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Bitcoin mining

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Written by   61
1 month ago

You may have asked yourself!

Where do bitcoins come from?

Bitcoins are not printed like traditional money. Bitcoin is completely different from the money which we are using from centuries. Bitcoins are mined out the system . A miner is just a person with a computer that runs a mining program on it. The reason it's called mining is because just like any other natural resource there is finite amount of bitcoins.

The maximum amount of bitcoins that can be generated is twenty one million. It would be surprised for you that until today over 12 million bitcoins has been mined and 9 million are left behind. I often think that what people will do when these bitcoins will be ended up may be a new Bitcoin will emerge in the cryptocurrency market. Also crypto market is so big there are so many tokens and coins about which we do not even know and there are so many who are going to be introduced may be in future.

One need to invest energy in order to extract these bitcoins . It requires electrical energy to mine these bitcoins. These miners computers needs to solve complex mathematical problems and once they solve them new bitcoins are generated and awarded to them. Most probably it is looking so simple but it is not so simple as it is looking . Miners are not the one who are just generating bitcoins they also use their computers to verify transactions and prevent fraud one thing which is good about Bitcoin that it is impossible to make fraud in Bitcoin because the system of Bitcoin is so secured and it's transactions are public . So more miners means faster transaction verifications it also means that it is more reliable and more secure now here you can take an example of a company where so many workers are doing work and if one of them invite you to with in their company we probably assume that this company is legit because more people are doing work there and would be satisfied there. This happens here with Bitcoin that on Bitcoin there are so many people who are doing work on it some are miners some are traders and investors but the main goal of each person is to get a Bitcoin because it has decreased the value of traditional money .

In mining , while verifying a transaction the miners gets a small fee out of the transaction for there mining work because they are doing work . So miners get paid twice. Once for verifying the transaction and again when they successfully generate new bitcoins . It sounds profitable . Well not so fast. Satoshi was the guy who invented Bitcoin , wanted the number of bitcoins that were mined each time to remain constant no matter how many members come abroad. It means now difficulty level is high and mining is difficult now because competition is high due to large traffic towards mining .When Bitcoin was introduced there were so many bitcoins available and Bitcoin was low priced but not much people focused toward Bitcoin . In 2009 you could mine 200 bitcoins with your personal computer at home . In 2014 it will take you about 98 years to mine just one Bitcoin. That is why ASIC miners were invented. These are super powerful computers particularly designed for mining of bitcoins but since so many miners have joined in the past few years it is still almost impossible to mine alone. To solve this problem mining pools were invented . Mining pools are groups of miners who worked together to deal with the growing difficulty of Bitcoin mining .Each miner get paid for relative share of the work. So that is how bitcoins are born , through miners.

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Avatar for Tahastories
Written by   61
1 month ago
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Comments

It is a new thing for me bitcoin mining ⛏️ how could this be done ?

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1 month ago

You mean that bitcoin is like a currency generated on computer. I have a question that who will pay for each bitcoin as every currency require recognition or acceptance to generate money?

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User's avatar Asg
1 month ago

Bitcoin mining is a mew concept for me

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1 month ago

I have heard about bitcoin mining and I really want to do this but you already mentioned that it is now difficult to mine

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1 month ago