You’ve probably heard the buzz. Well, bitcoin mining is a reality folks. Fast development in technology has brought forth innovative items, and seems this is not about to slow down anytime soon. Currently, bitcoin mining has became a household name.
In 2009, it did appear around as the new and latest form of digital currency. This is all courtesy of a genius lad named Satoshi Nakamoto, some mysterious chap often portrayed as a superhero.
Purpose of mining
The common misconception with bitcoin mining is that most people who engage in it do it with the sole purpose of solving sophisticated mathematical equations. Well, this is indeed part of the whole process, but it would be better terming it a means to an end. Each miner has their own goal for doing this.
To begin with, bitcoin mining exists to process transactions, i.e. releasing new currency and adding transactions to the block chain. Normally, regular people are the ones responsible for performing such processes, in the case of a bank. But since bitcoin lacks a central system, miners are the ones responsible for undertaking such operations. They usually receive a reward for their service. Transactions tend to be processed in terminal blocks and so for every block processed, there’s a reward.
Another reason for mining is releasing of new funds into the bitcoin economy. This is what distinguishes it from regular banks. No currency is printed and then distributed from central banks. Due to decentralization, it simply implies that it’s not controlled by anyone. Thus, mining allows for fair distribution of funds. Mining one single block can cost around $ 2000 in both hardware and electricity. The figures are expected to grow.
Lastly, cryptocurrency hashing, as many would call it, can be used to secure the bitcoin network. Miners trace transactions right from the original source to their final destination, in addition to verifying ownership of those coins. This helps to prevent double spending and regulate mining power amongst the members.
This constitutes the level of new bitcoin that’s released with every mined block. Normally, the reward will be halved once after every four years or every 210,000 blocks. It began with 50 coins (2009), but in 2014, the figure changed to 25. Thus, most people are genuinely interested in selecting best bitcoin miner for their production process.
You should note that despite many people showing interest, on the other hand, the interests keep diminishing as well. This is entirely due to the reducing reward that’s almost getting down to the zero level. Experts have thus expressed concerns, some saying this could turn into a greater security problem in the future, unless a transaction fee is introduced.
How to participate
What’s more, to be part of this, you have to purchase bitcoins using a special software. The software will generate a pair of special codes that will secure your bitcoin transactions. They are usually referred to as public and private keys. Normally, you’ll send the bitcoins to someone’s public key while the payments will be secured with the private keys. Thereafter, the bitcoins virtual currency will be placed in your virtual wallets.
One thing the top bitcoin sites can provide is a list of gambling sites where you can spend in your mined coins! Apparently, bitcoins have posed as a threat. The chance of them becoming the next form of consumer currency indeed high. Moreover, it has even arrested the attention of wall street agents. Nearly the whole world, right from the U.S to Europe and Asia, is playing the bitcoin market. You too can be part of bitcoin mining.Full Review