Bitcoin mining in Nigeria
Bitcoin mining for profit is very competitive, Bitcoin mining in Nigeria is very expensive, this is because apart from needing high powered computers, you also need a high amount of electricity, which when compared to the amount of Bitcoin you may get means you may probably run at a loss.
You can mine Bitcoin if you decide to do it for fun or just for the security of the blockchain.
In this article, am also going to talk about a way with which you can be involved in Bitcoin mining without having to bother about the hardware, or other offline issues, you can do this by purchasing a mining contract. We will discuss this much later in this post, but for now let’s get into the technical aspects of Bitcoin mining
What is bitcoin mining?
Bitcoin mining entails using high powered computers to solve mathematical computations, these computations cannot be solved by hand. In doing this, transactions are added to the blockchain, and the reward for this is a new Bitcoin.
How it works?
During mining, your Bitcoin mining hardware runs a cryptographic hashing function (two rounds of SHA256) on what is called a block header. For each new hash that is tried, the mining software will use a different number as the random element of the block header, this number is called a “nonce”.
Depending on the nonce & what else is in the block, the hashing function will yield a hash which looks something like this
it’s a hexadecimal number, meaning the letters A-F are the digits 10-15. To ensure that the block is found every 10 minutes, the difficulty is always, meaning the more miners, the more difficult it is.
Bitcoin mining hardware
The hardware used for mining Bitcoin,has changed over the years.
In the begininbe, mining with a CPU was the only way to mine bitcoins & it was done with the original Satoshi client. In a quest to further secure the network & earn more bitcoins, miners innovated on many fronts.
If you decide to mine Bitcoin with your laptop today, you might mine for decades without getting a single bitcoin.
It was discovered that high end graphics card were much more efficient at Bitcoin mining & the landscape changed. The massively parallel nature of some GPUs allowed for a 50x to 100x increase in Bitcoin mining power while using far less power per unit of work.
While any modern GPU can be used to mine, the AMD line if GPU turned out to be far superior to the NVIDIA. The ATI Radeon hd 5870 turned out to be the most cost effective device at the time.
From CPU to GPU to FPGA. FPGA stands for field programmable gate array. These hardware are dedicated specifically to mining Bitcoin.
The Bitcoin world is now solidly in the application in the ASIC era, it stands for application specific integrated circuit.
An ASIC is a chip designed specifically to do one thing, which is to mine Bitcoin, unlike the FPGA, an ASIC cannot be repurposed to perform other tasks. It offers 100x more hashing power while reducing power consumption compared to all previous technologies.
3 of the most popular Bitcoin mining hardware:
2. Antminer S9
3. BPMC red fury USB
What is a Bitcoin mining pool?
There are two ways of mining Bitcoin
1. On your own
2. As part of a mining pool
Mining pools are usually a group of miners who come together to combine their hardware power to increase their chances of mining Bitcoin. About 80 – 90 percent of the mining community are made up of mining pools. The profit from each block any pool member generates is divided up among the members of the pool according to the amount of hashes they contributed.
What is a proof of work?
A proof of work is a piece of data which was difficult (costly, time consuming) to produce so as to satisfy certain requirements. It must be trivial to check whether data satisfies said requirements.
Bitcoin cloud mining
If you don’t want to be involved in the hassles of buying mining hardware or the numerous issues involved in mining Bitcoin, then it is best if you purchase a Bitcoin cloud mining contracts. Some of the best are
2. Genesis mining
3. Hashing 24
One should be very careful when getting involved in cloud mining, this is because it has potential for scams.
What will happen when all Bitcoin have been mined?
You really don’t need to worry about this, because it will take a long time before all 21 million Bitcoin have been mined, the estimated time at which all Bitcoin must have been mined has been put at 2140.
When that time comes, transaction fees will probably increase, so as to keep the blockchain secure, there will also be willing volunteers.
Bitcoin mining is arguably the most difficult way to get Bitcoin, purchasing a cloud mining contract is the best way to go if you want to be involved in Bitcoin mining in Nigeria, but there are a lot of scams. My advice is to always do research before investing your money in this.
There have been cases of people who claim to mine Bitcoin from apps on their phone, if you have read this post and understood it, you will know that it isn’t possible. I sincerely hope I have helped you understand what Bitcoin mining in Nigeria entails, if you have a comment, please leave it below, and don’t hesitate to share with your friends. Thank you.Follow us on social media