How to use Intel Chip to mine Bitcoin

What Is Mining?

What Is Mining?Eveiy computer that is properly connected to the Bitcoin network is a node. Nodes relay transactions, hold a full copy of the public ledger, and can also be used as Bitcoin wallets. But not every node is equal.Some members of the network are engaged in the crucial task of “confirming” or writing transactions to the ledger. These special nodes are called Miners.

The nature of the work theyare performing is both complex and difficult… so much so that it requires specialized hardware to perform efficiently. However, these miners aren’t performing this work out of the goodness of their hearts. The Bitcoin network compensates them in two ways for every block of transactions they write to the ledger:

1. They receive the transaction fees contained in that block of transactions

2. They receive a mining reward of 25 BTC. This amount goes down every few years, and will eventually reach zero, forcing miners to rely solely on transaction fees forincome.

Miners are competing with one another to confirm the next block of transactions. Since mining is so difficult, most miners join “pools” that combine their computing power and split any rewards they earn.

Can anyone mine? Is it profitable?

Technically, yes, anyone can mine. There is nothing stopping you from installing the Bitcoin software on your PC and joining the network as a miner. However, the likelihood of you mining a block (and getting the associated rewards) is vanishingly small. You’d essentially be wasting your time and electricity.


Why is this? The Bitcoin network is designed to confirm (or mine) a block of transactions every7 ten minutes on average. There is a certain amount of computing power required to make this happen… but if the mining power of the network exceeds that, then the difficulty of mining increases to compensate, thus maintaining the 10-minute average.

The more people mine, the harder mining becomes. In the early days, people could mine with the CPU in their desktop computers. As Bitcoin became more popular and more people started mining, the difficulty increased to the point that mining with CPUs became too hard. Then people Miners are competing with one another to confirm the next block of transactions. Since mining is so difficult, most miners join “pools” that combine their computing power and split any rewards they earn.

Can anyone mine? Is it profitable?

Technically, yes, anyone can mine. There is nothing stopping you from installing the Bitcoin software on your PC and joining the network as a miner. However, the likelihood of you mining a block (and getting the associated rewards) is vanishingly small. You’d essentially be wasting your time and electricity.

Why is this? The Bitcoin network is designed to confirm (or mine) a block of transactions every7 ten minutes on average. There is a certain amount of computing power required to make this happen… but if the mining power of the network exceeds that, then the difficulty of mining increases to compensate, thus maintaining the 10-minute average.

The more people mine, the harder mining becomes. In the early days, people could mine with the CPU in their desktop computers. As Bitcoin became more popular and more people started mining, the difficulty increased to the point that mining with CPUs became too hard. Then people started using their PC graphics cards (which are much more powerful) to earn the mining rewards. After that, companies began producing specialized hardware for mining.

Now we are at a point where there have been multiple generations of this specialized hardware, each much more powerful than the last. Yes, mining is still profitable, but unless you can afford to invest in expensive hardware and have a cheap (or free) source of electricity’, mining is not rewarding for the average person.

What about Cloud Mining? What is it and is it profitable?

Mining hardware is not only expensive, but it needs to be replaced with newer hardware often to keep up with the rising difficulty. Add to this the cost of electricity to run and cool the hardware. Most people can’t afford it.

But what if you could rent it?

At first glance, cloud mining seems like a great solution. Since you can’t afford all the mining hardware yourself, you contract with someone else who has some they’re willing to share. You lease their extra computing power and they run it for you at their facility, which is usually located somewhere where electricity is cheap. When the term of the lease (typically one year) is up, you can terminate the contract, continue it, or upgrade it so you have access to even more computing power. All the while, you are earning BTC with the computing power you leased.

Most people who get into these contracts fail to profit substantially (or at all). The cloud mining companies may be outright scams with no (or very little) actual hardware. Or the purchaser overestimates the amount of money they can earn with their leased equipment and ends up with little (or even negative) profit at the end of the term. Those that profit typically only do so due to the increase in the value of BTC over the lease term. If you’re going to profit from increasing value, you’d be better off just buying BTC on an exchange and holding it instead of investing in mining (cloud or otherwise).

So is it really too late to make good money mining Bitcoin?

If you don’t have access to serious start-up capital, Yes. BTC mining has evolved beyond the ability’ of most people to participate. It is an industry now, with startup costs worthy of that status.

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