What is Bitcoin Mining! Bitcoin mining is done with computer graphics card or esc machine made for crypto mining like gold or diamond mining is done through different machines. Hello friends hope everyone is well. Today we will know through this post how Bitcoin mining is done. Before learning about mining, let’s take a look at how Bitcoin transactions are completed.
How are Bitcoin transactions completed?
Suppose I live in Rajshahi and you live in Dhaka. What would you do if I told you to send one lakh rupees now? You first go to the bank and ask the banker to transfer one lakh rupees from your account to my account. Then the banker will subtract one lakh rupees from your account and add 1 lakh rupees to my account and this transaction will be saved in the bank’s ledger. But in case of Bitcoin it is totally different if you want to pay me 1 lakh rupees then you go to any of your wallets and sell 1 lakh rupees to my address.
There are several differences between Bitcoin and bank transfers. For example, if you go to make a transaction with a bank, then the bank will deduct a large fee from you or the bank can block your transaction at any time and the money in the bank can be hacked at any time. Even Bank Bank can be Kraftto. On the other hand, when you transact with Bitcoin, your transaction is completed by any miner and all computers worldwide verify this transaction and your transaction is uploaded to Bitcoin’s ledger. This method is completely safe because if any miner tries to mess up he is automatically kicked out of the network.
Where does Bitcoin come from?
Bitcoin is basically an open source software. A person or organization named Satashi Nakamoto has created it in a way that people can exchange daily. Through it you can transact without any kind of bank. But around 2007-8 such ideas were very unique. As a result, Satashi Nakamoto faced several questions. For example, who will complete the transactions of Bitcoin? And how will the supply of Bitcoin be given in the market?
Satashi Nakamoto mainly selects miners to complete Bitcoin transactions. Basically, miners will use their computer power to verify transactions and execute transactions on the Bitcoin network. And for this work miners will get a transaction fee. Satashi Nakamoto mainly selects miners for Bitcoin supply.
Algorithmically, in addition to the transaction fee, a certain amount of Bitcoin is released for each block and distributed among the miners as a reward. Initially miners were rewarded with 50 bitcoins per block. This reward is halved every four years through halving, causing the supply of Bitcoin to decrease and the price of Bitcoin to increase. The maximum supply of Bitcoin is 210 million Bitcoins. According to the algorithm, it will take until the year 2140 for the last Bitcoin to be created.
History of Bitcoin Mining
After Bitcoin was launched in 2009, only Satashi Nakamoto and programmer helpin were mining it. Back then they used to mine with their personal computers. Then slowly the number of miners in the network increases and mining with personal computers is no longer profitable. Around 2012, the idea of mining with a computer’s graphics card appeared and the idea quickly became popular. At one stage, at the end of 2012, the crisis of graphics cards began to appear and the prices of graphics cards in the market also increased. In 2013, a Chinese company called Canon Creative released ESIC Miner.
It is mainly made for mining. As a result, more mining could be done at a much lower cost. Within a few months of launch, these mining machines became very popular among miners. Currently most mining farms mine with ASIC miners. Because these machines are very powerful, mining with a computer or graphic card is not that profitable.
Difficulty in Computer Mining
When Satashi Nakamoto and programmer Hal Feni were mining Bitcoin in its early days. Then they could mine thousands of bitcoins a day with their personal computers. Because there weren’t that many miners in the network back then and the 50 bitcoins released per block were divided among those few. Because of this, Satashi Nakamoto was able to mine one million bitcoins in a very short time.
Then when discussions about Bitcoin started in various forums, many people started mining Bitcoin with their personal computers. But those 50 bitcoins were generated per blog and distributed to all miners in the network. This is basically how mining difficulty is created. As more miners join the Bitcoin network, the mining difficulty increases and the Bitcoin network becomes more powerful.
Is Bitcoin Mining Profitable?
Currently mining is not very profitable. Because many large mining firms are mining on a large scale, the mining difficulty is increasing. However, mining profitability depends on many factors. Such as power consumption and the miner you use. What mining machine are you using and how many kilowatts of electricity does it consume and what is its mining capacity. There are various mining calculation websites online, you can calculate your profit loss from there.
Other forms of Bitcoin mining
Cloud mining means you get mining power from someone else without directly buying a mining rig or computer. This means you pay money to another mining company without going to any trouble yourself and they buy mining machines with that money and pay you the profits from there. Although the idea is good, almost all companies online are s-cams. I would not advise you to invest in any such mining firm.
Bitcoin Mining from Mobile:
There are many mobile apps. From which you can do bitcoin mining via mobile. Technically this is also true. But if you want to do mobile mining then your income will be very less. For example, suppose a mobile has 8 GB of RAM and its price is 22 thousand taka. If you do mining 24 hours a day and night with this mobile then your income will be only 7 cents or 7 taka in 24 hours. So mining with mobile should not be done.
Bitcoin Mining From Web:
Around 2017 several websites started using the power of their visitors’ computers to mine Bitcoins or cryptocurrencies. This system is also called cryptojacking. Currently, this system is running on more than 85 thousand web sites.
Google Bitcoin Mining Comments
If Google started mining Bitcoin with all its computers, Google would only need to mine 525% of the Bitcoins. Can you do mining? Anyone from any country in the world can mine Bitcoin from anywhere. You can start mining Bitcoin with your mobile phone or computer. But your computer power is nothing to the machine specially for crypto mining.
Google’s 53 qubit quantum computer is 10 million times faster than our normal computer. If they start mining with this computer then the bitcoin mining difficulty will go away. But the reason why Google is not doing this is that 130% of the money that Google earns by using quantum computers will come from Bitcoin mining. So basically Google does not do Bitcoin mining.
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