In the previous episode, Indodax Academy discussed what Bitcoin is, who invented it, its advantages and features, examples of use, and some reasons why we should use Bitcoin. In this episode, we will discuss more deeply about Bitcoin, how to get Bitcoin, what mining is, and so on.
What is Bitcoin Mining?
Bitcoin mining is the process of getting Bitcoin that requires a sophisticated computer called an Application-Specific Integrated Circuit or ASIC for short. This computer is used for mining activities that help process Bitcoin sending transactions around the world. In return these miners or miners will get Bitcoin.
Actually, how bitcoin mining works is quite simple. With an ASIC computer, it can help with the Bitcoin transaction verification process. Where this verification involves a complicated process, but it is easy to verify the truth. The first person to successfully solve the process will be awarded a certain amount of Bitcoin as a reward. But in reality it is not that easy, there are many people and organizations that mine Bitcoin, so if you only have an ordinary computer, it is something in vain.
How many bitcoins have been in circulation so far? As of the time this video was made, there have been 18 million Bitcoins in circulation out of the total amount of bitcoins, which is 21 million, which will later be mined in 2140. So there are still 3 million bitcoins left that are still not in circulation. However, the Bitcoin creation system continues to decrease every 4 years, this is what is known as bitcoin halving day. Halving day is a reduced reward for bitcoin miners which will decrease every 4 years or every 210,000 blocks.
So, what makes bitcoin expensive? The Bitcoin exchange rate can be very high due to the limited number of Bitcoins while the users or demand for Bitcoin is very large, so the price becomes expensive. Even Bitcoin had touched the 300 million mark for one Bitcoin.
After all this, many people wonder if bitcoin is 100% safe? Many of you think that an open source bitcoin system can allow a computer genius to break into the bitcoin system and issue a number of bitcoins for himself. But in reality, this system has been reviewed by various groups without any flaws. Every transaction data that has occurred in the past is stored in all nodes / servers throughout the network, and is stored sequentially like a chain. Every new transaction will be verified by all servers then the transaction is declared valid. So it can be concluded that the bitcoin system is very secure.