There has been a lot of talk about cryptocurrency and Bitcoin in the past few years, with most people getting curious and interested in investing a significant amount of money in cryptocurrency. The initial impression was investing in Bitcoin, arguably the most popular cryptocurrency, can result to high investment yield due to staggering worth of Bitcoin.
The most common way of earning Bitcoin is through Bitcoin mining. And while the process seems familiar, only a few people know the actual steps and process that goes into Bitcoin mining. Some MännerMagazin articles may have touched the subject of Bitcoin mining, but nothing in detail.
- What is Bitcoin mining?
Bitcoin mining, by definition, is the process of obtaining Bitcoins through adding blocks of Bitcoin transactions into a group called block chains. In digital cryptocurrency, transactions surrounding each unit of cryptocurrency, in this case Bitcoin, is recorded. This is to make sure that no same Bitcoin is used fraudulently for different transactions.
- How does Bitcoin mining work?
Since transactions involving Bitcoins are not overseen by any authority or governing body, it is of utmost importance that a record of all transactions be made to make sure that no fraudulent activities occur.
What Bitcoin miners do is they process each block, a recorded transaction of a single Bitcoin, and add it to a block chain to make sure that it is not used more than once. They are then awarded with Bitcoins as a reward for maintaining the recorded transactions of each Bitcoins.
- The evolution of Bitcoin mining
Initially, Bitcoin mining was done by individual computers and in small organizations. Not much horsepower is needed to successfully mine Bitcoin back then. But as the demand grew and the number of transaction blocks increase, the needed processing speed and graphics capacity to successfully mine Bitcoins have also evolved. Now, a multi-core CPU with a dedicated graphics engine is the minimum requirement for a computer to be able to successfully process Bitcoin mining.