We live in the age that most everyday things have been digitized. You must have heard the term Bitcoin by now. But have you ever wondered what bitcoin is? Or how bitcoin is mined or what are the bitcoin miners?
These are all questions that may arise in the minds of many people. Therefore, in this article, we seek to be able to answer such questions to some extent. So if your search mind is looking for answers to these questions, join us.
What is bitcoin?
Are you one of those people who think that bitcoins are gold coins? If you think so, it is wrong.
Bitcoin is actually a software. It is also the most successful attempt to build a digital currency, and of course the first digital currency that was created. Many imitations were created after Bitcoin, which despite their success, are still in the lower category of Bitcoin.
Bitcoin is a digital currency that has no connection with real money. Also, this digital currency is not controlled by any government or central power. But you can buy real items with Bitcoin.
What is bitcoin mining?
Bitcoin mining is a complex process in which a block is added to a chain of blocks. This is a really difficult process that miners go through with a lot of effort. In fact, the miners solve complex mathematical equations to generate a new block and add it to the blockchain. The reward for the bitcoin miner is 6.25 bitcoins.
But blocks are a group of approved transactions that are eventually tied together to produce a chain. So it is called blockchain.
In fact, blocks are made up of digital information that has three properties.
First, these blocks can store some user information. Information such as the date of purchase or the amount of purchases of users. Second, at the time of purchase, your actual information does not need to be stored in these blocks. Instead, you can do this under a pseudonym and a digital signature. And the third feature is that blocks have information that is different from other blocks.
As mentioned, Bitcoin Miner tries to solve complex mathematical equations so that it can add single blocks to the blockchain. Therefore, bitcoin miners must have high computing power and electricity. Each of these miners is in a tough competition to be the first to solve a block in order to win the mentioned reward.
One of the most interesting and, of course, important points is that the miners’ bonus is halved almost every four years to eliminate the problems of inflation. This process is called halving.
What is Bitcoin Miner?
Bitcoin Miner refers to devices that are dedicated to bitcoin mining and there are many different types. Of course, people who enter the field by investing in bitcoin mining are also called miners.
Digital currency miners both make huge profits and have a vital role to play in maintaining the digital currency network in the digital currency market. Therefore, in general; Miners do not buy digital currency or get it from someone else, but produce it at cost and energy.
To increase your knowledge of digital currencies, we have to say that a total of 21 million bitcoins can be mined, of which more than 17.7 million have been mined. With the exception of the original bitcoin block (genesis block) created by bitcoin maker Satoshi Nakamoto, the rest of the bitcoins were generated by miners.
But you should know that with the absence of miners, bitcoin will not run out and will still be usable, but no new bitcoins will be produced.
But according to the original bitcoin protocol, the day will come when bitcoin mining will end. This means that after 21 million bitcoins, there will be no more bitcoins to extract.
After there is no other bitcoin to be mined, miners will continue to be responsible for approving bitcoin network transactions.
What equipment does a bitcoin miner need?
The equipment needed to start a mining business depends on the level at which you want to operate; It is certain that the more you want to operate on a larger scale, the more powerful equipment you will need, and vice versa.
But the most basic tools you need to start extracting bitcoins are:
- Special mining device
- Authentic Bitcoin digital currency wallet
- Fixed and stable internet
- Electrical equipment and electricity
- Air conditioning fan
How is bitcoin mined?
As you have read in the text above, we have introduced you to the basic equipment required for bitcoin mining. In the following, we will explain to you what each of these tools are used for and how to use them:
- Special mining device
Today, bitcoin is mined from special devices called “Asic”, but in the not-so-distant past, bitcoin miners did this with processors. But mining with ordinary computers and mobile phones does not bring much profit.
- Valid Bitcoin wallet
You need a bitcoin wallet to store your earned bitcoins.
- Fixed and stable internet
It is not necessary to use high-speed Internet, but the important thing about the Internet to extract bitcoins is that the Internet is not disconnected and connected.
- Electrical equipment and electricity
If you are going to extract bitcoins, you should know that in some countries, using home electricity for this purpose is illegal; because mining devices consume a lot of electricity, so you are required to use special and suitable electrical equipment.
- Air conditioning fan
Mining devices generate a lot of heat. For better efficiency and maintaining the health of extraction devices, it is better to use a cooling system.