a. What is Bitcoin mining? What does Bitcoin hash rate mean and how is it measured?
Bitcoin mining is a procedure in which any transaction information is verified and validated within the Bitcoin network and stored on the blockchain.
Bitcoin hash rate is the measurement used to calculate the intensity or amount of computer power the bitcoin system is needing to operate. Moreover, finding the bitcoin hash rate is done by finding how long it takes for a block to be mined and added to the blockchain in the average timeframe of ten minutes.
b. Describe and compare the main Bitcoin mining hardware types: GPU, FPGA, and ASIC.
ASIC (Application Specific Integrated Circuits) was specifically designed with the purpose of mining Bitcoins. They are extremely fast and consume relatively low power compared to GPU and FPGA.
FPGA (Field Programmable Gate Array) was designed for customizing the chips after building. In comparison to its peers it was more efficient than the earlier GPU but not as good as the ASIC.
GPU (Graphic Processing unit) was designed for the purpose to render images.
GPUs were one of the earlier bitcoin mining hardware and were used extensively because of their ability to perform mathematical computation that is used to mine bitcoins.
c. What are the minimum system requirements for Bitcoin mining? How important are CPU and RAM for Bitcoin mining? What are the major costs of Bitcoin mining?
The minimum requirements are at least 145GB Disk space available as well as 1GB of memory and chipset of 1GHZ and greater. Also, the operating system of the computer should be windows 7 and above or Mac OS X or Linux.’
The CPU and RAM are not too important for bitcoin mining. Having a powerful CPU is not important because if the operating system can be run no extra performance power is needed. Likewise, a big memory is not needed as mining is not RAM intensive.
The major costs of investing in bitcoins is that the value of bitcoins is extremely volatile and therefore they can rapidly increase and decrease in value. There is also some instability regarding protection in which someone may accept your bitcoins but not give back the right value. Also,, there is no way to reverse a bitcoin transaction. Furthermore, the cost of electricity expended to mine bitcoin using high power technology is very consuming.
d. What is a Bitcoin mining pool? What are the pros can con of joining a pool?
a mining pool is when a group of people share their earnings equally among the mining pool, relative to the amount of workload they have done and contributed to the group.
The Pros and Cons of joining a bitcoin mining pool is that you have to share equally with the group of all the earning you have made, however, if your pool is very good at mining bitcoins and lucky you may earn a lot more than working solo.