Bitcoin mining is done through a hardware called bitcoin miner. The hardware can be divided into three main categories, each more expensive and powerful than other.
Here, we have explained each category and described how to set up a Bitcoin miner.
While setting up a bitcoin miner, the first thing you will need to do is to choose the hardware, and there are two main things to particularly think about: hash rate and energy consumption.
Hash rate is the number of calculations per second performed by the miner to crack the mathematical problems in Bitcoin mining.
They are measured in Megahashes (MH/sec), Gigahashes(GH/sec), and Terahashes (TH/sec) per second.
The higher your hash rate, the easier it is to solve a transaction block.
Mining equipment is unfathomably powerful and chews up a gigantic amount of electricity, which, ultimately results in higher costs.
While searching for the equipment, make sure its energy consumption is in watts. You need to ensure that you don’t wind up spending the majority of your cash on electricity bills to mine coins that won’t be worth what you paid.
In case you need to work out how many hashes you are getting for each watt of electricity, divide the hash tally by the number of watts consumed.
For instance, a device with 500 GH/sec that takes 400 watts of electricity, then you’re getting 1.25 GH/sec per watt.
You can also use several online electricity price calculators to figure out the value in traditional currency.
Types of Mining Hardware:
Bitcoin Mining hardware comes in three major categories, GPU/CPU, FPGA, and ASIC.
The least powerful consuming machine to mine Bitcoin is your very own regular PC. Theoretically, you can use a regular PC for mining purpose, but its processing is so slow, there is no point in using it.
To enhance the processing power i.e. hash rate, add a graphics hardware to your PC. The hardware features graphical processing units (GPUs).
GPUs are intended for overwhelming mathematical lifting which is utilized as a part of computing all the complex polygons required in the top of the line computer games.
This ability makes them great at the SHA hashing mathematics which is essential for solving transaction blocks.
FPGA (Field Programmable Gate Array) empowers a mining equipment producer to purchase the chips in volume, and afterward customize them for Bitcoin mining before placing them into their own particular gear.
Due to the fact that they are customized for mining, they offer enhanced performance as compared to CPUs and GPUs.
ASIC Bitcoin Miners:
Application Specific Integrated Circuit (ASIC) is where all the action takes place. ASICs are particularly manufactured perform only one task: mine bitcoins at mind-squashing speeds, with lower power consumption.
Because ASICs are designed specifically for high-speed mining, they are expensive and time-consuming to produce. However, the speeds are unbelievably fast.
The current units can reach the hash rates between 5-500 Gigahashes/sec, and the future units are promised to go even higher.
All Set? Join a Pool:
When you have Bitcoin mining set up, your next stride is to join a mining pool. Bitcoin miners put their assets and share their hashing power in these pools. Once the mining completes, the individuals from a pool get a reward which is then split among all the members, based on the number of hashes shared by an individual.