Bitcoin is a digital currency that we can use to buy and invest in. Recently, the bitcoin farm, currency code, education, price, and extraction of bitcoin have attracted the attention of many people.
Bitcoin is a type of cryptocurrency or digital currency that operates decentrally in the context of the Chinese blockchain network. This currency is obtained by digital coding with very complex mathematical calculations, and this has made it have a monetary value. To extract this currency code, we need special devices that have very high power consumption. Bitcoin is the first and in fact the most well-known of the existing cryptocurrencies.
One of the features that make bitcoin popular is that it has all the features of real money, such as the ability to buy, invest, transfer value, etc. And Also no government or organization can control it. It is not specific and as a result, all intermediaries in transactions with this currency have been destroyed.
What is the purpose of bitcoin mining?
You must have two conditions, one of which is the result of your efforts and the other is the result of your luck. To do this, you need to confirm the validity of 1 MB of bitcoin transactions, and this part is easy to do. You do not need to know complex mathematics or calculations to solve this problem. You may have heard that miners solve complex mathematical problems. But this does not accurately state the truth. Miners in practice try to be the first to get a 64-digit hexadecimal number called a “hash”. This actually involves more of a guessing process. The bad news is that this calculation requires a lengthy guessing process that puts the total number of guesses in the trillions! In order to be able to solve a problem as the first person, you have to use a lot of computing power.
Bitcoin extraction method calculations
In addition to filling miners’ pockets and supporting the bitcoin ecosystem, bitcoin servers have another important role to play. Mining bitcoins is the only way to circulate new bitcoins. In other words, miners are basically extracting money.
Without miners, the bitcoin network could never have extracted another bitcoin. Eventually, there will come a time when it will not be possible to extract bitcoins. However, because the number of mined bitcoins decreases over time, the last bitcoins will not be able to be mined for very long.
Bitcoin mining, in addition to its material benefits, gives the miner the power to decide on proposed changes to the Bitcoin network protocol. In other words, a successful miner influences the decision-making process on important issues before forging the network.
Modern bitcoin mining equipment
Today, miners must invest in powerful computing devices such as GPUs, or integrated application-specific circuits (ASICs) for mining bitcoins. These devices can cost from $ 550 to hundreds of thousands of dollars. Some miners, especially Atrium miners, buy individual graphics cards at a low cost to connect and perform mining operations.
Bitcoin mining machine
To extract bitcoins, you need to provide a series of equipment. The type and number of mining equipment can vary depending on the size of the activity. For example, it is obvious that the equipment required for a large farm is different from the equipment required for a small farm. But as a general rule, to do bitcoin mining you definitely need the following:
- Special extraction machine or ASIC
- Bitcoin wallet
- Fixed Internet (ADSL or TD-LTE)
- Suitable for electricity, cables, and electrical equipment
- Ventilation equipment (fan)
Benefits of Bitcoin
Bitcoin is not controlled by any organization or government. People can use it to do business in the digital market. Extracting these passwords is very complicated and difficult and access to its codes is not possible. One of the special features of Bitcoin is that the identities of the two parties to the transaction are anonymous to each other, which makes it almost impossible to track the people who make these transactions.
Popular digital currencies
Light Coin was one of the first digital currencies. Light Coin is based on a global open-source payment network that is not overseen by any institution. Ordinary people can use ordinary computers to extract this currency.
Ethereum is a currency that is a decentralized software platform. This currency allows the construction and execution of smart contracts.
Dash (originally called Dark Coin) is a more hidden version of the bitcoin. This currency has higher security and more anonymity than Bitcoin.