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When I first heard the term “Bitcoin mining”, I imagined a 49er dressed in tattered western garb, swinging a pickaxe at a huge data server and yelling “BOYS, I FOUND US SOME BITCOIN!”. Needless to say, my initial understanding of Bitcoin mining was completely off the mark (although I secretly wish it was true). Bitcoin is entirely digital, so unlike other mineable materials such as gold or coal, swinging a pickaxe at the ground won’t dig up any bitcoins. You actually have to use a mining rig, which consists of mining software and hardware. Unlock tips, systems & recommended resources to stay ahead of the tech curve. The term “mining” is also really just a clever metaphor for the intricate proof-of-work system that gives people bitcoins in exchange for validating the cryptocurrency’s transactions. In other words, the reason why people mine Bitcoin and how they actually do it is complicated. Fortunately for you, though, we wrote an in-depth explanation of what Bitcoin mining exactly is, why people do it, and how you can mine the cryptocurrency. What is Bitcoin Mining? To truly understand how Bitcoin mining works, you first need to know the basics of Blockchain, which is the underlying technology for cryptocurrencies like Bitcoin, Litecoin, and Ethereum. The technology acts like a public, digital ledger of every single transaction made in Bitcoin, recording each transaction of the cryptocurrency into a database, copying the database, and sending copies to every computer, or node, in its network. To make sure this ledger’s true state is verified and updated, each node in its network cross-references and communicates with each other to see if all the copies are the same. This publicizes and validates every single transaction of Bitcoin. It also decentralizes the cryptocurrency, removing the need for a financial middleman to verify its transactions, like a bank. If a node notices one of the ledger’s copies isn’t the same, due to a manipulation of a transaction’s record after the fact, the network rejects the transaction. This security protocol halts people from altering the ledger to spend bitcoins more than once and prevents them from sending someone else’s digital funds to themselves. To update a blockchain with these new, verified transactions, a new block, which is a bundle of these transactions, needs to be created and added to the chain, which is all the blocks linked together. But to create and add a block to the chain, the block needs to be validated by the answer to a complex cryptographic puzzle. So Bitcoin rewards the individuals, groups, or businesses who are first to solve the puzzle with a payout of the cryptocurrency. These validators, who use mining software and hardware to earn Bitcoin payouts, are called miners. Once a miner figures out the correct answer to the cryptographic puzzle, which is verified by each node in the network, they earn the block reward and a new block is created and added to the blockchain. Each block has a unique code, called a "hash", on one of its sides and the hash of the previous block in the chain on its other side, linking all the blocks together in a chronological and permanent fashion. For Bitcoin miners, the block reward for validating one megabyte worth of Bitcoin transactions is currently 12.5 tokens. With one token’s value hovering at around $6,374 today, a successful miner could rake in approximately $79,675. Validation methods like mining are called proof-of-work or PoW, and they're one of the reasons why Bitcoin and Blockchain are considered so innovative. Incentivizing miners with payouts of Bitcoin to validate its transactions makes the cryptocurrency safe, secure, and trustworthy to use. Mining also releases bitcoins into circulation, which increases the odds that consumers and merchants will be more willing to adopt, accept, and trade it, boosting the cryptocurrency’s value. But even though mining is economically beneficial to miners, consumers, merchants, and Bitcoin itself, digging for it can actually harm the environment -- Bitcoin miners are predicted to consume more electricity than the entire country of Argentina by the end of the year. Since there’s a limited supply of Bitcoin, they don’t want to issue the supply of the cryptocurrency too quickly, so they make the cryptographic puzzles that validate each block increasingly more difficult to solve. This allows them to cap the number of blocks that miners can package and link to the chain each day. As a result, the more challenging these cryptographic puzzles get, the more electricity miners have to use to mine Bitcoin. Is Bitcoin Mining Worth It? Despite the profit potential of mining Bitcoin, the energy costs associated with Bitcoin mining and your mining hardware’s upfront costs can actually do harm to your bank account. Picking the wrong hardware or not having access to a lot of cheap electricity could cost you more money to mine Bitcoin than the maximum number of funds you can earn. So before you invest in a mining rig to mine Bitcoin by yourself, make sure to use a Bitcoin mining profitability calculator from websites like CryptoCompare, Buy Bitcoin Worldwide, or 99bitcoins to see if you can actually turn a profit. If you find out you can’t make a profit mining Bitcoin by yourself, not all hope is lost. You can actually pay companies to mine the cryptocurrency for you. This service is called cloud mining and the companies who offer it own huge cryptocurrency mining facilities filled with stacks of mining rigs. All you have to do is rent a rig and they’ll start mining Bitcoin for you. How to Mine Bitcoin 1. Hire a cloud mining company. In the crypto community, Genesis Mining is considered the most reputable cloud mining company. Their data center is located in Iceland, so they use renewable energy sources, like geothermal energy and hydropower, to power their mining operation in a more cost-effective and cleaner way than their counterparts who solely rely on electricity. If you want to check out other cloud mining companies, take a look at HashFlare or a cloud mining company review site, like CryptoCompare. They list most cloud mining companies’ contracts and include their length, the cryptocurrency they’ll mine, price, return on investment, profit ratio, user reviews, and ratings. 2. Pick a mining package. After you pick a cloud mining company and sign up for a free account, you can choose between a selection of mining packages, which will all have different contract lengths, hashing power, and prices. Your package’s price depends on Bitcoin’s current market value, the cost and difficulty level to mine the cryptocurrency right now, and your preferred hash rate. 3. Select a mining pool. Once you choose your contract, you can either mine Bitcoin on your own or mine the cryptocurrency with other Bitcoin miners in a group called a mining pool. Joining a mining pool allows you to combine your rigs together and boost your total hashing output. You’ll have to split your block rewards with the other miners in your pool, but mining pools usually generate more block rewards for individuals than mining Bitcoin on your own. Most cloud mining companies will ask you to join a mining pool right after you choose your contract. 4. Choose a Bitcoin wallet. To withdraw and store the bitcoins a cloud mining company has mined for you, you need to download a Bitcoin wallet, which is software that allows you to securely receive, store, and send bitcoins in the Bitcoin network. You’ve got your Bitcoin wallet, address, and mining hardware. Now, all you have to do is get a free Bitcoin mining software that can help you effectively manage and oversee your hardware’s crypto dig. Like any popular, free product, though, there’s a lot of options to choose from. Without testing them all out, how do you separate the Doctor Peppers of mining software from the Doctor Thunders? Fortunately for you, we scoured the web to find some of the absolute best mining software options for 2018. Unlock tips, systems & recommended resources to stay ahead of the tech curve. We’ll cover their best benefits, features, and their compatible operating systems and mining hardware below. Read on to find your ideal Bitcoin mining software. 8 of the Best Bitcoin Mining Software for 2018 1. CGMiner The crypto community generally considers CGMiner to be the best Bitcoin mining software on the market due to its great versatility. CGMiner is open source and written in C, runs on Mac, Windows, and Linux, and is compatible with three types of mining hardware: GPU, FPGA, and ASIC. The mining software also has a ton of other benefits, like advanced detection of new blocks, remote interface capabilities, and an ability to scale to a hash rate of any size with zero delay. 2. BFGMiner Just like CGMiner, BFGMiner is written in C, so it can run on most operating systems like Mac, Windows, and Linux. The modular software miner is also compatible with mining hardware like FPGA and ASIC. Some of BFGMiner’s best benefits are its ability to simultaneously hash on popular mining algorithms, like Scrypt and SHA256d, and mine multiple cryptocurrencies at the same time. Its other useful features include integrated overclocking, full monitoring, and fan speed control. 3. EasyMiner EasyMiner is a GUI-based, open-source frontend software upgrade for mining software like CGMiner and BFGMiner. The upgrade gives you a clean user interface and can integrate with your cryptocurrency wallet. It also allows you to mine various cryptocurrencies like Bitcoin, Litecoin, and others, but only with the Windows operating system and ASIC mining hardware. When you start mining cryptocurrency with EasyMiner, you can either choose the “Moneymaker” mode, which sets you up with stratum pool to mine Litecoin, or the “Solo” mode, which lets you pick your own type of pool, the cryptocurrency you want to mine, and the custom hash algorithm associated with your chosen cryptocurrency. 4. BitMinter Similar to EasyMiner, BitMinter is a GUI-based, open source mining software. But its versatility is what sets it apart from EasyMiner -- you can run it on Windows, Mac, and Linux and it’s also compatible with mining hardware like GPU, FPGA, and ASIC. To mine Bitcoin with BitMinter, you actually need to join its Bitcoin mining pool, which has had over 450,000 users register for an account since 2011. BitMinter requires you to join the mining pool before you can use the software because they want to make it easier for their users to mine Bitcoin and win higher payouts. 5. BTCMiner BTCMiner is a cloud-based mining software with over 142,315 users. Anyone with a Bitcoin wallet and address, FPGA mining hardware, and an internet connection can mine cryptocurrency on the software. One of BTCMiner’s coolest features is that its dynamic frequency scaling is based on error measurement, so the mining software automatically selects the frequency with the highest hash rate. BTCMiner also boasts other great features like power save mode, overheating protection, and ready-to-use Bitstream, which lets you run the mining software without Xilinx software or a license. 6. DiabloMiner DiabloMiner uses the OpenCL framework to swiftly conduct hashing computations and support unlimited amounts of mining pools for its users. The mining software is compatible with GPU mining hardware and runs on Mac, but if you have any of the current Nvidia drivers or an ATI Stream SDK 2.1, it’ll run on any operating system. You also have the option of either doing solo or pool mining. 7. MultiMiner Considered the easiest-to-use mining software with its intuitive graphical UI, MultiMiner is also one of the most versatile. You can run it on Windows, Mac, and Linux, seamlessly switch from one type of mining hardware to another with it, and use it to mine different types of cryptocurrency. One of MultiMiner’s most advanced benefits is its ability to automatically scan and detect your mining hardware’s details, like its average hashing power and the pool that it’s linked to. The mining software can also give you the option to automatically mine the most profitable or lowest difficulty cryptocurrency at any given time and even displays your projected profits. 8. Awesome Miner Awesome Miner is a robust mining software that can simultaneously handle multiple types of mining hardware, supports more than 25 mining engines, is compatible with every popular mWhen I first heard the term “Bitcoin mining”, I imagined a 49er dressed in tattered western garb, swinging a pickaxe at a huge data server and yelling “BOYS, I FOUND US SOME BITCOIN!”. Needless to say, my initial understanding of Bitcoin mining was completely off the mark (although I secretly wish it was true). Bitcoin is entirely digital, so unlike other mineable materials such as gold or coal, swinging a pickaxe at the ground won’t dig up any bitcoins. You actually have to use a mining rig, which consists of mining software and hardware. Unlock tips, systems & recommended resources to stay ahead of the tech curve. The term “mining” is also really just a clever metaphor for the intricate proof-of-work system that gives people bitcoins in exchange for validating the cryptocurrency’s transactions. In other words, the reason why people mine Bitcoin and how they actually do it is complicated. Fortunately for you, though, we wrote an in-depth explanation of what Bitcoin mining exactly is, why people do it, and how you can mine the cryptocurrency. What is Bitcoin Mining? To truly understand how Bitcoin mining works, you first need to know the basics of Blockchain, which is the underlying technology for cryptocurrencies like Bitcoin, Litecoin, and Ethereum. The technology acts like a public, digital ledger of every single transaction made in Bitcoin, recording each transaction of the cryptocurrency into a database, copying the database, and sending copies to every computer, or node, in its network. To make sure this ledger’s true state is verified and updated, each node in its network cross-references and communicates with each other to see if all the copies are the same. This publicizes and validates every single transaction of Bitcoin. It also decentralizes the cryptocurrency, removing the need for a financial middleman to verify its transactions, like a bank. If a node notices one of the ledger’s copies isn’t the same, due to a manipulation of a transaction’s record after the fact, the network rejects the transaction. This security protocol halts people from altering the ledger to spend bitcoins more than once and prevents them from sending someone else’s digital funds to themselves. To update a blockchain with these new, verified transactions, a new block, which is a bundle of these transactions, needs to be created and added to the chain, which is all the blocks linked together. But to create and add a block to the chain, the block needs to be validated by the answer to a complex cryptographic puzzle. So Bitcoin rewards the individuals, groups, or businesses who are first to solve the puzzle with a payout of the cryptocurrency. These validators, who use mining software and hardware to earn Bitcoin payouts, are called miners. Once a miner figures out the correct answer to the cryptographic puzzle, which is verified by each node in the network, they earn the block reward and a new block is created and added to the blockchain. Each block has a unique code, called a "hash", on one of its sides and the hash of the previous block in the chain on its other side, linking all the blocks together in a chronological and permanent fashion. For Bitcoin miners, the block reward for validating one megabyte worth of Bitcoin transactions is currently 12.5 tokens. With one token’s value hovering at around $6,374 today, a successful miner could rake in approximately $79,675. Validation methods like mining are called proof-of-work or PoW, and they're one of the reasons why Bitcoin and Blockchain are considered so innovative. Incentivizing miners with payouts of Bitcoin to validate its transactions makes the cryptocurrency safe, secure, and trustworthy to use. Mining also releases bitcoins into circulation, which increases the odds that consumers and merchants will be more willing to adopt, accept, and trade it, boosting the cryptocurrency’s value. But even though mining is economically beneficial to miners, consumers, merchants, and Bitcoin itself, digging for it can actually harm the environment -- Bitcoin miners are predicted to consume more electricity than the entire country of Argentina by the end of the year. Since there’s a limited supply of Bitcoin, they don’t want to issue the supply of the cryptocurrency too quickly, so they make the cryptographic puzzles that validate each block increasingly more difficult to solve. This allows them to cap the number of blocks that miners can package and link to the chain each day. As a result, the more challenging these cryptographic puzzles get, the more electricity miners have to use to mine Bitcoin. Is Bitcoin Mining Worth It? Despite the profit potential of mining Bitcoin, the energy costs associated with Bitcoin mining and your mining hardware’s upfront costs can actually do harm to your bank account. Picking the wrong hardware or not having access to a lot of cheap electricity could cost you more money to mine Bitcoin than the maximum number of funds you can earn. So before you invest in a mining rig to mine Bitcoin by yourself, make sure to use a Bitcoin mining profitability calculator from websites like CryptoCompare, Buy Bitcoin Worldwide, or 99bitcoins to see if you can actually turn a profit. If you find out you can’t make a profit mining Bitcoin by yourself, not all hope is lost. You can actually pay companies to mine the cryptocurrency for you. This service is called cloud mining and the companies who offer it own huge cryptocurrency mining facilities filled with stacks of mining rigs. All you have to do is rent a rig and they’ll start mining Bitcoin for you. How to Mine Bitcoin 1. Hire a cloud mining company. In the crypto community, Genesis Mining is considered the most reputable cloud mining company. Their data center is located in Iceland, so they use renewable energy sources, like geothermal energy and hydropower, to power their mining operation in a more cost-effective and cleaner way than their counterparts who solely rely on electricity. If you want to check out other cloud mining companies, take a look at HashFlare or a cloud mining company review site, like CryptoCompare. They list most cloud mining companies’ contracts and include their length, the cryptocurrency they’ll mine, price, return on investment, profit ratio, user reviews, and ratings. 2. Pick a mining package. After you pick a cloud mining company and sign up for a free account, you can choose between a selection of mining packages, which will all have different contract lengths, hashing power, and prices. Your package’s price depends on Bitcoin’s current market value, the cost and difficulty level to mine the cryptocurrency right now, and your preferred hash rate. 3. Select a mining pool. Once you choose your contract, you can either mine Bitcoin on your own or mine the cryptocurrency with other Bitcoin miners in a group called a mining pool. Joining a mining pool allows you to combine your rigs together and boost your total hashing output. You’ll have to split your block rewards with the other miners in your pool, but mining pools usually generate more block rewards for individuals than mining Bitcoin on your own. Most cloud mining companies will ask you to join a mining pool right after you choose your contract. 4. Choose a Bitcoin wallet. To withdraw and store the bitcoins a cloud mining company has mined for you, you need to download a Bitcoin wallet, which is software that allows you to securely receive, store, and send bitcoins in the Bitcoin network. You’ve got your Bitcoin wallet, address, and mining hardware. Now, all you have to do is get a free Bitcoin mining software that can help you effectively manage and oversee your hardware’s crypto dig. Like any popular, free product, though, there’s a lot of options to choose from. Without testing them all out, how do you separate the Doctor Peppers of mining software from the Doctor Thunders? Fortunately for you, we scoured the web to find some of the absolute best mining software options for 2018. Unlock tips, systems & recommended resources to stay ahead of the tech curve. We’ll cover their best benefits, features, and their compatible operating systems and mining hardware below. Read on to find your ideal Bitcoin mining software. 8 of the Best Bitcoin Mining Software for 2018 1. CGMiner The crypto community generally considers CGMiner to be the best Bitcoin mining software on the market due to its great versatility. CGMiner is open source and written in C, runs on Mac, Windows, and Linux, and is compatible with three types of mining hardware: GPU, FPGA, and ASIC. The mining software also has a ton of other benefits, like advanced detection of new blocks, remote interface capabilities, and an ability to scale to a hash rate of any size with zero delay. 2. BFGMiner Just like CGMiner, BFGMiner is written in C, so it can run on most operating systems like Mac, Windows, and Linux. The modular software miner is also compatible with mining hardware like FPGA and ASIC. Some of BFGMiner’s best benefits are its ability to simultaneously hash on popular mining algorithms, like Scrypt and SHA256d, and mine multiple cryptocurrencies at the same time. Its other useful features include integrated overclocking, full monitoring, and fan speed control. 3. EasyMiner EasyMiner is a GUI-based, open-source frontend software upgrade for mining software like CGMiner and BFGMiner. The upgrade gives you a clean user interface and can integrate with your cryptocurrency wallet. It also allows you to mine various cryptocurrencies like Bitcoin, Litecoin, and others, but only with the Windows operating system and ASIC mining hardware. When you start mining cryptocurrency with EasyMiner, you can either choose the “Moneymaker” mode, which sets you up with stratum pool to mine Litecoin, or the “Solo” mode, which lets you pick your own type of pool, the cryptocurrency you want to mine, and the custom hash algorithm associated with your chosen cryptocurrency. 4. BitMinter Similar to EasyMiner, BitMinter is a GUI-based, open source mining software. But its versatility is what sets it apart from EasyMiner -- you can run it on Windows, Mac, and Linux and it’s also compatible with mining hardware like GPU, FPGA, and ASIC. To mine Bitcoin with BitMinter, you actually need to join its Bitcoin mining pool, which has had over 450,000 users register for an account since 2011. BitMinter requires you to join the mining pool before you can use the software because they want to make it easier for their users to mine Bitcoin and win higher payouts. 5. BTCMiner BTCMiner is a cloud-based mining software with over 142,315 users. Anyone with a Bitcoin wallet and address, FPGA mining hardware, and an internet connection can mine cryptocurrency on the software. One of BTCMiner’s coolest features is that its dynamic frequency scaling is based on error measurement, so the mining software automatically selects the frequency with the highest hash rate. BTCMiner also boasts other great features like power save mode, overheating protection, and ready-to-use Bitstream, which lets you run the mining software without Xilinx software or a license. 6. DiabloMiner DiabloMiner uses the OpenCL framework to swiftly conduct hashing computations and support unlimited amounts of mining pools for its users. The mining software is compatible with GPU mining hardware and runs on Mac, but if you have any of the current Nvidia drivers or an ATI Stream SDK 2.1, it’ll run on any operating system. You also have the option of either doing solo or pool mining. 7. MultiMiner Considered the easiest-to-use mining software with its intuitive graphical UI, MultiMiner is also one of the most versatile. You can run it on Windows, Mac, and Linux, seamlessly switch from one type of mining hardware to another with it, and use it to mine different types of cryptocurrency. One of MultiMiner’s most advanced benefits is its ability to automatically scan and detect your mining hardware’s details, like its average hashing power and the pool that it’s linked to. The mining software can also give you the option to automatically mine the most profitable or lowest difficulty cryptocurrency at any given time and even displays your projected profits. 8. Awesome Miner Awesome Miner is a robust mining software that can simultaneously handle multiple types of mining hardware, supports more than 25 mining engines, is compatible with every popular mining algorithm, and lets you manage multiple miners’ pools at the same time. The mining software also features a dashboard that displays each of your hardware’s temperature and status, which lets you monitor its progress and health. Awesome Miner runs on Windows, but you can access the web version of it on any type of computer and operating system.ining algorithm, and lets you manage multiple miners’ pools at the same time. The mining software also features a dashboard that displays each of your hardware’s temperature and status, which lets you monitor its progress and health. Awesome Miner runs on Windows, but you can access the web version of it on any type of computer and operating system.

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