Have you heard of the recent price increase of the virtual currency, bitcoins? Many people have not, and they do not understand how the virtual money works. But for the laymen, the technological aspects are really not that important. As a matter of fact, mining bitcoins on regular computers nowadays is virtually impossible.
To illustrate, you may remember back when the internet was new. Back then, only those with advanced technology were able to have full access to the world wide web. Today, with the advent of the new modern technology, people all over the world are able to access the internet and participate in making transactions using their personal computers.
One of the reasons why the bitcoins prices have increased recently is because of the high level of demand. This demand has created the need to mine these bitcoins. Now, if you will try to use a local area electric supply to generate electricity to power up a single, central location to house the equipment that will be needed to mine at your home, it will cost you almost ten thousand dollars! What does this mean to you if you are trying to figure out how to mine bitcoins using a cheap electricity at home? Actually, this is good news for you because it means that the profitability of this method is actually relatively low.
So, what you need to learn to know about how to mine bitcoins is to build a mining pool. You don’t need to know how many computers you need to join in a pool to mine. What is more important is the profitability level of the method. You will need to join a pool with miners who can afford to pay the high price per kilowatt hour that is required to generate enough electricity to power up a single mining rig.
This can be done in two ways. The first way is by joining an existing pool that has already mined a large volume of bitcoins. By doing this, you can be sure that the price per kilowatt hour is stable and the profitability will not change over time. The second way is to get a new account and create your own private pool. This is how you create a “virtual” pool of how much money you want to spend in order to mine a small number of bitcoins each week.
Once you have a mining pool, all you have to do is purchase hardware and set up your home office. Just like any other business, there is always room for some additional hardware if you need it. However, once you have the hardware, you will be able to start generating large volumes of bitcoins on a daily basis.
