Bitcoin Mining

In the very early days of Bitcoin, this was a reasonable way for an average, everyday person
with a little computer knowledge to generate income. However, as more people began to use
Bitcoin and realized the potential for making money, large groups of people (including some
corporations) were set-­up, effectively locking out individuals who want to mine for bitcoins
using a home computer.

Here's a look at what you need to get started with Bitcoin Mining.

● Bitcoin Mining Software -­ While early Bitcoin Clients included the ability to mine for
bitcoins, this stopped as dedicated software for Bitcoin Mining was created and
released. You'll still need a Bitcoin Wallet to store the bitcoins you collect via mining,
but the actual mining software will be separate from the main Bitcoin Client.

● Bitcoin Mining Hardware -­ As Bitcoin became more popular, people realized that
graphics cards in computers were great for doing the complex math needed for Bitcoin
mining. Soon, dedicated hardware was created just for mining bitcoins. Software is still
needed to run them, but these devices -­ known as ASICs after the type of processor
they use -­ are almost a necessity to have enough computing power to be able to
successfully mine bitcoins.

Another thing to think about is joining a pool or what's known as a Bitcoin Guild. This is a
group of people who pool their computing power together in order to solve blocks more
quickly. This makes it easier for smaller players (individuals) to be able to compete. Once a
block is solved, the bounty is split up between members of the group based on the amount of
processing power they contributed to mining the bitcoins.

Additionally, some enterprising individuals have set-­up companies with entire data centers
setup with multiple computers in order to mine bitcoins on a very large scale. The pure
computing power available to them makes it difficult for individuals to compete these days. This
is one reason Bitcoin Guilds are becoming so popular. Lone Bitcoin miners are rarely able to
compete with the large companies unless they band together.