If you are a beginner in the bitcoin community then one of the hardest decisions you will have to make is to decide whether to mine on your own or to join an existing pool. It is evident though in the current hash rate distribution of the bitcoin network that majority of the miners are a part of a pool.
If you are planning to mine on your own, it would mean that you would get all the reward without having to share with other miners. The problem with going solo is that the chance of getting a bitcoin as a reward is slimmer. When it comes to mining pools, there is a higher chance in solving a single block and then getting the reward in the process but it would mean that the reward has to be divided in every member of the pool.
If you want to have a steady source of income then it is rational to choose joining a pool. The pay may be modest compared to winning the reward of a single block all by yourself which amounts to 25 bitcoins. It must be noted that it is required that the mining pool should not have more than 51 per cent of the total hashing power of the bitcoin system. If a single company or pool has control on over 50 per cent of the computing ability of the digital currency’s network, there will be disruption in the entire system. It was in 2014 that majority of the members of the bitcoin network are worried regarding the mining pool called GHash.io since it is almost near the limit. In order to stop this from happening, some of their miners have to go.
What are bitcoin mining pools? They are considered the heart of the bitcoin network because without mining then the entire community will stop its operation. If you are planning to mine on your own then you should know that it is impossible for a single individual to get a profit from the mining process since it requires a lot of computing power. Thus, it is important to join a pool in order to earn rewards.