Bitcoin mining has been intentionally created to be difficult enough to keep the number of blocks that miners find each day moving along at a steady pace. To be valid, an individual block should contain a proof of work, which is verified by other nodes as blocks are received. The hash cash proof of work function is used.
Ways to Mine Bitcoins
There are three primary methods of obtaining bitcoins:
Accept them for goods and services.
Buy them from an exchange.
Mine new ones.
Though the term “Mining” is used, this is a simple method of verification that a bitcoin transaction has taken place. Each time a transaction takes place where a bitcoin is used for payment, miners must verify that the bitcoin is genuine.
This process involves running software that finds the virtual key to the padlock on a “Block Chain.” Each block chain contains 25 newly generated bitcoins and when the software finds the correct key, the lock is opened. “Currently, it requires about 1,789,546,951.05 attempts to find that key and a 25-bitcoin block chain is given out about every 10 minutes” says Javier Loya of OTC Global Holdings.
It requires massive computer resources to do this mining as well. Though this isn’t for everyone, bitcoin mining is an exciting concept.
Javier Loya of OTC Global Holdings understands the world of cryptocurrency. Check out his latest video. He comments below: “Cryptocurrency continues to change the world we live in and in some pretty amazing ways. Though it does have its pitfalls, it has revolutionized some areas of business and finance.”
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