How to mine bitcoin? History of Bitcoin Mining

Want to know how bitcoin mining will change from 2009 to 2024? Want to know who the top bitcoin miners will be in 2024? Want to know how to start mining bitcoin? This article will give you all the answers!

Table of Contents

What is Bitcoin?

Bitcoin is the world’s first virtual currency to achieve true decentralization, it is a digital currency based on decentralization and using peer-to-peer networks, this currency does not rely on any centralized institution, its transactions and ownership are recorded on the blockchain, with a high degree of security and anonymity. Advanced cryptography is used to ensure the security and anonymity of transactions, as well as transparency and no intermediary fees.

Bitcoin was issued on October 31, 2008, and in January 2009, the Bitcoin Genesis block was created, with the issue price set at $0.1. At first, Bitcoin wasn’t that well known, and soon depreciated in value (the lowest was 1,300 Bitcoins worth $1)

Bitcoin Founder

The founder is Satoshi Nakamoto, who describes himself as Japanese-American, but no one knows his real identity. Satoshi Nakamoto published an article titled Bitcoin: A Peer-to-Peer Electronic Cash System in 2008, describing an electronic currency and algorithm he called Bitcoin. In 2009, he released the first Bitcoin software and officially launched the Bitcoin financial system.

What Bitcoin Halving Means

Bitcoin halving refers to the halving of the number of rewards for each block in the bitcoin network, in bitcoin’s blockchain, the halving event occurs approximately every four years, which means that bitcoin mining mined out a block to get the rewards of only the original general, in 2009, after the block was created, each time the block was mined out rewarded with 50 bitcoins, it will be based on the speed of the block out, approximately every four years halved, and the final number will be set at 21 million.

Bitcoin has now been halved three times, in November 2012, July 2016, and May 2020. The fourth bitcoin halving is expected to take place around May 2024, this time the bitcoin mining block reward will go from the current 6.25 to 3.125.

Price change of bitcoin halving in previous years

ordinal number

time

Mining Rewards

Price changes

First halving2012-11-2850→25$11→$260(23.6x)
Second halving2016-07-1025→12.5$430→$20000(46.5x)
Third halving2020-05-1212.5→6.25$3150→$68790(21.8x)
Fourth halving2024-04-?6.25→3.125???

Countdown to halving

History of Bitcoin Mining

The first instances of bitcoin mining involved ordinary home computers using the computer’s CPU for mining. In early 2009, Satoshi Nakamoto mined the first 50 bitcoins using an ordinary computer.

Bitcoin traded from $0.008 to $0.08 in July 2010, giving the first miners a glimpse of a business opportunity.

Subsequently, CPU mining was gradually replaced by GPU mining. Initially, the entire network operated at just 140MH/s, with many bitcoin mining enthusiasts using home computers. The barrier to entry was relatively low, and as bitcoin prices soared, more individuals entered the bitcoin mining arena. This was followed by experimentation with GPUs, which offered a hashrate several times higher than CPUs, reaching 9MH/s compared to CPUs’ 1KH/s. GPUs quickly overtook CPUs. Within about 7 months, the entire network skyrocketed to 500GH/s, a 3500-fold increase. Subsequently, the hashrate jumped to 15TH/s, rendering home computer mining obsolete. GPUs took their place.

As the network continues to see record-breaking hashrates, bitcoin mining sees another change. In late 2012, Butterfly Labs (BFL ASIC), the first ASIC bitcoin miner manufacturer, was founded. In early 2013, Zhang R developed the first FPGA miner, ushering in a new era of FPGA mining. However, FPGA’s reign was short-lived as ASIC miners quickly gained prominence. Avalon delivered the first commercial ASIC bitcoin miner, marking bitcoin’s official entry into the ASIC era. Canaan, a developer of mining machines, re-listed on the NASDAQ in November 2019, solidifying its leadership position. Coincidentally, Canaan’s founder, Zhang, also developed and launched the first FPGA miner. In addition, in 2013, Wu Jihan founded Bitmain, which sparked market enthusiasm with the launch of the Antminer S1.

During this time, The bitcoin mining market has seen the emergence of many mining machine brands, but many of them have been eliminated due to fierce competition. Despite the changes, ASICs have maintained their dominance.

In the blockchain industry, there’s a celebration known as Pizza Day, which commemorates May 22, 2010, when programmer Laszlo Hanyecz successfully exchanged 10,000 bitcoins for two pizzas. He was the first person in the world to purchase goods with bitcoin, using an ordinary home computer to mine bitcoin.

How to mine bitcoin? History of Bitcoin Mining

Over the years, the bitcoin mining market has undergone several changes. As a company serving the bitcoin mining industry, WOYOU has helped many newcomers purchase their first bitcoin miner. We are proud to have served over 300 such individuals who were previously unfamiliar with bitcoin mining. Our dedicated staff patiently guides them through the setup process and ensures that their bitcoin miner is up and running. Our goal goes beyond the delivery of equipment; we strive to educate users on the fundamentals of bitcoin mining and how to best utilize the equipment. We are gratified by the positive feedback and gratitude from our new users. WOYOU remains steadfast in its commitment to provide world-class service and support to every customer. Nearly a decade in the bitcoin mining industry has honed our understanding of user needs and industry trends.

Best Bitcoin Miner In 2024

Bitcoin MinerHashratePower
MicroBT WhatsMiner M63S390Th/s7215W
Bitmain Antminer S21 Hyd335Th/s5360W
MicroBT WhatsMiner M63334Th/s6646W
MicroBT WhatsMiner M66S298Th/s5513W
MicroBT WhatsMiner M66280Th/s5572W

The table counts the top five bitcoin miner with the highest hashrate until 2024, and you can get a limited-time discount by inquiring for a purchase now!

How To Mine Bitcoin

  1. Hardware Requirement

    ASIC Bitcoin Miner with the algorithm SHA256D must be used to mine the

    × Can’t use GPU to mine Bitcoin.

  2. Risk Assessment

    Some bitcoin miner will fluctuate between profits and losses due to the price of bitcoin. It is recommended that you understand the basic information about bitcoin miner before buying.

  3. Different Models of Bitcoin Mining

    There are many ways to mine bitcoin, depending on your hardware and your choices. The three main ways are

    1. Mining Pool Mining: The mining pool will gather the computing power of all miners, mine together, and distribute it to each participant based on their contribution. This is by far the most popular and easiest method
    2. Solo Mining: Mining alone, using your own hardware and software to mine Bitcoin alone. The rewards you mine are exclusive to you, but it is very difficult and requires a lot of investment and patience.
    3. Cloud Mining: Some companies provide cloud mining and rent their mining equipment or Hashrate. This is the simplest and most convenient method, but it is accompanied by a lot of fraud risks, and the profits obtained are generally very low.
  4. Officially start Bitcoin mining
    1. To buy bitcoin miner: you can visit WOYOU’s bitcoin miner store, to consider the hashrate, power consumption as well as the cost, if you don’t know how to make a profit, you can use the income calculator to calculate the income situation or payback period, if you are not in a hurry to realize the cash and use it for long-term investment can be ignored.
    2. Setting Up a Bitcoin Wallet: Before you start mining, you will need a wallet to hold the mined bitcoin; there are types of bitcoin wallets such as hardware wallets, software wallets, and web-based wallets.
    3. Mining Software Installation and Configuration: Choose mining software that is suitable and compatible with your hardware. If you are not very skilled, you can choose software with GUI for easier setup and management. The software will connect your hardware to the bitcoin network or mining pool.
    4. Join a mining pool: Joining a mining pool allows you to combine your hashrate with other miners to increase your chances of receiving rewards. Popular mining pools include: F2Pool, Antpool, Slush Pool, etc. Different mining pools have different fees and payment methods, so just choose the one that suits you.
    5. Start Mining: Once everything is ready and you have joined the pool, you are ready to mine, keep an eye on the running hashrate to see if it meets expectations.

Summary

Bitcoin, officially released in 2009, has surged by 706,201 times since its inception, reaching a price of $70,620 at the time of writing. The process of bitcoin mining has undergone significant evolution, transitioning from initial CPU mining on home computers to GPU mining, and ultimately to ASIC mining. Currently, the most prevalent method of bitcoin mining is ASIC mining. To engage in bitcoin mining, you need the appropriate bitcoin miner, access to a bitcoin wallet, and the option to join a mining pool or engage in solo mining. With these prerequisites in place, you are prepared to commence mining!

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