What is cryptocurrency mining?
Why are bitcoins mined?
For bitcoins to exist on the market and in the economy, they must be registered along a blockchain. It is the miners who will do the job of adding bitcoins to the blockchain. In sum, mining introduces bitcoins into the system, so they can be used. Since there will be a limited number of bitcoins (about 21 million), mining will be limited in time (around 2140). The number of bitcoins that can enter the blockchain is regulated and limited. In addition bitcoins are extracted more the process will be difficult.
Because theoretically minors can theoretically be you and me, putting at the service of the blockchain network of the currency, the computing power of our software.
But for currencies like Bitcoin, which is no longer in its infancy, this will require expensive machines because of the importance of the network and therefore the calculations that must be made.
So it’s harder than it looks. The explanation we will give you will give you a general idea of the process. We will take the example of Bitcoin, but these explanations are also valid for other crypto currencies.
How do we mine Bitcoin and cryptocurrencies?
To start exploiting Bitcoin, you would need extensive computer equipment (hardware). A long time ago, when Bitcoin was created, the use of basic machines on a desktop computer was reasonable. It is now much more difficult to exploit Bitcoin. If you used a desktop computer, for example, you would use far too much electricity. This is why newer hardwares are used instead. A good Bitcoin mining machine can cost thousands of dollars.
Then you will have to get a mining program. Whatever program you get, you will need to make sure it works with your mining equipment. Many of them are free online.
Your next step is to open a Bitcoin wallet. You can use an online wallet. It is safer to store your Bitcoins in an offline wallet or paper wallet. No matter what path you take, make sure you have backups of your Bitcoin access. Make sure your portfolios are secure.
Now that you are set to extract Bitcoin, you must decide whether you want to extract yourself or enter a mining exploration pool. A mining basin is a group of miners who do it together to increase their power. Bitcoins that are mined are divided among them, depending on who did the most work. (You may also have to pay a fee to join a mining pool.)
Now you can start extracting by running your program. The miner has to log in and start mining. If you try to run other programs on the computer during the process, you may notice that your computer is much slower than usual. Just make sure your equipment is not too hot during the extraction process.