CRYPTO CURRENCY

HOW DOES BITCOIN MINING WORKS

VY VIVEK JAIN

WHAT IS BITCOIN  MINING

01

BITCOIN MINING IS THE PROCESS BY WHICH NEW BITCOINS BLOCK ARE ENTERED IN THE BLIOCKCHAIN AND ALSO THIS IS USED TO VERIFY THE TRANSACTIONS TAKING PLACE IN THE BLOCKCHAIN.

MAIN POINTS RELATING TO CRYPTO MINING

IN MINING YOU CAN EARN BITCOIN OR THE CRYPTO YOU MINE AS A REWARD FOR SOLVING AN COMPLEX SOLUTION.

BITCOIN MINING IS A VERY COSTLY AND PAIN STAKING TASK WHICH DONT ALWAYS GUARANTEE YOU BITCOIN IN RETURN

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ITS NOT LIKE YOU CAN EARN A BITCOIN EVERY SINGLE DAY AS THERE ARE MANY MINERS WHO ARE TRYING TO SOLVETHE COMPLEX HASHING PROBLEM AND ONLY THE ONE WHO SOLVES IT GET REWARDED.

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FOR MINING YOU ALSO NEED A POWERFUL GPU GRAPHIC PROCESSING UNIT OR BETTER AN ASIC APPLICATION SPECIFIC INTEGRATED CIRCUIT.

HOW MUCH A MINER EARN 

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THE REWARDS FOR MINING BITCOIN ARE REDUCED BY HALF EVRY FOUR YEARS 

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IN 2009 WHEN BITCOIN CAME MINER EARNED 50BTC FOR EACH BITCOIN MINED BUT CURRENTLY IN 2022 IT IS 6.25BTC  

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REASON FOR BITCOIN MINING

1. TO PREVENT DOUBLE SPEND 2. TO PUT NEW BITCOIN INTO THE SYSTEM OF BLOCKCHAIN.

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