How Bitcoin Mining Is Done And Is It A Future Currency

Have you ever seen the companies who make bitcoins look like and how they make bitcoins? If not, then here we gonna talk about, how bitcoin actually created and how these cryptocurrency companies work. Before that, you should learn what the heck is Bitcoin, below you will get a brief description of Bitcoin and about how bitcoin mining actually is done.

What is Bitcoin?

Bitcoin is a digital or you can say it is a cryptocurrency and it can be used as a payment method worldwide. Bitcoin was first invented in 2009 by the person named Satoshi Nakamoto.
In January 2009, the bitcoin network came into existence after Satoshi Nakamoto mined the first ever block on the chain, known as the genesis block. The network is peer to peer and transactions take place between users directly as it is not owned by any bank, country, person or by any administration, so it is a risky business.

Bitcoin Mining

Bitcoin mining, Blockchain
  • Just like anyone can join the Internet, anyone can help to verify and record payments into the blockchain. This process is called mining.
  • In mining, users offer their computing power.
  • Miners are rewarded with newly created bitcoins and transaction fees.
  • Currently, miners receive 12.5 bitcoins every 10 minutes. This halves every 4 years. The next halving will happen in mid-2020.

Bitcoin Mining Companies

Patricks consulting, a south London company, is from a few companies, including the mining of cryptocurrency Bitcoin.

There are 24 hours of state-of-the-art hardware work, in this hope that new bitcoins can be produced. All its machines come from China. The mining of the virtual currency was possible before sitting at home with a computer. As the bitcoin was formed, the process became complicated. Now the techniques have become so developed that for the mining of currency, for the mining of the bitcoin millions of dollars worth machine are needed. These computers mine bitcoin by solving arithmetic calculations and equations. As soon as the machine solve these arithmetic equations, it gets a bitcoin. There is a lot of electricity spent in this process and there is so much noise that just like a jet is flying. Since the price of bitcoin reached 19 thousand dollars on December 16 last year, such companies are increasing day by day.

Claiming to be a future currency and a Risky Business

According to Valad Polakowski, a partnering Pittrichx Consulting, it is a risky business. Bitcoin may be mined or may not be. But if there are benefits in it, then you will get the huge amount of money with that. Just like farming, land needs to be made, so for making a bitcoin, you need a lot of electricity and cooling system. They claim that this is the future currency.

Here Interest over time graph showing inclination of bitcoin searches over past year.

Bitcoin Interest by region. Worldwide. Past 12 months

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