What is Bitcoin Mining and How it Works? | It is the hardest way to earn Bitcoin, you should have the proper setup of the computer with a very high specification close to a supercomputer and install mining software on it.
People were investing a lot like this is the only thing left in the world, maybe you are one of them. As per the CoinMarketCap, there is around 2000+ cryptocurrency currently traded in the market.
But the Price of Bitcoin touched its all-time high of $20,000 from its $300 in just a couple of months, no one has experienced such growth ever before.
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In 2017 the total worth of the Crypto market was around $800 Billion and Bitcoin acquired the most of the market with a total worth of $320 Billion.
In this crazy movement, every single people was aspiring to grab Bitcoin as much as possible.But then soon after we have seen the massive crash in Bitcoin price from $20,000 to $300.
At present in Dec 2020, Bitcoin is hanging around $7,000-8,000 which also touched $13000 back in Jun 2019.
what is Bitcoin Mining?
While any transaction initiated anywhere in the world through the Bitcoin wallet then it will not confirm unless the puzzle associated with each transaction will get resolve.
Every transaction in the blockchain network should be registered in the blockchain registry, the same as every bank transaction registered in the bank ledger.
To solve this mathematical problem people use high power computers or special hardware devices like ASIC and at a time only 1 is able to mine the block. (statista)
Whoever is able to solve that block puzzle will be rewarded with the Block reward of 12.5 BTC and all the transaction fees associated with that block.
Hence the person like you or me who is willing to mine those blocks is known as a miner and the special devices used to mine those blocks known as mining devices.
This overall process of mining a block using powerful hardware is known as cryptocurrency mining.
Every currency has a different mining mechanism few support Proof of stack (POS) and few proofs of Work (POW), learn here in detail about cryptocurrency mining.
Bitcoin mining won’t be possible with GPU or CPU hardware devices like we use for altcoin mining, for Bitcoin you need to buy dedicated hardware like ASIC.
Earlier in 2011, mining was easier to do using GPU but after popularity in the year 2017, it is very hard to mine Bitcoin.
The big giant of Bitcoin mining is Genesis, Bitclub, etc they have done the setup of mining software and high powerful hardware to mine them as much as possible.
We discussed a lot in brief of Bitcoin mining but if you are holding a limited amount of money and willing to invest in Bitcoin mining hardware then I won’t recommend doing this instead of focusing on investing in Altcoin.
If you still with me then you got an idea what is Bitcoin mining and how it works, so let discuss the on other the ways, how to buy bitcoin?