Bitcoin is the first Cryptocurrency that was introduced in the market. We all know this story. The story we don’t know is how it came into existence. How was the first bitcoin, even coined? Or what type of computer system was responsible for creating Bitcoin?
On 18th August 2008, a new domain name was registered, Bitcoin.org. A link on this domain was redirected to Satoshi Nakamoto titled “Bitcoin: Peer-to-peer electronic cash system.” This link explains how a transaction medium can help you to transact money without relying on trust.
On 3rd January 2009, the bitcoin network came into existence after Satoshi Nakamoto processed block number zero. The bitcoin that was mined was called Genesis Block Of Bitcoin. And that’s how the first-ever Bitcoin was mined.
What is Bitcoin Mining?
Bitcoin mining is the process of processing one block of information while making a Bitcoin transaction. This information is saved in the public ledger network with Blockchain technology. With the Blockchain technology, every transaction is confirmed by the Miners.
In Simple terms, miners are the entity that confirms every transaction. Once the transaction is complete, miners create a consensus form that validates the transactions.
Every time a new block of bitcoin is mined, miners are rewarded with Bitcoins. Currently, the reward for mining one block of information is 6.25 Bitcoin. The reward is quite satisfying. This has created a market for miners.
The best part of the mining Bitcoin is that you do not have to take part in the volatile crypto trade market. Though there are some of the bitcoin trading platforms like The News Spy, the sheer volatility of the crypto trade market makes it very hard to come out with a profit from every trade.
If you want to pursue Crypto earning but want a stable earning, Bitcoin Mining is just the right thing.
Things To Know Before You Step Into Crypto Mining
There is always a lot of planning to do before you invest in any startup. The same thing goes for investing in Bitcoin Mining. Here are some of the things that you need to consider before you invest in Bitcoin Mining.
- Hardware Requirements-
It’s very important to understand the hardware requirement for Bitcoin Mining. Having a simple computer system was enough to use for mining Bitcoin in the early day. However, once the trends reached its peak, giant companies started Bitcoin Mining. Even today, you can mine Bitcoin with an average PC. However, what’s the point in doing so? There are companies that are much faster in mining Bitcoin. Hence, you are out of the competition before you can even start competing.
Hence, take the hardware factor into consideration before investing in Bitcoin mining if you think that you have a team that can maintain a powerful computer on the world stage. Then go for it.
- Power Consumption-
Power consumption is yet another matter that you need to be concerned about. Using powerful computers means power consumption will also be high. Hence, buying a computer system based on the watts of power consumption you can afford is very important. You cannot go for a computer that eats up all your earnings on electricity costs.
- Mining Competition-
The Bitcoin Mining market has never been this competitive than it is now. The Bitcoin mining industry was so small that the miners were home-based miners with a basic computer setup. However, today, the Bitcoin market can be considered as big as the Cryptocurrency market itself. There is no0 room for a single miner. Companies who are competing against each have hundreds of employees with a powerful computer system at their disposal.
- Bitcoin Mining Reward-
The reward for mining one block of the network decreases by half once every four years. This process is called Bitcoin Halving. The currency Bitcoin Halving happened in May 2020. After this halving event, the mining reward was reduced to 6.25 Bitcoin. If you want to pursue your business in Bitcoin Mining, make sure to consider the Bitcoin Halving event.
Bitcoin is a profitable business, that is if you can maintain it on a large scale. There is no hope for a small scale Bitcoin Mining business. The Bitcoin Mining Industry can be hard to deal with if you do not have a large initial investment for the powerful computers. Make sure to research every aspect of Bitcoin Mining before you decide to invest in it.