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If you're mining Bitcoin, you do not need to calculate the entire value of the 64-digit number (the hash). I repeat: You do not need to figure the total value of a hash.

Remember that ELI5 analogy, in which I wrote the number 19 on a piece of newspaper and put it in a sealed envelope

In Bitcoin mining conditions, that metaphorical undisclosed number in the envelope is called the target hash.

What miners are doing with those tremendous computers and dozens of cooling fans is guessing in the target hash. Miners create these guesses by randomly generating as many"nonces" as you can, as fast as possible. A nonce is short for"number only used once," and the nonce is the secret to generating these 64-bit hexadecimal numbers I keep talking about.

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The first miner whose nonce generates a hash that is less than or equivalent to the target hash is given credit for completing that block, and is awarded the spoils of 12.5 BTC. .

In theory you could Attain the same aim by rolling a 16-sided expire 64 times to arrive at random numbers, but why on earth would you want to do that

The screenshot below, taken by the website Blockchain.info, might help you put all of this information together at a glance. You're looking at a summary of everything which happened when obstruct 490163 was mined. The nonce that generated the "winning" hash was 731511405. The goal hash is shown on top.

As you see here, their contribution into the Bitcoin community is they confirmed 1768 transactions for this block. If you truly want to see all 1768 of those transactions for this block, then go to this page and scroll down to the heading"Transactions." .

There is no minimum target, but there's a maximum target set by the Bitcoin Protocol. No goal can be higher than this number:

Here are some examples of randomized hashes and also the criteria for whether they will lead to success for your miner:

You'd have to find a fast mining rig , more realistically, join a mining pool--a bunch of miners that combine their computing power and split the mined bitcoin. Mining pools are somewhat comparable to those Powerball clubs whose members buy lottery tickets en masse and agree to share any winnings. A disproportionately high number of blocks are mined by pools rather than by individual miners. .

In other words, it is literally only a numbers game.  You cannot imagine the pattern or make a prediction based on preceding goal hashes. The difficulty level of the most recent block at the time of writing is 2,874,674,234,416, i.e. the chance of any given nonce producing a hash below the goal is 1 in 2,874,674,234,416--less than 1 in 2 trillion. .

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The aforementioned website Cryptocompare offers a helpful calculator that allows you to plug in numbers such as your hash rate, electricity costs etc., to gauge the costs and benefits.

Mining rewards are paid into the miner who finds a solution to the puzzle first, and also the likelihood that a participant is going to be the one to discover the solution is equivalent to the portion of the total mining energy on the network.  Participants which have a small percentage of the mining capability stand a very small chance of discovering the next block on i loved this their own.  For instance, a mining card that one could buy for a few thousand dollars would represent less than 0.001percent of their network's mining power.  With such a tiny chance at finding the next block, it could be a long time before that miner finds out a block, and also the problem going up makes things even worse.  The miner may never recover their investment.  The answer to this problem is mining pools.  Mining pools are run by third parties and coordinate groups of miners.  By working together in a pool and sharing the payouts amongst participants, miners can find a steady flow of bitcoin starting the afternoon they activate their miner.  Statistics on some of the mining pools can be seen on Blockchain.info. .

Sure. As discussed, the simplest way to acquire Bitcoin is to buy it on an exchange such as Coinbase.com. Alternately, you can always leverage the"pickaxe plan". This relies on the old saw that during the 1848 California gold rush, the wise investment was not to pan for goldbut instead to create the pickaxes used for mining.

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In a crypto context, the pickaxe equivalent are a company that manufactures equpiment used for Bitcoin mining. You can start looking into index companies that make ASICs miners or GPU miners. .