What is Bitcoin mining, which has come to the fore with the record breaking of cryptocurrencies, and how is it done? - Hints Blogging

 


Instead of extracting precious metals from the ground with picks and shovels in their hands, this time bitcoin miners are extracting bitcoin over the internet network with advanced computers.

Cryptocurrency Bitcoin broke the all-time record by breaking the $40,000 threshold in early January. Another issue that came to the fore with Bitcoin, which has been on the rise since the beginning of 2020, albeit fluctually, was virtual currency mining.

Instead of extracting precious metals from the ground with picks and shovels in their hands, this time Bitcoin miners are extracting Bitcoin over the internet network with advanced computers.

How many Bitcoins are in the market and how much is left?

Bitcoin resource in the world is limited to 21 million. 18.5 million of these are already in circulation. In other words, there are 2.5 million Bitcoins left that can be produced by miners.

Bitcoin mining is done by high-capacity computers solving extremely complex mathematical problems. It does not seem possible to solve these mathematical problems by hand or with classical personal computers. These problems are not randomly determined. In fact, miners, in a sense, act as a notary confirming transactions made with Bitcoin. When each transaction is confirmed, it is added to a specific block and combined with other confirmed transactions to form a blockchain.

It basically consists of keeping a record of all transactions made to Bitcoinl from the moment the blockchain was produced.

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