The circulating market value of Bitcoin is 168.724 billion US dollars, the number of circulation is 18.4333 million, and the 24-hour transaction volume is 5.189 billion US dollars. From the above data, it can be seen that Bitcoin is very valuable and the rate of return has always been high. Knowing that mining is the most direct way to get bitcoin, so what does mining mean? I believe that most novice investors will be dizzy. Obtaining Bitcoin through mining is actually very easy to understand. The following editor will explain to you what is mining in a simple way?
1) What does mining mean?
In fact, Bitcoin mining is an image; people often refer to Bitcoin as “digital gold” because the total amount of Bitcoin is as limited as gold, and it is expensive.
Gold is mined from gold mines, Bitcoin is “mined” from numbers by miners. The “mining” and “miners” referred to here are different from those in our daily life. In daily life, “mining” refers to the process by which miners mine natural minerals such as gold and coal, and “miners” naturally refer to workers who mine. In the bitcoin world, “mine” is bitcoin, so “mining” refers to mining bitcoin, and “miner” refers to people who use mining equipment (bitcoin miners) to participate in mining bitcoin.
Bitcoin mining is the only issuance mechanism of Bitcoin. Since Satoshi Nakamoto dug the first block to obtain 50 Bitcoins, Bitcoin, the encrypted digital currency, has been continuously issued in such a decentralized manner.
The Bitcoin blockchain network is a decentralized network composed of many nodes, and these computer nodes join the network to maintain the distributed ledger because Satoshi Nakamoto cleverly added economic incentives when designing the system: many Bitcoin miners ( That is, mining nodes) compete to obtain the right to bookkeeping, and miners can obtain corresponding bookkeeping rewards for each new block added.
2）Bitcoin mining process:
1. Preparations
To start mining, we need to do some preparations: mining machines, bitcoin wallets, mining software, etc. need to be ready. Miners are specialized computer equipment used for mining. The higher the computing power, the higher the income. Of course, the price of miners will be more expensive.
2. Find the mining pool
To start mining, you must have a mining pool that is easy to operate and has a stable output. What it does is subdivide packets for each endpoint. The data packets calculated by the terminal can be paid proportionally according to the corresponding number of bitcoins through a complex algorithm.
3. Set up a mining pool
Open the miner management interface through the browser, enter the address of the mining pool, the name of the miner, and the password. After the parameters are maintained, the miner will automatically mine.
4. After mining bitcoins, exchange them for fiat currency
This is also the step that beginners are most concerned about. Choose a good bitcoin trading platform and convert it into legal currency after registration.
Through the above introduction, I believe that everyone has some understanding of the meaning of mining. At present, the most famous mining machines on the market are ASIC miners, GPU mining machines, IPFS mining machines, and FPGA mining machines. However, the editor reminds investors that when choosing When using a mining machine, you must pay attention to the brand of the mining machine. You must not buy a brand you have not heard of before, because such a mining machine is likely to be a Ponzi scheme. In addition, each brand of mining machine also has different models of digital currencies that can be mined. are not the same, so investors should buy according to their own needs.
Post time: Nov-07-2022