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Can I mine bitcoin for free?

free bitcoin mining

February 10, 2021 | 

JOHN K MWANIKI |  0 Comments| 

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Large bitcoin mining firms have dominated the current bitcoin mining market. These firms have invested in large mining operations that contain thousands or tens of thousands of high-powered equipment and software. In turn, they enjoy the financial acumen and economies of scale to control and maximize their operations. 

So, individual bitcoin miners rarely realize any profits if they chose to conduct bitcoin mining operations. As a result, many of them join these large bitcoin mining firms or mining pools to earn some profit. Before determining whether it is possible to mine bitcoin for free, you must first understand the meaning of bitcoin mining and how it works. 

What is bitcoin mining, and is it possible to mine bitcoins for free?

As you may know, bitcoin is the most popular cryptocurrency in the world. It is a decentralized form of digital currency and works based on blockchain technology. As a result, this new form of currency allows fast and secure transactions from anywhere in the world. 

There are various ways to get bitcoin. They include using a cryptocurrency exchange, through mining, and from earning it from surveys and other affiliates. Bitcoin mining involves using special software and equipment to solve complex mathematical algorithms. Once bitcoin miners complete the blocks' of verified transactions, they receive a bitcoin reward when the transaction is added to the blockchain. 

The miner who solved the bitcoin puzzle first gains the bitcoin rewards. It is also worth noting that the higher the computing power of the miner's mining operation, the higher the chances to discover the solution and earn the bitcoins.

The bitcoins earned by miners serve as an incentive. It motivates them to continue providing bitcoin solutions and add them to the blockchain. The reward also acts to monitoring and verifying bitcoin transactions to ensure they are legitimate. 

Given that you do not need to buy the bitcoin mining software and hardware, it is possible to mine bitcoin for free. But, you have to connect with the right people and use the right approach to earn large profits. Let us look at how you can mine bitcoin for free.

How much does it cost to mine bitcoin?

According to Forbes, bitcoin mining has become more affordable over the years. Due to bitcoin halving and cheaper electricity supply from China, miners are experiencing nearly a 50% cut on their incentives. The cost of mining bitcoins and other cryptocurrencies depends on several factors. These factors include labor, hash rate, power costs, crashes, and unforeseen hacks, and pool fees. Generally, it costs miners approximately $5000- $8500 to mine one bitcoin. As a result, miners have more incentive to sell and cover their operational costs than trade. 

Another significant factor that affects the cost of bitcoin mining is the country you choose to mine. Due to the power consumption rates, the overall cost of mining from one country to another may vary. For instance, many Asian and South American countries have lower power consumption rates. Thus, they are a hotspot for bitcoin miners.

How to mine bitcoins for free

1. Join a bitcoin mining pool

Mining bitcoins as a large pool of miners is the fastest and most reliable way to mine bitcoin for free. It involves cooperating with other miners and sharing the end rewards. Distribution of these rewards depend on the amount of individual contributions of computation power.

Designed to reduce the total amount spent by an individual miner, a mining pool offers a convenient and profitable way to mine for bitcoins. Individual miners spend a lot of time to mine a single bitcoin, and in some cases, they will not earn any bitcoin. By signing up to a mining pool, you accept splitting your bitcoin rewards with the other members of the pool. 

Not all mining pools are the same. As a result, there are various factors you should consider before joining one. Some of these factors include the size of the mining pool, pool fees, and minimum pool contributions.

It is advisable to join a large mining pool, especially for beginners, as it increases the chances of gaining a reward. You also want to join a mining pool with the lowest possible minimum pool contributions and low pool fees. Of course, the lower the charges, the more the profitability.

2. Create a bitcoin wallet

Any potential miner should set up a bitcoin wallet before starting the mining process. It is through this wallet that the miner stores, sends, and receives bitcoin payments. The wallet is also very secure as it protects this digital currency from any possible hacking risks. 

Miners receive bitcoins in their wallets via a unique bitcoin address that only belongs to them. The address has a public key and a private key. The private key is for the bitcoin address owner when viewing or storing bitcoins. But, the public key is for sending bitcoins to other bitcoin addresses. 

3. Download free bitcoin mining software to mine bitcoin for free

Once you have your bitcoin wallet and you have joined a mining pool, proceed to download free bitcoin mining software into your computer. This software handles connecting you to your mining pool and the blockchain network. The software delivers work to the miners. Upon completing the work, the software collects and relays it back to the blockchain network and the mining pool. 

The bitcoin mining software also displays general related statistics like performance (hash rate), temperatures, average mining speed, and fan speed. It also monitors blockchain transactions to ensure they are legit. 

There are a variety of free bitcoin mining software programs available on the internet. Some of them include 50Miner, MinePeon, EasyMiner, CGMiner, BTCMiner, and BFGMiner. Depending on your preference, most of these software programs can function on any operating system. Miners only have to change them to fit their mining setup.

Conclusion

Generally, bitcoin is a risky investment. It can go well and pay off or go completely sideways. Before you start to mine bitcoin for free, you should consider all the patience, hard work, and planning it requires. Individual miners mine the network at meager profits as opposed to large mining firms. So, if you are a beginner in the world of bitcoin mining, your best bet is to join a mining pool with many miners to make large profits. 

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