In this article, I will be showing you how to mine bitcoin
How Bitcoin Mining WorksMining Bitcoin requires special software to solve mathematical problems, in exchange for solving the equations miners are issued a certain number of bitcoins in return This provides a smart way to issue the currency and also creates an incentive for more people to mine.
What is 'Bitcoin Mining'
Anyone who has the right equipment and access to the internet can participate in mining and earn bitcoin. The mining process involves compiling recent transactions into blocks and trying to solve mathematical equations. The participant who first solves the equation gets to place the next block on the block chain and claim the rewards. The rewards, which incentivize mining, are both the transaction fees associated with the transactions compiled in the block as well as newly released bitcoin.
You are able to Mine Bitcoin using your own Hardware from the comfort of your own home or even rent mining equipment from cloud providers so that you can mine using a mining pool
Bitcoin Mining Hardware
CPU Bitcoin MiningWhen bitcoin was first introduced then mining with a CPU was the only way to mine bitcoins and was done using the original Satoshi client. In the quest to further secure the network and earn more bitcoins, miners innovated on many fronts and for years now, CPU mining has been relatively futile. You might mine for decades using your laptop without earning a single coin.
GPU MiningAbout a year and a half after the network started, it was discovered that high-end graphics cards were much more efficient at bitcoin mining and the landscape changed. CPU bitcoin mining gave way to the GPU (Graphical Processing Unit). The massively parallel nature of some GPUs allowed for a 50x to 100x increase in bitcoin mining power while using far less power per unit of work.
While any modern GPU can be used to mine, the AMD line of GPU architecture turned out to be far superior to the nVidia architecture for mining bitcoins and the ATI Radeon HD 5870 turned out to be the most cost-effective choice at the time.