The complexity of Bitcoin mining. How not to get a cryptocurrency
Of course, Bitcoin has become the main target for many investors in the world. Those who do not want to buy and trade them on the exchange, begin mining their own. As such mining of electronic currency is called mining. Mining is the activity of creating and distributing new blocks with the opportunity to receive rewards. Since Bitcoin is made up of multiple blocks, there is a problem because of this. But complexity is a unit of measure that shows how difficult it is to find a hash that will be below the proposed chain system. This “complexity” can take on different values, but basically, it is 32 bits. In the end, this is why you need expensive equipment to mine Bitcoin.
Mining restrictions
Miners make all the big attempts to get Bitcoin mining . According to the creator himself, the number of Bitcoins is limited, only 21 million can be produced. Equipment is purchased for mining, and so-called farms are created with it. The main difficulty lies in the fact that if the miners will extract too much e-currency, the issue resource will cease. Cryptocurrency production is not profitable since the number of energy costs increases significantly. One electricity charge just scares off miners.
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Peak miner farms, from easy to hard
The peak popularity of Bitcoin mining comes in 2010-2011, while the miners (they had no idea that they were miners) began to collect and buy powerful graphics cards that were supposed to provide the right performance. After the garages, mining turned into performance, and then everyone faced the first difficulty. The more people get the currency, the more powerful the equipment needs to be purchased. Video cards no longer saved, ASIC chips began to be created that could withstand mining. This chip consumed electricity several times less. Since then, the miners have divided into those who produce, and those who buy.
As the complexity of Bitcoin grows. Bitcoin mining
Bitcoin network algorithms allow the closure of one block at intervals of 10 minutes. Every 2016 blocks found (it takes weeks), the complexity is recalculated and increased. After restarting, the amount of time for mining is increased several times, but hashes are selected more often than expected. After that, the cost of remuneration is reviewed by the system, and the amount of Bitcoin blocks paid out is halved. This is how the complexity of mining cryptocurrency is built. Financial analysts today say with one voice that Bitcoin should not be mined. Its mining has become too complicated, and therefore not everyone can afford to mine farms. The cost of equipment will no longer be able to justify their investments. There are many ways to buy cryptocurrency, with virtually no investment. Using trading on the stock exchange. You can not only buy Bitcoin (or part of it) but also make money on it. How to purchase Bitcoin and make money. On it will be shared by our specialists in a free consultation.
