When it comes to bitcoin, the system is only as good as its users. Since its introduction several years ago, bitcoin has been the gold standard (no pun intended) for decentralized currencies– and its popularity as an alternative for international fiat currencies has only grown.
So, what makes bitcoin go?
After bitcoin technology, bitcoin mining machines are among the most important components of the bitcoin currency system. In short, mining machines verify transactions and earn rewards in the form of bitcoin. To earn BTC, miners must verify at least 1MB worth of transactions, and must be the first to arrive at the right answer to a problem (known as showing “proof of work.”)
This problem isn’t necessarily complex, but it does require a lot of computational power. Essentially, a bitcoin mining machine creates a number of guesses at the solution to a 64-digit number (known as a hash.) Since there are an almost infinite amount of combinations to be made from 64 digits, bitcoin mining machines churn out infinite guesses until they get it right. The higher the amount of guesses the machine can make, the higher “hash rate” the mining machine has. And the miner that guesses the right answer first “wins” the bitcoin.
Why the need for a bitcoin mining machine?
Bitcoin mining is the only way to add bitcoin to circulation. Because it’s based on a completely random process, bitcoin mining keeps the BTC network decentralized and prevents it from being corrupted by a single nation or entity. Without bitcoin mining machines, bitcoin would still exist– there just wouldn’t ever be any more created.
Unlike fiat currency, there’s a finite amount of bitcoin available. Regulation from miners ensures that this currency isn’t circulated too quickly. Additionally, without consistent monitoring, problems like fake bitcoin and bad actors (hackers, scammers, and other unsavory characters) could wreak havoc on a system without a centralized governing body. Just like fiat, there isn’t an on/off switch for bitcoin. Miners keep things running smoothly!
Why can’t I just mine my own bitcoin?
When bitcoin first started out, that may have been a possibility. However, these days, there are millions of miners out there, all submitting guesses at that one hash at lightning speed. In order to generate the number of guesses necessary to win any BTC, you’d need a lot of computer power, or you’d need to be extraordinarily lucky. Plus, when considering price variations for bitcoin mining programs and BTC itself, you could end up spending a whole lot more than you’d ever make back, no matter what.
The safest way to earn bitcoin is to buy through an exchange, and invest in a program that generates guaranteed interest at a consistent, measurable rate. Here at BitLeague, our term deposit program earns users up to 9% in BTC interest year over, guaranteed.
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