Bitcoin is one of the most popular virtual currencies in the world; Bitcoin is a decentralized network and there is no specific entity or authority that approves transactions or oversees the network, and this role is played by miners to maintain the security and stability of the Bitcoin network. As the number of miners increases, the security and stability of the bitcoin network and, on the other hand, the difficulty of bitcoin mining increase.
What is Bitcoin?
Bitcoin is a digital currency and its release is not in the hands of a particular organization, company or government. The bitcoin network is decentralized, and thousands of computers and mining machines around the world are responsible for processing transactions and generating new bitcoins.
Bitcoin is the first and most successful decentralized digital currency in the digital currency market, which recently turned 11 years old. The price of Bitcoin has grown dramatically in the 11 years since its birth, and it has grown in value every year. According to statistics, this digital currency has been the most successful asset in history, meaning that no other asset has been able to grow to such an extent in this short period of time and be profitable in more than 80% of its existence.
Bitcoin is actually a computer code or cipher that can be obtained with heavy and time-consuming mathematical calculations.
What is Bitcoin Mining?
The process of bitcoin production and processing of bitcoin transactions is called mining. Of course, this is a very simple and trivial definition of extraction.
What is Mining?
The process of bitcoin production and processing of bitcoin transactions is called mining. Of course, this is a very simple and trivial definition of extraction. Bitcoin is a digital currency and its release is not in the hands of a particular organization, company or government.
The bitcoin network is decentralized, and thousands of computers and mining machines around the world are responsible for processing transactions and generating new bitcoins. Therefore, when one person sends bitcoins to another person, these transactions must be approved in some way and the necessary changes must be made in the network. The accuracy of this transaction should be checked and the balance of wallets in the blockchain should be updated.
This is exactly what bitcoin miners do. They do the transaction verification with their own devices. Part of the transaction fee also goes to the extractor as a fee. Of course, by extracting a block, some bitcoin is also produced, which is distributed among the extractors of that block. This process is done automatically and the extractor does not interfere in the selection of the transaction. Transactions are prioritized solely on a fee basis.
What is a Miner?
To extract this digital currency, you must use a miner device, also called ASIC, abbreviated to the word integrated circuits with a specific application. Bitcoin Miner refers to devices that are dedicated to bitcoin mining and have many different types.
A “goal-oriented integrated circuit” or ASIC for short is a device designed specifically for the extraction of digital currency. In general, each ASIC miner is only used to extract currencies with one (or more) specific algorithms. Nowadays, to extract bitcoin, bitcoin cache, light coin or ziksh, there is no choice but to provide an ISIC device. Special purpose integrated circuits, or ASICs, are designed to do just one thing: extract high-speed digital currency and consume low power.
So in a nutshell, a miner is hardware or a device that is used to extract proof-of-work digital currencies. In fact, miners make money from their owners with the processing power they provide to the network. Any computer hardware that has processing power can be used for mining, but not all hardware can be considered cost-effective and logical. For example, bitcoin mining was once possible with the CPU of ordinary computers, but today mining this digital currency is only possible with an ISIC device. When we say “miner device”, we usually mean the same ISIC device.
People who enter the field by investing in bitcoin mining are also called miners. Generally; Miners do not buy digital currency or get it from someone else, but generate it at cost and energy.
What is the income of miners?
The reward for bitcoin mining is halved about once every four years. When bitcoin was first mined in 2009, mining had a reward block of 50 bitcoins. In 2012, this amount was halved to 25 bitcoins. In 2016, this amount was halved once again and reached 12.5 bitcoins. In the beginning of 2020, this halving happened again and now the reward of each miner for extracting a block is equal to 6.25 bitcoins. The next halving process is expected to take place in late February 2024.