Can You Mine Your Own Bitcoin BTC

Jan 21, 2018 at 8:05PM If you want to join in the frenzy without simply buying the digital currency at today's inflated prices, then bitcoin mining is another way to get involved. However, mining bitcoins does come with expenses -- and risks -- of its own. And the more popular bitcoins become, the harder it is to mine them profitably. What is bitcoin mining? Unlike paper currency, which is printed by governments and issued by banks, bitcoins do not come in any physical form. That creates a major risk, as hackers could theoretically create bitcoins from nothing. Bitcoin mining is how the bitcoin network keeps its transactions secure.

Bitcoin transactions are secured by, which make up a public ledger of transactions. Because of how blockchain transactions are structured, they're extremely difficult to alter or compromise, even by the best hackers. But in order to secure these transactions, someone needs to dedicate computing power to verifying the activity and packaging the details in a block that goes into the bitcoin ledger. And that's precisely what bitcoin miners do.

Its possible best example of this is viabtc they have a transaction accelerator tool that can mined a transaction when they get a block. You can only mine your own transaction if you mine a block - there's a block every ~10 minutes so as a solo miner you're very unlikely to do so. Mining pools. Before even starting out with Bitcoin mining you need to do your due. Or changes in BTC rate and mining. Their own software but some don’t. You can find a. Jan 21, 2014 - It has value; at the moment I write this, each 'coin' is worth $869.61 and the total dollar value of existing bitcoins worldwide is almost $11 billion. Unlike traditional currency, it exists outside of national control. Like precious metals, it can be mined, but unlike precious metals, you can't hold it in your hand. Into actual Bitcoins. It allows you to generate Bitcoins without. Many Bitcoins you can mine on your own computer just. Join bitcoin mining can any one.

As a reward for doing the work to track and secure transactions, miners earn bitcoins for each block they successfully process. The bitcoin founders have set a limit of 21 million bitcoins available for mining. Once that total is reached, miners will still be able to benefit from transaction fees, but they won't be granted bitcoins as a reward for their work. As of mid-January 2018, approximately 16.8 million of those 21 million bitcoins have already been mined. Assuming the bitcoin mining industry doesn't change dramatically, it looks like we won't hit the 21 million-bitcoin limit until the year 2140.

Image source: Getty Images. How to mine bitcoins During the early days of bitcoin mining, miners would often download a software package designed to allow their computers to process bitcoin transactions in the background. Unfortunately, that's no longer practical, because solving bitcoin transactions has become too difficult for your average computer to manage.

The bitcoin network is designed to produce a certain number of new bitcoins every 10 minutes. If only a few people are bitcoin mining at any given time, then the network will be generous and share bitcoins readily in order to reach the predetermined number. But now that bitcoin mining has become so widespread, the network has become much stingier about handing out bitcoins to miners. In order to control how frequently bitcoins are generated, the network requires miners to solve more and more difficult problems to confirm transactions -- which means that miners must have more and more powerful equipment just to keep up. These days, in order to have a chance at being profitable, miners need to adopt one of two approaches: 1) buy specialized hardware (aka a bitcoin mining rig) or 2) join a cloud mining pool. Bitcoin mining hardware To get started with your own mining rig, you buy hardware designed for mining bitcoin (or some other virtual currency), set it up, and let it run 24/7 solving bitcoin transactions. Ideally, this will result in a steady flow of payments without your needing to get involved.

While it's fairly easy to set up and use a bitcoin mining rig, actually making money on the process is something of a challenge. Because more and more people are signing up to mine bitcoins, the mining process continues to get more difficult and will likely keep doing so for some time. That means the hardware you bought last year to mine bitcoins probably won't be up to the job a year from now. And because bitcoin mining rigs aren't cheap -- expect to pay at least $1,000 for the hardware, or several times that for a top-quality rig -- having to replace it every year or two takes a huge bite out of any profits you make from mining. Plus, most mining rigs consume enormous amounts of electricity, so you also have to subtract that expense from the bitcoins you earn to determine your profits.

Cloud mining If buying and maintaining your own mining hardware doesn't appeal to you, then cloud mining may be the way to go. Cloud mining companies invest in huge mining rigs, often filling entire data centers with the hardware, and then sell subscriptions to individuals interested in dipping a toe into bitcoin mining. Your subscription to a cloud mining company earns you a small percentage of the bitcoins that those mining rigs yield. The biggest challenge facing cloud mining subscribers is avoiding fraud. The field is rife with pseudo-companies that sell thousands of multiyear subscriptions, pay out for a few months, and then disappear into the sunset. If you decide to try cloud mining, do your homework in advance and confirm that the company you're dealing with is a real cloud miner and not a scheme. Preferably, you'd pick a cloud mining company that's been around for several years and has a decent reputation.

Avoid companies with anonymous domain registration (you can look up their registration info at ), as well as any mining company that 'guarantees' profits or offers huge incentives for referring new customers; anything above a 10% referral commission is deeply suspicious, because legitimate mining pools simply don't generate a high enough profit margin to pay big commissions. If you find a legitimate cloud mining company, you'll still lose out on a portion of the bitcoins the company generates, as said company will take its cut from whatever profits it generates. Many cloud mining companies also charge a fee or deduct a percentage of your take to pay for maintenance, electricity, and other costs of doing business. And as bitcoin mining becomes more and more competitive, the returns you make from that multiyear subscription may sink to an unprofitable level. Bitcoin may or may not be at the, but bitcoin mining has definitely become much less profitable as more and more people get involved. You can help predict your profitability by using a to crunch the numbers, but even the best calculator can't tell you what the situation will be like in a few months or years.

In short, getting involved in bitcoin mining today is a risky business. You might be able to make a fortune, but you're more likely to lose big.

If no, why not? And is it you physically/theoretically or practically cannot? If yes, is this ever practical and does anyone do it? As I see it now, no matter what you are taking a fraction/subset of bitcoins entire hashing power so the difficulty of finding a nonce would take longer than 10 minutes to confirm.

As I see it, for this to be practical. Block reward + saved fees >mining costs * time Where saved fees are the result of not having to pay other miners fees since you are doing it yourself and time is the time it takes to find the nonce. Note: this miner wouldnt have to be running full time. Theoretically, if you can mine blocks then you can certainly include your own transactions in the block. Practically, you are competing with every other miner on the planet to find the next block. If you 'win', you get the block reward plus you get to choose which transactions are included in your block. If somebody else wins, you get no say in the matter.

Unless you have a very large mining operation, the chance of you winning is so small that it's never going to happen. Miners who do make new blocks today (somebody has to, after all) may choose to include their own transactions in their blocks. You can keep your blocks secret but that means other can't build on top of them. Every block has 1 (and only 1) parent. If you have less than 50% of the hashing power of the entire network, you can't out-compete the others. They will make blocks faster.

Because when a block will drop is random, you might be able to get a block before anyone else does, and you might even get another one on top of that one before the others get 2 blocks ahead of the starting position, but you can't defeat the law of big numbers and will lose the race in the long term. – Apr 18 '17 at 22:07 •. The fees people pay for transactions aren't destroyed.

They are paid to the miner who mined the block. Each block typically contains about 2'500 transactions. For this to work, you have to make about as many blocks as transactions. Your transaction fee then is less than 0.1% of the fees you get from others.

Plus, the block reward currently is way higher than the total transaction fees taken per block. Monero XMR Mining Hash Algorithm. You'd be at less than 0.01%. So if you can make a block, why not do it all the time and easily get 10'000 the money you save?

I was looking at it from the purpose of trying to figure out how does free trusted timestamping based on sending bitcoins to i assume their own accounts, with a hash. So the use case of being able to mine your own transactions is for an app that requires secured time stamping, like if users needed to timestamp legal documents. 1) no transaction fee 2) you put your miner in your same network, so no network fee and lower latency 3) You dont have to wait forever for the transaction to be processed if you are trying to reduce fees. I dont know anything about fees vs time for minimum sum BTC transfers to happen, and if running a small miner server to perform this within my network is what it takes to not have to worry about it.

It's something to be explored. I don't know where you got your information, but mining a single block would take much longer than a day. In fact, it would take much longer than a human lifespan. You would be dead before you'd mine a block.

The size of a block is not a factor in how long it takes to mine a block. Mining a block with just your transaction would take the same amount of time as mining a block with a million transactions. Also, there is no such thing as 'server side' in Bitcoin. It is a peer to peer network. I don't believe you have done enough research to understand what you are taking about. – Jul 30 '17 at 22:28.