Cryptocurrency Mining | How to Mine Bitcoins | Is Bitcoin Mining Profitable in India?
Cryptocurrency Mining | How to Mine Bitcoins | Is Bitcoin Mining Profitable in India? | TechKnow World
|Cryptocurrency Mining | How to Mine Bitcoins | Is Bitcoin Mining Profitable in India? | TechKnow World|
If you are associated with bitcoin, then you should know that bitcoin is a kind of virtual and cryptocurrency. A cryptocurrency is a decentralized currency that is formed by some algorithms and encryption and is transformed again by these processes.
What is Cryptocurrency Mining?
Where do gold and silver come from? It is trapped with other chemicals in the earth, in the mountains, and sometimes in various chemical compositions, and the process of its removal is called mining. In the same way, when bitcoin is created, we call it mining or minting, but the term minting is not used much, this process is called cryptocurrency mining.
Because bitcoin is made from a complex computer algorithm, it is not so simple that we put some paper and make money. When mining is happening, there are 3 things together. That 3 things have been shown below.
1. Suppose I am a minor, and I am running mining software on my computer hardware that is trying to do mining, which is a lottery system. There are many people from all over the world who are mining and one of them is able to mine so this is 1st thing.
2. The second thing is how bitcoin is made? Every time a block mine occurs (block mine means, every 10 minutes a miner succeeds in mining), and whenever bitcoin is mined, some new bitcoins are created. Just like if I am a central banker, I print new notes, then I create new rupees, in the same way when we mine new blocks, new bitcoins are created.
3. If I am sending you bitcoins because there is no bank in this process. So the question is, how will these bitcoins reach you? This is the medium of transporting bitcoins to you, through which we are called bitcoin mining.
How to mine or generate Bitcoins?
Cryptocurrency mining can be done in 2 ways:
1. Solo Mining: Solo mining is when you think that I will be mining alone. I do not associate with any pool. Solo mining is done only when you have a lot of computers or a powerful computer with better computing power. But most miners do not do solo mining.
2. Pool Mining: Pool mining is the kind of mining in which many computers of the world come together and form a network of computers and they solve all the problems together and the sooner a pool gets done, that pool will get an award.
That is why we will talk about how pool mining is done here because it is a very common mining type.
What is needed to do cryptocurrency mining?
1. A computer with a good Graphic card(minimum 2GB).
2. You will need a wallet where you will keep mining.
3. You also need a pool address.
4. Also need mining software.
Process of mining bitcoins?
Step 1: Install a software wallet like I am using SLUSHPOOL.
Step 2: Configure your bitcoin wallet address in your pool. So, your’re earning stored in your wallet.
Step 3: Go to setting, tap on bitcoin then, click on the payout. Here you can configure your wallet address.
Step 4: Now create workers, workers identify your computer uniquely in the pool. To do so, click on workers and give a name.
Step 5: For the mining process, we need software, lets install Guiminer.
Step 6: Now click on the File tab, New Minor then New OpenCL miner. Give any name to this miner.
Step 7: Fill in all the information in the Mining test.
Step 8: Now you should click on start mining.
Is Bitcoin Mining Profitable in India?
Bitcoin mining is not profitable at all in India and its biggest region is electricity cost. The electricity cost in India is very high. China, which is the largest bitcoin mining country in the world, about 65% of the world’s bitcoin is mined in China.
China is able to mine so much bitcoin because there is a lot of difference in the electricity cost of India. India’s electricity costs almost double from China. The special equipment used for bitcoin mining is mostly made in China.
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If you are mining in India, then you will have to get that special equipment from China first and by the time it arrives, a new version of that equipment also arrives in China. This will mean that for you, the Bitcoin Mining Difficulty in India will increase a lot and your equipment will also not be as efficient.
Buying Bitcoin Direct would be more right for you in India because mining Bitcoin in India is very risky and difficult.