Though prices have cooled off a bit, Bitcoin remains the top cryptocurrency by market cap. Choosing the best bitcoin mining software can make mining easier to manage and boost long-term profitability.
Quick Look: The Best Bitcoin Mining Software
- Cudo Miner
- Awesome Miner
- Hive OS
What Does Bitcoin Mining Software Do?
Bitcoin mining is the process by which a new bitcoin is brought into existence. There can never be more than 21 million Bitcoins in existence, by design. Over 3.3 million of Bitcoins are yet to be mined, a prize worth over $15 billion at today’s prices. Mining is a popular alternative to buying bitcoin.
Bitcoin miners aren’t physically digging anything up. Instead, mining is comprised of solving puzzles required to add new blocks of transactions to the blockchain. Bitcoin mining software does this by solving a complex mathematical problem and including the answer in the block. When a block is solved, a reward is earned.
The very first Bitcoin block offered 50 bitcoins (BTC) as a block reward. Built into Bitcoin’s code is a rule that cuts the reward in half every 210,000 blocks. Blocks #1 through #210,000 paid 50 BTC. Blocks #210,001 through #420,000 paid 25 BTC, and so on.
Currently, the block reward is 12.5 BTC, worth over $63,000 today, and is expected to halve again in 2020 to 6.25 BTC.
The process of bitcoin mining uses a measurement called hash power. This refers to how fast the hardware and software can produce guesses to solve the encryption puzzle. In general, a higher hash rate leads to faster block rewards.
Due to the increasing complexity involved with solving a block, hardware plays a huge role in productivity. This has led to the use of specialized ASIC hardware by many miners in combination with mining software.
Hash rate differences can be found between software providers, as well as differences in efficiency. This depends on how much of the reward goes to the software…