Where do Bitcoins come from?
With Bitcoins rising all over the virtual trade market, the question of its birth is still left unanswered to some! Bitcoins are developed from the process of mining and the user engaged in mining BTC out of the system is known as a miner. Note that one bitcoin is worth approximately $600 USDs. The Bitcoin mining process will be permanently ceased when its total count reaches 21 billion coins. Recent estimation says over 12 million BTC have been mined. Thus, bitcoins have valid existence till the year 2040 as per the calculations.
Miners invest their computing power in order to record payments into a public money transaction document called as ledger. These computer network participants are required to solve and manipulate the mathematical problems. They audit the bitcoin transactions and are rewarded with new bitcoins each week they contribute as the network participants. During the audit work, the computer systems verify the transactions and checks whether there is any fraud. When verifying a transaction, the miner gets paid in small amount out of that transaction. However, large number of miners will account to less number of frauds since these illegal tasks decreases once the news is out. It seems profitable as miners get double payment, for verification of transactions and generation of new BTC. But the scenario isn’t that simple and easy practically. The developer had claimed that the number of miners won’t affect the generating quantity of BTC; the BTC quantity will always remain constant every time it is mined.
In order to let the numerous miners survive, super computers have been manufactured just for the BTC mining process. Moreover, mining pools have been invented where a group of miners to tackle the problem of rapidly growing difficulty in BTC mining. A mining pool can be considered as a block of miners that are brought together to involve their computing power to develop more Bitcoins. You will be provided with problem statement of simpler algorithms to be solved and consequently, your combined team work will aid to solve the bigger and complex algorithm. Hence, you can earn Bitcoins that are spread out throughout that particular pool as per your contribution in the work. It is recommended that you must not get into this job alone as BTC rewards are given in blocks and by working in team you will more likely be receiving a good return on your investment. If you are newbie in field of Bitcoins then you can read guide of buying Bitcoins here.
There are several mining pools and programs designed for miners worldwide. Since, we are particularly focusing on basic guide for the newbie’s, we advise you to use the GUIMiner program. Click the link and download the program. Then, install and run the program, add in your information and enjoy the benefits. The Mac users should look into using Astroid to set up the mining process. If you wish to make more Bitcoins, you can simultaneously invest in mining hardware. Additionally, you can switch to Bitcoin Probability Calculator to check the earnings through current mining hardware. Hope the readers are now clear with the basic idea of mining bitcoins.