Bitcoin has been the new rage of this generation. If in 2010 someone were to say that conventional currency will be replaced by an imagery online currency, no one would believe that. However, it is a reality today. Millions of users around the world have invested in Bitcoin. And in the years to come, this market is only going to grow. There is research to show that bitcoin might take over as the primary source of mode payment. There is a demand to meet, and the world is ready to take it head-on.
In the case of convention currency like dollars or South African Rand, there is government regulation in place. The government decided the amount of money to be regulated in the market and also mints them. Such is not the case when it comes to Bitcoins. Since bitcoin is a digital peer-to-peer currency, there is no independent governing body to mine them. The way bitcoin is mined it using bitcoin mining hardware South Africa, USA, India, and each country has innovated. These allow you to use your computers to solve complex mathematical algorithms and problems. Once the calculation is computed, the miner is rewarded with bitcoins. This way there is always a circulation of new currency in the bitcoin market.
The change in Trend
During the introduction of bitcoin, the mining process was very simple. They could be processed on a personal computer with minimum technical specifications. As the market grew, this demand resulted in the computations becoming more intricate. What process was as simple as writing a piece of code, now needed strong systems with high power graphic processing units. In 2011, The GPUs also become outdated technology. With the introduction of field-portable gate array (FPGA) processors, the power consumption and the speed of mining got much higher.
Is this still a money-making process?
While the process is still effective, it has become a lot harder. This is why these are very hard to do as an individual. You will need a group of users who work together to make this work. This is primarily known as “pool mining”. In the process, the mathematical steps are broken down into smaller chunks and performed by various members of the pool. When the rewards are generated, they are shared with the whole group.
This might seem like an unfruitful activity; since the rewards will be shared by many. But with the rising value of bitcoin, even the shared rewards are a very high remuneration.