Forms of mining Bitcoin and increasing income
Currently, there are two popular forms of Bitcoin mining on the market:
Cloud Mining: This is a form of mining based on the use of cloud technology – through a specific intermediary unit. That is, miners only need to register and purchase mining contracts from the intermediary – the entity that sets up the mining rigs and maintains their operation. Cloud Mining will be a reasonable choice for those who do not want to invest heavily in equipment or set up software to mine. However, the initial costs to own these contracts are quite high, and users should thoroughly research to avoid encountering unreliable organizations or units.
HardWare Mining: This is the form of Bitcoin mining using hardware – miners must purchase the necessary equipment and tools such as mining machines, network systems, infrastructure, etc. With HardWare, users can actively adjust the volume, targets, and mining output, while also benefiting from prices when purchasing these tools due to competition from suppliers. However, throughout the process of building, completing, and operating the mining system, necessary control costs will arise such as electricity, rental fees, maintenance costs, etc.
Difficulty increases
Newcomers to the Bitcoin mining ecosystem may think that this is a type of free money. Those who briefly read the process I mentioned above will think that now I need to register somewhere to mine, confirm transactions somewhere. But in reality, it is not as quick as that; it is costly and involves a lot of things, kkk.
The inventor of Bitcoin, Satoshi Nakamoto, built the mining rules in such a way that the more the mining network works, the higher the difficulty increases. Guessing the answer to the mathematical problem of mining becomes more complex.
The difficulty of the mining process can be summarized as self-adjusting according to the accumulated mining power that the network possesses. If many miners participate, it will be harder to resolve issues. This is the difficulty in mining. However, there are also some solutions to address this issue.