has a bigger problem. That is, scams.

Because, it is very difficult to find such a legit cloud minor site. 90% of such cloud mining websites are scams. They will take investment from you in Bitcoin and send you some light profit for a few days and then they will take more investment from you in the name of giving more profit and finally they will embezzle all your investment and scam you or leave the site down. As a result, if you invest, you will lose a lot of money. But this does not mean that all cloud mining sites in the world are scams. There are also a few legit cloud mining websites that you can trust. As such, HashFlare is quite popular as a cloud mining site. But that doesn’t mean you can blindly believe them. Because, maybe they haven’t scammed so far, but they may scam in the future. There is no guarantee that any cloud mining site will never scam.

If you want to do cloud mining, know in advance about the website you are going to use and get feedback from other users. If in doubt, never invest. And if you are not 100% sure about any site, do not step towards cloud mining. Personally, I would not encourage anyone to do cloud mining.

Some suggestion

Now you must have got some idea that you should or should not do bitcoin mining and in some cases it is a waste of time and in some cases useful. If the matter is not clear to you yet, then again,

If you want to mine using your own setup, be sure to calculate in advance how much you will spend per month on the hardware you are using and whether the amount of bitcoin you will earn per month is enough for you compared to your expenses. If you think that’s enough, then do bitcoin mining.

If you want to do cloud mining, know in advance about the website you are going to use and get feedback from other users. If in doubt, never invest. And if you are not 100% sure about any site, do not step towards cloud mining. Personally, I would not encourage anyone to do cloud mining.

I am ending here like today. I hope you like the article. If you have any questions or comments, please let us know in the comments section. Stay well.

Sabik Al Mahmud

There was a fascination with technology from a very young age, and perhaps that fascination is a little more than other ordinary people. From Nokia's button phones to infinity display bezel-less smartphones, everything is my favorite. Technology has never been more impressive in my life. And writing started with an interest in this technology .....

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