The Evolution Of Bitcoin Mining
The idea of “digital or electronic cash” has been around since it has been conceptualized by Stefan Brands and David Chaum back in 1983. Since its inception, there has been a number of cryptocurrencies introduced by various networks and along with it some business mechanisms in to which these cryptocurrencies will work. It was only in 2008 that the information on the algorithm being used by Bitcoin’s P2P network was released to the public.
The mechanism of cryptocurrency mining
The algorithm system used in cryptocurrencies, most especially Bitcoin, became the method of earning units of the cryptocurrency for users in the network. For Bitcoin, this allows users to “mine” for Bitcoins by solving algorithmic equations along the blockchain network to validate transactions. This has since become the standard way for users to earn Bitcoins while helping in keeping the security in using and trading Bitcoin within the network, even if the transaction is done through a platform such as Bitcoin revolution.
Bitcoin mining at home
Initially, Bitcoin mining can easily be done with a PC hardware at home. Though simple in theory, Bitcoin mining requires a specialized CPU for an individual to be able to make a profit out of it. A PC with an Intel Core i7 CPU can get you a hashing power of 33 MH/s, sufficient for anyone to earn enough Bitcoin to make a profit.
Changes in the way Bitcoins are mined
But eventually, as the number of transactions involving Bitcoin grew and its value starts to rise, the power required to mine Bitcoin through solving algorithms grew as well. CPU hardware is not enough anymore. This led to the birth of second generation Bitcoin mining through GPU mining rigs, a string of GPU hardware connected to a motherboard, offering GH/s hashing value, a far cry from the measly MH/s from CPU mining.
Current and most effective way to mine Bitcoin
By 2017, the value of Bitcoin catapulted to almost $20,000. As the value of Bitcoin grew and the cryptocurrency became more popular, the need for mining has also increased exponentially. This led to the development of ASIC mining, hardware specifically designed for Bitcoin mining. This is currently the most popular way to mine Bitcoins, but unfortunately not available to all due to its cost.