How To Mine Bitcoin With Your Personal Computer

Bitcoin is a virtual currency that uses a peer-to-peer system to confirm transactions through public key cryptography Model, which maintains records of every single transaction and fairly transparent. Bitcoin is not issued or backed by a government or a business, it runs on computer code on a decentralized network.

With the Increasing popularity of Bitcoin and being pretty hard to Mine, Users are adopting unethical ways to mine them and hackers are continuously targeting the network to hack the Mining pools. Let us see how Bitcoin Works and the legitmet ways to Mine(earn) Bitcoins.



How Bitcoin Work?

The Math behind Bitcoin says that to transfer Bitcoins you just need a payer and a payee. It eliminates a trusted third party, such as a government, a bank, or credit card company. i.e. there is No Central Authority or Server. The Transfer Only needs network of computers running Bitcoin software.

Each Bitcoin is made up of Digital signatures. Digital signatures are ‘math operations’ that you can perform on data that you send to and that prove the following:

Authenticity: the data was created by a specific sender.
Non-reputation: the data is confirmed to have been sent by a specific sender in such a way that the sender cannot deny having sent the data.
Integrity: the data was not manipulated in transit.

Each Bitcoin user has his own wallet and a Software that does the transfer work on behalf of the user. When you send a Bitcoin to someone else, you sign the Bitcoin with the digital signature of your Bitcoin wallet, which is software designed to hold Bitcoins and make Bitcoin transactions possible. As a result, each Bitcoin carries
within it a little ledger listing its transaction history.

As Bitcoin transactions take place, they are broadcast to the network made up of computers running Bitcoin software — whose job is to maintain the “block chain”, the digital ledger containing the record of all confirmed Bitcoin transactions.



How People earn/mine Bitcoins?

Since there is No Central Server that can process payments, the users(peers) needs to do payment processing work with their own personal computing power(as an option) or leave it on the group users offering their computing power to verify and record payments into the public ledger for a faster transaction. Bitcoins are created as a reward for payment processing work in which users offer their computing power and each peer involved with transaction processing work gets his small share of Bitcoin.



How Bitcoin Mining Works

The Processing involves some serious number-crunching(enough to max out the processors on a computer), So it needs lot of computing power which the sender or receiver cannot accommodate with their personal computer resources. for a faster transaction the process is done by the group of users offering their computing power in exchange for their share of Bitcoin.

The above activity of sharing Computer resources for payment processing is called as Bitcoin Mining. Individuals or companies engage in this activity in exchange for transaction fees in the form of newly created bitcoins.


How much Bitcoins can you make?

If you are Trying to Mine Bitcoins with your Personal computing power, I think you should just stay away from Mining. Its better to use your computer resources on other productive work rather than wasting your electricity on Bitcoin Mining just to know that your in loss at the end. You can watch the Bitcoin Beginners video below. The video just shows how much a user with a personal computer that too with a Graphics card can mine in a year.

Miners in the Bitcoin network all work on trying to be the first one to complete the number-crunching process required for the payment processing. As I said there is very very little profit with your personal computing power, then there are specialized Mining Rigs which are being used by Individuals or companies which can yield considerable profit.

Special bitcoin mining rigs

Also it will become harder and harder to make Bitcoins as time goes by since every 4 years, the reward paid to a miner for creating a block(number-crunching process) is halved. When the network started, the reward for creating a block was 50 Bitcoins; it was reduced to 25 in November 2012, and in four years, it will be reduced to 12.5. Eventually, the reward will be removed entirely when an arbitrary limit of 21 million bitcoins is reached (2140).

I believe by now you have a rough Idea about how much Bitcoins you can Mine/Earn depending on your Computing power.





credit: Tochukwu M., Ashwin S.

Ways Through Which You Can Become A Millionaire While Working For Someone Else

 According to some estimates, if you’re considering becoming an entrepreneur you’ll have to make 35 percent more than your current salary to fully replace the income a day job brings in each month. For someone with a family to support, leaving the safety of a salaried position is risky, even if it might be more lucrative down the road.

If you’re set on becoming a millionaire, but you also want the security of working for someone else, here are a few options to consider.



1. Earn partner status.
Partnerships aren’t just for law firms. Look for a small business or startup where you have a shot at becoming a business partner at some point. While many business owners either choose to form a partnership or sole ownership from the start, a small business founder can definitely change that as a company grows.


If you work hard, bring certain expertise to the table and show your leadership capabilities, take the opportunity to pitch the idea of joining your boss in running things. That could lead to a much larger share of revenue over the following years -- even eventual millionaire status. That kind of thing certainly won't come as quickly if you shy away from daring to become a leader at your company.



2. Live below your means.
The less you spend, the more you have in the bank. You can’t save money if you’re spending too much of it consistently. The entire theory behind “the millionaire next door” is that many of the wealthiest people are living well below their means.


This may amount to years, or even decades, of living in a small house or driving a used car but if it pays off later, it’s well worth it. In some cases, saving money is actually better than earning more money, especially when you remember you have to pay taxes and it helps to have money in the bank for that.



3. Invest Wisely
Navigating the stock market can be tricky. It’s also a way to quickly increase your income, provided you know what you’re doing and you have the extra time and energy to devote to becoming good at it.

Many entrepreneurial-minded people are skilled at spotting a solid business concept and putting their money into it. They keep an eagle eye on the performance of a wide range of different stocks and industries, much the same way a football fan might pore over stats and standings of their fantasy team.


If you’re completely clueless about the stock market, put serious time into finding a financial expert who can direct you on the best investments to reach your goals. Once you have the extra income, you can also consider investing in real estate or rental properties to boost your monthly earnings.



4. Take over the business.
Eventually, the business owner will retire or move on to other ventures. That could be your chance to shine.


If your business owner isn’t even close to retirement age, look for the possibility that he or she may someday want to set the business aside to work on other ventures. Throughout your tenure with the company, show you have the passion and work ethic necessary to run the business in the current owner’s absence. If you’re a trusted employee, chances are you’ll get more and more responsibility for leading the company as the years progress. If you can’t imagine wanting to take over the business you currently work for, consider exploring a different field.



5. Start a side business.
Once your day job ends, your side hustle should begin. With today’s technology, you don’t have to invest in a physical office and a team of employees to start a new business.


Keeping your job and becoming a millionaire may mean toiling away night after night to build your client base to build a steady revenue flow so you can leave your salaried position behind someday. Make sure your side business doesn’t pose a conflict of interest to your day job while you still rely on it to pay your bills.


Only few millionaires are made overnight. It takes years of hard work and forethought to reach that type of income level. Like most people, if you want to generate more money, you’ll need to do it while you’re working for someone else, at least at the start. Keep in mind just how much work it is to set up a new business, learn what your customers want as well as create a product or service that matches that.


Sacrifice is the name of the game and it’s not right for everyone. It’s still attainable though, as long as you stay disciplined, think quickly and persevere over the long haul.




credit: John Boitnott
editor: Tochukwu M.D.