What is mining Bitcoins?

What is mining Bitcoins?

For a new currency, cryptocurrency, it was expected that new forms of exchange were implemented, and as a currency is not regulated by a bank as such, should be ways to get in addition to the simple exchange units for common currencies. For bitcoin mining, which basically consists of placing a computer to process transactions made users are created. It’s not as simple as it seems, and not leave the profits to be seen clearly, let’s look a little further.

Expense vs Gain

Initially, about 4 years ago, the first miners, as they are called these people who are dedicated to finding bitcoins, using ordinary home computers to perform these tasks, and as the popularity of bitcoin was little or almost nil, too. There were very few miners who devote full time to this “work”. By 2010 mining had more pros than cons, as with a regular computer could get to get to a bitcoin daily, and although the value of bitcoin then it was not so high, it was still quite some way profitable because the cost of hardware and electricity could be maintained.

Today the reality is very different, since they have created processors, processors and I mean a computer hardware, specialized for mining bitcoins, which can cost up to $ 3000, speaking of expensive copies per course. We also noticed that besides the cost of these machines should be added electricity cost, when the truth becomes unprofitable, since they spend earning as much as it is, you’re at zero.

The process

Let us look further mining. When a person, be it a customer wishes to exchange bitcoins, what you do is just open your wallet and hand over the amount of bitcoins to another provider who will give you your username. Each bitcoin is essentially a heavily encrypted code that allows transactions safer. When carrying out this transaction, the only way to verify is that other users on the network see if bitcoin bitcoins are real or not, all this using specialized programs for these purposes. Therefore those machines specially dedicated to it, since every transaction there is a percentage that goes to pay the miners. Daily a lot of transactions can be performed, so a lot of processing power is required. As a reward for those people who pass each transaction, a percentage of all the miners were distributed, at random, the commission left by those who conducted the transaction.

Every time new blocks of transactions, where these processes are stored, and thus also create bitcoins, which of course are divided among the lucky ones who can get them in a totally random are also created. Importantly, the value of bitcoin is given by the number of people who are undermining, and by this amount rises difficult to get a bitcoin.

The arrival of the cryptocurrency caused no good reviews from major banks, which will surely be a little frustrated to learn that they cannot control the currency, since only control their users. It is therefore difficult to know what to expect in the future to Bitcoin, because large industries could do everything possible to get the market.