Things to know about Bitcoin Mining

Things to know about Bitcoin Mining

One of the oldest ways to earn crypto is through bitcoin mining.

In order to maintain ecosystem, during mining, crptocurrenies, that is premised on Proof –of- work (PoW) consensus mechanism, use decentralized blockchain networks in which miners leverage on.

Bitcoin miners receive a share of transfer of fees and block rewards, in exchange for  verifying transactions and adding to the chain.

In recent years the profitability of Bitcoin mining has plummeted unlike in the past years when Bitcoin mining is a lucrative business model in earning crypto.

Loan to bulk-order new generation hardware and access to cheap electricity, has dominated the mining space by large farms.

Currently, there is an intense completion between miners, because BTC hashrate has been hitting record-high levels lately there was a decrease rewards by May’s halvening, from each of the newly mined block from 12.5 BTC to 6.25 BTC.

Though there are moderate risk for Bitcoin mining, it may seem herculean to new miners, because they have to acquaint themselves on how to operate and set up their equipment.

 

 

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