Bitcoin is a cryptocurrency and worldwide payment system. It works based on a decentralized system without a central bank. Transactions between users takes place directly without an intermediary or authority.
Transactions are verified by network nodes and are recorded in a public distributed ledger known as a Blockchain.
With paper money, government decides when to print money and makes policies on the distribution but with Bitcoin, miners use specialized hardware and software to solve mathematical problems and gets a certain amount of bitcoins in exchange. Mining is an important and essential part of Bitcoin and Miners help to keep the Bitcoin network secure by approving transactions.
Bitcoin mining is the process of adding transaction records to Bitcoin’s public ledger of past transactions or blockchain. This ledger of past transactions is called the block chain as it is a chain of blocks. The block chain serves to confirm transactions to the rest of the network as having taken place.
Bitcoin nodes use the block chain to distinguish legitimate Bitcoin transactions from attempts to re-spend coins that have already been spent elsewhere.
How To Make Money Mining Bitcoin in Nigeria
How to Find the Best Bitcoin Miner
In the beginning, Central Processing Units (CPUs) were used to solve cryptographic hash functions until miners discovered that Graphic Processing Units (GPUs) were far better equipped for mining. As block difficulty increased, miners turned primarily to GPUs. Eventually, Application Specific Integrated Circuits (ASICs) were developed solely for mining. Their hashrates are significantly higher than GPUs.
ASIC developers, including Bitmain, granted early access to large mining companies rather than the average person. Nowadays, a large majority of Bitcoin mining takes place in China where electricity is cheap. Thousands of ASICs all mine simultaneously in a mining farm (large warehouse). Evidently, most people can’t afford just one or two of ASICs, not to mention thousands of them.
There are some important factors to look at when determining which Bitcoin mining ASIC to buy:
Hash rate – How many hashes per second can the Bitcoin miner make? More hashes cost more, which is why efficiency is crucial.
Efficiency – You’ll want to buy the most efficient bitcoin mining hardware possible.
Price – How much does the bitcoin miner cost? Cheap mining hardware will mine less bitcoins, which is why efficiency and electricity usage are important. The fastest and more efficient mining hardware is going to cost more.
Don’t try to buy a miner based on only price or only hash rate. The best ASIC miner is the most efficient bitcoin miner. Aim for value.
Top 5 Bitcoin ASIC Miners
Cost: $2,320 (£1,720) | Power usage: 1,375W | Hash power: 13.5 TH/s | Daily profit: 0.00179041 BTC
Cost: Varies | Power usage: 1,293W | Hash power: 4.73 TH/s | Daily profit: 0.00061590 BTC
Cost: $1,860 (£1,375) | Power usage: 1,320W | Hash power: 8.8 TH/s | Daily profit: 0.00114587 BTC
Cost: $1,899 (£1,400) | Power usage: 2,000W | Hash power: 12.5 TH/s | Daily profit: 0.00162765 BTC
Cost: $2,540 (£1,880) | Power usage: 1,200W | Hash power: 11 TH/s | Daily profit: 0.00143233 BTC