First of all before knowing what is bitcoin mining we must know what is a bitcoin? Bitcoin is basically an intangible cryptocurrency and only exists in cyberspace, well, bitcoin mining is not like regular gold or oil mining but it is totally different from that, it is done manually not on fields but on computers. Say no to plagiarism. Get a tailor-made essay on "Why Violent Video Games Shouldn't Be Banned"? Get an original essay A question may arise: HOW? it is done using special bitcoin mining hardware which needs to be installed in our computers, bitcoin mining is a complex task to understand but basically in simple language this mining includes solving mathematical algorithms and puzzles and for this you are rewarded with very little amount of bitcoins. Many people would be wondering which software will be able to mine bitcoin well, here are some names of the software that mine bitcoin CGminer, BFGminer, BitMinter etc. There is a big disadvantage of bitcoin mining is that the electricity it consumes to mine bitcoins is very high and can cost a lot. Since we know that bitcoin is a cyberspace currency, so mining is risky because we don't know who controls bitcoin. Here is the process that explains how bitcoin mining is actually done: Please note: this is just an example. Get a custom paper from our expert writers now. Get a custom essay Get the best Bitcoin mining hardware. Purchasing Bitcoin – In some cases, you may need to purchase mining hardware with bitcoin. Download Free Bitcoin Mining Software. Once you receive the Bitcoin mining hardware, you will need to download a special program used for Bitcoin mining. There are many programs that can be used for Bitcoin mining, but the two most popular are CGminer and BFGminer which are command line programs. Join a Bitcoin mining pool. Once you are ready to mine bitcoin, we recommend joining a Bitcoin mining pool. Bitcoin mining pools are groups of Bitcoin miners who work together to solve a block and share the profits. Without a Bitcoin mining pool, you could mine bitcoin for more than a year and never earn bitcoin. Set up a Bitcoin wallet. The next step to mining bitcoin is to set up a Bitcoin wallet or use your existing Bitcoin wallet to receive the Bitcoins you mine. Stay up to date with Bitcoin news. Staying up to date with Bitcoin news is important for your bitcoin mining profits. Here are some excerpts everyone should know: BLOCKCHAIN: A blockchain is a digitized and decentralized public ledger of all cryptocurrency transactions. BITCOIN WALLET: A Bitcoin wallet is a software program in which Bitcoins are stored.