The word Cryptocurrencies are starting to be heard of more and more as of late. There are thousands of them out on the market today with new ones popping up every day. The biggest questions that most people that have heard of them ask is “Where do they come from”? very unlike traditional money which is printed or minted by the government. The only way Cryptocurrencies are made is by mining. So let us take a look at perhaps the most popular one Bitcoin. And hopefully, shed some light on what Bitcoin mining is all about. GO HERE and you can download a FREE smart miner program and start mining your own Bitcoin.
What is Bitcoin Mining?
As mentioned above Bitcoins are mined by Bitcoin miners. Bitcoin miners are participants in the Bitcoin Blockchain (GO HERE to learn about Blockchains) They chronologically order transactions by including them into the Bitcoin Blockchain. This eliminates the possibility of double spending Bitcoin in this decentralized system.
But in order to chronologically order a transaction into the Bitcoin Blockchain. A Bitcoin miner must find on first. This is a hit or miss process only about once every ten minutes. That a miner will succeed in finding one. And thus add a new block to the Blockchain. For each attempt to try and find a new block, which is basically a random guess for a lucky number, a miner has to spend a tiny amount of energy. Most of the attempts fail and a miner will have wasted that energy.
This means that any time a miner finds a valid block, it has statistically burned much more energy for all the failed attempts. This proof of work is the heart of Bitcoin success.
Proof of Work.
This proof of work prevents miners from just creating Bitcoins out of thin air. They must burn real energy to earn one. This help prevents fraud from happening. The proof of work also solidifies the Bitcoin history. Making it impervious to hacking attacks. If an attacker tried to change a transaction that occurred in the past. They would have to redo all of the previous work done since to catch up. And establish the longest chain. Since this is practically impossible and is why miners are said to secure the Bitcoin network.
In exchange for securing the network, and as a reward that serves as an incentive for burning energy. And with each new block including a special transaction. Because it is this transaction that awards the miner with new Bitcoins, which is how Bitcoins first came into circulation. When Bitcoins first came about, each new block awarded the miner with 50 Bitcoins. Every 4 years this amount halves itself. Each new block currently includes 12.5 new Bitcoins. Additionally, miners get to keep any mining fees that were attached to the transactions they included in their blocks.
Who can start Bitcoin mining?
Anyone can become a Bitcoin miner as long as they have a device that they can use for the mining process. However, Bitcoin mining has become increasingly specialized over the years. These days the mining is done by dedicated professionals with very specialized hardware. Cheap electricity and big data centers.
If you want to mine competitively today you better know what you’re doing and be ready and willing to invest large amounts of revenue and time. And having access to cheap electricity. With all these in place, you can mine competitively.
However, don’t let any of that scare you because we have a solution for you. When you join
So you may not have banks of computers and unlimited cheap power. This doesn’t mean you cant mine and make a good chunk of Bitcoin while doing it. So remember to go and sign up with computta today and get mining.
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