Over the past few years, cryptocurrencies have become more mainstream than ever before. We all know that Bitcoin surpassed all other financial assets and investments during the Pandemic period. As some investors receive lifetime returns in less than ten or eleven months, there is no doubt that digital currency will grow in the coming days.
Bitcoin or any other cryptocurrency comes into being after a process called "mining". People who mine Bitcoin and other cryptocurrencies are called miners. ”
The term attracts its predecessors from gold mining because Bitcoin and gold are meant to be a store of value. In this article, we are going to examine some important facts that you need to know about cryptocurrency mining.
However, before we get to the list of facts, let us first look at the meaning of cryptocurrency mining.
Cryptocurrency Mining: Meaning and Definition
When we hear the word mining, our minds automatically wander and take pictures of huge vehicles moving towards the earth, ax, man in boots and so on. However, crypto mining is a little different than traditional mining of precious metals.
When it comes to mining, cryptocurrencies like Bitcoin and others, miners use heavy-duty computer hardware to solve complex mathematical equations in the network. Complications of equations can be taxed on computers.
Crypto mining helps in two main areas-
This leads to the creation of new cryptocurrencies
It helps to make the transaction network honest
Minors are responsible for maintaining all transaction histories. Whenever a new transaction is added to the blockchain, it is the responsibility and duty of the miners to ensure that it is 100% accurate and without problems. You can read more about mining related issues and differences Bitcoin theft methods here.
List of 5 Best Cryptocurrency Mining Facts
China and Iran lead the crypto mining front
Although many people think that America is the crypto mining hotspot in the world, in reality it is not so. Despite numerous laws against mining in China, the country remains one of the largest mining hubs in the world. In addition to China, Iran is attracting a large number of miners based on its low energy promises.
A block of Bitcoin is created every ten minutes
Solving complex mathematical equations every ten minutes leads to the creation of a bitcoin block. When the first bitcoins were mined in 2009, Satoshi Nakamoto envisioned a reward for 50 bitcoins. Every four years, BTC's pay was halved. It rose from 25 in 2012 to 12.5 in 2016, and in the most recent mid-May it dropped to 6.25.
According to a study by Morgan Stanley, the total requirements of the Bitcoin mining network can power more than 2 million homes in the United States! If you break this, a bitcoin transaction requires about 215 kilowatts of energy! It is also a critique of cryptocurrencies by a number of environmental groups.
Mining involves thousands of individuals
To give you an account, according to the data, there are nine or ten major mining companies that have monopolized the world. More than one lakh miners around the world are employed in more than 100 sister mining companies owned by the big 100,000. Poolin, BTC and Slushpool are the biggest names in the crypto mining world.
Of the total 21 million bitcoins, 16 million have already been mined
Like gold, Bitcoin was a limited asset. In the last twelve-one years, bitcoin miners have already extracted 16 million bitcoins worldwide. The remaining 5 are expected to be completed by 2030 million by 5 p.m. Since bitcoin is halved every four years, miners need to focus on their investment and profits from mining.
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Great thanks @ TheRandomRewarder
Nice!
Never know about these facts! Great thanks!