Bitcoin mining seems crazy! Computers mining for virtual coins? Is Bitcoin mining just free money? Well, it's much, much more than that! If you want the full explanation on Bitcoin mining, keep reading...
Bitcoin mining is the backbone of the Bitcoin network. Miners provide security and confirm Bitcoin transactions. Without Bitcoin miners, the network would be attacked and dysfunctional.
Bitcoin mining is done by specialized computers. The role of miners is to secure the network and to process every Bitcoin transaction. Miners achieve this by solving a computational problem which allows them to chain together blocks of transactions (hence Bitcoin’s famous “blockchain”). For this service, miners are rewarded with newly-created Bitcoins and transaction fees.
Miners are securing the network and confirming Bitcoin transactions.
Miners are paid rewards for their service every 10 minutes in the form of new bitcoins.
There are many aspects and functions of Bitcoin mining and we'll go over them here. They are:
1. Issuance of new bitcoins
2. Confirming transactions
3. Security
1. Issuance of new bitcoins
Traditional currencies like the dollar or euro are issued by central banks. The central bank can issue
new units of money at anytime based on what they think will improve the economy.
Bitcoin is different. With Bitcoin, miners are rewarded new bitcoins every 10 minutes.
The issuance rate is set in the code, so miners cannot cheat the system or create bitcoins out of thin air.
They have to use their computing power to generate the new bitcoins.
2. Confirming transaction
Miners include transactions sent on the Bitcoin network in their blocks.
A transaction can only be considered secure and complete once it is included in a block.
Why?
Because only when a transaction has been included in a block it can be officially embedded into Bitcoin's
blockchain.
2. Security
In short, miners secure the Bitcoin network.
They do this by making it difficult to attack, alter or stop.
The more miners that mine, the more secure the network.
The only way to reverse Bitcoin transactions is to have more than 51% of the network hash power. Distributed hash
power spread among many different miners keeps Bitcoin secure and safe.
Before thinking on buying a mining plan on Bitminterfx, you need to first get a Bitcoin wallet.
This wallet is what will be used to store your bitcoins. We and our partners try as much as we can to make sure we
keep our mining hardwares and softwares running 24/7. You don't need to worry on getting mining hardwares and softwares
for yourself after investing/buying a mining plan on Bitminterfx. We work 24/7 to make sure we distribute Customers portion
(Bitcoin) across all our Customers (depends on mining plan).
