What is Bitcoin?

Bitcoin is a decentralized digital coin that uses a peer-to-peerpayment system (P2P) or an internet protocol which usescryptography to control the creation and transfer of money.

It is not regulated by a central organization (like other coins).

They are managed by bitcoin miners that confirm Bitcointransactions and add them to a decentralized transaction logevery ten minutes.

Normaly, the capitalized word (Bitcoin) refers to thetechnology and network, whereas lowercase word (bitcoin)refers to the currency itself.

1. Bitcoins are created by a process called mining.

2. Mining itself is a process of adding transaction records to Bitcoin's public ledger

of past transactions. It is designed to be resource-intensive and difficult so that

the number of blocks found each day by miners remains steady.

3. a Computer network participants verify and record payments into a public

ledger in exchange for transaction fees and newly minted bitcoins.

4. Bitcoin mining is a process that helps manage bitcoin transactions.

5. You can exchange Bitcoins through a computer without an intermediate bank

or other financial institution.

6. One bitcoin is divided into 100 million smaller units (that is eight decimal

points) called satoshis, so you can make small payments.

•Bitcoin mining is a very competitive business and it only makes sense if you don't care if you make a loss or a profit, or if you plan to do it for fun.

•It is experiencing explosive growth in internet transactions.

─It is therefore important tounderstand Bitcoin, what mining is and the tips for Bitcoin mining.

• There are specific devices based on custom ASIC chips which that have dominated the industry.

• It is difficult and almost impossible to mine with anything less 100x the capability of older systems.

• It's therefore crucial to mine with purpose built bitcoin mining hardware.

• You must first of all aquire a bitcoin mining hardware.• In the olden days it was possible to mine using a high speed

video processor card. Nowadays it is impossible.• There are specialty hardware designed to do nothing but

mine for bitcoins.

1. Buy hardware

• Buy the three main hardware:GPUs, FPGAs, and ASICs

• GPUs (your computer’s CPU) are the least powerful mining hardware. But if you try, you can enhance your bitcoin hash rate by adding graphics hardware to your computer and equip yourself with a motherboard that can take multiple boards to safe on running separate PSUs for different boards.

• FPGAs is an intergratedcircuit designed to be configured after being built and enables a mining hardware manufacturer to buy the chips in volume.

• ASICs Bitcoin miners is where there is real action.

• You will mine bitcoins with ASICs at mind-crushing speeds, with relatively low power consumption.

• You can get the most powerful ASIC such as Gridseed Scrypt ASIC, with a dual mining option and a faster mining speed.

2. Bitcoin mining software

• You will need to install a software to instruct the hardware you

work with. The bitcoin client and mining software are two main

software you need to install.

▫ There are several mining software you can use depending on

your operating system such as windows, Mac OS X and others.

For instance, you will need a software for Gridseed Scrypt ASIC

miner although some newer models promise to ship with

everything pre-configured.

• Other smart developers even produce mining operating

systems for specific hardware used to power a USB-connected

ASIC miner.

3. Bitcoin wallet

• Bitcoin is an internet based currency and you need a place to keep your Bitcoins.

• You can either store it locally or store it online.

• You will as well download the Bitcoin client for your Operating System and install it.

• The Bitcoin client will download the blockchainwhich can take long time because it is over 6 gigabytes of data.

5. Join a Pool• A pool is a group that combines their computing power to make more

Bitcoins.

• You have to work with a group of other miners on available blocks,

because Bitcoins are always awarded in blocks

• Create workers to mine and enter your wallet address into your pool

information.

The pools are mainly characterized by the fees they charge per block

and the number of users.

Pools with many users usually result in smaller payments and pools with

fewer users could result in bigger payments and they could also have a

slower discovery time

• Make sure the pool owner doesn’t steal all your bitcoins, by gaining

more experience, use the Slush’s pool and have created three

workers as sub-accounts with their own passwords.

• One of other reasons you should not go alone is that you are awarded easier algorithms to solve and you will usually be awarded 50 at a time.

• All of your combined work will make you more likely to solve the bigger algorithm and earn Bitcoins that are spread out throughout the pool based on your contribution.

•You will make a more consistent amount of Bitcoins and will be more likely to receive a good return on your

It is important to calculate the

projected profitability of your

miner to see how long it will take

to pay back your investment.

•You can include the cost of

your hardware, hash rate,

power consumption, the

current bitcoin price and the

network difficulty.

How hard it is to solve transaction blocks is determined by the network

harsh rate and ASIC devices, it is likely to increase as ASIC devices come

into the market

Bitcoin is money and you can also be a huge step forward in making more money. You should never expect to get rich with it because it is like any other business opportunity that include risks. But you will stand little chance of success, mining bitcoins, unless you work with other people.

Bitcoin has developed at a very fast rate so far and investing time and resources on anything related to it, requires entrepreneurship. It is upon an individual to evaluate the costs and the risks involved in Bitcoin mining.

You can get high performance bitcoin mining hardware from Gridseed Scrypt ASIC designed with advanced technology and highly integrated design to provide multiple function and low cost solution.

There's an increasing amount of businesses and individuals accepting bitcoins the same way they do with dollars or eurosand if you are already set up you can start mining. You will make a more consistent amount of Bitcoins and will be more likely to receive a good return on your investment.