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Bitcoin wallets explained with examples

By Admin | Bitcoin News

Feb 08

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Cryptocurrency mining is resource-intensive; however, it is painstaking, expensive, and rewarding every now and then. Having attracted potential investors, entrepreneurs see this as a stroke of luck. If you are planning to invest the time and equipment, then you should read this post, which will walk you through about certain things that will help you conclude whether mining is really for you.

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Bitcoin mining:

Verifying the transactions and adding the same to the public ledger commonly known as the block chain is what Bitcoin mining is all about and anyone with internet access and suitable hardware can play a part in it. A typical mining process involves gathering all recent transactions into blocks and trying to crack a computationally complex puzzle. It works in such a way that the contributor who first resolves the puzzle gets to place the next block on the block chain and claims the reward. The compensation, which propels mining, are both the operation fees related with the transactions hoarded in the block as well as lately released Bitcoin.

Why should you mine? Well, there are several reasons as to why you should mine; the main reason is that, by mining, one can gross cryptocurrency without having to put down money for it. That does not mean you should be a miner to own it, it is best purchased using fiat currency (USD, EUR, JPY, etc.), on the other hand, you can also trade it on an exchange like Bitstamp using other crypto like Ethereum or NEO. Apart from lining the pockets of miners, it serves a second and very important purpose: It is the one of the very few ways to release new cryptocurrency into circulation or the only way, in other words, it is said that miners are “minting” currency.

Essentially, it is 24/7 computer accounting called ‘verifying transactions, and when it comes to Bitcoin mining, the whole focus is to accomplish three things:

  • Provide accounting or bookkeeping services to the coin network. ‘.
  • Get paid a small reward for the accounting services by receiving fractions of coins every alternate days.
  • Keep your personal costs down, including electricity and hardware.

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Earning possibilities in mining: Mined in units called as blocks, when Bitcoin was mined in 2009, a block would earn you 50BTC and later in 2012 this was halved to 25 BTC, in 2016 it was 12.5 BTC, in 2020 the reward size will again be halved to 6.25 BTC. Keeping track of it precisely is very important. In order have a sound understanding about when these halving will take place, you can check with the Bitcoin clock, which keeps informed about this information in real time.
Hope you found this article helpful, for more information about cryptocurrency and Bitcoin news stay tuned.

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