Large scale bitcoin mining has been a lucrative business since bitcoin became valuable. Bitcoin mining involves contributing large amounts of processing power to the bitcoin network to solve complex cryptographic algorithms. By successfully solving these cryptographic mathematical problems, miners will be able to discover new blocks. These new blocks are added to the existing blockchain and information related to transactions happening over the Bitcoin network is written on these blocks. The Bitcoin network offers rewards to those miners who discover fresh blocks. The rewards are in the form of fresh bitcoins. Bitcoin rewards are the driving force for miners to participate in bitcoin mining. The Bitcoin network offers rewards to those miners who discover fresh blocks. The rewards are in the form of fresh
Bitcoin mining is a costly affair these days, mainly due to the ever increasing need of processing power and the amount of electricity required to run the high performance processors (known as ASICs). During the initial days, bitcoin mining was possible on a normal home computer. But as the network grow, the difficulty level of mining increased proportionally as well. Increased processing power requirements gradually led to the use of GPUs, then FGPAs and finally ASICs built specifically for Bitcoin mining. These processing units do not come cheap, meaning it is virtually impossible for an individual to use his home computer or a custom gaming rig with great graphics handling capabilities to profitably mine bitcoin. Bitcoin mining operations are now run by companies with huge data centers running hundreds, if not thousands of ASIC miners continuously.
However, few companies have come up with alternative models where individuals can still take part in bitcoin mining. These companies, as their business model allow individuals to invest in the operation. Investors will be entitled to a proportional share of all […]
