What is Cryptocurrency and how did it Bring a Change in the Commerce Sector?
The cryptocurrency can be defined as ‘digital’ or ‘virtual’ currency. It is stored through cryptography, and the use of this feature makes it impossible for making the cryptocurrency susceptible to faking or counterfeiting. All the transactions, businesses, investments and trades are carried out through the technology called blockchain technology. These cryptocurrencies have completely changed the methods and techniques of finance of commerce. These digital and virtual currencies have entirely shifted the outlook of the world on trading, buying, selling, transacting and investing. Cryptocurrencies have, therefore, completely changed the financial sector and all its dealings.
When and How did the Bitcoin Currency Emerge and Why is it Still the Most Preferred Cryptocurrency amongst the Public?
In today’s time, there are over 2000 cryptocurrencies in use and available to the general public. But even after the creation and distribution of all these cryptocurrencies, when talking about cryptocurrency, the first thing that leaves one’s mouth is ‘Bitcoins’. People still love their Bitcoins, and usually prefer to trade, invest and conduct their business through the use of the Bitcoin currency.
But why is that so?
Here’s an explanation of why Bitcoins are so popular, do beloved and people love to use them.
The major reason for its popularity is that the Bitcoin currency is the first cryptocurrency that was ever launched for public use. It was launched on 3 January, 2009. The creator of the Bitcoin currency is Satoshi Nakamoto, who till date, remains an unknown person or group of people. It is a virtual currency, which is decentralised, and does not have a central authority or bank overlooking its transactions. It is an independent entity. It always makes its transactions and conducts its deals by transferring the currency from one person to the other side by using the peer-to-peer bitcoin network. Therefore, no middlemen and intermediaries are needed at any stage of the transaction process by either of the parties.
Bitcoin Mining – What it is and Why it is Necessary
In the simplest terms, Bitcoin Mining is a process by which new Bitcoins enter into circulation. It is also the method by which new transactions are confirmed and recorded. It is considered to be a critical feature of the entire cryptocurrency process, as well as, a major component of the procedure of the blockchain technology. Mining is a complicated process. It is performed by using sophisticated hardware which is then used to solve highly complex computational math problem. Many computers attempt to try the find the solution to the given problem. The first one to solve the particular problem is then awarded the next block of Bitcoins. The process of solving the problems then begins over again.
But this process is not an easy or affordable one. Bitcoin mining is highly costly. It is extremely hard and overall, doesn’t amount to much in the end. Yet, it has its own attractiveness. If or when one wins the mining process, the rewards are wonderful and receive crypto tokens. Mining allows the individual to earn cryptocurrency without having to pay for it. One needs a GPU (Graphics Processing Unit) or an Application-Specific Integrated Circuit (ASIC) in order to create and set a mining rig. Just create an account in Bitcoin Billionaire and start investing.
So, How Long Does it Take to Mine 1 Bitcoin?
Bitcoin mining is an extremely favorable process as it is helpful in earning a lot of profit in a short period of time. Numerous people continue to buy mining rigs. But they have to use a lot of electricity to do so. The process has garnered a large amount of criticism due to environment degrading tendencies.
Presently, there is no way to mine a single Bitcoin. Instead, people who mine Bitcoins get what is called ‘one block’. Right now, the value of this ‘one block’ is around 6-7 BTC. It takes about 10 minutes to mine a single block.
Although, it is very crucial to understand and realise that for every block available, there are much more than thousands of crypto miners, who eagerly compete for its rewards. But the number of total miners is not the only problem one has to face. The difficulties of the problems also constantly keep increasing. After solving one problem, the next calculative problem tends to be harder to solve.
Usually, the chances of a single person mining a single block are quite low. In order to compensate for this problem, most miners join a mining pool. Every single miner in a mining pool combines their total computing power to solve the calculation. Once the problem is solved, they share their profits according to the proportion of mining power contributed by each of them separately. This ‘proportion of mining power’ is also called ‘hash rate’. One’s hash rate depends on their mining set up.
How Much Bitcoin can be Mined in a Single Day?
Since it takes about 10 minutes to mine one bitcoin block, a total of 144 bitcoin blocks can be mined in a single day. According to this principle, 900 BTC is available as rewards for every single day. If 144 bitcoin blocks are mined every day, around 150 BTC can be shared with the members of each mining pool every day.
Bitcoin mining is still profitable. Bitcoin mining began as a well paid hobby for early adopters who had the chance to earn 50 BTC every 10 minutes, mining from their bedrooms. After paying the mining pool fee of 1.25%, almost all miners generate about .0055 bitcoin a day. At present, about 900 bitcoins are mined every day, and according to this ratio, there would be 328,500 bitcoins mined in 2021. Bitcoin mining can be done through mobile phones as well. It is extremely profitable to mine the Bitcoin currency. It is a sure shot and foul proof method of earning profits as related to the field of cryptocurrencies. Bitcoin mining is extremely rewarding, even though it is a tough process.