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What is Mining & How Does it Work part 1

The topic that is hot on people’s lips in and around Cryptocurrency right now is MINING.

There is a lot of confusion on what is it, how does it work & is it profitable?

There are 2 different types of mining

1- Bitcoin Mining

2 -GPU Mining which covers Ethereum, Dash,Monero, Zcash and many more Cryptocurrency coins which I will cover impart two.

I will go through bitcoin mining for you in this blog so read to the end to get the full understanding of this concept.

Mining = The Creation of coins & the Verification of Transactions run by a Decentralised Network

Let me explain from the begging..

In late 2008 after the great economic crash diminished the banking system, an anonymous called Satoshi Nakamoto released a white paper, saying he found a way to encrypt digital money with the highest possible cryptography available.

Bitcoin was born & this new encrypted money allows us to now conduct and transact money instantly, anywhere in the world just like sending an email.

This i designed through a secured Decentralised network and not a centralised body like the banking system, western union for example.

We can now eliminate the middle man entirely!!

This new technology and Cryptocurrency solves the double spend problem that cryptographers have never been able to solve until now.

Here is an example of how this works:

If I were to send you a picture, an email, a PDF you are actually receiving a copy not the original.

If I were to send you Money across a digital network, you need to know that I have not sent that copy to 100 other people and that you have the original copy: I.e the Money or anything we can send of a value digitally.

Transparency

The main key to this concept you need to know that the Money is safe and secure upon sending and receiving the money & the store value assets.

Cryptocurrency is verified across a whole network of data centres called the Miners that record the data & transactions every ten minutes.

This new digital economy is born. We can now conduct transactions outside of the Banking institutions, Government issued currencies and third party authorities.

You can now become your bank that operates 24 hrs a day, everyday with much more efficiency, security & trust that we have never seen before.

Peer to Peer banking and one of the greatest disruptions we may ever see in our lifetime. The birth of Bitcoin is a day in history that will be monumental for generations to come.

The Bitcoin journey began in January 2009 Releasing the Technology Genie once again out of its bottle upon the world.

Experts are saying this will be a bigger invention than the internet.

How do we have trust that by not using a banking system to record transactions (which is a simple a plus or a minus into the record books) that the sender has sent the money and the receiver has received the Money?

How on earth do we keep records of what has occurred?

Satoshi Nakamoto released the software in January 2009 with an underline technology called the Blockchain, which is a public ledger run on a Distributed Network or a DLT – Distributed Ledger Technology –

This is designed to give 100% !transparency, safety, security which is now run across millions of computers that achieve a consensus every 10 minutes by recording and verifying transactions. More about this In a minute.

The Blockchain is the serious part of this and one of the most important cogs in the wheel of this system. So it is essential you understand how this works as it is so important to our economic future.

The Blockchain is a public ledger that will record and verify every transaction. Just like a Banking ledger that records plus and minuses in a book this records in the same way. Then with a recorded digital transfer of ownership that gets input into the network. So any computer or miner in the network have a verified document of the digital transfer that took place. The data or transactions will be verified accordingly and we know who has what through the transfer of ownership.

Then each Miner in the network will have a copy of that verified time-stamped transactions. Each Block contains a piece of the last block’s data attached forming a chain of the transactions or the data that was entered.

The Miners are then rewarded for their work upon each block that they win. The miner will receive 12.5 coins at today’s value plus the transaction fees that are recorded in that block.

The way the Bitcoin algorithm was deigned by mathematical laws will take until the year 2140 to complete & mine all 21 million bitcoins available.

BITCOIN MINING

When bitcoin was first released back in 2009 the block reward for miners was 50 coins, then four years later it halved to 25 then it halved again and is now 12.5, & In 2020 it will be halved again to 6.25 coins per block reward for the miners.

The interesting part is that the miners get also rewarded the transaction fees that are recorded in the 10 min block of data and verified by the Blockchain.

You can see all bitcoin transactions on the Bitcoin Blockchain here.

http://www.blockchain.info

When I first started my journey into Bitcoin there were only a a couple of hundred transactions every 24 hrs. Now we are recording over 300,000 every 24hrs.

It’s the Miners who are getting rewarded from these transactions!!

Can you imagine when there are 1 million,- 10 million transactions every 24 hrs?

Bitcoin is only designed to only ever have 21 Million coins available. It can never have any more, unlike a Government issued currency where they can print as much as they like which actually devalues your wealth every time they do this.

Cryptocurrency offers a much more secure financial model that can increase in value, because of supply and demand rules.

When you have a finite product and such high demand can only push the value up. It’s just 101 economics.

Bitcoin price started at just 0.001 cents and at today’s value has now climbed to around the $ 6000 dollars mark and is only just getting started.

When every single miner has a copy of that data that was recorded in the Block, you know 100% that the transfer has been recorded and the receiver will have their money, contract, loan, school results, and votes what ever it may be.

The internet was about information, this is about value.

You cannot lie, cheat or manipulate the Blockchain in anyway. Once the transaction has been verified it is irreversible.The Miners job is to secure the network and verify the transactions.

SECURITY

If you tried to attack the Blockchain you would have to attack every single miner in the network at the same time within a ten-minute window. This is physically impossible!!

The effect of creating a chain of blocks from the very first Genesis Block to the current block is simply huge. Each block is guaranteed to come after the previous block chronologically because the previous block’s data would otherwise not be known.

This means we cannot double spend money as the Blockchain would recognise the serial number on the coin and see that the coin has already been used and would reject that transaction.

It is also possible to use the Blockchain algorithm for non-financial purposes. The Blockchain is broadcast to all of the Miners on the network that anything recorded there can be kept for safekeeping on the public ledger. This is now the safest and most secure way you could ever transact money, legal documents, loans, personal ID and much much more.

OPPORTUNITY

There are many Miners around the world and competition is now very tough. It’s a big game and a race to who has the most power to try and win as many blocks in a 24 hr period as you can.

There are only 1800 new coins at today’s value that can be released every 24 hrs. With competition like this makes it harder to mine coins, but it’s the transaction fees that will just continue to grow, the more bitcoin is used and accepted across the world.

Whom ever has the most power wins!!

Here is a recent chart that shows the top Miners in the world running on PETA Hash with is Trillions of hashes per second computing transactions.

Here is a chart that shows what the power means so you can get a visual of how much this actually is because some Miners out there are mining on much smaller power like Mega & Giga Hash per second. So you can see the difference here and magnitude of the Miners who are on this chart above.

Hash rate denominations

• 1 kH/s is 1,000 (one thousand) hashes per second

• 1 MH/s is 1,000,000 (one million) hashes per second.

• 1 GH/s is 1,000,000,000 (one billion) hashes per second.

• 1 TH/s is 1,000,000,000,000 (one trillion) hashes per second.

• 1 PH/s is 1,000,000,000,000,000 (one quadrillion) hashes per second.

• 1 EH/s is 1,000,000,000,000,000,000 (one quintillion) hashes per second

In 2009 you could mine bitcoin just on your PC but now you need a warehouse the size of a football field Full of millions of dollars worth of equipment to be profitable. The warehouses I am talking about have electricity costs of millions per month to run the data centres. It’s a very big project.

There are only a handful of Miners out there that really are mining & producing coins on a big scale and actually show their results on the Blockchain. For me if a company say they are mining and can not show you any block trail & the evidence of what they have produced & mined, please stay well away. Mining is 100% transparent there is nothing to hide. If it’s not shown on the Blockchain it’s not mining in my opinion.

There are many companies that offer cloud mining & you are just purchase some hash power, which for me is just rubbish as they can not document or prove what they are mining. They can easily be ripping you off. As they can not prove anything.

Please be careful.

If you are partnered with the right mining facility you can be very profitable.

Please do not worry nothing technical is needed here either.

Mining is one of the hottest topics out in the Cryptocurrency space right now and you can get paid in bitcoin every 24hrs?

You can also mine Ethereum, Monero, Zcash just for an example it is up to you what you want to choose to do.

Please take this seriously though as you are putting up the capital for the hardware & the energy needed to help produce the coins and you can actually produce your bitcoin at a much deeper discount than if you was to purchase it on one of the many exchanges available.

I have partnered with one of the most established, credible mining facilities that have proved them self over the last 3 years. The platform have now mined well over $350Million Dollars worth of bitcoin in the last 2 years alone. The company is about to add another $116 Million Dollars worth of new equipment in the next month or so and will put them in the top 5 mining pools with the most power in the world. I truly believe they will be the Number 1 mining facility within the next year due to the professional outtake they have and the 100% transparency they offer as well.

Demand is high & If you you would like to know more about this then please get in touch and I can guide you in the right direction.

CONCLUSION

Mining can offer you one of the greatest opportunities within Cryptocurrency today.

The safest and most secure way to partake within the industry is mining

Mining is the creation of the coins and securing the Network by verifying the transactions that are recorded every ten minutes.

Remember nothing technicall is needed here the mining company I am partnered with will do all of that for you.

You will be putting up the capital for the equipment and hardware needed to produce more bitcoins or other coins available, which we have one of the best companies in the world to do this all for you.

The movements can be volatile in the markets and you never know what the price will be or do. So mining allows you to hedge against the price and you get your coins at a deep discount for putting up the capital for the equipment & energy needed to produce and partake in the mining process.

So no matter what happens in the market place you are always safe and your coins are making coins every 24hrs. The price can fall dramatically and it does not effect the Miners. If the price does drop that means we can mine more coins.

It’s Win Win being a miner so start your journey today and be part of the hottest opportunity in the world right now!!

Many thanks

The Crypto Pro’s

P.S

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About The Crypto Pro's (38 Articles)
We are the Crypto Pro's team educating and training people on Cryptocurrency & the Blockchain Technology. There is about to be a major shift in the world that will impact many lives. This is the biggest invention of our lifetime so far & we want to help you understand how it works and how you can benefit from this too. Cryptocurrency & the Blockchain will change the world as we know it. So take your time to go through the training's and articles we are here to help you all the way.

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