Bitcoin Mining - What do they use?
Description
A hands on video of what miners use to mine bitcoin! Also check out the surprise at the end of the video! This was filmed at the friendly Hong Kong Bitcoin Center & OTC trading desk, Genesis Block. ht...
AI Analysis
Bitcoin mining isn't just about computers quietly running in the background; it's a loud, hot, and power-hungry operation that requires specialized equipment. This video dives into the gritty reality of what professional miners use, explaining how these powerful machines process transactions and secure the entire Bitcoin network. You'll get a clear picture of why your home PC or phone simply can't compete with the dedicated hardware that keeps Bitcoin running.
Here’s a breakdown of what goes into real Bitcoin mining:
* The Core Machine: Antminer S9: This is considered the "state of the art" equipment for Bitcoin mining, manufactured by Bitmain. It's an incredibly expensive piece of hardware, but it's what everyone serious about Bitcoin mining uses.
* Loud and Hot Operation: When one of these machines is turned on, it's incredibly loud, producing a constant roaring sound from its massive fans. It pulls in over 1000 watts of electricity, similar to a space heater, and generates a tremendous amount of heat. The powerful fans are essential to blow air in and out to prevent overheating.
* What are ASICs?: The Antminer S9 is packed with ASICs, which stand for Application-Specific Integrated Circuits. These are specialized processors designed to do one thing exceptionally well: mine Bitcoin. Unlike a normal computer or graphics card, ASICs have no other function; they are hard-wired for a specific algorithm.
* SHA-256 Algorithm: The Antminer S9 is designed to perform the SHA-256 calculation, which is the algorithm Bitcoin uses. It does this one thing incredibly well, executing tens of thousands of calculations per second ("giga-high times").
* Why Your PC/GPU Can't Mine Bitcoin Anymore: Because ASICs are so incredibly efficient at performing the SHA-256 calculations, it's no longer feasible to mine Bitcoin using a standard CPU or even a powerful GPU. ASICs simply outperform them by a massive margin, making them obsolete for Bitcoin mining.
* Connecting to the Network: Each Antminer connects to the internet via an Ethernet port. This connection allows it to receive information and participate in the Bitcoin network.
* Mining as Network Accounting: Mining is essentially the accounting process for the Bitcoin network. When you send a Bitcoin transaction, it starts as "unconfirmed." Miners take these unconfirmed transactions and bundle them into "blocks."
* Securing Transactions with Blocks: Once a block of transactions is processed and added to the blockchain by a miner, those transactions become permanent and irreversible. This is how miners ensure that transactions are recorded, stored, and cannot be changed or reversed.
* Competitive and Secure Network: Bitcoin mining is highly competitive. The more miners there are, the more they compete, which makes the network stronger and more secure. To attack Bitcoin (e.g., attempt a 51% attack), you would need to control more than 51% of all the mining power, which is practically impossible given Bitcoin's massive global hash rate (total mining power).
* The Dirty Reality of Mining: A surprising insight is how dirty these machines get. The heat exhaust vents are often covered in ugly dust, making the machines look rough. This is due to the constant airflow trapping dust. Miners often don't bother cleaning them because the machines typically expire after about a year due to new technology replacing them.
* Key Takeaways on Real Mining:
* It requires immense power consumption.
* It's extremely loud and annoying.
* It's a dirty operation, literally.
* Electricity costs are a major factor; if electricity isn't cheap, mining is super expensive and likely unprofitable.
Beware of "Fake Mobile Miners": There's a rise of applications claiming your phone can mine Bitcoin or other cryptocurrencies. While some forms of mining could* theoretically be done on a phone, it would consume so much power that it would burn out your phone battery in a matter of hours. It's definitely not something you'd want to do on your personal mobile device.
* Scale and Investment: Visiting real mining operations, even those using GPU mining for other cryptocurrencies, highlights the massive scale, significant financial investment, power consumption, and specialized equipment involved in industrial-level cryptocurrency mining.
Transcript
Hey everyone and welcome to Box Mining. Today I'm going to talk about Bitcoin mining and I've got some cool toys here to show you guys. I'm going to take you through what is binding, what these machines are doing, and of course a lot of people may ask me, can you use your CPU to mine, can you use your GPU to mine, I'm going to answer all those questions today in this episode. So let's take a look at what this thing is right here because this is the state of the art. This is what everyone is usi...