Things about Bitcoin Mining Power

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

What miners are doing with these huge computers and dozens of cooling fans is guessing in the target hash. Miners make these guesses by randomly generating as many"nonces" as possible, 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 primary miner whose nonce generates a hash which is less than or equivalent to the target hash is given credit for completing that block, and is given the spoils of 12.5 BTC. .

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

The screenshot below, taken by the website Blockchain.info, might enable you to put all of this information together at a glance. You're looking at a list of everything that happened when block 490163 was mined. The nonce that generated the "winning" hash was 731511405. The goal hash is shown on the top.

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

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

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

You'd have to get a speedy mining rig or, more realistically, join a mining pool--a bunch of miners who combine their computing ability and split the mined bitcoin. Mining pools are similar to those Powerball clubs whose members purchase lottery tickets en masse and agree to discuss any winnings. A disproportionately high number of cubes are mined by pools rather than by individual miners. .

In other words, it's literally only a numbers game.  You cannot guess the pattern or make a prediction based on preceding target 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 below the goal is 1 in 2,874,674,234,416--significantly less than 1 in 2 trillion. .

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The aforementioned website Cryptocompare delivers a very helpful calculator that allows you to plug in numbers such as your hash speed, electricity prices etc. to estimate the costs and benefits.

Mining rewards are paid to the miner who discovers a solution to the puzzle , and also the likelihood that a participant is going to be the one to find the solution is equivalent to the portion of the total mining power on the network.  Participants which have a small percentage of their mining power stand a very small chance of discovering the next block on their own.  For instance, a mining card that one could buy for a few thousand dollars would represent less than 0.001% of their network's mining energy.  With such a tiny chance at finding the next block, it might be a long time before that miner finds a block, and also the problem going up makes things even worse.  The miner may never hop over to these guys recoup 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 pool and sharing the their website payouts amongst participants, miners can get a steady flow of bitcoin starting the day that they trigger their miner.  Statistics on some of the mining pools can be seen on Blockchain.info. .

Sure. As mentioned, the simplest way to acquire Bitcoin is to purchase it on an exchange like Coinbase.com. Alternately, you can consistently leverage the"pickaxe strategy". This relies on the old saw that during the 1848 California gold rush, the wise 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 are a company that manufactures equpiment used for Bitcoin mining. You can look into companies which make ASICs miners or GPU miners. .