What Are Bitcoin Miners Doing


An Overview Of What Bitcoin Miners Are Actually Doing

This article, to a degree, builds upon my previous one.

Before we peer under the hood, let’s look quickly at how miners have evolved.

At first, the mining difficulty level was extremely low (we’ll look at what that actually means shortly). In the early days of Bitcoin, bitcoin could be profitably mined on a simple personal computer’s central processing unit (CPU). In less than two years, people began mining on graphics cards (GPU) because they were, with the addition of some software, better suited due to higher clock speeds. That is to say, they were able to perform more calculations per second via parallel processing. Like CPUs, those were only profitable for a few years. In 2012, the first ASIC miner (Application Specific Integrated Circuit) came to market.

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