Bitcoin works as an online form of fiat money. However, people mine it like gold. So, how can you join the Bitcoin rush that seems to interest everybody? If willing to take the risk, research, and do it properly, Bitcoin mining can bring you a few tokens. Thus, you can start earning Bitcoin, trading, and investing in it if you have what it takes. But can you do it alone?
Understanding Solo Bitcoin Mining
Solo Bitcoin mining is a process where a single person or entity undertakes the mining operations without help. That means a solo miner does not join a mining pool. Once a new Bitcoin transaction happens, a solo miner receives the mathematical problem in the blockchain network and starts working on it.
If the solo miner finds a solution to the problem, their hardware informs the other miners. Consequently, other miners verify the lone miner's answer to avoid false block validation. After the verification process, the miner receives a reward, and the network adds the transaction to the blockchain.
Since pool mining involves more powerful computers, it's the option that most miners prefer. That's because pool mining uses hardware with a higher hash rate. Consequently, solo mining compares to playing the lottery. Nevertheless, you can still make money from solo Bitcoin mining.
What You Need to Mine Bitcoin Alone
Before diving into the requirements for solo mining, understand that this option is not suitable for Bitcoin and other established networks like Litecoin. That's because the difficulty level is too high for a competitive and established network. Consequently, mining a block alone is not easy without joining a pool.
For this reason, many people purchase Bitcoin on crypto exchanges using fiat money instead of mining it. A platform like Bitcoin Era allows you to buy this virtual currency using conventional money. You can also sell this digital currency to get local currency. Perhaps, you can visit Bitcoin Revolution for more information.
With Bitcoin mining, the difficulty level is relative to the number of resources required to mine a single block. Ideally, you can spend more money investing in electricity and mining hardware than you will get as the incentive for mining a single block. Here are the requirements for mining Bitcoin alone.
- Hardware: Hardware requirements depend on the blockchain's network difficulty. Since Bitcoin is not a new cryptocurrency, mining it requires more than any CPU. That means you need specialized hardware to start mining Bitcoin alone. Ideally, Bitcoin mining involves application-specific circuit chips that may cost you a lot of money.
- Software: After investing in Bitcoin mining hardware, purchase solo mining software. Note that not every software implementation allows solo mining configuration. Therefore, look for open-source software for Bitcoin mining with FPGAs or ASICs.
- Power supply: Bitcoin mining requires a lot of electricity. Therefore, get a reliable source of sufficient energy to start mining Bitcoin alone. Currently, mining Bitcoin costs a lot of money in power bills. That's because the process involves using powerful computers.
Solo mining is ideal when working with a small network. However, mining Bitcoin alone is not profitable or viable. That's because you will invest more money than you will make from the sale of your Bitcoin. What's more, you may not have what it takes to solve as many math problems alone as you would when working in a mining pool. Therefore, if you intend to start mining Bitcoin, join a rig. Alternatively, use crypto exchanges to purchase this cryptocurrency and trade it. You can also buy and hold onto your bitcoins, hoping their price will increase to sell them for profits.