Are Bitcoin Miners Illegal? Is it a scam?

Speaking of bitcoin mining machines, in fact, it refers to those computers that are specially used to earn bitcoins. Such computers are generally equipped with specialized professional mining chips, and most of them will install a large number of The way of the graphics card works, because Bitcoin mining is a very graphics-intensive work, and its power consumption is also very large. Bitcoin mining is mainly to download mining software through a computer, and then run a specific algorithm to obtain the corresponding bitcoin, which is one of the ways to obtain bitcoin. Are many investors who want to mine worried that Bitcoin mining machines are illegal? They don’t know if bitcoin miners are scams, so let’s talk about it.

Is Bitcoin mining illegal?

At present, the country has not issued any laws stating that Bitcoin mining machines are illegal. Bitcoin miners are one of the ways to get bitcoins. Bitcoin (Bitcoin) is a network virtual currency generated by open source P2P software.

It is not issued by a specific currency institution, and is generated by a large number of calculations of a specific algorithm. The Bitcoin economy uses a distributed database composed of many nodes in the entire P2P network to confirm and record all transaction behaviors. The decentralized nature of P2P and the algorithm itself can ensure that the value of the currency cannot be artificially manipulated by mass-producing Bitcoin.

Bitcoins are issued and traded through mining, which is minted at a deterministic but ever-decreasing rate. Each new block is accompanied by a certain amount of brand new bitcoins that are created from scratch, which is rewarded as a coinbase transaction to the miner who found the block.

The reward of each block is not fixed, every 210,000 blocks are mined, it takes about 4 years, and the currency issuance rate is reduced by 50%. During Bitcoin’s first four years of operation, 50 new bitcoins were created per block. 12.5 new bitcoins are created per block. In addition to block rewards, miners also receive fees for all transactions within the block.

Are Bitcoin Miners a Scam?

Bitcoin mining machines are not scams. The principle of Bitcoin mining is to execute rules made by humans and automatically executed by computers. The inventor of Bitcoin, Satoshi Nakamoto (Satoshi Nakamoto), laid out this rule from the very beginning, and everyone involved in the Bitcoin blockchain must automatically follow it unconditionally.

The content of the rule is roughly that those who package the bitcoin circulation data into a fixed size, and then upload it to the blockchain for simultaneous broadcast of the bitcoin network, can be rewarded by the system 50 bitcoins. Under certain conditions, these rewards will be halved, approximately every 4 years.

A person who wants to complete the packaging and sorting of data must first have the necessary tools, that is, the software that executes the Bitcoin blockchain, and the machine that runs the software (a computer at the beginning); then download and save With all the bitcoin transaction data that has been recognized by the whole network, at this time you become a “node” and a part of protecting the blockchain data.

The node runs a specific mathematical formula and gets the priority of the packaged data only after the correct answer is obtained. For the node with priority, whoever completes the packaging first and then uploads it to the blockchain, and is accepted and recognized by other nodes, the system will automatically distribute the reward to him.

The above is a detailed answer to the two questions: Are Bitcoin mining machines illegal and Are Bitcoin mining machines a scam? In fact, the mining process of calculating the mathematical formula and then completing the package to obtain the reward is very similar to when we are fishing for sand in the big river. We need to eliminate many wrong answers before we can find the real answer, so everyone calls this process. It’s mining. Therefore, Bitcoin mining is not really about digging something. In fact, it is just using the computer to keep colliding and guessing. Whoever guesses first will get the reward, that’s all. Although Bitcoin mining is not a scam, there are still many risks in it, and everyone must pay attention to prevention.

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