Crypto Mining: What is Mining?

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Wil je de snelste, gemakkelijkste en meest gedetailleerde manier leren om in Cryptocurrency te komen? Als dat zo is, zul je dol zijn op deze les, gegeven door mij, Frank Mallens - een eigenaar en leraar van Cryptocurrency die al 4 jaar in deze vluchtige en innovatieve industrie zit.

Deze lessen vormen samen de definitieve gids voor Cryptocurrency je leert namelijk alles wat je moet weten! Bitcoin, Ethereum en alle Altcoins begrijpen, een veilige portemonnee opzetten, alle fundamentele aspecten van het handelen, indicatoren, patronen herkennen, alle tools die je nodig hebt. Daarnaast zijn we druk aan het bouwen zodat jij naast onze workshops ook lessen over NFT's, DEFI, CEFI en DCA kan gaan krijgen.

2022 luidt de meest opwindende bullmarkt voor Bitcoin & Cryptocurrency in en ik zal je veilig door alles navigeren wat je moet weten om het te begrijpen en ervan te profiteren! Cryptocurrency is een bull-markt binnengegaan en sterke munten samen met de DeFi/NFT- ruimte hebben ongelooflijke kansen gecreëerd om geld te verdienen.

One of the most important aspects within the crypto markets is the miners, which ensure that new coins are always mined from a cryptocurrency and that the transactions are confirmed. Only coins with a Proof Of Work (POW) algorithm need miners.

Bitcoin miners can be compared to gold diggers; there is only a limited supply of gold available, just like with Bitcoins. As with gold, there is a known amount to be issued/found. For Bitcoin, this limit lies at 21,000,000 coins. This scarcity creates value for the product. You can, for instance, see that when very little gold is found during the entirety of a year, the price of gold goes up in order to maintain the miners’ profitability. This ensures that many people have included gold as a long-term investment in their portfolio. The harder it becomes to find gold, the higher the price. The same principle applies to Bitcoin and other cryptocurrencies. The amount is fixed, but the difficulty of finding the cryptocurrency is not. With Bitcoin, this difficulty (= mining difficulty) is determined approximately every two weeks, based on the number of miners and the computing power these miners carry. The length of this period differs from coin to coin. If we look at Digibyte, for example, this difficulty is adjusted for each block, whereas with Bitcoin, it is only adjusted per 2016 blocks. Because it takes approximately 600 seconds to mine one block, this adds up to an adjustment every 2 weeks.

Previously, it was possible to mine Bitcoins with our computer or even laptop. However, as the concept of mining cryptocurrencies became increasingly known, the difficulty increased accordingly. Over time, mining Bitcoins was only possible with computers that had a good GPU (video card); so-called gaming PCs. When this market became completely saturated too, various companies were founded with the intention of being able to mine even faster and with more power. They then developed the well-known Antminers. This is a computer that cannot do anything else than mining Bitcoins (or other cryptocurrencies with the same algorithm as Bitcoin). Due to this development, the normal CPU miners have become completely irrelevant.

On the right, an image of an Antminer is shown. These are, as mentioned, completely devoted to “mining” cryptocurrencies.

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