Although it’s been more than a decade since Bitcoin was launched, still the majority of people don’t understand how a cryptocurrency works. This is because many people view it as gambling; you can either earn huge or lose everything in the blink of an eye. There are a number of ways one can earn from cryptocurrencies, with crypto mining being the most common. In this blog post, you are going to know about cryptocurrency mining and how does it work. So keep reading thoroughly to get the maximum information. Let’s get started:
A crypto-currency, cryptocurrency, or crypto is a digital currency aimed at serving as the medium of exchange where coin ownership records are validated and stored in a ledger. Bitcoin mining or crypto mining is performed by specialized computers, which resolve complex mathematical problems. These complicated math problems are so difficult that they can’t be resolved by hand and are complex enough to tax even powerful computers.
Put simply, crypto mining is the process of making a new cryptocurrency unit by fixing a computational puzzle. Miners have gone a long way over the last few years using the latest high-end machinery to increase mining operations. Transactions made online or in-store are documented by point-of-sale systems, banks, and physical receipts. Crypto miners achieve the same by stamping transactions together in the form of blocks and adding them to a distributed ledger called ‘’Blockchain.’’ Subsequently, nodes maintain records of those newly added blocks so they can be validated in the future.
Wondering what crypto miners get in return for their efforts for mining? Well, no one works for free. Miners get a fixed percentage of the cryptocurrency they are mining. So, crypto mining is quite popular for earning passive income.
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James has been a crypto enthusiast for a year. He’s an avid watcher of all the latest developments in the space, and enjoys predicting what will happen next with his favorite coins.
He lives in his hometown of New York City with his wife and two sons. His hobbies include watching movies, playing basketball, and reading about how to survive disasters that may occur from climate change or an asteroid impact!