What is Bitcoin Mining
Bitcoin mining is one of the ways to get bitcoin. Bitcoin mining does not need any tools such as pickaxes. You only need a computer to start mining bitcoin. Bitcoin mining is another name for the processing of the transactions in Bitcoin Digital Currency System. It is basically a record of each transaction of BTC. Miner would have to use special software and their computer to solve these complex math problems which are also called solving algorithms. After an algorithm is solved the miner is rewarded with bitcoins. Mining is done to make bitcoin payment more secure by verifying it’s information. Bitcoin mining will also ensure that the user did not double-spending the digital money, it avoids digital money being copy and paste. A special program was programmed into bitcoin to make bitcoin mining harder along with the increasing number of bitcoin in the market. This ensures bitcoin will still be valuable over time but also more costly for miners to produce BTC.
How Do Miners Overcome The Difficulty of Mining Bitcoin
Mining bitcoin is not as the same as ten years ago. It would only need a little bit of electricity and computer power to mining bitcoin back then. As more and more bitcoin being mined the difficulty of mining, a bitcoin increases miners solve this problem by buying graphic-cards to make mining easier. Miners also form a group which is called a mining pool connecting their computer together to mine BTC. The bitcoin is then evenly reward to the miners according to their computer power. The higher your computer power the more bitcoin you receive as you contribute more while solving those algorithms.