How to get started with Bitcoin butterfly bitcoin miners. Bitcoin mining is a lot like a giant lottery where you compete with your mining hardware with everyone on the network to earn bitcoins. What is Proof of Work? What is Bitcoin Mining Difficulty?
Mining makes sense if you plan to do it for fun, to learn or to support the security of Bitcoin and do not care if you make a profit. If you have access to large amounts of cheap electricity and the ability to manage a large installation and business, you can mine for a profit. If you want to get bitcoins based on a fixed amount of mining power, but you don’t want to run the actual hardware yourself, you can purchase a mining contract. Faster Bitcoin mining hardware is able to attempt more tries per second to win this lottery while the Bitcoin network itself adjusts roughly every two weeks to keep the rate of finding a winning block hash to every ten minutes. In the big picture, Bitcoin mining secures transactions that are recorded in Bitcon’s public ledger, the block chain. By conducting a random lottery where electricity and specialized equipment are the price of admission, the cost to disrupt the Bitcoin network scales with the amount of hashing power that is being spent by all mining participants.
You can look at this hash as a really long number. It’s a hexadecimal number, meaning the letters A-F are the digits 10-15. To create a valid block your miner has to find a hash that is below the difficulty target. Because the target is such an unwieldy number with tons of digits, people generally use a simpler number to express the current target.