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15 insights on Bitcoin mining

Aug 08, 2017 Posted /  1722 Views

15 insights on Bitcoin mining

15 insights on Bitcoin mining

What is Bitcoin Mining?

It is a fact to wonder about the existence of Bitcoins, and from where do they come, its circulation and other mechanisms related to it. Bitcoin mining can be described as the process of adding new transaction details to the blockchain and releasing new Bitcoins. It also involves solving difficult mathematical puzzles and compiling new transactions with early happened transactions. The person who solves the puzzles will get to add a new blockchain and can claim rewards.

Let us see few details about the Bitcoin process and other relevant activities

1. Security of Bitcoins

Due to the decentralized network, the security of Bitcoin is not that great. It has always been known that 51% of the security has been at stake, due to many loopholes in the security. Therefore, there is no security in mining a bitcoin.

2. Difficult to mine

The computational problems while mining Bitcoins are too difficult. The puzzles are mathematical, which are to be solved and a new Bitcoin can be released. The person solving the puzzle gets rewarded.

3. Blockwise rewards

Since it is blockchain technology, a new blockchain gets added when a mathematical problem is solved, to the existing blockchain records. And, thus the rewards are been given to the puzzle solver.

4. Bitcoin mining tools and hardware

There are tools and hardware needed to mine Bitcoins. The best Bitcoin miner hardware tool can be chosen by the hash rate, efficiency and related price of the hardware. Antminer, Avalon, SP20 Jackson are some of the popular tools for mining hardware


5. Bitcoin mining pools

Bitcoin mining pools are pools where a group of miners, mine Bitcoins and share the rewards together to the contributed hash power. Miners can redirect their power hash power to another pool anytime.

6. Bitcoin cloud mining

Cloud mining is a technique where we pay another service provider to mine for us and give the rewards.

We can manage to mine Bitcoins without the hassle to mine Bitcoins, managing our own hardware, we can use Cloud mining to earn coins. The benefits are the no added cost, home environment, no equipment to sell when mining etc are some perks to conduct cloud mining. 

7. Highest Bitcoin mining countries

Bitcoin mining is highly carried in the countries of China, Iceland, Japan, Georgia. These countries mine the highest number of Bitcoins.

8. Why are Bitcoin miners crucial?

To generate the cryptocurrencies, it is important to keep mining the Bitcoins and for its security. The Bitcoin miners are the one who helps to carry on with the technology of blockchain.

9. Antpool - Biggest pool to mine Bitcoins

Antpool is the biggest Bitcoin mining pool based in China, it mines about 25% of the total Bitcoins around the world. It claims that it does not charge any fees.

10. Bitfury

Bitfury is the third largest pool to conduct mining. It mines around 11% of the total coins in the world. The difference between Bitfury and others is that it is a private pool.

11. Benefits for mining Bitcoins

Low inflation risk, low collapse risk, it's safe, simple and cheap, easy to carry, untraceable are some of the features of Bitcoin mining.

12. Cons of Bitcoin mining

Easy to lose, hard to trade, untraceable, can't buy stuff, can't buy anything, too volatile are some of the risks related to Bitcoin mining

13.  Softwares for mining Bitcoins

BTCMiner, CGMiner, BFGMinerr, EasyMiner are some of the software to mine Bitcoin coins.

14.Tragedy of the commons

The tragedy of goods is a scenario that common goods are produced with low quantities than the desired demands. Thus, this can drop the value of mining and Bitcoins to zero. 

15. Future of Bitcoin mining

In the massive jump in the technology, the mining demand for Bitcoins has become very high. It has moved from short term quick profit to a long term profit.

Countries like Iceland are investing millions to mine Bitcoins, to build extra security features for the mining.

Applancer is an open platform for discussion on all things like Blockchain , Cryptocurrency and Ico news updates. As such, the opinions expressed in this article are the author's own and do not necessarily reflect the view of Applancer .

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Tags: Bitcoin Mining Mining of Bitcoins Mining Bitcoins How to mine Bitcoin Bitcoin mining softwares

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