Bitcoin Mining is probably one of the most legitimate ways of making money online. Bitcoin and other crypto currencies have successfully established themselves in the market today, thus making them a good medium of trade. Aside from that, digital currencies provide privacy and anonymity in each transactions.
The whole mining process involves storing multiple bitcoin transactions into blocks, which one may refer to as “ledgers.” The purpose of this is to provide information for miners to solve.
Once a puzzle is successfully solved, it’s then transferred to the blockchain where it will be stored permanently. This goes on until one block is completed. Bitcoin mining mostly is the process of competing against other miners to earn a certain amount of bitcoin.
A completed block triggers the system to release a new amount of bitcoin to be set as the block reward for participating miners. Remember that the only existing amount of bitcoin as of now is 21 million.
With that being said, the puzzles to be solved by miners are the input and output of bitcoin transactions within circulation. This way, users are able to analyze the value of bitcoin in the market.
The puzzle’s difficulty depends on the number of participating miners. The level of difficulty adjusts on its own after a couple of weeks, or for every 2016 blocks that are completed. This whole process is important not only to miners, but also to all the users of bitcoin in general. Bitcoin mining not only provides earning opportunities. It’s also a huge factor in ensuring the safety of the bitcoins and its usages.
Validating the blockchain and providing relevant and comparative proofs of transactions helped sustain the currency since 2009. The fact that it’s decentralized may somehow create an impression that it’s not organized at all, but with the help of bitcoin mining, all data and information are properly stored in the blockchain.
Bitcoin miners are everywhere. Most of them are just people who love solving puzzles and algorithms. Some are dedicated bitcoin enthusiasts who believes in the potential of the said digital currency.
As of now, 1 bitcoin is equivalent to $5,818.69 and may fluctuate from time to time. But it never goes lower than $5,700 and promises to increase its value in the future.
Bitcoin is very promising, and mining it is not as crazy as it sounds, especially when 13 bitcoins is up for grabs.