# The 10-Second Trick For Are Bitcoins A Scam

If you are mining Bitcoin, you do not need to calculate the total value of that 64-digit number (the hash). I repeat: You do not need to calculate the total value of a hash.

Remember that ELI5 analogy, in which I wrote the number 19 on a piece of newspaper and put it in a sealed envelope

In Bitcoin mining conditions, that metaphorical undisclosed number in the envelope is called the objective hash.

What miners are doing with these tremendous computers and dozens of cooling fans is guessing at the target hash. Miners make these guesses by randomly generating as many"nonces" as you can, as quickly as possible. A nonce is short for"number only used once," and the nonce is the key to generating these 64-bit hexadecimal numbers I keep talking about.

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The first miner whose nonce generates a hash that is less than or equal to the target hash is given credit for completing that obstruct, and is given the spoils of 12.5 BTC. .

In theory you could achieve the same goal by rolling a 16-sided die 64 times to arrive at random numbers, but why on earth would you want to do that

As you see here, their contribution into the Bitcoin community is that they confirmed 1768 transactions for this block. If you truly want to find all 1768 of these transactions for this block, go to this page and scroll down to the heading"Transactions." .

There is no minimum target, but there's a maximum target set by the Bitcoin Protocol. No goal can be higher than this number:

Here are some examples try this website of randomized hashes and the standards for if they will lead to success for the miner:

You would need Your Domain Name to find a fast mining rig , more realistically, join a mining pool--a group of miners who combine their computing power and split the mined bitcoin. Mining pools are comparable to people Powerball clubs whose members buy lottery tickets en masse and consent to share any winnings. A disproportionately large number of blocks are mined by pools rather than by individual miners. .

In other words, it is literally only a numbers game. You cannot imagine the pattern or make a prediction based on previous goal hashes. The difficulty level of the most recent block at the time of writing is 2,874,674,234,416, i.e. the chance of any given nonce producing a hash beneath the goal is just 1 in 2,874,674,234,416--less than 1 in 2 trillion. .

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The aforementioned website Cryptocompare offers a very helpful calculator that allows you to plug in numbers such as your hash rate, electricity costs etc. to estimate the costs and benefits.

Mining benefits are paid to the miner who discovers a solution to the puzzle , and the probability that a participant is going to be the one to find the solution is equal to the portion of the total mining power on the network. Participants with a small percentage of the mining capability stand a very small chance of discovering the next block on their own. For instance, a mining card that one could purchase to get a few thousand bucks would represent less than 0.001% of the network's mining energy. With such a small chance at finding the next block, it might be a long time before that miner finds a block, and also the problem going up makes things even worse. The miner may never recoup their investment. The answer to this predicament is mining pools. Mining pools are operated by third parties and coordinate groups of miners. By working together in a pool and sharing the payouts amongst participants, miners can find a steady flow of bitcoin starting the afternoon they trigger their miner. Statistics on a few of the mining pools can be seen on Blockchain.info. .

Sure. As mentioned, the simplest way to get Bitcoin is to purchase it on an exchange like Coinbase.com. Alternately, you can consistently leverage the"pickaxe strategy". This is based on the old saw that during the 1848 California gold rush, the wise investment was not to pan for gold, but instead to create the pickaxes taken for mining.

## The smart Trick of Coin Mining Hardware That Nobody is Talking About

In a crypto context, the pickaxe equivalent are a company that manufactures equpiment used for Bitcoin mining. You can look into companies which make ASICs miners or GPU miners. .

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