Bitcoin has been around for a while now. It has gone from an obscure joke to a modern curiosity to a dominating force in the economy. A single Bitcoin will sell for at least $38,000 and sometimes as high as $45,000. This has lots of people looking for fast and easy ways to cheat a new and vulnerable system.

But there is another way to get Bitcoin besides scamming people, and this way is totally legitimate: It is called Bitcoin mining, and all you need to get started with it is a device with an internet connection.

There is a perception that Bitcoin mining is restricted to super-powerful computers, but this is untrue.

Let’s slow down though. Everyone knows what Bitcoin is… But how does it work? And while we’re at it, how does Bitcoin mining work? As popular as Bitcoin is, there is a lot of confusion surrounding these topics.

So, let’s dig into them so that we know how to judge the good mining software from the bad.

Most people in Australia do not handle any of the money that they earn. By “handle” we mean “physically touch”. They can use the money however they want, but most times it exists as ones and zeros. This has to do with the fundamental truth about money: It is essentially based on belief.

Let’s be honest, the pieces of paper we call “dollars” are just that: Paper with no function. It is what they represent that is truly valuable. They represent people’s trust in the country of Australia.

Table of Contents:

• How Does Currency Work
• How Does Cryptocurrency Work
• How Does Bitcoin Work
• How Does Bitcoin Mining Work
• What is the Best Bitcoin Mining Software
• Spotting a Bitcoin Scam

How Does Currency Work? 💰️

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Paper money (called “fiat currency”) is a curious thing with a curious history. Up until 1971, the Australian dollar was based on the gold standard. This meant that you could find how much the Australian dollar was worth by how many dollars it took to buy a set amount of gold.

Many countries had the gold standard, but in 1971 the United States abandoned it. Australia followed suit, as did many other countries all over the world. But why? What was the new standard for currency?

Well, that is what is so interesting about currency. Once everyone understands what a specific currency is and once that currency is everywhere, you do not need to tie its value to a specific material. Its value stands on its own. This is because, at that point, the currency’s value is tied to what it can get you.

So, the Australian dollar is not valuable because of how much gold it can buy. It is valuable because of how much of anything it can buy. Electronics, land, stocks, clothes, food, anything.

How Does Cryptocurrency Work?

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That is how fiat currency works. How do these principles apply to cryptocurrency? Well, they carry over more directly than you would think. Like fiat currency, cryptocurrency is valued based on what it can buy. This is part of the reason why Bitcoin is many thousands of times more valuable than other coins.

And like fiat currency, crypto is only valuable because people treat it as valuable. But there is a difference in the exact method of how crypto is “treated” as valuable. Whoever holds a fiat currency is its owner. If you find a wallet on the ground and take the cash from it, there is little chance of anyone proving that you took that cash from that wallet. Therefore, the money is basically yours.

It is for this reason that people keep money in banks. In those cases, the bank makes a contract to keep your money safe on your behalf. You own the money even though they are holding it for you.

So, if you pay for goods using money in your bank account, how does the seller of those goods know that there is money in your bank account? It would be impractical to personally judge the finances of every person that makes a purchase. No, sellers take money from banks because they trust banks.

This centralizes the finance on the word of the banks. It means the banks control most of how money flows and functions. That is the core difference between fiat currency and cryptocurrency.

How Does Bitcoin Work? ➡️

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Rather than sitting in a bank, Bitcoin uses a technology called “blockchain” technology. Blockchain technology takes many forms, but the core idea is that it is a series of apps on various devices that connect all these devices. Each device acts as a ledger for who owns what cryptocurrency.

Bitcoin does not physically exist. You probably know this, but it is worth mentioning. Because the most common question people have is, “If Bitcoin does not physically exist, how can it have value?”

Well, similar to how you can use the money in your bank account because the bank says it is there, Bitcoin can be used because the blockchain says it is there. But while a bank is a single, centralized entity, the blockchain is a decentralized group of unaffiliated people. 

People are incentivised to keep the blockchain honest by the value they get out of doing so. The more honest the blockchain is, the more long-term value it creates.

How Does Bitcoin Mining Work? ⛏️

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This is where Bitcoin mining comes in. The blockchain is so massive that it has become incredibly complex, and even small transactions can be slow. But at the same time, you can dedicate computers to the blockchain to help it run. By doing so, you earn portions of Bitcoins. 

That is what Bitcoin mining is: Dedicating more and more computer processing power to helping the blockchain run and being given Bitcoin in return. This makes the blockchain more accurate and responsive, raising the value of Bitcoin at the same time you mine it.

What is the Best Bitcoin Mining Software? 🔝️

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So, we now know:

• How currency works
• How cryptocurrency works
• How Bitcoin works
• And how Bitcoin mining works

We are ready to get started with talking about the best Bitcoin mining software.

1. CG Miner – Best Overall Bitcoin Mining Software

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It is no wonder then that the best Bitcoin mining software is also open-source. But what does it mean for software to be open-source? It means that anyone can modify their version of the software. 

Imagine an open-source antivirus software. Antivirus software is in a constant race to keep up with hackers. Open-source antivirus software has long been reputed for its ability to quickly adapt without having to worry about what is marketable or how much money something will cost.

The same is true for open-source Bitcoin mining software. There are tons of optimizations that the CGMiner community has made to the program’s code over the years. CGMiner, for its part, has rewarded people who have improved the program with Bitcoins and status.

This creates a positive feedback loop. Programmers make the program more efficient. The program makes the developers more money, and then that money gets paid to the programmers. Everyone has an incentive to work as hard as possible to make CGMiners the best Bitcoin mining app it can be.

You will probably not be surprised to hear that this program is also free and compatible with PC, Mac, and Linux. That is the part that usually gets people’s attention: A free, frequently updated way to mine Bitcoin on any platform.

Drawbacks 👎️

While CGMiner can run on any platform, it has notable trouble getting installed on Windows 10. The big issue is that Windows 10 has issues installing blockchain programs. It has to do with how blockchain programs talk to Windows 10’s system directory. Windows just does not like programs doing that.

As a result, the installation process is complicated. In fact, operating the program, in general, is complicated. It basically lacks a user interface entirely, meaning that you have to operate it through your computer’s command prompt. This is less than ideal for anyone who is not well-versed in computers.

In short, it is probably best if you only try to tame this beast if you are an advanced user of computers or have an existing understanding of how to use Bitcoin mining software. Both of those skills are pretty different, but where one lacks, the other can make up for it when using this program.

It is also worth noting that CGMiner does not run poorly on Windows systems. It runs just fine once you install it. The trouble is getting through that initial installation, which can take trial and error.

2. BFG Miner – Best Multicoin Miner

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The size of Bitcoin’s blockchain means that there are always calculations to do and processing power that needs allocating. But even though Bitcoin itself is the most valuable cryptocurrency, the Bitcoin blockchain might not be the best use of all of your bandwidth and processing power. 

It is certainly worth it to invest some of your bandwidth and processing power into Bitcoin, but there will be a point at which it is more efficient to contribute a little bit of those resources to a different blockchain. That is what BFG Miner helps you do. It is a mining software that can cover multiple coins.

This is a process with a lot of different ways to optimize it. You will be shown an interface with your computer’s resources, though the exact amount of those resources that mining for different currencies takes will not be as exact as the resources themselves. This will help you understand what you are using.

What cryptocurrencies you use those resources on is up to you. You will also get access to many different tools to automate when and how different coins are mined as the day goes on, meaning you can switch from mining one valuable coin to another coin that is growing in value.

Drawbacks 👎️

If this all sounds very complicated, it is. This is funny since BFG Miner actually has a cleaner interface as far as Bitcoin mining software goes. That efficient interface cannot do much to simplify a complicated process. Using your computer’s resources optimally is more than just a matter of mining constantly.

You also have to pay attention to which cryptocurrencies are the most profitable to mine. And that can change over time. Ideally, you mine a currency as it increases in value, and then stop mining it and sell it when it starts to decrease in value. But that whole process is much easier said than done.

Doing that properly involves studying cryptocurrencies and the trends they undergo on a very deep level. That is the only way to predict them. Otherwise, you would have to react rather than predict. Reacting to market action rather than predicting it is possible, but hard to do unless you do it all day.

Then again, you could just use BFG Miner as a Bitcoin mining software exclusively. There is nothing obligating you to mine other cryptocurrencies. It is likely that your machine will have some processing power left over though, so just consider it a possibility if you would like.

3. Multiminer – Best Beginner Bitcoin Mining Software

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If you have an application with infinite functionality, then it will take infinite time and infinite wisdom in order to use it. This is an extreme example, but it is illustrative to a point: More functionality in an app does not always make the app better. Sometimes it makes it more difficult to use efficiently.

Multiminer does what many modern apps seek to do: Solve the problem it sets out to solve with the most efficient interface possible. This means a lot goes on inside Multiminer automatically. It benchmarks your computer’s Bitcoin mining capabilities on your behalf as it installs, for example.

After that, everything is guided through video tutorials. How to connect your mining app to a pool, how to connect a pool to a wallet, it is all outlined visually. It even has remote mining capabilities. That means you can use a companion app to adjust how your machine is mining without having to monitor it.

This is especially important for people who are newer to crypto mining, as they are usually mining from a home computer that is not set up for the rigors of mining. This also tends to mean that they are not around their computers all of the time, increasing the risk of something breaking on them.

The companion app allows users to turn down the rates at which their machine mines Bitcoin. This allows their machine a period to cool off, keeping it from possibly turning itself into a silicon brick.

Drawbacks 👎️

We mentioned the “tension” of features and usability. Well, the flip side of that coin is that while a feature-light app might be easier to use, it will be lighter on features as a result. Multiminer does not have the same capabilities that its cousin program BFG Miner does.

The automation of certain tasks means that you cannot (at least by default) adjust the values you might want to adjust. There are fewer controls for switching from mining one cryptocurrency to another, and overclocking your machine takes multiple steps to get to.

The most stand-out headache among these issues is the fact that Multiminer’s preference for Windows means that you actually need external programs to install the app onto Linux or Mac.

4. Awesome Miner – Best for Multiple Machines

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In short, the passive income dream. But what does it take to make one of those? How do you operate that many machines?

Awesome Miner is the Bitcoin mining software made for doing exactly that. It can connect to a network of machines and download a program onto them that allows you to use those machines to mine. 

But that is just the most obvious part. In addition to that, Awesome Miner acts as a controller for all the Bitcoin mining being done on all of those machines. That means issuing commands to every machine at once or going in and tuning each machine to specifically optimize their capabilities.

Tinkering with all the machines is certainly more common than making changes to a specific machine since most crypto mining farms are built using identical technology among all of the machines. But there are a few clear advantages to being able to mess with an individual machine. 

Specifically, if you are a beginner doing your crypto mining from home on several different devices, then you are probably working with a bunch of machines that are not standard between each other. It is pretty common to see someone mining their first Bitcoin using a gaming PC and a tablet.

You might be knowledgeable enough about computers to know this already, but there is a bit of a difference in power between a gaming PC and a tablet. Just a little.

Drawbacks 👎️

Awesome Miner runs on Windows and Linux operating systems, but not Mac. That is the first problem a lot of people run into, but it is hardly a surprising one. If you want to make a cryptocurrency mining farm, then you are probably not expecting to link together an army of $2000 MacBooks.

Awesome Miner is highly specialized software. That means two things: Firstly, it is not designed to be easy to use. It is designed to solve a specific problem. If you do not have that problem, then you are probably wasting your effort trying to get Awesome Miner to work.

Wasted effort is important to think about when it comes to getting into Bitcoin mining for the first time. A program that does not make total use of your machine is not efficient. But a Bitcoin mining setup that results in your program being underutilized is just as inefficient. 

The worst-case scenario, however, is if you make yourself inefficient. This is what happens when you try your hardest to fit your setup into an application that just will not work for you.

5. Shamining – Best Cloud Mining Platform

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That means you can actually contribute to the blockchain (and in doing so, earn Bitcoins from mining) without actually transforming your computer in the process. Shamining is a service that lets you do that.

The process is simple: You contribute a set amount of money, renting a portion of a mining rig in the process. Renting this mining rig is not like renting a carpet cleaner—you do not need a license, you do not need to take it home with you, and you do not need to maintain it in any material way.

You are just paying for the mining rig. That helps Shamining expand and contributes to the upkeep of the mining rigs they have. In exchange for this investment, they give you a portion of what their Bitcoin mining system extracts from the Blockchain. You can get these yields in one of two ways.

You can get them in the form of the Bitcoin itself, or you can get them in cash form. The first one is obviously better, simply because there is a transaction fee on the second one. Either way, the site reports a growth of 1.4 times the average customer’s initial investment.

That means if you put in $100, you get $140 out. That is quite the positive return.

Drawbacks 👎️

The downsides of this one are pretty heavy. If it worked exactly as intended all the time, then there would be no reason not to invest heavily into it. But there are a few limiting factors to the operation.

To begin with, while a growth rate of 1.4 times is nice, it is not constant or consistent. The value of Bitcoin fluctuates too much for that. Sometimes you will get more, sometimes you will get less. This is true for all Bitcoin mining, but since you are being given the Bitcoin by a third party rather than mining it yourself, the amount that they decide to take as a “service fee” is totally up to them.

They can also change the terms of how much of a mining rig you are renting. They do not have a history of doing this mid-transaction, as that kind of contract fraud would be pretty easy to spot. But it is probably that they will change it in between payments for the “rent” on the machine.

In short, there are a lot of different ways that this business is hard to work with. It is flighty, imprecise, and worst of all comes with a $500 minimum charge. That means you cannot rent less than $500 of Bitcoin mining space. For a lot of people, that is a risky initial investment.

6. Kryptex – Best Mining App

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But Kyptex is special because it is not some complicated software that edits your system registry in order to connect it to the blockchain. Instead, it is an application that connects to the blockchain itself. It then uses processing power on your computer without invading too deeply into its system functions.

What does this mean? Well, it means that it will never overclock your computer to try and make you Bitcoin. It will never communicate with parts of the blockchain indiscriminately. 

What it will do is use as much of your system’s power as you are willing to dedicate. You can choose to use a specific amount of processing power or keep it flexible. This makes it adaptable to being used on a computer that is not a dedicated mining computer. In short, the perfect app for hobbyists.

After all, not everyone is looking to run a forty-story tall crypto mining farm. Some people just want a bit of passive income to come through while they are working from home. This is what Kryptex is perfect for: Low investment Bitcoin mining that lets you choose your speeds.

Drawbacks 👎️

Which of course means that it is a bit low on the rewards side. Since you are using an app that interfaces with the blockchain rather than interfacing with the blockchain directly, the Bitcoin you mine is not actually being credited to you. Yes, Kryptex gives you that Bitcoin, but only due to their contract.

Listen, we do not want to cause undo alarm. We are certainly not accusing Kryptex of fraud. By all appearances, they are an upstanding business that is doing exactly what they say they are doing. 

The trouble is that the service they are providing definitely benefits them more than it benefits you. It is also very similar to the most common cryptocurrency scams. It is actually hard to scam cryptocurrencies due to the fact that they are situated on the blockchain. But it is far easier with apps like this.

The reason is that they are just using your machine to provide additional processing power for their rig. Somewhere out there, a computer is running faster because it is dedicating your processing power to it. If Kryptex wanted, they could give you one-tenth of what you actually mine without you knowing.

This is the price of a highly convenient app.

Spotting a Bitcoin Scam 👀️

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That wraps up the best Bitcoin mining software, but while we are on the topic of Bitcoin scams, let’s explore that idea a bit more. There will be people out there who invariably tell you that there is no such thing as a Bitcoin scam. Due to the security measures of the blockchain, they say, it simply can’t happen.

Well, that is an understandable stance to take. After all, every computer connected to the blockchain contains a ledger of what is on the rest of the blockchain. This system has proven so secure for establishing who has what Bitcoins that there has never been a wide-scale dispute on the blockchain.

But that does not mean that there is no such thing as a Bitcoin scam. It only means they can’t happen on the blockchain. Let’s talk about how and why.

❌️ Application Scams ❌️

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The lowest form of Bitcoin scams is pretty harmless. They usually involve actively engaging a user with the promise of Bitcoin in some way. Things like, “Play this game and earn Bitcoin,” or “Download this app and earn Bitcoin.” The interesting thing is that these will oftentimes be technically truthful.

There really are games that use your system’s resources to mine Bitcoin, and credit you portions of the Bitcoin you help mine in return. But as nice as those systems are, they are still ultimately scams. Why? Simply put, because you are not getting as much out of them as you are putting in.

Rather than playing a slot machine game that takes up too much system space, you could be doing literally anything else while the same machine is using the same amount of processing power doing nothing but mining for Bitcoins and you would make more money.

These types of scams range from “almost symbiotic”, where there is a very similar amount between the processing power you are contributing and the Bitcoin you are mining (though these are extremely rare) to completely parasitic. Parasitic applications will lie to you, use more of your computer than you agreed upon, and in general exploit your trust with little to no return. Both extremes exist.

❌️ Social Scams ❌️

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These scams are the bigger problem since it is hard to see them coming if you are not looking for them. Imagine that someone offered you Bitcoin for $5. That is obviously quite the deal. You give them the money and they “promise” to send you the Bitcoin shortly.

Well, that is a social scam at its most simple. Any exchange of or for Bitcoins that does not take place on the blockchain itself is likely a social scam. They are called “social scams” because they rely on you exchanging Bitcoins in social situations—in a conversation, rather than in a blockchain transaction.

Conclusion 💡️

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There you have it: The best Bitcoin mining software.

Bitcoin mining is not the easiest thing to set up on your computer, but it is one of the most lucrative, especially over time.

So, put in a little effort, and you stand to reap a lot of rewards. Just be careful with it.

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