The Ins and Outs of Bitcoin Mining in 2015
Bitcoin is an intriguing and relatively new digital currency that is capturing the imaginations of everyone from capital investors to computer geeks to the general masses. Everyone is asking- where do they get these famous coins? The answer lies in something called bitcoin mining.
What is bitcoin mining?Bitcoin mining is a process where users set up a computer network that ‘harvests’ for bitcoin. This is accomplished by algorithm matching. It involves a code where strings of numbers are listed in something called a blockchain. The numbers list constantly changes until a match is found from the bitcoin with an assigned number and the list coming from the computer. Once a match is made, the system picks up the bitcoin and the new number is assigned to a new coin. This is accomplished at a large level and throughout the entire network. This will allow a new coin to be picked up every couple minutes or even seconds.
This money process will not go on forever. Once all the bitcoins are allocated, mining will seize completely. This is a way to control the total surplus of bitcoin in the system as well as protect against any kind of inflation. The designer of bitcoin has secretly stated (he/she has spoken anonymously) that this total allotment is supposed to keep bitcoin relevant for many years and to hedge against other things that bring down traditional currencies.
Advanced Hardware is NeededFurthermore, the system required to even mind for bitcoins is pretty complicated. It is a huge technical burden to do this from a home PC, and the matching will be slow to the point where it is unproductive. Essentially, the cost of running the computer will outweigh any amount of coins one can ever obtain. Users can also use coins mined through the hardware on sites such as Satoshi Slot. Even more interestingly, companies have offered a service where they will mine for bitcoins for a monthly fee. This essentially means that users are leasing the equipment for a period of time. The more they pay, the higher the performance of the hardware. This is become the leading way to obtain bitcoin, at least for now.