Surely many of you have ever
the term “Bitcoin” in a context
belongs with currencies.
But very few will know what exactly
Bitcoins are, how they work and what
the term “Bitcoin mining” means.
Roughly speaking of Bitcoin is a global
Payment system that does not, however, central
He is also the name of the digital currency,
the handled through this payment system
is mostly when the term Bitcoin falls
meant exactly this currency so.
Unlike conventional banking,
at the transfers and transactions
run a central clearing house, are
there is such a place not in Bitcoins.
Transfers are on a merger
countless computers through a peer-to-peer application
That is the data directly to the
Sending relevant computer and no
central server interposed.
To protect against fraud and theft
ensure that transactions with
different encryption methods saved.
The conversion rate of Bitcoin to offline
Currencies such as euros or dollars is
the capitalist rationale of the offer
and demand conditions.
The result of the high exchange rate of
Euro in Bitcoin: the time of shooting
this video you have a Bitcoin
down fork out 840 euros.
the Bitcoin Core 2008 Developed by
a person with the nickname Satoshi
Nakamoto is known.
The true identity is unknown, also
when there was already some guesses who
could be behind the pseudonym.
Among other things, claiming the Australian
Entrepreneur Craig Steven Wright, behind the
to put pseudonym.
The payment system was first in a
described White Paper, 2009, an open-source reference software
to be published.
This is followed by developers could from around the world
oriented to after a system performances
to develop from Nakamoto.
The Bitcoin as a payment system consists of
a database, known as the block chain.
Block Chain denotes a database in which
each entry of the hash value of each previous
This allows a protection against manipulation
A hash value is an arbitrarily long string
in a fixed length and has only in
one direction are created.
That is, a hash value can not go back
be turned into a plain text.
There are several hash algorithms such as SHA-256,
MD5 and many more.
Even passwords are mostly used as a hash
stored in databases.
In this database all transactions
the run on the Bitcoin network
However, it is not stored centrally,
but on the Bitcoin network computer
Each user has the Bitcoin currency
a “Wallet”, a wallet,
the need to manage own money
In addition, the Wallet includes cryptographic
Keys to make purchases
and transactions are necessary.
While in normal currencies governments
can decide when new bills
printed and coins are pressed, must
the other happened in Bitcoin.
Because there is no central management unit,
have the votes in some ways even
ensure that there are new Bitcoins.
This is done by the so-called “mining”
sometimes called “farming”.
In general by mining new blocks
So added to the block chain of the database.
Through new blocks, new Bitcoins
and be a part of the outstanding transactions
Since July 2016, through each new block
distributed 12.5 Bitcoins were before
it 25 and until November 2012 there were whole
However, the process of creating a
such a block-consuming and requires extremely
much computing power.
Therefore, the Bitcoins be output to the user,
generates such a block.
At the same time all charges will be by
this new block transactions executed
paid to the user.
Each participating computer receives the Mining
a cryptographic task very complicated
It is a network-wide hash as objective difficulty
The computer must then calculate a hash value,
is less than this target difficulty
Here this value is quite long and also
in Hexadecimal, which means
that there are 10 digits instead of 16th
Apart from 0-9 there while the letters
However, these long goal difficulty is
not so systemwide sent, but as
Factor as opposed to objective difficulty
the very first block specified.
That is, such a mining difficulty
80,000 means that the task 80.000
is times more difficult than the task
Satoshi Nakamoto had to run.
The factor is therefore so high because
the technology has improved since then and the
Mining system has been optimized.
The system always calculates namely after 2016
created blocks a new difficulty.
The system tries the difficulty
adapted to ensure that the overall performance of
Two weeks needs to the next 2016 blocks
This means an average of every 10 minutes
creates one of the computers on the object
After such an object has been achieved,
is the result of a new header block
Initially were way more CPUs for
used mines, later they increased due
higher efficiency to GPUs.
A GPU has the mines 50-100 times more power,
needs while also less energy.
The reason is that a graphics card far
make more such calculations simultaneously
may, as an average CPU with two
or four cores.
However, there are now specialized
Hardware for the mines.
After the GPUs largely been FPGAs
used what for Field Programmable Gate
While such FPGAs cost relatively much,
but have a low power consumption and
a high computing power.
Subsequently, ASICs have been used, which
again have more computing power.
Meanwhile, however, are becoming more and
more cloud networks used.
Such cloud networks are generally considered quite
used risky investment and can
solve the problems much faster than
This could be the decentralized Bitcoin mining model,
which formerly was considered particularly safe,
threatened and vulnerable to attack
Namely, when a person has more than 50 percent
the computing power of the entire network
possesses these bad blocks can create,
but which of more than half as genuine
be recognized and thus invalid Bitcoins
create, but no service or
Seller would accept.
However, this is still a really big effort
connected and not necessarily worthwhile.
Mining pools which very many computers
operate simultaneously and continuously
calculate blocks, there are now
almost en masse and could the first
be that crack the 50 percent mark.
The mining pool GHASH has this short
Time even made in June 2014 but was
quickly pushed back again.
In comparison, it is worthwhile for hobby-Miner
no longer to try to profit from the Mining
The AntMiner S7 costs between 500 and 800
Euro and can calculate 4.73 Terahash per second.
That is, it may be more than 4.7 trillion
calculate and match hash values per second.
In the month you can so when it comes up 0.15
Converted that would be about
However, it is becoming more difficult each
enforce the huge server farms.
If you invest a little more, such as
for AntMiner S9, the ca.
2,500 euros costs, one has indeed already 13.5
Terahash per second, but less than
three times as many Bitcoins per month: namely,
The currently equivalent to approximately
If the bill is not yet the
Current price included.
At the current price of electricity in Germany
Mining is quite unprofitable and you
need also much more than a miner.
For 290 euros you can probably
live barely a month.
One would need its own power plant to the
Miner cost effectively and permanently operate.
In addition, you have to the money earned from a
certain threshold even taxable …
So if you still want to pay with Bitcoins
you have to buy this well yet.