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

Remember that ELI5 analogy, where 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 huge computers and dozens of cooling fans is guessing in the target hash. Miners create these guesses by randomly generating as many"nonces" as possible, as quickly as possible. A nonce is short for"number only used once," and the nonce is the key to generating these 64-bit hexadecimal numbers I keep talking about.

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

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

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

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

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

Here are some examples of randomized hashes and also the standards for if they will lead to achievement for the miner:

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

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

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The aforementioned website Cryptocompare offers a very helpful calculator that permits you to plug in numbers such as your hash speed, electricity costs etc. to estimate the costs and benefits.

Mining rewards are paid into the miner who finds a solution to the puzzle first, and the likelihood that a participant will be the one to find the solution is equal to the portion of the entire mining energy on the network.  Participants with a small percentage of the mining capability stand a tiny chance of discovering the next block on their own.  For instance, a mining card that one could purchase for a couple thousand dollars would represent less than 0.001% of the network's mining energy.  With such a tiny chance at finding the next block, it might 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 recoup their her response 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 swimming pool and sharing the payouts amongst participants, miners can find a steady flow of bitcoin starting the day that they trigger 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 like Coinbase.com. Alternately, you can consistently leverage the"pickaxe strategy". This is based on the old saw that during the 1848 California gold rush, the wise investment was not to pan for goldbut rather to make 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 look into companies that make ASICs miners or GPU miners. .