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What you need to know about mining Bitcoin ter South Africa

What you need to know about mining Bitcoin in South Africa

Bitcoin is the world’s most popular cryptocurrency and is being adopted spil an accepted payment option across an enhancing number of online storefronts, including Steam, Microsoft, and Newegg.

The currency operates independently of a middleman or bankgebouw, and is regulated by a blockchain consisting of users who collaborate to record and process payments.

This work is done by Bitcoin miners, who use large amounts of processing power to process transaction blocks and add them to the blockchain.

What is Bitcoin mining?

Bitcoin miners use computing power to add transaction records to the blockchain, which is a public ledger of transactions.

Miners earn a certain number of Bitcoins for the work they contribute to this process and are paid a transaction toverfee by users sending transactions.

The process of mining and adding a fresh block to the blockchain comprises of the following steps:

  1. Verify that the transaction is valid.
  2. Compile valid transactions ter a block.
  3. Insert the header of the most latest block into the fresh block spil a hash.
  4. Solve the proof of work problem.
  5. When a solution is discovered, the fresh block is added to the blockchain.

The proof of work is designed to require a large amount of computational power, spil this prevents the public ledger of transactions from being tampered with and controls the rate of fresh Bitcoins being introduced.

The proof of work difficulty is updated regularly ter order to maintain a managed flow of fresh Bitcoins and improve the security of the system.

Mining Hardware

During the infancy of Bitcoin mining, many people used desktop processors to mine Bitcoin.

However, spil the difficulty continued to rise with the popularity of the cryptocurrency, specialised mining hardware wasgoed developed te order for miners to remain competitive.

Thesis days, mining Bitcoin requires a large amount of investment and work to make a profit, spil there are many mining farms around the world.

While this increases the security of the system, it means that using your graphics card to mine Bitcoins ter your spare time is no longer a viable solution for most miners.

Most serious Bitcoin miners use hardware designed to mine Bitcoin. The efficiency of thesis devices is measured te hashes vanaf 2nd and their price can vary depending on vertoning levels.

High-end hardware also draws a large amount of power and can be prohibitively expensive for casual Bitcoin miners.

Below are several Bitcoin mining hardware solutions available ter South Africa.

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