As we have seen earlier in this post that bitcoin is a encrypted money and all transaction are done in a encrypted way. As during transaction we need to decrypt bitcoin so for this complex mathematical problems are needed to be solved by computer to successfully transfer bitcoins. In a simple way if i want to send some bitcoin to you then our transaction will go trough any random third party which will complete our transaction anonymously & in return he will also get some very small amount of bitcoin in return as a reward.
So setting up a hardware that will help in the worldwide transaction of bitcoin & getting some amount of bitcoin in return is called bitcoin mining. Through mining you can generate your own bitcoins.
Many online sites provide cloud mining service. You will have to pay them on monthly or yearly basis & they will mine bitcoin for you on their specialized hardware.
Very specialized hardware are required to mine a bitcoin. High end computing system takes much smaller time to mine a bitcoin compared to a normal computer system. To mine a bitcoin a computer should have very heavy duty graphics card with excellent cooling system. Yes you heard that right ! Graphics card are not only meant for graphical calculations they use the concept of parallel computing so by the help of parallel computing too many calculation can be done at a time. A high end processor with high amount of RAM. You can go through larger the number better it will be while building a specialized hardware for mining. So while building a computer system for mining you should use durable parts as they have to work on their full capacity for a very long period of time.
You should also setup excellent cooling system for your hardware as all parts are used at their limits so lot of heat will be generated so remember to keep good ventilation. If you are making a high end computer system I personally suggest you to go through liquid cooling system they are really great it increases the durability & performance of the computer systems.
Mining bitcoins requires specialized hardware & those specialized hardware consumes lot of electricity. You also have to consider the maintenance cost of the hardware. So it costs a lot to mine a bitcoin. Frankly I am saying that nowadays mining bitcoin is the worst decision you will ever make because it consumes lot of time,energy & money.
Mining bitcoin was the best option before 2012 because at that time very few people were interested in mining & number of bitcoins available in the market were very less compared to now. So in those days you were able to mine good amount of bitcoins in very less time using your normal PC without consuming much electricity. But now the time has came when plenty of bitcoins that have been already mined so the the mining process had become quite slower & difficult. In short today it is inefficient to mine bitcoins.
The people who had already mined bitcoins before 5 years are today in great profit. They were the golden age of bitcoin mining. Today bitcoin cost a lot of real money in exchange. But now I strongly recommend not to start mining now. Now many countries had started to declare bitcoin as a illegal practice.
So day by day many countries are laying various type of strict rules on bitcoin & some countries have even banned it. So it had become very risky to mine bitcoin depending on the country you live in. So if you are thinking about bitcoin mining then you should have thought about it before 2012. There is almost no scope for newcomers in the field of bitcoins.
