What is bitcoin mining

The Bitcoin network was created as a decentralized alternative to the banking system where it is possible to send values ​​between accounts without depending on intermediaries.

In centralized systems, it is the bank, the company or the organization that has the exclusive permission to update balances of all accounts in the system. When you make a bank transfer to someone, it is the bank that validates the operation, confirms the signatures and updates the balances of both accounts.

With Bitcoin, now anyone who wishes can take part in the procedures that update the balances of this entire accounting system.. The network allows anyone to run its software and help run Bitcoin. through mining, and with the incentive of a reward.

How mining works

The name comes from a analogy with metal mining like gold, which are also finite, scarce and valuable like bitcoins themselves. Only BTCs are not mined from rocks but from complex mathematical calculations.

This job is computer: It is performed by very powerful computers that apply all or most of their capacity to attempt to decipher a mathematical, cryptographic equation, which is released onto the network approximately every 10 minutes, the average time it takes to process a new block of information.

The miner who manages to find the result is the one who will be able to register in the Bitcoin blockchain all that package of pending transactions. For helping to process that block, the miner earn a reward in bitcoins.

In addition to that prize for generating new bitcoins, the miners also receive the value of the transaction fees chosen by users when operating. After all the bitcoins that will be available are mined, this commission will be the incentive for mining to remain active on the Bitcoin network.

How many bitcoins will exist

The maximum total of circulating BTC is 21 million units, a number that could be reached around the year 2140.

Why so long? Is that emission rate is limited to that end, but also is controlled and decreasing. Every four years, more or less, in Bitcoin there is a halving: the halving (measured in bitcoins) of the value paid to miners for processing a new block.

Because of the way the Bitcoin network, its cryptocurrency, is designed and planned. will be more and more scarce, since there will be fewer new units to create.

Is it convenient to mine bitcoins at home?

In order to solve the cryptographic problems that arise as part of the mining process, people or companies that want to mine must invest more and more money in powerful and specialized equipment.

Unlike in the early days of the network, currently the possibility of mining a bitcoin only with a simple computer is practically nil.

Another challenge, in some countries, has to do with the cost of electrical energy for these mining equipment to work, which represents a monthly cost beyond that initial investment in equipment.

If you want to know more about mining equipment and mining costs, check the Mining Guide what we put together for you.

how to buy bitcoin

If you are still not interested in mining, but you are interested in getting bitcoins, remember that on our platform you can buy BTC and other cryptocurrencies in pesos, quickly, simply and safely.

Don’t miss our step by step guide to get your first cryptocurrencies, and definitively join the new economy.