How a Bitcoin is Created
Currently, there are more than 16.7 million Bitcoins circulating and the maximum total that will be generated will be 21 million, as determined when this system was devised, in 2009.
When you reach that limit, you will no longer be able to mine or create more. bitcoins
What is mining about? When an operation is carried out in bitcoins (payments, collections or investments) a validation of the network that makes up this ecosystem is required.
To process these operations, a complex mathematical equation must be solved.
The power to reach that resolution is provided by the miners, who use specialized hardware and software.
The miners earn the right to write a new sheet (block or block) of the bitcoin book (blockchain or chain of blocks) and in doing so they get as a reward the 12.5 new bitcoins that are created in that sheet and also a commission for the transactions recorded in this new sheet.
For this reward to be valid, the thousands of nodes of the bitcoin network have to audit the new sheet and incorporate it into their independent blockchain copy.
This decentralized audit is the reason why bitcoin is not hackable. On the other hand, the economic incentive motivates the miners to do their job well and stay honest.
What is needed to mine bitcoins
The first step is to have a suitable device to mine. It is essential that you solve the calculation in the shortest possible time and with the lowest energy cost for the user.
Formerly it could be mined with CPU and GPU.
Nowadays the bitcoin mining software no longer supports these two methods because it does not make sense in economic terms.
What is required is the bitcoin mining equipment that is the Asics that is a specific hardware for mining bitcoin.
It also requires software that connects to the network. There are different options such as Bitcoin Core, Easy Miner, and BFGMiner, among others.
It is profitable?
When bitcoins are mined several factors come into play: the investment in the components, the electricity consumption and the hash rate, which indicates the mining power that will be obtained with the equipment that is destined to do these tasks.
Likewise, this data can be reviewed in specialized pages, where the hash rate of the different hardware is compared, such as the Asics, which are currently used. In short: the higher the hash rate, the greater the possibility of mining bitcoins.
Competing for coins
In this way the miners “seal” the blocks. Everyone competes with each other to do this, using software written specifically to mine blocks.
Every time someone successfully creates a “hash”, a reward of 25 bitcoins is won, the chain of blocks is updated and everyone on the network is notified with it.
That is the incentive to keep mining and allow transactions to continue to be carried out.
In addition, the problem is that it is very easy to produce a hash directly from a data set.
It’s not profitable
The big mining farms (as they are called spaces with hundreds of mining equipment working in a network) are the ones that really make money with mining.
Many of them are in China, where the value of electricity is cheaper than in other parts of the world.
Likewise, bitcoin mining is worthwhile if it is understood as a learning process or an experience, but it is not recommended to generate money. At least, it is not convenient if it is done domestically.
On the other hand, it is also true that there are other cryptocurrencies that can be mined and require less processing power, such as Monero, for example, among many others.