Can you explain Bitcoin mining?
bitcoin mining smaller
Bitcoin mining is how new Bitcoins are brought into circulation, into the Bitcoin system. At the same time, it is the way that Bitcoin transactions are validated and confirmed. In other words, Cryptocurrency Miners are rewarded for confirming the Bitcoin transactions with receiving Bitcoin themselves.

Mining involves solving a very difficult cryptographic computer puzzle. The Miner who is able to solve this puzzle first, is awarded a certain amount of Bitcoins. The current award is set at 12.5 Bitcoins per completed block of transactions. The word block actually  pertains to the terminology, Blockchain. Miners will also receive the accumulated transaction fees associated with that block. Although Bitcoin fees are only very small compared to traditional banking fees, the total amount in a block can be quite large.

What is the Bitcoin Mining process?
Miners are people. Bitcoin is an open system and anyone can mine but it isn’t easy to get started in earnest as you do need specific hardware designed to solve the cryptographic mining puzzles. It is considered that GPUs perform better at this function than traditional CPUs. Mining also involves a great deal of energy and electricity costs need to be factored in to the actual cost of Mining. it is thought that the cost of mining varies hugely from country to country, from as low as 1000 USD up to 25,000 USD per Bitcoin!

Because of this, many people who want to engage in Mining activity, will often do this as part of a consortium or pool and receive percentages of Bitcoin depending on their actual mining contribution.

 

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