Bitcoin mining

Bitcoin mining is simply defined as the verification of bitcoin transactions and those verifying the transactions are paid with new bitcoins. The question is, why is there mining of bitcoins? Satoshi Nakamoto created 21 million bitcoins in 2009. He created this fixed number of bitcoins to create scarcity thereby preventing inflation and have the opposite effect where bitcoin will appreciate in value over time. These bitcoins needed to be used by the public just like the money we use daily so that they assume value. Satoshi designed a structured system by which the bitcoins will be released to the public. Obviously, he pocketed some bitcoins for himself, but had to release the rest to the public otherwise the bitcoins he pocketed would have been worthless.

The way he was going to release the bitcoins to the public was to release one block of bitcoins every 10 minutes. In 2009, one block had 50 bitcoins and these bitcoins per block would halve after every four years until the year 2140 when all bitcoins are in circulation. He wouldn’t just go about donating the new bitcoins to anyone he came across. Those who would receive the bitcoins were to work or rather compete for them. There are two properties of bitcoin that made paying possible. The first one is that bitcoin does not have a central bank to verify transactions, while the second one is that bitcoin is a world currency; thus hundreds of millions of people will be transaction in bitcoin. Thus, the small transaction fees would add to a lot of money that will be paid to those verifying the transactions (miners). The new bitcoins are also payment for the miners verifying the transactions and the way they compete for the bitcoins is by solving a computer generated complicated mathematical puzzle. The one who solves it first is awarded with the new bitcoins. This process of solving the puzzle is the process of verifying the transactions, compiling them into blocks and adding them to a public ledger called the blockchain. For more information visit our  webpage https://www.dubeminer.com and subscribe to our newsletter.

In the early days mining was done using desktop computers, but when the bitcoin gained popularity and became more valuable, more miners joined in and increased the mining difficulty. This resulted in more mining power needed to solve a block; hence more powerful specialised graphic cards were created. These graphic cards became useless when the bitcoin price soared which resulted in even more miners joining and further increased the mining difficulty. Nowadays mining is done specialized powerful computers called Antminers that are assembled into mining farms to increase the chances of hitting blocks of bitcoins. These Antminers are also regularly upgraded to stay competitive. Visit our webpage https://www.dubeminer.com and obtain information on how you can get involved in mining bitcoins.