Know about What is Bitcoin Mining and it’s Benefits

Know about What is Bitcoin Mining and it’s Benefits
Know about What is Bitcoin Mining and it’s Benefits. Image source: Pixabay

There are only one way to get new bitcoins: as a reward for solving certain equations of extremely high degree of complexity. At the same time, the amount of remuneration for solving the tasks is gradually reduced.

Amount of remuneration in bitcoin

Initially, in 2009, a reward of 50 bitcoins was provided for solving the computational tasks. In 2012, the amount of remuneration decreased to 25 bitcoins. In 2016, the amount of remuneration became 2 times less: 12.5 bitcoins.

And so on, the amount of remuneration will decrease by 4 times every 4 years – this is the so-called decreasing geometric progression. By 2031, the amount of remuneration will be reduced to zero, and the total number of bitcoins that will be put into circulation in this way will be exactly 21 million.

Stability of this cryptocurrency

Hence, such a high stability of this cryptocurrency to any political and economic situations, it simply does not depend on them in any way. All further Bitcoin emissions have already been calculated in advance by mathematicians.

So, in mathematical terms, bitcoins are an extremely difficult mathematical process, or more precisely, this is the solution of complex mathematical equations.

Purely technically, obtaining cryptocurrencies is directly related to their mathematical structure. When bitcoins first appeared in 2009, they could be obtained in sufficient quantities only thanks to a medium-sized home computer. Where were we then?! Why not deal with this unusual currency, the price of which has grown thousands of times during this time? You can only complain about this!

Now the main computing power for cryptocurrency mining is concentrated in China, as this country also supports its own national currency. There is information that it is planned to create a similar center in our country, this project is so interesting.

As a result, the situation today is such that it’s hard to even dream of getting such a number of bitcoins without serious costs for expensive equipment and electricity.

In it, in particular, it is reported that the cost of a home computer for mining is about 360,000 rubles. To earn one bitcoin, you need to solve a very complex mathematical equation using a powerful PC, and this takes time and high electricity costs. A day on such a PC you can earn about 17 dollars through mining. The cost of an expensive computer, as well as electricity can pay off in about a year. At the same time, cryptocurrency rates are constantly changing: either up or down and there are no guarantees of reliability.

You can perform all kinds of trading and transactions through bitqt app. It is new for each transaction, so using it for another transaction will fail. This dependence on the message also means that no one can change it by transmitting over the network, since changes to the message will invalidate the signature.

The calculation algorithm itself is quite complex. To confirm the data, Bitcoin uses an elliptic curve digital signature algorithm (ECDSA) and a one-way function with a secret input. A characteristic feature of the latter is that it can be easily calculated in one direction, but it is difficult to calculate in the opposite direction without special information, which is often called the “secret input”.

Bitcoin is reliable. Like the Internet, it works on millions of computers worldwide, not in one place or one organization. This is called decentralized, or peer-to-peer technology. Bitcoin can only fail if all the computers on the network fail.

Nobody can’t steal your sum information from merchants

This is a large one. Most online purchases today are made via recognition cards, but in the 1920s and ’30s, when the first precursors to credit cards appeared, the Internet hadn’t yet been conceived. Credit cards were by no means theoretical to be used online and are unsure of yourself.

Bitcoin transactions, however, don’t need you to give up any type of secret massage. Instead, they use two keys: a community key, and a confidential one. Any person can see the community key (which is actually your bitcoin address), but your confidential key is undisclosed.

The difficulty with usual fiat currency is that local governments can print as much of it as they like, and they often do. Reserve can simply print extra.