What is Bitcoin mining and is Bitcoin mining profitable complete information

The world's most popular and alternative currency is Bitcoin. Bitcoin is the first and top cryptocurrency coin. For those who have no idea about cryptocurrency, simply put cryptocurrency is a type of digital currency. Cryptocurrency is not regulated by any government or private authority. The question may arise as Bitcoin does not run under any organization and these currencies are not even printed on paper then how Bitcoin is created and how it works.

The process of creating digital currencies like Bitcoin is called mining. This mining, however, is not about extracting gold from the mine. In the past, the price of a Bitcoin has gone up to Rs 60 Lakhs and currently, the price of Bitcoin is much lower. The price of Bitcoin fluctuates depending on its usage. When investment in Bitcoin increases and usage increases, the price of Bitcoin increases greatly, today I will discuss with you what and how Bitcoin mining is done and some critical issues.

Before discussing Bitcoin mining it is important to discuss how Bitcoin works. We deposit our hard-earned money by trusting various banks to keep it safe. But some corrupt bank officials cheat customers of their money. The global economic recession of 2008 is one of its examples. It is not just banks or borrowers who are responsible for the downturn. The wrong policies and mismanagement of the American government are one of the reasons for this recession. Many companies went bankrupt during this economic downturn. In such a situation, a new type of monetary system is introduced. Which is referred to as cryptocurrency.

The first and higher experimental currency of this cryptocurrency is Bitcoin. In 2009, a man named Satoshi Nakamoto Halfeni started trading Bitcoin through 10 Bitcoin Heads. Bitcoin is a peer-to-peer system. That is, Bitcoin transactions are completed directly between the sender and recipient computer network. So there is no need for any organization here. It is not possible for a third party other than the transaction person to control the system. Suppose a person sends money from Canada to Japan via Bitcoin. In this case, no bank or government of Canada or Japan will need any kind of assistance. Even the governments of these two countries will not be able to monitor who sent how much money to whom.

The process by which such financial transactions are completed in cryptocurrencies such as Bitcoin is called cryptography. Transaction authenticity is verified by cryptography. That is, a person who said they would send five bitcoins now has five bitcoins verified by cryptography. For example, banks keep all customer account information on a central server, and from there all transactions are accounted for. But Bitcoin has no authority and the complete control of the transaction rests with the customer. So how will this verification be done? Here comes the issue of mining. Thousands of volunteers from around the world do this mining. Those who help keep the Bitcoin process running have a certain amount of Bitcoin deposited into their account as part of the transaction. The money earned by working to sustain the Bitcoin system is called Bitcoin Mining.

Why has such a complex system been developed for Bitcoin transactions? The reason for this is that anything written by computer can be produced by copying and pasting 2 times 3 times as much as you want in a moment. Since Bitcoin is a digital and popular currency. So if its transaction process is written in the common language of the computer, anyone could increase his money by copying and pasting. To overcome this issue, Bitcoin transactions are recorded in cryptography or a kind of secret language. This system is called blockchain.

Blockchain is likened to a kind of open ledger. The bank authorities will never reveal the accounts of bank transactions to anyone. Not even if you are a bank customer. But every Bitcoin transaction recorded on the blockchain is open to everyone. You can view your Bitcoin transactions from anywhere in the world. Because the information of Bitcoin transactions is stored on numerous computers at the same time, the information of Bitcoin cannot be changed through changes in any one place. That is why Bitcoin transactions are a very secure system. As Bitcoin transactions increase, Bitcoin mining becomes more difficult. Even a few years ago mining could be done on ordinary home computers. Back then, people used to mine Bitcoin as a means of earning in their spare time. Many used to go to sleep at night starting the Bitcoin mining process on their laptops. Wake up in the morning and see that there are many bitcoins accumulated in the laptop.

Bitcoin mining was much easier in the past. But currently, Bitcoin mining is not an easy task at all. At present, to reach profitability by mining Bitcoin, one needs to spend crores of rupees to build at least a small data center. Still, there is no 100% guarantee of profit through this investment. Now big companies in different countries of the world are building Bitcoin mining farms. Two things are very important to keep in mind when building a Bitcoin mining farm. One is the weather and electricity prices of the country where the Bitcoin farm will be built. Building a profitable Bitcoin mining farm requires thousands of computers to run day and night. These computers have to have thousands of high-quality GPO or graphics cards installed. The processing power of each of these graphics cards is many times higher than that of a typical computer CPU.

With so many electronic devices and computers running in one place, they are likely to become extremely hot. So naturally relatively cold regions are chosen for Bitcoin mining. Currently, most Bitcoin firms are established in cold major countries. That's why Russia, Canada, Iceland, Norway, China, and the United States have the largest number of Bitcoin mining firms. Keeping computers cool in these places doesn't cost much. Another essential problem is the price of electricity. Running many computers simultaneously requires a large amount of electricity. It is not possible to run a Bitcoin farm in an area where the cost of electricity is high. Despite setting up bitcoin farms in the world's cheapest electricity-connected areas, several bitcoin farms have monthly electricity bills of more than ten crore rupees.

Bitcoin farming has become a very competitive business despite Bitcoin production being so difficult and expensive. Each Bitcoin is divided into 100 million pieces. These are called Satoshi. Only 1000 Bitcoins are produced every day by thousands of organizations and millions of individuals mining. However, it is not possible to produce Bitcoin at will. The number of Bitcoins will never exceed 21 million or 20 million. So far 1 crore 92 lakh 53 thousand bitcoins have been produced. And 17 lakh 46 thousand bitcoins left to withdraw. After mining this amount of bitcoins no new bitcoins can be produced.

The amount of money that can be earned by mining Bitcoin is decreasing. But there are supposedly millions of Bitcoin millionaires all over the world. More than a million people have at least 10 crore worth of Bitcoins. There are currently only 23 Bitcoin billionaires. The number could be even higher because many people have Bitcoin accounts. The world's most accepted and recognized first cryptocurrency coin is Bitcoin. There are many coins in the cryptocurrency world. But the best-known for transactions is Bitcoin.