What is needed to mine Bitcoin (What is needed to mine Bitcoin)

Mining Bitcoin is the most important part of the cryptocurrency industry because it is a computer based on mathematical principles. One of the necessary technologies for working and trading in the Bitcoin network is computing power and distributed ledger technology (DLT). What is needed to mine Bitcoin?

Based on the types of hardware currently used in the market, there are mainly two types: dedicated devices or integrated circuits – servers (CPU), hard drives (storage space) or virtual machines (ASIC), and regular computer devices (graphics cards/GPU). These machines are all manufactured with special chips, which means they consume a lot of electricity. Bitcoin uses a new chip design method, which improves response speed by improving some new processes, thereby improving efficiency and speeding up production. Because this technology can support the operation of large-scale applications, they do not need particularly advanced software to achieve high-value functions and performance.

To solve this problem, we have chosen a product called “SGX” – a brand new product specifically designed for mining. The unique feature of this product is its low power consumption, low cost, and no maintenance; its energy-intensive characteristics make it more sustainable than other mainstream mining platforms in the market, and it also provides a more efficient system.

According to the price changes of Bitcoin, the cheapest Bitcoin mining equipment currently available is shown in the figure below:

BTC-B: 2 Gwei per kilowatt-hour

ETH-A: 2 THash (unit hash value)

LTC-1: 10 Mh per kilowatt-hour or above

XRP-2: 0.3% power consumption (TWh): 0.004J/TH (unit hash value)

ETC-3: 1 MH/s

EOS-3: Approximately 1 PB of heat

BTC-C: Below 3 W/H

BCH: Below 4 W/H

BSV-4: Approximately 100w/th (individual block rewards) + 5% carbon footprint (+0.5% carbon emission)

LTC-6: “Standard” (reference price = $0.1);

LTC-7: Approximately 5 TB of heat. (Reference price) (Data source: http://www.coinmarketcap.com)

What is needed to mine Bitcoin

Editor’s note: This article is from BlockBeats (ID: BlockBeats), authorized to be reproduced by Odaily Star Daily.

What is needed to mine Bitcoin? We can know that the current mining equipment in the market mainly falls into two types: ASIC and dedicated computers. These hardware are driven by a GPU specifically designed for mining BTC. In this case, ASIC is usually a way to generate digital currencies; ordinary chips generally use specific algorithms, while graphics cards are produced by different brands and customized products according to different needs. This means that in order to make the machine work and operate more cheaply, they do not need to buy mining machines to obtain the computing power and electricity they need. If a company wants to mine Bitcoin, it needs more electricity than its cost, such as a server or a laptop computer. When you connect your phone to this computer, you must download a new software to process the program. If you want to use Bitmain, you can choose to have your own cryptocurrency S19Pro or AntPool S9. Then, you can directly trade through smart contracts, avoiding potential market risks and without any additional costs. Of course, most people will convert them into other new currencies to earn profits. But in fact, not everyone cares about how to make money. But from a certain perspective, the most profitable Bitcoins are those with much lower token quantities that have been put into production, because these Bitcoins do not have value. (Image source: CoinMarketCap)

Therefore, in addition to understanding the price, there is much more basic knowledge about Bitcoin worth learning, such as network security and energy consumption. One of the most important is the security of the mining process and the technical skills related to the work of miners. What is mining difficulty? Mining is a complex and costly process. Simply put, it provides power for calculations, for example, a large computer can handle a large number of mathematical operations. So, even the simplest system is difficult to ensure accuracy, especially considering some problems, such as unable to find excellent CPU/GPU resources, etc., once breached, it will cause serious consequences. At the same time, due to the transparency of blockchain technology, many projects rely on the public competition between nodes, which leads to inefficient problems. Although many people may have no idea what Bitcoin is, I think this is a very important scientific research and one of the world’s largest academic papers on Bitcoin. Nevertheless, I still believe that the ultimate goal of Bitcoin may be to establish a global peer-to-peer electronic cash system that allows people to exchange assets, goods, and services without being controlled by third parties.