What is Bitcoin Mining? How does it work?
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What is Bitcoin Mining? How does it work?

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What is Bitcoin Mining? How does it work?

IMG Article Indodax 18 Februari 2

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Do you know how to get Bitcoin besides trading on Indodax is mining? What is mining?

In essence, Bitcoin is a digital asset that is similar to gold. Is mining Bitcoin the same as mining gold? Certainly not.

Because It’s uses a blockchain scheme and goes through the digital world. The trick is to solve cryptographic puzzles in the mining zone.

To become miners you need a qualified device. Therefore, mining is not recommended for beginners. Because it is difficult and the cost is expensive. In addition, mining can also increase the supply of bitcoin or make supply less scarce.

History of Bitcoin

Bitcoin was born and became known by the public in 2009. This digital asset was created by a developer under the pseudonym Satoshi Nakamoto. In the paper “Bitcoin: A Peer to Peer Electronic Cash System” Satoshi said that he succeeded in making a digital currency.

Bitcoin is a digital asset that is decentralized, meaning that it does not use intermediaries. So the process goes straight from sender to receiver. Unlike the conventional system which is centralized and all transactions are done through third parties such as banks.

Since its inception, the supply of Bitcoin has been limited to 21 million Bitcoin. Therefore, every four years the Bitcoin Halving phenomenon occurs which causes the scarcity of Bitcoin.

What is Bitcoin Mining?

Mining Bitcoin is one of the activities to get Bitcoin. If mining gold, use mining tools. While Bitcoin uses computer devices.

As we know that Bitcoin does not use intermediaries to record every transaction. Although it actually requires a lot of confirmation to make it safer.

When Bitcoin transactions are processed through the Blockchain network, it means that there is a movement from one individual to another.

Therefore one must ensure that transactions are recorded and recorded properly so that they can be connected all over the world.

What are Bitcoin Miners?

Miners are someone who does bitcoin mining. Bitcoin mining activities can be carried out by companies or individuals using special devices. Simply put, a miners is a computer that processes a transaction.

To become a miner, you must have a computer with high technology, strong electricity and the fastest internet. To fulfill this, all capital is needed which is not small, even with a fantastic amount.

Therefore, miners have an important role in Bitcoin because they are in charge of running the Bitcoin server.

Is Mining Still Profitable?

If you have a capable computing device it could be profitable. However, to do Bitcoin mining only once, it is very difficult to get rewards from mining.

It costs a lot to buy good mining equipment. A minimum of IDR 70 million just to get 0.000001 BTC. In fact, you can get smaller Bitcoin reward earnings.

In addition, Bitcoin rewards given to miners will be halved every Bitcoin halving that occurs every 4 years. This is done so that the circulating supply of Bitcoin can be controlled.

So if the miners get 50 BTC per block, then 4 years later it becomes 25 Btc and so on. Because in principle, the rewards in mining are reduced to make the Bitcoin supply limited. So that the price can be stable or even increase.

Weakness Mining Bitcoin

To do Bitcoin mining, you must use a computer with high capacity. Of course the price is not cheap.

You can spend hundreds of millions of rupiah for a set of mining rigs. Not to mention the cost of electricity and hardware maintenance that must be done regularly.

Mining requires a lot of money and energy. Of course, it’s also not environmentally friendly.

With these weaknesses, many miners are no longer mining Bitcoin. They prefer trading as well as staking.

Can I Mining Bitcoin?

Anyone can mine Bitcoin. As long as it has sophisticated capabilities and equipment. Bitcoin mining cannot be done using just an ordinary laptop or even a smartphone.

However, you should know that getting bitcoin is not just mining.

You need to reconsider how mining costs a lot. Other than that, the rewards are minimal. And it’s not environmentally friendly either.

It’s better, you just trade on Indodax. Because the process is much easier, only with smartphone capital can you have Bitcoin at any time.

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