Ask Dr. Bitcoin: Summer is here; How do I keep my mining rigs cool?

coolmining02 May 2014 / SiliconANGLE – There are seven ways you can get Bitcoins: (1) buy them; (2) sell something and get paid in Bitcoins; (3) someone you know graciously donates Bitcoins to you; (4) beg people to donate Bitcoins to you because you really, really want to be a part of the Bitcoin community; (5) create a project and launch it in a crowdfunding platform and ask people to only pledge using Bitcoins; (6) become a hacker and steal some Bitcoins; (7) and finally, there’s mining.

Of these tasks, mining would probably be your last option since it entails spending thousands of dollars on specialized equipment. It’s also much harder to mint Bitcoins than ever before. But if you really want to be a huge part of the Bitcoin community, and don’t mind investing, mining will probably be the most enticing option for you.

What is Bitcoin mining in a nutshell?

Bitcoin mining plays a number of crucial roles in Bitcoin. First, mining is the method through which new Bitcoins are minted and introduced to the system. It also adds transaction records to the block chain which serves to confirm transactions so no spent Bitcoin can be re-spent. Mining’s primary purpose is to allow Bitcoin nodes to reach a secure, tamper-resistant consensus.

In essence, mining keeps the system balanced, secured, and prevents overproduction of the cryptocurrency.

It would seem intuitive that with more miners, it would be easier to discover a new block, but in actuality, as more miners get involved, the difficulty of finding a new block increases for each miner. This means more rigs (or specialized equipment meant for mining) are needed to achieve the same amount of work, thus producing more heat…. Read more

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