27 October 2021
Many of us have different banking accounts, whether it is a business account, savings account, foreign currency account, or current accounts. But now, the new investment that people are speaking about so openly is the Cryptocurrency accounts. And in the world of Cryptocurrency, there is something known as Cryptocurrency mining, so let’s learn a little more.
What is Cryptocurrency mining?
Cryptocurrency is a currency issued peer to peer, without the intervention of a trusted third party (such as a central bank). And which is used through a decentralized computer network. The issuance of Cryptocurrencies and any activity relating to them are therefore not decided by a central bank. The activity of Cryptocurrency mining, and in particular Bitcoin mining, is essential in that it consists in recording transactions on a Blockchain. And thus in verifying and securing them. Concretely, if you wish to send a Bitcoin to Madame X, this transaction must be validated, accepted by the network, so that it knows that Madame X (or at least her public address) has received your Bitcoin. For this, a Bitcoin miner must solve a very complex calculation. Once this calculation is resolved, the transaction is validated and your Bitcoin will be transferred to Madame X. To mine Cryptocurrency, the miner must therefore find a code made up of numbers and letters. This is called a "hash". For this, a calculation is carried out via a computer, because it is too complex to be carried out by hand. When the Blockchain was launched, personal computers were able to perform this operation. Today, only high-performance machines can do this. The miner is remunerated with new units of the virtual currency in question. All the miners are in competition to solve this calculation. The first computer to find the solution validates the transactions. And receives its remuneration in Cryptocurrency.
Sometimes, solving calculations is so complex that Cryptocurrency mining “pools” are set up: several computers can help find the solution. If so, the compensation is shared between them.
How to mine Cryptocurrency?
To mine Cryptocurrency, you simply need to install specialized software on a computer. It is, therefore, quite possible to mine Bitcoin with your PC. The more powerful this computer is, the more mining capacity is, and the more likely you will be to find the solution to the calculation.
Setting up a Bitcoin mining activity, therefore, comes at a cost: you will have to anticipate the purchase price of the equipment, the electricity, the price of the mined Cryptocurrency, as well as the time you will spend installing it. Together. If you don't want to buy the hardware directly, you can rent its computing power to cloud mining. Companies have indeed invested in the necessary equipment and offer the conclusion of rental contracts, often from countries where electricity is cheaper. Be careful, however, of scams related to Cryptocurrencies; find out about the company behind these services. Once you have obtained your material, you will have to try all the possible combinations of calculations until you find the solution.