Bitcoin is a Digital Currency. Currencies need checks, balances, validation and also verification. Central Governments are the ones who do that. But the thing is, that Bitcoin decentralized. If Bitcoin is decentralized, then how do we know that the transactions are correct? There is Bitcoin Mining for That!
What is Bitcoin Mining?
A lot of people say that it's like mining gold. There is a limited amount of mining which is 21 Million Bitcoins. The more you take out, the more it is hard to find.
How do they mine bitcoin?
In order to mine, you will need a computer and a mining program. Miners use this program to compete other miners in solving mathematical problems. Almost every 10 minutes they try to solve a block using cryptographic hash functions.
Miners were cryptography enthusiasts. People who liked that project and used their computer power to validate the blockchain! When Bitcoin became more popular, people started to mine and their primary income is from there! They started to invest in warehouses where electricity prices are low and started mining!
Here is an image explaining Bitcoin Mining:
If you want to start mining, these are the hardware options that Bitcoinmining.com recommends
You can also watch this quick video about Bitcoin mining!
Hi! I am a robot. I just upvoted you! I found similar content that readers might be interested in:
http://www.huffingtonpost.com/ameer-rosic-/what-is-bitcoin-mining-a-_b_13764842.html
Thankyou for this post, now I know what bitcoin actually is.