What is bitcoin mining And How does it works full explained.

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What is bitcoin mining.

As you know in the previous post I told you about bitcoin, what is bitcoin and how does it work. In today's post, I will tell you what mining is.

How you can do bitcoin mining and whether bitcoin mining is beneficial and how you can earn money by mining bitcoin. In this post, we are going to answer all these questions that will be arising in your mind after reading the previous post.

If you have not yet read our previous posts about what is bitcoin and how does it works, then you must read it first so that all the questions and misconceptions in your mind are eliminated.

What is Bitcoin mining ?

Bitcoin mining is a process in which we verify, store and secure bitcoin transactions. This is the brief meaning of bitcoin mining, but I know there are many of you who might not have understood this. That is why we will understand it in easy words in detail.

Now before we get to know about bitcoin mining in detail, two main points that you must know, which are the following.

First - When we do any transaction with the help of credit card. So at that time, that transaction is verified by that credit card company, and the information of that transaction is also recorded and kept by that company. 

But when we do any transaction through bitcoin, the information about the transaction that takes place is recorded in the public ledger blockchain of bitcoin and that transaction is verified by miners.

Second - Just as traditional money (eg usd, inr etc.) is printed by our government and it can print as much money as it wants, there are no predefined limits.

But bitcoins are not printed. New bitcoins are obtained through mining. Bitcoin limits are predetermined and only 21 million bitcoins can be mined.

From these two main points, we learned that Bitcoin is a Decentralize crypto currency. Which does not have the right of any third party authority. And as I told you, through mining, new bitcoins are created and verify that transaction and record the information of that transaction in the blockchain.

The person performs all these tasks, we know him as a miner. And you must have also understood what mining is, now you know how you can mine bitcoin.

How do you mine bitcoins?

As I told you in the above paragraph, what is mining? Now know how to do mining and how to generate income from it, now know a very important thing here.

Bitcoin is also called BTC for short, and the computers that are used in BTC mining or any other crypto currency mining are also called "nodes".

In today's time, if you want to earn money from bitcoin mining, then the following item will be required.

1. ComputerThe first thing you will need for bitcoin mining, and which is mandatory. It is a computer, not just a computer, but here you will need a powerful pc with powerful GPU.

2. 24×7 electricity - For mining, apart from computer, electricity is the other thing which will be required. That too with 24 hours availability.

3. Internet - The last thing is to have an internet connection, that too with high speed, so that your computer can work at a faster speed.

If you have given your attention, then you would know that I told you that you will also need GPU for mining. This is why I asked for GPU. Because earlier when btc was not so popular then you can also do its mining with cpu.

But in today's time the number of miners has also increased and all the miners who are present at this time are using gpu instead of cpu. If you do not know about cpu and gpu, then you can read our posts related to this topic.

Let's go to our main point. And know how to do bitcoin mining.

If you have all the above mentioned items available then how can you start bitcoin mining. When you have all these things available. After this, you will need mining software.
  • Slush pool 
  • Antpool
These are the names of the two mining software, which you can use for bitcoin mining. By the way, there are many such software available in the market, you can use it whatever you want.

When you install a mining software. So to withdraw the earnings made in it, you will need a bitcoin address, which you get when you make a bitcoin wallet. And you can create bitcoin wallet in blockchain or coinbase.

Once you install this software completely and start it. Your earning will start.

How does Bitcoin(BTC) mining works? 

As I told you about bitcoin mining, and how you can make money from bitcoin mining. Let us now know how bitcoin mining works.

Whenever someone in the world performs a transaction through bitcoin, all the nodes (miner computers) start verifying that transaction. Whichever nodes first verify that transaction and record it in the blockchain. They get some bitcoins as rewards.

Whenever a computer verifies that transaction. So that verification of it is not considered valid until 51% of the nodes prove this verification to be true. 

Conclusion- I hope you liked this post. If you liked this post, then do share it and comment how you liked this post. And for similar information keep in touch with us by bookmarking trendingcoin.in

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