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If you are mining Bitcoin, you do not need to figure the entire value of that 64-digit number (the hash). I repeat: You do not need to calculate the total value of a hash.

Remember that ELI5 analogy, where I composed the number 19 on a piece of newspaper and put it in a sealed envelope

In Bitcoin mining conditions, that metaphorical undisclosed number in the envelope is called the target hash.

What miners are doing with these tremendous computers and dozens of cooling fans is guessing in the target hash. Miners make these guesses by randomly generating as many"nonces" as you can, as quickly as possible. A nonce is short for"number only used once," and also the nonce is the secret to generating these 64-bit hexadecimal numbers I keep talking about.

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The primary miner whose nonce generates a hash that is less than or equivalent to the target hash is given credit for completing that block, and is given the spoils of 12.5 BTC. .

In theory you can achieve the same goal by rolling a 16-sided die 64 times to arrive at random numbers, but why on earth do you want to do that

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The screenshot below, taken from the website Blockchain.info, might enable you to put all of this information together at a glance. You are looking at a summary of everything that happened when block 490163 was mined. The nonce that generated the "winning" hash was 731511405. The target hash is shown on top.

As you see here, their contribution to the Bitcoin community is that they confirmed 1768 transactions for this block. If you truly want to find all 1768 of those transactions for this block, then go to this page and scroll down to the heading"Transactions." .

There is no minimum goal, but there's a maximum goal determined by the Bitcoin Protocol. No goal can be greater than this number:

Here are some examples of randomized hashes and the criteria for whether they will lead to success for your miner:

You would need to get a fast mining rig or, more realistically, join a mining pool--a group of miners who combine their computing ability and split the mined bitcoin. Mining pools are similar to people Powerball clubs whose members buy lottery tickets en masse and consent to share any winnings. A disproportionately large number of blocks are mined by pools rather than by individual miners. .

In other words, it's literally just a numbers game.  You cannot imagine the pattern or make a prediction based on previous target hashes. The difficulty level of the most recent block at the time of writing is 2,874,674,234,416, i.e. the chance of any given nonce producing a hash below the goal is just 1 in 2,874,674,234,416--less than 1 in 2 trillion. .

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The aforementioned website Cryptocompare offers a very helpful calculator that permits you to plug in numbers like your hash speed, electricity costs etc., to estimate the costs and benefits.

Mining benefits are paid into the miner who discovers a solution to the puzzle , and also the likelihood that a participant is going to be the one to discover the solution is equivalent to the portion of the total mining energy on the network.  Participants with a small percentage of their mining capability stand a very small chance of discovering the next block on their own.  For instance, a mining card that one could buy to get a couple thousand dollars would represent less than 0.001percent of their network's mining browse around this web-site power.  With such a small chance at finding the next block, it might be a long time before that miner finds out a block, and the problem going up makes things even worse.  The miner may never recover their investment.  The answer to this problem is mining pools.  Mining pools are operated by third parties and coordinate groups of miners.  By working together in a pool and sharing the payouts amongst participants, miners can find a steady stream of bitcoin starting the day they activate their miner.  Statistics on a few of the mining pools can be seen on Blockchain.info. .

Sure. As mentioned, the easiest way to acquire Bitcoin is to buy it on an exchange like Coinbase.com. Alternately, you can consistently leverage the"pickaxe plan". This relies on the old saw that during the 1848 California gold rush, the smart investment was not to pan for gold, but rather to create the pickaxes taken for mining.

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In a crypto context, the pickaxe equivalent would be a company that manufactures equpiment used for Bitcoin mining. You can start looking into companies that make ASICs miners or GPU miners. .

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