What is a very long list of blocks,
What is bitcoin mining and how does it work to mine bitcoins?We’ve talked to you before about what bitcoins are, but in today’s article we’re going to go a little further.We are going to explain to you what it is to mine bitcoins and what is the purpose of mining bitcoins.Where do the bitcoins come from?Unlike traditional monetary systems, where governments print currency when they need it, bitcoins work in a different way. Not being a currency, there is no way to print it as such.How do the bitcoins appear then? Very simple, they are discovered. As if it were gold fever, computers around the world “Minan” in search of coins competing with each other.What is the purpose of mining bitcoins?People send bitcoins through the bitcoin network constantly, but unless you keep a record of those transactions, nobody would be able to monitor if someone has paid something. The bitcoin network takes care of this by collecting all transactions made during a certain period in a list, better known as a block. What a miner does, would be to confirm those transactions and write them as if it were an account book, this is known as Blockchain or block chain.A blockchain is a small file, similar in size to a text message on your mobile. This account book is a very long list of blocks, in which any transaction made anywhere in the chain can be explored. When a new transaction block is created it is added to the blockchain, creating a very long list of all transactions that have been made in the bitcoin network.Each blockchain consists of 3 parts, two of which are very simple:Identify the address The history of who has bought and sold. The third part, is the Private Key Header Log.Revenue evolution with bitcoin miningBitcoin mining is not a guaranteed investment. Indeed, the revenues that can be earned with bitcoin mining depend on several things. The value of BTC (Bitcoin) is the first of all, as the value of Bitcoin fluctuates according to supply and demand. Since the creation of new BTC is stable and limited, an increase in demand for Bitcoin also means an increase in its value, and vice versa.Bitcoins are mined in units called “blocks”. At the time of writing the article, the reward for completing a block is 12.5 bitcoins. At the current price of around $ 5,000 per bitcoin, this amount is approximately $ 62,500. When bitcoin was first extracted in 2009, the reward for extracting a block was 50 BTC. In 2012, this was halved (25 BTC). In 2016, this figure was halved to the current level of 12.5 BTC. By 2020, the reward will be reduced by half once again (6.25 BTC).It is also interesting to note that the creation of new BTC is designed to stop gradually. Deprived of this source of income in the coming years, Bitcoin miners will then receive the optional transaction fees. Since transactions with fees will likely be processed more quickly by Mining Bitcoin, banks and network users will be inclined to offer a small fee of a fraction of a cent for certain transactions.We will bring to you the best mining accessories in the market in our next article. Until then happy reading!