More About Bitcoin Mining Power

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

Bear in Mind that ELI5 analogy, in which I composed 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 known as the target hash.

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

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

In theory you could achieve the same goal by rolling a 16-sided die 64 times to Reach random numbers, but why on earth would you want to do this

The screenshot below, taken from the website Blockchain.info, might help you put all of this information together at a glance. You are looking at a summary of everything that happened when block #490163 was mined. The nonce that generated the "winning" hash was 731511405. The target hash is shown on top.

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

There is no minimum goal, but there is a maximum goal set by the Bitcoin Protocol. No target can be greater than this number:

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

You would have to get a fast mining rig , more realistically, join a mining pool--a group of miners that combine their computing ability and split the mined bitcoin. Mining pools are somewhat comparable to people Powerball clubs whose members buy lottery tickets en masse and consent to discuss any winnings. A disproportionately high number of blocks are mined by pools rather than by individual miners. .

In other words, it is literally just a numbers game.  You cannot imagine the pattern or make a prediction based on over here preceding target hashes. The article 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 two trillion. .

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

Mining rewards are paid to the miner who finds a solution to the puzzle first, and also the probability that a participant will be the one to discover the solution is equal to the portion of the entire mining power on the network.  Participants which have a small percentage of the mining power stand a tiny chance of discovering the next block on their own.  For instance, a mining card that one could buy 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 out a block, and the problem 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 swimming pool and sharing the payouts amongst participants, miners can find a steady flow of bitcoin starting the day they trigger their miner.  Statistics on some of the mining pools can be seen on Blockchain.info. .

Sure. As discussed, the easiest way to acquire Bitcoin is to buy it on an exchange such as Coinbase.com. Alternately, you can consistently leverage the"pickaxe strategy". This relies on the old saw that during the 1848 California gold rush, the smart investment was not to pan for goldbut instead to create the pickaxes used for mining.

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