Bitcoin Mining For Normal Folks
Before the advent of bitcoin, the word mining was not very common. But with the advent of bitcoin, many people wanted to make money from this lucrative network. Apart from buying and selling digital currencies, it is the miners who play a very important role in the survival of the network.
What is Bitcoin Mining?
Bitcoin is a decentralized currency token. Currency cryptocurrency means that the Bitcoin network uses cryptography to exchange information. On the other hand, being decentralized also means that no particular person or group controls the Bitcoin network. In other words, all members of the network have an equal right to decide on the survival of the network. The trust of people within the network and their cooperation with each other ensure the survival of the network.
What About The Miners?
Because this network is decentralized, people must be present and verify the accuracy of the transaction. But who should pay the miners' salaries or, in other words, their daily wages? In response, we must say that the structure of the Bitcoin network is designed in such a way that after each transfer, a certain amount is given to the miner as a reward.
Role Of The Miners?
The price of bitcoin digital currency depends on the supply and demand in the network. On the other hand, financial transactions within a network dependent on solving mathematical equations are very complex. These mathematical equations are cryptographic and simply cannot be solved. In fact, miners compete with each other to solve them. Anyone who can find the answer sooner will be rewarded. Solving these equations is done by very powerful computers.
Miners, hardworking users of the world of cryptocurrencies We said that bitcoin mining requires powerful devices and high power consumption. Bitcoin Network To maintain the stability of the network and prevent the rapid extraction of bitcoins, there is a measure called the difficulty of extraction. Bitcoin blocks are generated every 10 minutes. If the extraction speed drops below ten minutes, the difficulty of bitcoin mining will increase. If the extraction difficulty reaches such a level that the production time of a bitcoin block is more than 10 minutes, the bitcoin extraction difficulty will be reduced. The network also automatically halves the number of bitcoins generated every four years during a process called hawing. Also, the total number of mined bitcoins is limited to 21 million units.
Benefits of BTC Mining
Calculating the profitability of mining is highly dependent on the three factors of device price, suitable electricity, and extraction difficulty. The use of industrial electricity or expensive low-power devices is only costly and will cause problems for miners in the long run. Therefore, before buying the device, we must calculate all these items in profitability many times and then enter the mining industry.
Bitcoing Mining?
After buying the BTC mining device and choosing the wallet, we must enter the pool of miners. A mining pool is a virtual place where miners gather the processing power of their devices. This makes the process of solving the mathematical equations of the blocks faster. After solving a bitcoin block, the amount of reward is divided among the miners according to the power of the devices. Without joining a mining pool, the possibility of bitcoin mining is very low. There are only large mining farms that can extract bitcoins on their own.
Cloud Mining
Cloud mining is another way to extract bitcoins without equipment. In this way, you pay the large mining companies to buy the processing power of their devices. In this case, the mining process can be done by another company without the need for electricity or the internet. This method, although very attractive at first, is also dangerous. Many cloud mining companies are just looking to empty users' pockets. They have no transparent mining process. On the other hand, due to international sanctions, the possibility of losing an account and blocking it in this process is high.
Trouble In Paradise (Risk)
The import and purchase of BTC mining equipment also require a legal license. Apart from legal restrictions, the mining industry, despite all its charms, has its own risks. Without proper equipment and cheap electricity, entering this industry would mean losing capital. Finally, we suggest that you visit the Nobitex home page to buy and sell digital currency. To be honest it's not worth getting into BTC mining.
