How does Bitcoin mining machine make money? Recently, the difficulty of Bitcoin mining has dropped, which is the first drop in two months. It has dropped by 2.87% to 16.85T. The difficulty of mining has dropped. Bitcoin mining is naturally more popular with investors. As we all know, you want to mine. You need to choose a Bitcoin mining machine. So, what principle does a Bitcoin mining machine make money? In response to this problem, the editor of the currency circle will give you an in-depth analysis of the principles of Bitcoin mining machines.
How does Bitcoin mining machine make money? In-depth analysis of the principle of Bitcoin mining machine
How does Bitcoin mining machine make money?
The Bitcoin system consists of users (users control wallets through keys), transactions (transactions will be broadcast to the entire Bitcoin network), and miners (through competitive calculations to generate a consensus blockchain at each node. The blockchain is a distribution The public authoritative account book contains all the transactions that occur on the Bitcoin network).
Bitcoin miners manage the Bitcoin network by solving the problem of a proof-of-work mechanism with a certain amount of work—confirming transactions and preventing double payments.
Since the hashing operation is irreversible, it is very difficult to find the random adjustment number that matches the requirements, and it requires a constant trial and error process that can predict the total number of times. At this time, the workload proof mechanism comes into play. When a node finds a solution that matches the requirements, it can broadcast its results to the entire network. Other nodes can receive this newly solved data block and check whether it matches the rules. If other nodes find that the requirements are indeed met by calculating the hash value (the operation goal required by Bitcoin), then the data block is valid, and other nodes will accept the data block.
Satoshi Nakamoto compares the production of Bitcoin by consuming CPU power and time to a gold mine consuming resources to inject gold into the economy. Bitcoin's mining and node software mainly uses peer-to-peer networks, digital signatures, and interactive proof systems to initiate zero-knowledge proof and verification transactions. Each network node broadcasts transactions to the network. After these broadcast transactions are verified by miners (computers on the network), miners can use their own work proof results to express confirmation, and the confirmed transactions will be packaged into data blocks. , The data blocks will be strung together to form a continuous chain of data blocks.
Each Bitcoin node will collect all unconfirmed transactions and group them into a data block. The miner node will append a random adjustment number and calculate the SHA256 hash operation value of the previous data block. The mining node keeps trying repeatedly until the random adjustment number it finds makes the generated hash value lower than a certain target.
The risks of Bitcoin mining machines:
1. Electricity bills
The "mining" of the graphics card requires a long time to fully load the graphics card, the power consumption will be quite high, and the electricity bill will be higher and higher. Many professional mines at home and abroad are located in areas where electricity costs are extremely low, such as hydropower stations, and more users can only mine at home or in ordinary mines, so electricity costs are naturally not cheap. There was even a case where someone in a community in Yunnan carried out crazy mining, which caused a large area of the community to trip, and the transformer was burned out.
2. Hardware expenditure
Mining is actually a competition of performance and equipment. Some mining machines are composed of more such graphics card arrays. When dozens or even hundreds of graphics cards come together, various costs such as hardware prices are inherently high. There are considerable expenditures. In addition to graphics card-burning machines, some ASIC (application specific integrated circuit) professional mining machines are also on the battlefield. ASICs are specially designed for hash calculations and their computing power is also quite strong, and because their power consumption is much lower than that of graphics cards, Therefore, it is easier to scale up, and electricity costs are lower. It is difficult for a single sheet to compete with these mining machines, but at the same time, the cost of such machines is also greater.
3. Currency security
Bitcoin withdrawal requires up to hundreds of keys, and most people will record this long string of numbers on the computer, but frequent problems such as damage to the hard disk will cause the key to be permanently lost, which also leads to The loss of Bitcoin.
4. System risk
System risk is very common in Bitcoin, and the most common one is fork. The fork will cause the price of the currency to fall, and the mining revenue will drop sharply. However, many situations have shown that the fork will benefit the miners. The forked altcoins also need the mining power of the miners to complete the process of minting and trading. In order to win more miners, the altcoins will provide more block rewards and rewards. Handling fees to attract miners. Instead, risk has made miners.