Bitcoin Mining

Where from come Bitcoins? With the paper money everything is clear, government regulates their printing, but where from come bitcoins? 

People send bitcoins to each other over the bitcoin network all the time, but who would keep a record of all these transactions? Who would was able to keep track of who had paid what and how much? So, the bitcoin network collect all these coins transactions into a list, called a block. Bitcoin miners confirm all those transactions writing them into a general ledger. It is a long list of blocks, we call it a blockchain. 

When such block of transactions is created, Bitcoin miners put it through a process taking the information in the block and apply some kinnd of mathematical formula to it - it all turns into something else, far shorter, seemingly a random sequence of letters and numbers known as a hash. Hash is stored along with the block.

There are few main categories of bitcoin mining hardware, and each of them are more powerful amd of course more expensive than the last one. But still using any of them, computing power chews up your electricity, and that costs a lot of money also.

Looks like a very complex process? Good thing that we do not need to know all these details, we do not need even to buy hardware for bitcoin mining, but we still can participate in Bitcoin mining process - there are few mining pools that you can join. 

 Bitcoin mining pool is a group of people that combine their computing power to make Bitcoins. The pool that I am involved in is Slush’s Pool,  but feel free to look at other options. For Slush Pool you can use mining program called GUIMiner. Install and run this program adding in your information from Slush’s Pool. Remember that your user name is actually the worker name. The worker name will be like this - username.worker ID,  and your password also will be from that worker ID.

 

Bitcoin Cloud Mining

Other way to mine bitcoins is to join cloud mining website. Cloud mining or, otherwise, cloud hashing allows users to form groups-pools, where their efforts are rewarded with greater income, if compare with individual mining with own equipment. There all Bitcoin mining is done in the cloud, with no offline hassle: electricity, hosting issues, installation and upkeep troubles. There everybody can earn some extra revenue with
 just a little or no risk at all.

Eobot - some says it is too slow, but it is still great choice for beginners. Eobot is easy, cheap and best cloud mining solution for those who just started. You can start just with  little $10 using PayPal, or invest earned free satoshi and other coins in free Faucets, buy cloud for mining and choose between any cryptocoins including Bitcoin, Litecoin, Dogecoin, Redcoin, Peercoin, Namecoin, Feathercoin, NautilusCoin, Vertcoin... For those who has no any money or coins, there is Faucet where every day you can get some free coins (Products->Faucet). I would advice first to mine your cloud for some time to increase its spead, then only choose what the coins you want to earn and make your configuration there. So, yes, there is opportunity to start for free, use their own faucet, invest coins earned in other faucets and not invest any fiat money at all, but mining speed of course will not be very high. 

There are plenty of Cloud Mining websites: Genesis Mining, ZeusHash and many others, just search google and find most suitable for you. make good research as some of them are not paying.