What Is Bitcoin Mining?
In my previous post, I introduced to your cryptocurrencies and specifically, Bitcoin. I elaborated what digital coins are. In addition, I pointed out their relevance to the current finance industry. Bitcoin mining refers to the process by which a user’s computer is used to mine bitcoin by running a program that is designed to solve a mathematical problem. The user computing power is needed in order to solve the given problem, which is then rewarded with bitcoins.
Principles of Bitcoin Mining
Bitcoin mining is a competitive and potentially lucrative activity, but since the cost of electricity is rising, the profitability of this activity is also rising. The number of bitcoins that can be mined is limited by the amount of electricity that can power the computers that are used to complete the process. A number of methods are being developed in an attempt to reduce the need for electricity, such as renewable energy, but it is unlikely the method will be able to meet the demand for electricity in the near future.
Benefits of Mining Bitcoins
There are several advantages of Bitcoin mining. First, it is a decentralized system, which means that the mining process is not controlled by any one entity. Second, the mining is done by a large number of computers, which makes it much more difficult to manipulate the system. Third, the system is completely transparent, which allows users to keep track of the computing resources used to process transactions.
The Crypto Trend
Bitcoin is a cryptocurrency, a digital currency that is not issued or controlled by a government or central bank. That having been said, mining Bitcoin therefore, requires skills and great computing knowledge. Mastering these mining skills is a great deal right now, more so with the growing popularity of crypto currencies. Each day a new digital coin with its unique value is launched.
Facebook is among tech giants with the latest interest in creating their own digital currency. This clearly confirms the crypto trend. Digital coins like bitcoins are clearly headed to the top of the FinTech and monetary transaction if they are not there yet. Some of the most common crypto coins that are growing in popularity each day include:
• Ethereum (ETH)
• Cardano (ADA)
• XRP
• Binance Coin (BNB)
• Tether (USDT)
• Polkadot (DOT)
Each of these coins and more have their own unique values. That also applies to their performances and trend. While the value of Bitcoin is going up, the values of other coins, like ADA, might be going down. In addition, the vice versa is true.
Conclusion
With all that said, I understand if you believe in mining Bitcoins. Unlike traditional mining that mostly involved digging ground and destroying the environment, this kind of digital coin mining is ecofriendly. That is because it involves the use of computers and electricity only. As long as you stick to environment friendly power sources such as solar systems, you will only be adding value to the community and globe as a whole.
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Onderzoek: zo slecht is Bitcoin minen écht voor het milieu