February 12, 2021

Bitcoin mining – A brief about the concept of mining

Cryptocurrency mining is one of the most costly and difficult jobs. Bitcoin miners don’t even get handsome rewards for mining crypto. Yet there are multiple reasons for the growing popularity of bitcoin mining.

Why bitcoin mining?

People are getting into mining because of the growing popularity of crypto in the market. The way crypto has come into trend has never been seen before. Today crypto is used right from bitcoin hosting to purchasing groceries at supermarkets. The major reason why crypto is gaining popularity is its growth as an investment. People, organizations, governments all are getting into the field of cryptocurrency.

The most popular among these cryptocurrencies is bitcoin.

Apart from all of the above reasons, the major factor that is driving the demand for bitcoin mining is that people are actually rewarded for mining bitcoins. The methodology is that, whenever you mine a “block” of bitcoin, you get rewarded with the crypto token. This crypto token is a bitcoin. Thus, in a way you earn a bitcoin without paying the actual money for that. How that goes is that when the miners have mined 1 MB (megabyte) worth of bitcoin that is generally referred to as “block,” these miners get some quantity of bitcoin as a reward.

How does it work?

Minors apart from generating bitcoins they also perform the role of auditors. They are also having the responsibility of verifying the legitimacy of bitcoin. There is a whole procedure to earn the license for generating bitcoin through bitcoin mining. There is a whole lot of Blockchain technology, numeric sequences, coding, etc involved in generating bitcoins. You need to have the knowledge of Blockchain technology to get started with bitcoin mining.

For mining bitcoins, you need to have a GPU (graphics processing unit) or an application-specific integrated circuit (ASIC) to set up your mining unit. Another thing is that you need a heavy amount of electricity and power to mine bitcoin. The process of mining bitcoin is tough and very complex. It cannot be just done by sitting on your home desktop, you need a complex set of mechanisms and tools to generate bitcoin.

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