Bitcoin Mining Facts

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Avalon miner Vs Ebit miner Vs Dragonmint miners on Google trends 2018

Bitcoin Mining Facts:  Bitcoin mining has changed much since its introduction a decade ago. Several statistics characterize the technology underlying the modern Bitcoin blockchain. This article looks at those pertaining to Bitcoin mining. Specialized hardware is now required to handle the difficulty, power, and speed of the proof-of-work (PoW) algorithms that add new blocks to the chain.

  • Bitcoin is capped at 21,000,000 Bitcoins with the incentive for adding a block cut in two every 210, 000 blocks or roughly every four years.  This will diminish to 0 which will happen around 2140 and transaction fees will then be rewarded for record-keeping of transactions on the hash pool.

 

  • Currently, Bitcoin.com hosts the biggest Bitcoin mining pool ever to exist and it features a hash rate distribution of 19.3 % of all blocks.

 

  • The Antminer S9  ( S9i-14TH/s with PSU ) from Bitmain the most efficient Bitcoin Miner. It costs 1110 withj a PSU and offers 1,400 watts of power, 14 TH/s hash power and daily profit of 0.00199043 BTC

 

 

 

 

    1. AntMiner
    2. Avalon Miner
    3. DragonMint
    4. eBit
    5. Pandaminer
    6. Innosilicon

 

 

Satoshi’s CPUs

The vision of Satoshi Nakamoto was for bitcoins to be mined by a multitude of independent CPUs. A lot has changed since the original paper was written a decade ago. CPU mining is not profitable today; nor is it practical for any useful application. CPUs are now regulated to hosting nodes and even that can be cumbersome for some laptops.

PoW

Proof-of-work is a term describing cryptocurrency mining that is based on solving high-level computations like Bitcoin’s SHA-256. Not all cryptocurrencies are PoW schemes. This is how many ICO’s tout faster speeds than Bitcoin. PoW mining is considered more secure because it requires much effort and resources to launch a 51% attack against these computationally centric networks.

The basis for employing a PoW blockchain is to limit network attacks while facilitating speedy transactions. Computational puzzles are designed to be difficult to mine. And yet, they provide a practical transaction medium because their solutions are easily verified.

Difficulty

In recent years, adding new blocks to Bitcoin has become so difficult that, in addition to specialty hardware, most miners now combine their resources in what has become popularized as mining pools. Solving the computationally-difficult problem of the SHA-256 algorithm continues to get harder. This is not an error in judgment by the developers. The increased difficulty offsets the limited number of blocks that can be mined. Of course, a higher difficulty requires more power which raises the costs associated with mining a new block.

New Blocks

A new block is added on the “top” of the Bitcoin blockchain about every 10 minutes. This is a relatively slow process. Developers could easily increase the size of the blocks. However, after much debate, those advocating for an alternative solution (segregated witness) gained control over the original blockchain. Every Bitcoin investor should be aware that Satoshi’s original paper expected increasing block sizes to solve emerging speed problems. The need for speed was anticipated as users flocked to the network in large numbers alongside the increased difficulty.

Transactions per Second

Limited block sizes compound problems on a sluggish blockchain. Currently, Bitcoin lags light years behind the speed capabilities of credit card transactions. Visa is able to handle an enormous banking network. Its 24,000 transactions per second is incomparable to Bitcoin’s maximum at 7. Some question Bitcoin’s capability to match Visa in any version of its future, even with uncapped block sizes. This is one of the arguments for instituting segregated witness. Named the Lightning Network, this delayed hashing protocol plans to match the transaction speeds of credit cards.

Power

The growth of the original blockchain has been one of the marvels of the modern day. User growth, increased difficulty, and advances in hardware specific for mining has come at a cost. Some recent estimates measure the Bitcoin network power usage at 300 times that of the world’s top 5 supercomputers combined. It has been compared to powering an entire country. Some even estimated it as a significant percentage of the world’s power consumption.

End of Mining

Most of the world’s Bitcoins will be mined by 2036. This is an automatic function built into the blockchain by the developers of the genesis block. Mining will not come to a complete end because transactions will still need to be verified. However, the reward for finding new bitcoins will come to an end.

The significance of mining is to establish a decentralized, trustless, and transparent medium for exchanging value that empowers individual users. Thus, the importance of mining is in building the blockchain. A computationally sound underlying technology can prevent hacks, endure 51% attacks, and stand the test of time.

Some say that PoW schemes are not as important as other aspects of cryptocurrency technology. They have the luxury of making such statements after the implementation of Bitcoin. Deemed as an important store of value for cryptocurrencies, some do not believe Bitcoin can effectively act as a fast transaction medium.

As the blockchain continues to mature so will specialty hardware and decentralized applications. Users will become attracted to a “friendlier” Bitcoin. Many protagonists of Bitcoin technology call attention to the history of developers in solving new problems. This is how the Bitcoin blockchain came into existence. Independent miners have adapted alongside the blockchain because many of them are involved in its development.