What Bitcoin Mining?

For you know what Bitcoin is. Bitcoin is called a decentralized currency. A currency that no one regulates, so it is decentralized. Now what happens, if I have to give you money is here, you are here, so this money will not reach you directly. A bank comes in the middle, so you will give me your account number, I will feed it, and I will transfer it from my bank, so my bank will verify the payment and it will send it to you. Here the bank is playing the role of an intermediary. Now because the bank works here, you know that it also takes some charges of IMPS and EFT. If you have an account at a good level, then those charges are not charged.

Otherwise, you already know that Rs. 5 plus GST charge for normal transactions is charged by the bank. The bank earns from all these things. If you do transactions, you send money to each other. This is one process, we all know this, but there is another process where Bitcoin gets involved. Now suppose my has some Bitcoins, now I have to send that Bitcoin to you, now you are here and you have to receive it. Here I am the sender and you are the receiver, so you have to receive it. If I send it, who will see that transaction? There is no bank here because it is a decentralized currency. Here those computers come which work to maintain the ledger. Now the simple meaning of a ledger is to maintain an account, to see the entry of the transaction and these computers are called mining machines. Here we are not doing anything by digging, mining means you must have heard that we are digging and taking out gold, we are digging and taking out gems, we have a lot of gemstones, and you must have heard of diamond mining. But here Bitcoin mining is done differently.

This is all a computer-based program. When I send a payment from here, that entry is Bitcoin's blockchain. Here the network that is made, a lot of computers make a network among themselves. Now the network that is being made, we call it Bitcoin blockchain. I wrote Bitcoin ahead because blockchain can have different cryptocurrencies. Ethereum can have different blockchains. Ripple can have different blockchains. In this way, Bitcoin's blockchain is made here. The computer verified that yes, the entry had been made, Bitcoin had been sent and Bitcoin had reached here.

Who Maintained This Account?

Here you can see a computer example, There can be multiple computers in the process. There may be 10 computers in the process that are verifying the transaction. When it is from one computer to another computer, from another computer to a third, and so on and on, the entire ledger account is being maintained. Every computer has an algorithm.

There is a difficulty

There is such a calculation that the computer has to solve. This computer will solve, this computer will solve, this computer will solve. Now think about one thing, this mining machine will not come for free. Whoever installed this machine we call him a mine. He has installed the machine. Now because his machine is solving the difficulty, of Bitcoin, you all know that it will not be more than 21 million Bitcoins. And now almost all our Bitcoins have been mined.

There is a very limited quantity that is yet to be mined. For that limited quantity, these people are busy mining. The price of one Bitcoin, you already understand that the price of Bitcoin has reached up to 28 lakhs, 30 lakhs, and 40 lakhs. If something is worth 30 lakhs, then people are making a profit of 30 lakhs in mining it. But it is not that if someone installs every computer, he will get one Bitcoin. Now what is it? When this mining started, when in the starting, if we go 10-15 years ago, then with the CPU of your normal computer, this mining work would have been done. But now what happened, the founders of it whoever has mining in cryptocurrencies, their founders are so intelligent that they will not keep mining so easy. As people will increase in it and our quantity, which is yet to be supplied in the market, will decrease, we will increase the difficulty level.

This means that as the difficulty level increases and as we take the example of Bitcoin, Bitcoin is now mined a lot and the supply is yet to come in a very limited quantity. So the difficulty level has increased and people are also seeing that the rate of Bitcoin is 30 lakhs today, tomorrow it will be 40 lakhs, and tomorrow it will be 50 lakhs. Because if the rate is increasing, people will benefit more. So miners are attracted towards this business. The difficulty level is increasing, so it is not that easy you think that I will earn one or two Bitcoins every day.

Bitcoin mining with our mobile phone

We have a computer at home, and we can do Bitcoin mining with the laptop because you must have seen on the net that many people are bringing big machines. People are investing lakhs of crores of rupees, they are making mining farms. What are farms, think about it. What does farm mean, it is a field, it is not a field. A lot of computers have been installed in a very big place, which have a very strong configuration and they are working specifically for mining.

We call it the mining farms of Bitcoin. Now these mining farms have been installed, they can produce, they can produce Bitcoins in good quantity. But can it be done with your phone or computer, which was my question, the answer is yes, it can be done.

What to do about that

It is a very simple process, you go on the internet, you search about Bitcoin mining, and you will get to understand about multiple software that you will get on the net. Whatever you feel is right, through that software, in your mobile, in your laptop, in your computer, you can install that software. The software will use your hardware. The software used on your hardware, computer, laptop, or mobile phone can be hot, it can also be overheated because their configuration is not according to mining.

Now the difficulty level has increased. At one time, the difficulty level was not so high, so it was very easy. Now there will be electricity consumption, the computer will also take your electricity and yes, you will get some Bitcoins. Now how much will you get, will depend on which configuration system you have, and which configuration mobile phone you have, according to that, you can earn money.