Bitcoin Mining Works

—the process in which your computer mining hardware solves a complex mathematical equation from the block chain. And although the price value of bitcoin is the number one come on for anyone to get in to mining, the act itself is not easy and in reality, bitcoins do not churn out easy.

What is the bitcoin pool mining community?

The bitcoin pool gathers all the resources of the clients (the solo miner) to generate a solution to given block. When the pool solved a block, the bitcoins that were produced will be equally divided to the participants. Whereas a solo miner does the operations by himself and all the credits are to himself.

Advantages of pool mining

Compared to solo mining, pooled mining gives off a steadier income. This is a good idea for people who are dedicated to mining. This also lowers their electricity bill because having different resources means that you can solve a chain faster. More so, it generates a 1-2% higher income due to the long polling provided by the pools.

Aside from these, joining different pooling communities gives you the opportunity to select which one is better for you or which one gives you more income. Aside from this, this is a community wherein the participants are knowledgeable about the latest mining hardware so if you want the latest news in anything that has got to do with bitcoin and mining, you can always participates in forums.

The disadvantages of pool mining

One big disadvantage of joining a bitcoin mining pool is you can suffer from outages at the pool provider—this isn’t just about power outages but mining pools are prone to attacks from hackers and other downtimes. But the good news is, you can always have a back up (this also works for solo mining).

And although you have higher income with pool mining, there’s also the possibility that you’ll have smaller income because of the fees that you have to pay the provider. All bitcoin mining pools require fees and until today, transaction fees are not cashed out by any pool.