Want to learn how to mine bitcoin in India? Today we shall discuss some ways to mine bitcoin. Before we begin, here are some pre-requisites.
Bitcoin mining and cryptocurrency have been a subject of a legal dispute in India. Bitcoin mining requires a lot of energy, electricity and depends on weather conditions. However, with the demand for anonymous transactions which are decentralized in nature, one can hope to start mining soon. You will require adequate domain knowledge and graphic cards to proceed further with bitcoin mining.
Bitcoin mining means the process of computing complex mathematics equations to acquire and circulate bitcoins in crypto circulation. It is said to be very secure, complex, and trustworthy for users. To start mining, one needs to calculate the costs for giant hardware, electricity cost, the temperature around, and lastly, the ups and downs of bitcoin value.
There are several ways of mining bitcoins:
How to Mine Bitcoin
1) ASIC mining
This is one of the most profitable and popular ways of mining bitcoins. It stands for an Application-specific integrated circuit that is developed solely to mine bitcoins or coins having similar algorithms. There are also ASIC for other types of cryptocurrency. They are faster and more efficient than their predecessors. It uses ASIC rigs for the process of mining. Some of the best ASIC miners are Bitmain AntMiner S9, Bitmain AntMiner S5, AvalonMiner 741, Bitmain AntMiner S7 etc.
2) Cloud mining
Bitcoin mining is carried out in India via rented cloud computing power. Cloud mining can be two ways; rented mining where the computers are rented which are located in colder countries or countries with free electricity and mined or resource sharing takes place. One of the major advantages of cloud mining is reduced energy and maintenance costs as mostly you have to pay a certain amount after which the rest is done by cloud miners.
3) GPU mining
GPU mining is the best hardware for mining for now. It stands for Graphics Processing Unit which uses high end graphic cards to get the job done. They can also compute polygons used in games and solve mathematical equations to verify transactions on blockchain exchanges. It uses hashing algorithms like SHA-256, Scrypt Algorithm, X11 Algorithm, Ethash Algorithm. GPU mining, like FPGA mining, isn’t in vogue anymore. Some of the GPU miners are Claymore miner, KawPow miner, WildRig Multi Miner, etc.
4) CPU mining
This is another version of mining along with ASIC mining that was in demand. It uses a computer CPU for mining. However, as time went on and GPU mining took prominence and the cost of operation of CPU mining was found to be higher than bitcoin coins, it became financially difficult to continue mining. CPU mining computed equations when transactions were uploaded by users to the public ledger cryptocurrency. With time, the hashrate increased and the speed decreased, thus the entire Bitcoin clientele switched over to GPU mining.
Bitcoin mining can be expensive and requires a lot of resources and your desired output might not always match with your input. There are varied restrictions across geographic locations too. However, with changes in laws in cryptocurrencies and people slowly moving to digitalized, decentralized systems of transactions, one has to be finance and tech-savvy to calculate the costs and then invest accordingly.