Bitcoin Mining Pools: 101

  • Hashrate — The computing power of a mining machine.
  • Network hashrate — The combined computing power of all of the mining machines on the Bitcoin network.
  • Network difficulty — The difficulty to successfully mine a bitcoin block. The network difficulty adjusts every two weeks. As the network hashrate increases, so does the network difficulty.
  • ASIC miner — A specialized computer that mines a particular mining algorithm. It’s SHA256 in the case of Bitcoin.

The basics of bitcoin mining

  1. Transaction records — The verification and addition of transactions to the public blockchain ledger.
  2. Proof -of-work calculations — The energy-intensive puzzle that each Bitcoin mining machine solves every ten minutes. The miner which completes the puzzle first adds the new block to the blockchain.
  3. Bitcoin Block Reward — The first miner to solve the puzzle is rewarded with 12.5 bitcoins. This number will reduce to 6.25 bitcoins after the halving in May 2020.

What is a mining pool?

Image by Coindesk Research

Why do miners use a mining pool?

Bitcoin Network Hashrate growth since 2009

Mining solo with a WhatsMiner M20S

Mining in a PPS+ pool with a WhatsMiner M20S

Historical Mining Revenue Per Day, per 1 TH/s, with a PPS Pool

Comparing solo mining and pool mining performance

Mining pools and large mining farms

When would I consider solo mining?

What would I expect to earn?

Mining pool payouts

How to choose a Mining Pool?

Happy Mining 🐟

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F2Pool 🐟

F2Pool 🐟

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F2Pool is the leading Bitcoin, Ethereum and cryptocurrency mining pool. Our mission is to make mining simple and profitable for all.