Cryptocurrency mining is tedious, expensive, and rarely rewarding. Nonetheless, mining has a magnetic appeal for many investors interested in cryptocurrencies, as miners are rewarded for their work with crypto tokens. This may be because entrepreneurs view mining as a penny from heaven, as California prospectors did in 1849. And if you're tech-savvy, why not?
However, before investing the time and equipment, read this explanation to determine if mining is really for you. Cryptocurrency trading in India We will focus primarily on Bitcoin (we will use œBitcoin everywhere when we speak of network or cryptocurrency as a concept, and œBitcoin when we refer to many individual tokens).
The main attraction for many mining companies is the possibility of being rewarded with Bitcoin. That being said, you definitely don't have to be a miner to own cryptocurrency tokens. You can also buy cryptocurrencies using fiat money. You can trade it on an exchange like Bitstamp with another crypto (for example Ethereum or NEO to buy Bitcoin). the best cryptocurrency to buy right now You can even earn it by shopping, posting blog posts on platforms that users pay in crypto, or even setting up interest-bearing crypto accounts. An example of a crypto blogging platform is Steemit, similar to Medium, except that users can reward bloggers by paying them in a proprietary cryptocurrency called STEEM. STEEM can be exchanged for Bitcoin elsewhere.
The reward that Bitcoin miners receive is an incentive that motivates people to help with the main purpose of mining: to legitimize and monitor Bitcoin transactions and ensure their validity. Because these responsibilities are shared among many users around the world, Bitcoin is a "decentralized" cryptocurrency that does not depend on a central authority such as a central bank or a government to oversee its regulation.
Once miners verify 1MB (megabyte) of bitcoin transactions called 'block', these miners can be rewarded with a ton of bitcoins (more on the bitcoin reward below). The 1MB limit was set by Satoshi Nakamoto and is controversial as some miners believe that the block size should be increased to hold more data, which would effectively mean that the Bitcoin network could process and verify transactions faster.
