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Bitcoin Mining: Simply Explained so People Can Simply Understand

For some experts, Bitcoin might be the future of finance. With its popularity across the globe and it spectacular benefits and advantages, it is not impossible for this cryptocurrency to be the next big thing in finance. However, for some people and for the majority, understanding Bitcoin is quite difficult. With a whole lot of numbers and maths involved, Bitcoin and how the way it works may seem quite complicated for many. As a result of this, people tend not to try this system because of fear and uncertainty. But the truth is, Bitcoin is not as hard as it seems. This article will help you understand the basic of Bitcoin and Bitcoin Mining.

Basically, Bitcoin is a digital currency. And as we all know, currencies have balances and checks, verification and validation. In most and natural cases, currencies are regulated by the central governments and banks are the unites that perform these tasks. But Bitcoin works differently. Generally, Bitcoin is decentralized. This means that there is no any central authority like the government that regulates it. Does Bitcoin Revolution Really Work? Yes it is but it doesn’t associate or involved the government.

The next thing that you need to know about cryptocurrency is Bitcoin Mining. For some people who have been in the Bitcoin world for a long period of time, Bitcoin mining is just like mining gold. Just like gold, there is only limited amount and the more you take out, the more difficult it is to located. There will only be over 21 million bitcoin available in the network. Another thing that you need to know about bitcoin mining is that it is not necessarily the process of creating the bitcoin. Basically, Bitcoin is provided to miners as a reward for validating the previous transactions.

For you to do bitcoin mining, you will need a special program and a computer. Miners will utilize this materials and a lot of computer resources in order to finish with other miners in solving complicated mathematical problems. In every 10 minutes, the miners will try to solve a block with the latest transaction data and with the use of cryptographic functions.  You also need to know about Hash functions. Basically, a hash function is described as an important one way encryption without a key. Hence, hash function itself can be used as a proof of waork validation and verification.

Overall, the main goal of mining is to utilize your computer in order to find and come up with a hash value. But before entering the world or realm of bitcoin, it is important to arm yourself first with the right information so you will have a grasp or an idea on how Bitcoin and everything related to it work. Also, as a beginner, it is important to make some strategies so you can protect yourself from any uncertainty. The good thing is that we have the Internet to guide us with helpful information.

Paola

Paola Garcia lives in Jakarta Indonesia. She is an associate professor in University of Indonesia and also managing Scoopinion at the same time. She is also fond of watching theatrical plays.

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