What is bitcoin mining?


You must have some idea about bitcoin.  In such a situation, you would also know that how the rate of bitcoin is increasing day by day, the one who has bitcoin is getting rich very soon.

  Have you ever considered that, where does this bitcoin come from and its circulation, that is, how is bitcoin mining, you will get all the information related to it in this blog post of ours today.

 Bitcoin is a kind of virtual currency / crypto currency.  This currency is used for transactions through the Internet.  It was first started in 2009,

  Since in the present time gradually it is becoming more and more popular.  Therefore, today the value of one bitcoin is being estimated in the form of lakhs of rupees.  In other words, now this currency is being seen as the currency of the future.

 You all will know that Crypto currency is a decentralized currency. This means that no country/government has any privilege on it.

  So now the question comes, who generates this currency?  Let us tell you that for the operation of bitcoin, thousands of miners sitting in different countries of the world are busy controlling its data.  This is the reason why it is called as Decentralized System.

 What is bitcoin mining?

 As soon as you hear the name of bitcoin mining, you must have wondered whether bitcoin is related to coal or diamond mines, if you think so, then tell that it is not so at all.

  Bitcoin mining does not mean mining of gold and diamonds at all.  Although the mining process of both is quite different from each other, the way digging is done for gold and diamond mining.

 Similarly, big computers do the work of generating bitcoins through hardware and software.

 What is the process of bitcoin mining?

 Bitcoin mining is a very large process, due to which it cannot be controlled by one person.

  That’s why a lot of people are needed to do this work.  It is also called Decentralized system because it is done by many people.

 If you have ever made any kind of payment through bitcoin.  That is, if you have transferred the balance to someone else’s wallet through your bitcoin wallet, then let us tell you that bitcoin miners play an important role in this work.

 Due to them, you are able to complete the transfer successfully, not only this, miners also take the responsibility of saving all the details in the block chain.

 Let us tell you that apart from transactions, Bitcoin Miners also do the work of generating bitcoins.

 How to do bitcoin mining?

 In olden times bitcoin mining could be done on a high speed computer CPU and video graphics card as bitcoin miners were few at that time.

 But today with the increase in the number of bitcoin miners, mining it has become a bit difficult.

 Nowadays its mining is being done with the help of custom bitcoin ASIC chip as one can get a lot of profit from it.

  If we use any hardware with less speed than ASIC chip, then it consumes more power, due to which our profit is less and loss is more.

 To do bitcoin mining, it is more important that you use only hardware made for bitcoin mining.  There are many companies in the market that offer the best hardware ready for bitcoin mining.  Avalon is one of these companies.

 Apart from this, you can also do cloud mining of bitcoins in which you have to connect your computer to the cloud miner.  There are a variety of programs available for cloud mining, but CGminer and BFGminer are the more well-known programs.  There are also many software with which you can do bitcoin mining.

 What are the advantages of bitcoin?

 Following are the advantages of bitcoin –

  • The possibilities of getting good returns by investing in bitcoins are immense.
  • The cryptocurrency market is open 24/7.
  • There is no paperwork required to invest in bitcoin.
  • The complete control of investing in bitcoin is in the hands of the individual.
  • By investing in bitcoin, you can be a part of a growing community.

 What are the disadvantages of bitcoin?

 While bitcoin has many advantages, it also has some disadvantages, so let’s take a look at its disadvantages.

  • Bitcoin is not a legal currency like any other currency.
  • No government can guarantee bitcoin.
  • There is a lot of volatility in the price of bitcoin.
  • Like SEBI controls the stock exchange, there is no regulator controlling bitcoin or say crypto currency.
  • Bitcoin is also used in illegal cases.

 In short, the price of bitcoin tends to rise rapidly.  Due to this volatility, those who invest money in it are at risk of huge losses.

  The price of bitcoin after moving several times rapidly falls with the same speed.  That’s why people sometimes compare it with gambling.

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