Wanna see mining done without axes and digging?
Bitcoins have started since 2010 making 2020 their Tenth Anniversary. There are many ways to earn these bitcoins. One is just buying them with money, accepting bitcoins in exchange with something, working to get bitcoins, etc. One of the many ways is Bitcoin mining. Bitcoin Mining is basically people using complicated systems to solve complicated math problems to produce bitcoins. The stronger the computer, the faster it solves it. When they solve the problem, they create a type of a distributed ledger, “the blockchain” something you might have heard of.
What is a “block chain”?
The block chain is a chain of blocks that hold every transaction made. Where one block contains about 2,500 transactions. Which in return gives them transaction fees and they get paid with new bitcoins every 10 minutes because in every 10 minutes, a new puzzle is given.
Is that all miners do?
Miners prevent the network from being attacked or dysfunctioned by confirming the transactions before it is joined with the block and providing security. Everything is set in code which prevents miners from cheating the system or creating bitcoins without using the power of their hardwares or GPUs.
What do miners need?
Miners use Powerful GPUs, powerful computers or an ASIC (Application Specific Integrated Chip) hardware to earn those bitcoins. ASIC hardware is a special type of hardware which was made just for mining bitcoins. It takes up less energy and time. A lot of electricity is needed to run those heavy softwares. You can’t be paying half of your bills for electricity; you need places with cheap electricity which is why most bitcoins are mined in these huge warehouses.
Bitcoins can be used as money too.
- There are shops and cards that offer payment in bitcoins.
- You can pay by converting your bitcoins to money.
- You can make payments on web hosting through bitcoins too and that’s called bitcoin hosting.
- Using bitcoins you can lodge a domain.
Though some countries have banned bitcoins, there are cards that offer bitcoin payment.