The software delivers the work to the miners and receives the completed work from the miners and relays that information back to the blockchain. The best Bitcoin mining software can run on almost any desktop operating systems, such as OSX, Windows, Linux, and has even been ported to work on a Raspberry Pi with some modifications for drivers depending on the platform.
Bitcoin mining is the process through which bitcoins are released to come into circulation. Basically, it involves solving a computationally difficult puzzle to discover a new block, which is added to the blockchain, and receiving a reward in the form of few bitcoins. The block reward was 50 new bitcoins in 2009; it decreases every four years. As more and more bitcoins are created, the difficulty of the mining process – that is, the amount of computing power involved – increases. The mining difficulty began at 1.0 with Bitcoin's debut back in 2009; at the end of the year, it was only 1.18. As of April 2017, the mining difficulty is over 4.24 billion. Once, an ordinary desktop computer sufficed for the mining process; now, to combat the difficulty level, miners must use faster hardware like Application-Specific Integrated Circuits (ASIC), more advanced processing units like Graphic Processing Units (GPUs), etc.

Bitcoin’s first mover advantage, popularity, and network effect has cemented it as the most popular cryptocurrency with the largest market cap. Rivals like Litecoin may have numerous technical advantages over Bitcoin’s algorithm (see more about that here), but they only hold a fraction of Bitcoin’s market cap and their dwindling communities largely consist of loyalists, speculators, and antagonistic anti-Bitcoin buyers.
Unlike ever before, the world is now able to transfer and receive funds locally and internationally at low costs, and the potential is increased given that a significant number of people in developing countries do not have access to the formal financial system, and compared to the developed countries where the competition is fierce in the financial institutions, little number of banks available in the under-developed countries imposed very high fees during international transactions.

Bitcoin Mining is intentionally designed to be resource-intensive and difficult so that the number of blocks found each day by miners remains steady over time, producing a controlled finite monetary supply. Individual blocks must contain a proof-of-work to be considered valid. This proof-of-work (PoW) is verified by other Bitcoin nodes each time they receive a block. Bitcoin uses a PoW function to protect against double-spending, which also makes Bitcoin's ledger immutable.
The whole process is pretty simple and organized: Bitcoin holders are able to transfer bitcoins via a peer-to-peer network. These transfers are tracked on the “blockchain,” commonly referred to as a giant ledger. This ledger records every bitcoin transaction ever made. Each “block” in the blockchain is built up of a data structure based on encrypted Merkle Trees. This is particularly useful for detecting fraud or corrupted files. If a single file in a chain is corrupt or fraudulent, the blockchain prevents it from damaging the rest of the ledger.
Nigel Dodd argues in The Social Life of Bitcoin that the essence of the bitcoin ideology is to remove money from social, as well as governmental, control.[124] Dodd quotes a YouTube video, with Roger Ver, Jeff Berwick, Charlie Shrem, Andreas Antonopoulos, Gavin Wood, Trace Meyer and other proponents of bitcoin reading The Declaration of Bitcoin's Independence. The declaration includes a message of crypto-anarchism with the words: "Bitcoin is inherently anti-establishment, anti-system, and anti-state. Bitcoin undermines governments and disrupts institutions because bitcoin is fundamentally humanitarian."[124][123]
An additional passphrase can be added to the 24-word seed. This provides extra protection, since anyone who finds someone else’s 24-word seed is free to access the funds. If the optional passphrase is added, an attacker still wouldn’t be able to access funds without both the seed AND the passphrase. If the passphrase is forgotten, it cannot be recovered.
In exchange for securing the network, and as the “lottery price” that serves as an incentive for burning this energy, each new block includes a special transaction. It’s this transaction that awards the miner with new bitcoins, which is how bitcoins first come into circulation. At Bitcoin’s launch, each new block awarded the miner with 50 bitcoins, and this amount halves every four years: Currently each block includes 12.5 new bitcoins. Additionally, miners get to keep any mining fees that were attached to the transactions they included in their blocks.
“Cryptojacking scams have continued to evolve, and they don’t even need you to install anything,” Jason Adler, an assistant director for the Federal Trade Commission, wrote in a blog post in June. “Scammers can use malicious code embedded in a website or an ad to infect your device. Then they can help themselves to your device’s processor without you even knowing.”
The first post was made on 31 August and suggested that the funds may be connected to the now-defunct dark web market Silk Road which handled the trade of billions of dollars worth of contraband such as recreational and prescription drugs, illegal weapons and pornography, malware, hacking services, guides to various types of criminal activity, and other black market goods and services.
The influx in malware led some online companies to implement protective measures for their users. Google announced in a blog post in April that it would no longer allow browser extensions in its Web Store that mine cryptocurrencies. The online store allows for users to pick extensions and apps that personalize their Chrome web browser, but the company noted that the “capabilities have attracted malicious software developers who attempt to abuse the platform at the expense of users.”
As more miners join, the rate of block creation will go up. As the rate of block generation goes up, the difficulty rises to compensate which will push the rate of block creation back down. Any blocks released by malicious miners that do not meet the required difficulty target will simply be rejected by everyone on the network and thus will be worthless.
The software delivers the work to the miners and receives the completed work from the miners and relays that information back to the blockchain. The best Bitcoin mining software can run on almost any desktop operating systems, such as OSX, Windows, Linux, and has even been ported to work on a Raspberry Pi with some modifications for drivers depending on the platform.

As you can imagine, since mining is based on a form of guessing, for each block, a different miner will guess the number and be granted the right to update the blockchain. Of course, the miners with more computing power will succeed more often, but due to the law of statistical probability, it’s highly unlikely that the same miner will succeed every time.
Based in Austin, TX, Steven is the Executive Editor at CoinCentral. He’s interviewed industry heavyweights such as Wanchain President Dustin Byington, TechCrunch Editor-in-Chief Josh Constine, IOST CEO Jimmy Zhong, Celsius Network CEO Alex Mashinsky, and ICON co-founder Min Kim among others. Outside of his role at CoinCentral, Steven is a co-founder and CEO of Coin Clear, a mobile app that automates cryptocurrency investments. You can follow him on Twitter @TheRealBucci to read his “clever insights on the crypto industry.” His words, not ours.

For all that potential, however, the basin’s nascent mining community was beset by the sort of troubles that you would have found in any other boomtown. Mining technology was still so new that the early operations were constantly crashing. There was a growing, often bitter competition for mining sites that had adequate power, and whose landlords didn’t flip out when the walls got “Swiss-cheesed” with ventilation holes. There was the constant fear of electrical overloads, as coin-crazed miners pushed power systems to the limit—as, for example, when one miner nearly torched an old laundromat in downtown Wenatchee.


At this point, the actual mining begins. In essence, each miner now tries to demonstrate to the rest of the network that his or her block of verified payments is the one true block, which will serve as the permanent record of those 2,000 or so transactions. Miners do this by, essentially, trying to be the first to guess their block’s numerical password. It’s analogous to trying to randomly guess someone’s computer password, except on a vastly larger scale. Carlson’s first mining computer, or “rig,” which he ran out of his basement north of Seattle, could make 12 billion “guesses” every second; today’s servers are more than a thousand times faster.

"While crypto markets have seen rapid growth, such trading platforms don’t seem to be well-enough prepared in terms of security," said Hong Seong-ki, head of the country's cryptocurrency response team South Services Commission. "We’re trying to legislate the most urgent and important things first, aiming for money-laundering prevention and investor protection. The bill should be passed as soon as possible."
Before even starting out with Bitcoin mining, you need to do your due diligence. The best way to do this, as we’ve discussed, is through the use of a Bitcoin mining calculator. Bear in mind that mining costs money! If you don’t have a few thousand dollars to spare on the right miner, and if you don’t have access to cheap electricity, mining Bitcoin might not be for you.
For years, few residents really grasped how appealing their region was to miners, who mainly did their esoteric calculations quietly tucked away in warehouses and basements. But those days are gone. Over the past two years, and especially during 2017, when the price of a single bitcoin jumped from $1,000 to more than $19,000, the region has taken on the vibe of a boomtown. Across the three rural counties of the Mid-Columbia Basin—Chelan, Douglas and Grant—orchards and farm fields now share the rolling landscape with mines of every size, from industrial-scale facilities to repurposed warehouses to cargo containers and even backyard sheds. Outsiders are so eager to turn the basin’s power into cryptocurrency that this winter, several would-be miners from Asia flew their private jet into the local airport, took a rental car to one of the local dams, and, according to a utility official, politely informed staff at the dam visitors center, “We want to see the dam master because we want to buy some electricity.”

For all the peril, others here see the bitcoin boom as a kind of necessary opportunity. They argue that the era of cheap local power was coming to an end even before bitcoin arrived. One big reason: The region’s hydropower is no longer as prized by outside markets. In California, which has historically paid handsomely for the basin’s “green” hydropower, demand has fallen especially dramatically thanks to rapid growth in the Golden State’s wind and solar sectors. Simply put, the basin may soon struggle to find another large customer so eager to take those surplus megawatts—particularly one, like blockchain mining, that might bring other economic benefits. Early data from Douglas County, for example, suggest that the sector’s economic value, especially the sales tax from nonstop server upgrades, may offset any loss in surplus power sales, according to Jim Huffman, a Douglas County port commissioner.

Bitmain gained an edge by supplying a superior product in large quantities, a feat that has eluded every other company in the industry. The Ordos facility is stuffed almost exclusively with Bitmain’s best performing rig, the Antminer S9. According to company specs, the S9 is capable of churning out 14 terahashes, or 14 trillion hashes, every second while consuming around 0.1 joules of energy per gigahash for a total of about 1,400 watts (about as much as a microwave oven consumes).


The other reason is safety. Looking at 2009 alone, 32,489 blocks were mined; at the then-reward rate of 50 BTC per block, the total payout in 2009 was 1,624,500 BTC, which at today’s prices is over $900 million. One may conclude that only Satoshi and perhaps a few other people were mining through 2009, and that they possess a majority of that $900 million worth of BTC. Someone in possession of that much BTC could become a target of criminals, especially since bitcoins are less like stocks and more like cash, where the private keys needed to authorize spending could be printed out and literally kept under a mattress. While it's likely the inventor of Bitcoin would take precautions to make any extortion-induced transfers traceable, remaining anonymous is a good way for Satoshi to limit exposure.
As specified by the Bitcoin protocol, each miner is rewarded by each block mined.  Currently, that reward is 12.5 new Bitcoins for each block mined. The Bitcoin block mining reward halves every 210,000 blocks, when the coin reward will decrease from 12.5 to 6.25 coins.  Currently, the total number of Bitcoins left to be mined amounts to 4,293,388. This means that 16,706,613 Bitcoins are in circulation, and that the total number of blocks available until mining reward is halved is 133,471 blocks till 11:58:04 12th Jun, 2020 When the mining reward will be halved.
Before even starting out with Bitcoin mining, you need to do your due diligence. The best way to do this, as we’ve discussed, is through the use of a Bitcoin mining calculator. Bear in mind that mining costs money! If you don’t have a few thousand dollars to spare on the right miner, and if you don’t have access to cheap electricity, mining Bitcoin might not be for you.
To be accepted by the rest of the network, a new block must contain a so-called proof-of-work (PoW).[64] The system used is based on Adam Back's 1997 anti-spam scheme, Hashcash.[5][79] The PoW requires miners to find a number called a nonce, such that when the block content is hashed along with the nonce, the result is numerically smaller than the network's difficulty target.[3]:ch. 8 This proof is easy for any node in the network to verify, but extremely time-consuming to generate, as for a secure cryptographic hash, miners must try many different nonce values (usually the sequence of tested values is the ascending natural numbers: 0, 1, 2, 3, ...[3]:ch. 8) before meeting the difficulty target.
×