See This Report about Bitcoin Mining Efficiency

If you're mining Bitcoin, you do not need to calculate the total value of the 64-digit number (the hash). I repeat: You do not need to calculate the total value of a hash.

Bear in Mind that ELI5 analogy, in which I wrote the number 19 on a piece of newspaper and put it in a sealed envelope

In Bitcoin mining terms, that metaphorical undisclosed number in the envelope is called the target hash.

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

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The primary miner whose nonce generates a hash that is less than or equivalent to the target hash is given credit for completing that block, and is awarded the spoils of 12.5 BTC. .

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

The screenshot below, taken from the site Blockchain.info, might enable you to put all of this information together in a glance. You are looking at a list of everything which 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 that they confirmed 1768 transactions for this cube. If you really want to see all 1768 of those transactions for this block, go to this webpage and scroll down to the heading"Transactions." .

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

Here are some examples of randomized hashes and the standards for whether they will lead to achievement for your miner:

You'd have to find a speedy mining rig or, more realistically, join a mining pool--a bunch of miners that combine their computing power and divide the mined bitcoin. Mining pools are similar to people Powerball clubs whose members buy lottery tickets en masse and consent to share any winnings. A disproportionately large number of cubes 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 previous goal hashes. The 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 goal is just 1 in 2,874,674,234,416--significantly less than 1 in two trillion. .

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The aforementioned website Cryptocompare delivers a very helpful calculator that permits you to plug in numbers such as your hash speed, electricity costs 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 find the solution is equivalent to the portion of the entire mining energy on the network.  Participants which have a article small percentage of their mining capability stand a very small chance of discovering the next block on their own.  For instance, a mining card that one could purchase for a few thousand bucks would represent less than 0.001% of their network's mining power.  With such a tiny chance at finding the next block, it might be a long time before that miner finds out a block, and the difficulty click now going up makes things even worse.  The miner may never recover their investment.  The answer to this problem is mining pools.  Mining pools are operated by third parties and coordinate groups of miners.  By working together in a swimming pool and sharing the payouts amongst participants, miners can get a steady flow of bitcoin starting the hop over to here afternoon that they activate their miner.  Statistics on some of the mining pools can be seen on Blockchain.info. .

Sure. As mentioned, the easiest way to get Bitcoin is to buy it on an exchange like Coinbase.com. Alternately, you can consistently leverage the"pickaxe plan". This is based on the old saw that during the 1848 California gold rush, the smart investment was not to pan for gold, but instead to make 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. .