Bitcoin Mining Next Big thing Affecting Economy

Posted on July 17, 2018 at 12:53 PM

Bitcoin Mining Next Big thing Affecting Economy

Bitcoin may be the next big thing in the economy, but it can be difficult for most people to understand how it works. There is a whole lot of maths, numbers and other technical things involved, things which normally make a lot of people to run away. What is Bitcoin mining? Well, it’s one of the most complex parts of Bitcoin, but it is also the most critical to its success. Bitcoin is considered to be a Digital Currency. Currencies need checks, balances, validation, and verification.

The main important part about Bitcoin is that it is decentralized. If there is no central government regulating it, then how do we know that the transactions are accurate or not? The simple result is mining.

One of the most common methods that people use for Bitcoin is that it is like mining gold. Just like the precious metal, there is only a limited amount and the more you take out, the more difficult will be to find. Bitcoin actually works quite differently and it is quite good, once you get your head around it. One of the major differences is that mining does not necessarily create the bitcoin. Bitcoin is given to miners as a reward or profit for validating the previous transactions.

While concluding, bitcoin mining is the decentralized process where anyone can add a block of transactions to the Bitcoin blockchain, without needing permission from any authority and get paid in bitcoins for it. Currently, 90% of blocks are mined by known and if a few people join together, that could affect changes and control over the network.

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