The complexity of Bitcoin mining. How not to get a cryptocurrency
Of course, Bitcoin mining 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. 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.
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.
[rsnippet id=”3″ name=”EN”]
As the complexity of Bitcoin mining grows
When will a bitcoin crash happen? What do you need to know?
Bitcoin is the most popular and profitable cryptocurrency in the world. Its cost is 16 thousand dollars, many having acquired it back in 2010, became millionaires. Well, what do we have today? On January 17, for the first time in a long time, traders had a “pinched heart”, Bitcoin’s value dropped to a “critical level” of $ 9,000. Disturbances on the stock exchange did not subside, but financial analysts rushed to reassure investors. On January 18, the course of Bitcoin recovered again and reached an even higher mark than it was. With a decrease in such a price mass sales did not occur. Experienced investors assumed such an outcome of events, and only expected a reverse increase.
Interesting fact
Of course, e-currency Bitcoin accepts some educational institutions as payment. As a result, the University of Cyprus became the very first institution that accepted cryptocurrency. But today in the US, many large educational institutions have taken this experience as a rule and began to accept Bitcoin fees. In Russia, there is also a given university, which accepts a cryptocurrency fee, this is the Petersburg High School of Directors and Scriptwriters. Thus, the cryptocurrency is smoothly introduced into the payment means system. Fast food restaurants also accept this payment system.
Causes of Bitcoin Falling
According to media reports, the fall in the Bitcoin rate occurred amid news of the intentions of the Chinese government to tighten control over the cryptocurrency. So in China, there have already been massive closures of the electronic currency exchange, which were under the official control of the government. This is not enough for the Chinese government, and over time there will be a blockage of trading platforms and the introduction of a fully centralized trade. China is going to ban mining completely, as electricity consumption is at risk.
What will happen after closing? Bitcoin mining
Experts from around the world say that the closure. Of Chinese mining will not affect the course of Bitcoin. Since mining can be done through intermediaries, and often this happens. A country is selected where the price of the electricity consumed is small. And it is there that the currency is mined. On the closing day, there will be a price jump, but it will recover. A minimum of 24 hours is required to restore the price. Therefore, remove the panic, as the course of Bitcoin can reach $ 16,000. Learn more about how to earn Bitcoin and what are still profitable cryptocurrencies, read the portal or order a free consultation.
