What is Bitcoin Mining? Everything you need to know
With the rise of cryptocurrencies in the world, there are a lot of new people wanting to find out about bitcoin an other altcoins, every day. After they find out what is bitcoin they often want to know what is bitcoin mining?
Well as you probably know by now, Bitcoin is a cryptocurrency. This means that your coins are encrypted with an impossible-to-hack code. When you are buy a Tshirt for example, you are willing to transfer some of your coins from your bitcoin wallet to the store owner’s wallet. But wait a minute! We just told you that your currency is encrypted. so how the hell are you supposed to transfer your money and buy that damn Tshirt? This is where the Bitcoin Miners come to rescue!
Bitcoin cloud mining is much more profiable than bitcoin mining because you don’t have to get engaged with power supplies, power prices, miner repaires and so forht.
How does bitcoin mining work?
So far you have understood that in order for you to transfer your money from one wallet to another bitcoin wallet, a bitcoin miner is needed. But how does bitcoin mining work exactly?
Well, in order for you to decrypt any encrypted code, Such as bitcoin and some other altcoins, you are going to need some computing power. Let’s roll back and look at how regular banks work. When you wire some amount of dollars to another account, your banks data centers erase that amount of dollars from your account and add them to the destination account. After a while the printed bill is transfered physically.
Read more: How to survive bitcoin crash?
Transferring bitcoin is a little bit different. First of all there is no printed bill, So that’s out the window. Second of all there is no data center (financially supported by banks) to make the transfer. So in the beginning, when satoshi nakamoto thought about this matter, he came up with an incredible idea of putting everybody’s computer at work to make up for the unavailability of huge data centers. For people to agree with his idea, he tweaked the system to reward anyone who contributed to bitcoin transfer system. Over the years, the term Bitcoin Mining has been used for this task of contributing to bitcoin transfers by providing computing power to the blockchain.
We tried our best to explain what is bitocin mining in the simplest way possible. Keep reading into our blog to find out more…