Bitcoin is the cryptocurrency that has risen in the past few years. Initially, it had no value in the market, but with time now, people had started investing in it and had started to take an interest in it for the whole purpose of getting huge profits.
Bitcoin Mining is considered to be the essential process of the bitcoin transaction. So it is exciting to work to move on with. And now, in this article, our sole purpose will be to provide you with the whole information about data mining.
Data Mining is the process in which the transactions are being calculated and are being verified by the miner. The work of the miner is to solve the mathematical problem of the transaction through his high computational power. This process leads to the filling of the block whose storage is about 1 megabyte.
After the filling of the blocks, the person will get the reward in the form of bitcoins which is known as block rewards. So as the miner moves on to fill the blocks, he will be rewarded equally.
If 2 or 3 miners are solving the transaction at the same time and they had filled the block with their equal computational power, then all the miners will get their rewards which are in the form of bitcoins.
The rewards that are obtained after the mining process is known as mining bonuses. These rewards when the mining just started were 50 BTC. But later, there was the policy by Satoshi Nakamoto called the bitcoin-prime.app that the rewards would get halved every four years. So this was then split to 25, then 12.5, and nowadays, in 2020, it’s just 6.25.
This is also recorded that as the number of miners increases for a single transaction, then the difficulty level will automatically rise. As there is enormous competition, their large number of miners present, we can say that there are thousands of miners present for just a single transaction. So it gets complicated with time.
Mining In India
The work of the miner is considered to very interesting work. He gets rewards by just solving the problems. And everyone thinks that this is a straightforward process and anyone can do it, but this is not true. Having a computer does not lead you to be a miner at the very top place. If you want to start with the mining process, there are many factors necessary for that thing.
Firstly if you want to be a miner, you should have knowledge of bitcoin that what is bitcoin, and how it works.
Secondly, you should know the tools which are used in the process of mining. The thing also comes that the electricity cost is too high in India. As in China, about 65% of mining processes are done there because of many reasons. One of which the electricity cost is almost half. And the other thing is the advancement in mining tools.
There are many mining tools that are present in the market to be a miner. Initially, when it all started, there was just a simple computer which can solve all the problems. Later on, with time, when miners increased, the tool named GPU(Graphics Processing Unit) was used. This tool is basically used by gamers.
Then the other tool came FGPA, this tool works the same as that of GPA, but its power of working is approximately 3 to 100 units more as compared to that of GPA.
Nowadays, there is a unique tool that is ASIC (APPLICATION SPECIFIC INTEGRATED CIRCUIT). This tool is majorly designed for miners. This tool is considered to solve the heavy computational power.
The mining process is, however, a very interesting process, but various factors come up. Like investment cost, computational advancement, and other factors like electricity. So this is most of the time, this is advised that if you want o be a miner in India, then you should probably make direct investment in the bitcoins because the investment cost is too high to about 5000$-10000$ approximately. So, one should wisely think before being a miner in India.