Is solving puzzles your pastime?
You may want to try Bitcoin Mining! Earning as you play, isn’t cool ?
A quick trivia : Bitcoin is the largest and oldest Cryptocurrency. It was created in 2009 by Satoshi Nakamoto and he’s purpose in creating it was to control the currency from financial elites by putting it in the hands of a common man.
What is Bitcoin Mining?
Bitcoins can be acquired in two way: by directly investing through online exchanges or by mining.
Bitcoin Mining “is a process of creating new bitcoin by solving puzzles”, according to Frankenfield (2021). When one invests in the crypto, the details of investments are put on a distributed ledger (collection of financial accounts) which is known as blockchain.
The process will only be considered done just after the miner verifies the transaction as legit. After that, the transaction will be locked in the blockchain so that everyone can see that the transaction is done.
The verification itself will require the miner to solve equations. It will be a bit challenging because you have to race each other to solve the puzzle. Those who made it first are rewarded as a fee for their effort. Now, if the transaction is successfully done , a new crypto coin would enter the scene for circulation.
To understand it more, let’s put it in a real life scenario.
Mining, in the real world, is about finding valuable stones and to do that , equipment is needed. Bitcoins are like valuable stones and they are finite. Meaning there is no abundance of it so a person who finds it first is considered as somewhat lucky.
And of course to do that, just like in the real world mining, equipment is needed. High-functioning computers are a must because as stated before, it is a race. And also in the real world, you can’t mine alone. So in virtual mining like bitcoins, having a group is great. Combining your resources increases the groups’ mining power.
Miners group in Bitcoin is called pool. Miners with the same pools distribute the profit among themselves.
Now that you already understand what Bitcoin Mining is, you always have to remember that investing in cryptocurrencies is risky. And for one to be fully knowledgeable you have to feed yourself with lots of information regarding Cryptocurrencies so that you will not be a victim of fraudsters.
In reality, no matter how good the intention of the creator is, it is always seen as an opportunity by scammers. Beware.