There are many who will argue that the ultimate way to mine gold is by getting physical possession of gold bars, coins, or ingots. The first and most obvious way to do this is by going to the mines and getting physical possession of the metals that you want.
This option, however, has some serious drawbacks. Gold has proven time again that it is very difficult to move from one physical location to another. Moving your gold also means that you take the risk of theft or robbery.
Fortunately, there is an option for those who would like to make the most of their investment and increase their chances of profiting from the current value of bitcoins, which is approximately $58 million at the time of this writing.
That option is called mining, and there are two main methods for doing it. One method involves having a high level of knowledge about how to mine at a specific difficulty level and then repeating this process over again to gain the most profit.
The other method involves having a bot that automatically conducts research on what the best times are to mine at various difficulty levels and then tells you when it’s profitable to mine at that level.
In order to perform this task manually, each individual miner would have to dedicate many hours or even days to studying which coins are easiest to mine at different difficulties. This results in an enormous amount of waste time and energy that is better spent elsewhere.
Fortunately, the internet provides one way for all of these individual miners to coordinate their efforts toward achieving the best results.
There are a number of computing power/ miner groups that work together online to make the most of their computing power and to make the most profit from the current market value of a handful of select bitcoins. These groups are collectively referred to as “bitcoin Mining Pool.”
Essentially, the job of these groups is to take advantage of a phenomenon called “pooling” to make the most of the mathematical potential of the bitcoin mining market. Simply stated, when one group begins to mine at a lower difficulty than another group, everyone else picks up on this and starts mining at a higher difficulty.
As more people join the first mining pool as well, the difficulty of the “block” increases and the value of each coin continues to rise. Eventually, such a situation occurs where no longer can any single person control the overall economic outcome of the marketplace.
It is here that the role of the entities known as “miners” enters the picture. Miners play a major role in ensuring that the bitcoin network stays effective by ensuring that there are always sufficient numbers of computers processing transactions in the system.
But it is not enough to have just a group of computers; rather, these miners must be tightly clustered together in order to achieve effective collective action. By solving complex math problems, these miners can collectively calculate the hash rates required to keep up with the ever-increasing demand for computing power on the bitcoin network.
The entire process is rather mathematical in nature, and in order for the bitcoin miners to find and “mine” the right answer to the equation of what is the right amount of work to be done, they must stay connected.
They all communicate with one another using digital currency. They can use one of several methods including SMS, email, and chat networks. This has led to what is referred to as a “Hash Network”.
This is a network of entities that all continue to contribute to the making of the most probable right answer to the equation of how to get the job done, at the speed of light in the bitcoin mining world.
Another option would be to mine using what is called a “Hash Mining Pool”. What exactly is meant by this is the use of what is called an aggregator in order to collect what is known as the “legitimate” transactions from different currencies.
Once those transactions have been calculated and the average price for each currency is determined, then the pool will join together in what is known as a “pool”. These are known as the” ASIC mines” or” GPU mines” due to the high-powered computers that are used in order to achieve this goal. The use of these two types of bitcoin mining pools illustrates the differences between the two distinct types of operations.
The use of what are known as desktop computers has become what is commonly referred to as “the future of mining”. A person who is familiar with the desktop computer knows that it is very easy to set up a collection of different programs on a single computer that will be used to compile the collective mining effort of the entire computer system. The use of what are known as “FPGA cards” or “GPUS” is what is used to achieve this goal. One thing to note about these cards is that the larger the computer system the greater the chances of achieving the best results from the hash calculations.
The difficulty level associated with the operation of a particular kind of miner is also different between the two distinct methods. With the use of desktop computers, it is much easier for a person to find the right setting for the miner because it is widely accessible to all users.
On the other hand, if a person is interested in using what are called “SPV miners” they are going to need to connect to their router, modem, or network card through a personal computer or laptop. These particular miners operate very quietly so that no one other than the owner of the machine will ever know that it is functioning. As such, there is very little risk associated with operating this kind of equipment.
The use of what is called “Wallet” devices allows for the transfer of the work performed by the dedicated miners to any compatible computer. This is done via a USB cord that plugs into a computer that contains the necessary drivers and software needed to make the transfer.
When a user comes back to their primary computer they can plug the USB cord back into the target computer and the work that had been done by the dedicated miner is then completed. The difficulty of this method is that a user can only transfer a finite amount of work at one time. If the user tries to go over the limit that has been set on the wallet then the results will be less than satisfactory.