This post was most recently updated on December 5th, 2018
In this article, you will learn about Bitcoin mining how it works and why it’s such an integral component for the entire Bitcoin network to work.
Bitcoin miners don’t need pickaxes, safety goggles, steel-toed boots, long-sleeve shirts, heavy pants and helmets to go to work on the Bitcoin mines. They don’t need to get muddied and dirty to earn some money and there is certainly very little risk to getting physically injured while Bitcoin mining. You may think Bitcoin miners do a lot of hard work physically! No they do not. Maybe mentally or digitally for sure. You see miners invest a lot of money to buy powerful computers they then install special mining software which solves complicated math problems.
These formulas are so complicated for humans to solve that it may take even certified math geniuses several days weeks or months to solve a single problem. But with these high-tech computers, these mathematical calculations are done in a fraction of the time. When it successfully solves a problem the computer or rather the miner is rewarded for their hard work with bitcoins and this is basically how bitcoins are created. The more miners there are attempting to solve problems the more stable and secure the Bitcoin network is. Of course receiving bitcoins as reward is more than enough incentives for miners to continue doing their jobs. You may think Bitcoin mining is super simple.
In theory it does sound pretty simple, indeed you just go out and buy some powerful computer, install special software, have it solve math problems and receive bitcoins in return. What most people fail to consider is that like real mining it will take some time before you strike gold. The more miners there are, the more competition you have in regards to who gets to solve the problem first. And I haven’t even mentioned the cost to acquire one of these high-tech computers. And the electricity it would cost to run these powerful things. Solving problems is not easy even for supercomputers as it requires so much energy that your system can overheat, short-circuit and end up with permanent damage, because of these stringent hardware requirements. More and more miners are joining mining pools which allows them to solve problems faster and puts less strain on their computers. The amount of Bitcoin rewarded to each member is proportionate to the amount of work done.
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