what is bitcoin mining

Ⅰ What is mining in Bitcoin

  1. Bitcoin is a string of codes generated by an open source P2P software, which we call encryption Currency, electronic money, etc. Bitcoin is generated by mining. In popular terms, Bitcoin mining is to use your hardware equipment to calculate the mathematical problems of the SH265 algorithm, confirm network transactions, and ensure the security of the entire network system. As a reward, the Bitcoin system will be calculated based on the contributions of miners. The size of the force gives a certain Bitcoin reward.

  2. Mining is robbing bitcoin. Several bitcoins are generated every once in a while, and whoever grabs them will own it, and the computer connected to the bitcoin system is the “mining machine” that grabs bitcoin. As for the issue of the state’s recognition of Bitcoin, in short, it depends on the possible impact on the country.

Ⅱ What does bitcoin mining mean

Bitcoin is actually a virtual currency , when bitcoin first appeared, if you want bitcoin, you must obtain bitcoin through mining, so bitcoin mining appeared, but bitcoin is more and more difficult to mine, so the current bitcoin It’s been very hard to find.

So now many people use salmon miners to mine virtual currencies such as Ethereum and Monero. The most important thing is that they can directly raise BTC in the end.

Ⅲ What is the relationship between bitcoin and mining

Bitcoin is a certain amount of bitcoins automatically generated by the system as a reward for miners to complete the distribution process. Miners play the role of currency issuers here, and the process of obtaining bitcoins is also called “mining”.
On September 24, 2021, the People’s Bank of China issued a notice to further prevent and deal with the risk of speculation in virtual currency transactions. The notice states that virtual currencies do not have the same legal status as fiat currencies.

Warm reminder: The above content is for reference only and does not make any suggestions; investment is risky, and you must be cautious when entering the market.
Response time: 2021-12-17, please refer to the official website of Ping An Bank for the latest business changes.

ⅣWhat does bitcoin mining mean

Bitcoin mining is a process of using computer hardware to calculate the location of bitcoins and obtain them.

Mining is an incentive process for recording data in the Bitcoin system. In the Bitcoin system, individual users use CPU or GPU to perform hash operations. After calculating a specific hash value, they have the right to package blocks.

In order to reward the user for packing blocks, the system will give a certain amount of Bitcoin as a reward. Because this process is very similar to “mining” in real life, most people call this process mining. In addition to Bitcoin, other electronic virtual currencies can also be obtained through mining rewards, such as Ethereum, Monero, etc.

(4) What is bitcoin mining? Extended reading:

Mining risk:

1, currency security

The withdrawal of Bitcoin requires up to hundreds of keys, and most people will record this long string of numbers on the computer, but problems such as hard disk damage that often occur will cause the key to be permanently lost , which also led to the loss of Bitcoin.

2, system risk

System risk is very common in Bitcoin, and the most common one is fork. The fork will cause the price of the currency to drop, and the mining revenue will drop sharply. However, many situations show that the fork actually benefits the miners. The forked altcoin also needs the miners’ computing power to complete the process of minting and trading. In order to win more miners, the altcoin will provide more block rewards and Fees to attract miners. Risk instead makes miners.

ⅣWhat is bitcoin mining and what does it mean

The concept of bitcoin was originally proposed by Satoshi Nakamoto on November 1, 2008. And was officially born on January 3, 2009. The open source software designed and released according to the ideas of Satoshi Nakamoto and the P2P network built on it.
Bitcoin is a P2P form of digital currency?. Bitcoin transaction records are open and transparent. Peer-to-peer transmission means a decentralized payment system.
1. Unlike most currencies, Bitcoin is not issued by a specific currency institution. It is generated through a large number of calculations according to 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 and the use of cryptographic design to ensure the security of all aspects of currency circulation.
2. The decentralized nature of P2P and the algorithm itself can ensure that the value of the currency cannot be artificially manipulated by creating a large number of bitcoins. The cryptography-based design allows Bitcoin to be transferred or paid only by the true owner. This also ensures the anonymity of currency ownership and circulation transactions. Bitcoin has a very limited total amount and is scarce. The monetary system has been working for 4 yearsThere will be no more than 10.5 million, after which the total will be permanently limited to 21 million.

Bitcoin mining is a computer used to earn bitcoins. Such computers generally have professional mining chips, and mostly use the way of burning graphics cards, which consumes a lot of power. Users download software with a personal computer and then run a specific algorithm. After communicating with a remote server, they can get corresponding bitcoins, which is one of the ways to obtain bitcoins.

1. The price of a bitcoin mining machine ranges from two or three hundred yuan to 200,000 yuan. From 2011 to 2013, the high-profile Bitcoin “miners” increased from 10,000 yuan to 300,000 yuan, but the performance was much better than before. According to industry insiders, it took 100 days for old machines to mine 1 bitcoin, but today’s (2013) machines can mine 3.5 bitcoins in 100 days.
2. According to the mining machine information released by the domestic assembly team, a minimum configuration mining machine with a price of 3,000 yuan, according to the Bitcoin mining speed, can be paid back in more than 30 days. A machine with a mining speed of 10G/s can mine about 0.03 bitcoins 24 hours a day, while a machine with 13G/s can mine about 0.035 bitcoins 24 hours a day according to the computing power and difficulty of the entire network in 2013.
3. Mining is actually a competition of performance and equipment. A mining machine composed of many graphics cards, even if it is only a mid-to-low-end graphics card such as HD6770, can still surpass most of the computing power after “grouping”. of the user’s single graphics card. And this is not the most terrifying. Some mining machines are composed of more such graphics card arrays. Dozens or even hundreds of graphics cards come together. The graphics card itself also costs money. Counting various costs such as hardware prices, mining There are considerable expenditures.

Ⅵ What is bitcoin mining

Mining is just a metaphor, in fact, bitcoin mining means that through hardware suitable for bitcoin computing , and then run some calculation programs of Bitcoin. If the calculation is correct, the corresponding Bitcoin will be obtained.

However, this is not a simple process. First of all, its requirements for configuration are very good, and ordinary home computers do not need to think about it at all.

In addition, its calculation program will automatically adjust the difficulty according to the number of people and the amount of coins issued, and it will become more and more difficult in the future. Therefore, mining will have higher and higher configuration requirements.

Again, miners should understand the hardware and assemble a good configuration. If they don’t understand, they will spend a lot of money to buy it. Generally, it costs tens of thousands more, and the current difficulty cost is difficult to recover.

Finally, you need to install the program, register the miner number, set the code, and then you can mine.

Therefore, the technical difficulty of mining is a bit high.

VII What does bitcoin mining mean

Bitcoin mining is simply using the computing power of your mining equipment to solve mathematical problems and confirm the network Transactions, thereby ensuring the security of the entire Bitcoin system, in return, the Bitcoin system will give miners unequal Bitcoin rewards.

The professional point is: mining is a distributed consensus system that includes the transaction data to be confirmed into the block chain, thereby completing the confirmation of these transactions. Through mining, it is mandatory to ensure that the data in the blockchain is stored in chronological order, maintaining the neutrality of the Bitcoin network, and allowing different computers on the Bitcoin network to reach an agreement on the system state. For a transaction to be confirmed, it must be packaged into a block that conforms to very strict cryptographic rules and verified by the Bitcoin network. These rules prevent modification of existing blocks, because once a change is made, all subsequent blocks will be invalid. The difficulty of mining is comparable to winning the lottery, and no one can easily and continuously add new blocks to the blockchain. Therefore, no one can control what is included in the blockchain or replace parts of the blockchain in order to reduce their costs.

At present, Bitcoin mining requires professional ASIC mining machines, for example, Avalon mining machines (commonly known as Pumpkin Zhang mining machines) that have created countless industry firsts, it is said that Avalon 2.3 The T mining machine is about to come out, the 28nm chip is about to be taped out, and the 16nm chip is also under development.

VIII What is Bitcoin mining

Bitcoin mining is to confirm and record the transactions that occur in the Bitcoin system over a period of time. In the process of forming a new blockchain on the blockchain, the people who mine are miners, and those who dig mines are rewarded with bitcoins. In other words, mining is the process of producing bitcoins.

IX What is bitcoin mining

Bitcoin mining is the consumption of computing resources to process transactions, ensure network security, and keep everyone in the network in sync the process of. It can be understood as the data center of Bitcoin, the difference lies in its completely decentralized design, miners operate in various countries in the world, noA person can have control over the network. This process is called “mining” because it is similar to panning for gold, as it is also a temporary mechanism for issuing new bitcoins. Unlike panning for gold, however, bitcoin mining rewards services that ensure the safe operation of the payment network. After the last Bitcoin was issued, mining was still a must.
In a nutshell, Bitcoin mining calculates a mathematical problem based on the SHA256 algorithm. To confirm network transactions, the Bitcoin network will give equal Bitcoin rewards according to the amount of computing power contributed by the miners. At present, Bitcoin mining has gone through three stages, CPU, GPU, ASIC. At present, ASIC mining machine is the dominant one. Among them, the Avalon mining machine is particularly prominent, and the Avalon mining machine has been walking in the mining machine. At the forefront of the industry, it is the leader in the bitcoin mining industry. At present, mining machines with three-generation chips have entered the market, and the fourth-generation chip is said to be under development.
【Extension Information】
Anyone can become a Bitcoin miner by running software on specialized hardware. Mining software listens for transaction broadcasts over the P2P network and performs the appropriate tasks to process and confirm these transactions. Bitcoin miners complete this work and earn transaction fees paid by users to speed up transaction processing and additional bitcoins issued according to a fixed formula.
New transactions need to be included in a block with mathematical proof-of-work to be confirmed. This proof is difficult to generate because it can only be generated by trying billions of computations per second. Miners need to run these calculations before their blocks are accepted and rewarded. As more people start mining, the difficulty of finding a valid block is automatically increased by the network to ensure that the average time to find a block remains at 10 minutes. As a result, mining is very competitive and no individual miner can control what is contained in the blockchain.
Proof of Work is also designed to have to rely on past blocks, thus enforcing the chronological order of the blockchain. This design makes it extremely difficult to undo past transactions because the proof-of-work for all subsequent blocks needs to be recomputed. When two blocks are found at the same time, the miner will process the *9 blocks received, and once the next block is found, it will be forwarded to the longest block chain. This ensures that the mining process maintains a global consistency based on processing power.
Bitcoin miners can neither increase their rewards by cheating nor deal with fraudulent transactions that disrupt the Bitcoin network, because all Bitcoin nodes will reject blocks containing invalid data that violate the rules of the Bitcoin protocol. So even if not all Bitcoin miners can be trusted, the Bitcoin network is still secure.

X What kind of bitcoin mining farms

If you want to understand bitcoin mining farms, you must first understand bitcoin mining related matters:

1. Bitcoin mining

It is to use the computer that earns Bitcoin, download a special Bitcoin computing tool, and communicate with the remote server (then, register various cooperative websites, and register the registered users Fill in the name and password into the calculation program, and then click the operation to officially start) to get the corresponding bitcoin.

This type of computer generally has professional mining chips, which mostly use the way of burning graphics cards, which consumes a lot of power.

Second, to be a miner is to use your own computer to produce bitcoin.

There was an option for mining in the early client, but it has been cancelled. The reason is very simple. As more and more people participate in mining, it may be necessary to mine by yourself. There were only 50 coins in the last few years, so the mining speed is too slow and the cost is high.

Three, Bitcoin mines

With the increase of miners and the increase of mining costs, miners are generally organized into miners’ guilds, and everyone digs together.

So there are professional miners who have organized into a professional mining team; they use professional mining machines (computers), professional maintenance personnel, and dedicated venues to mine.

This kind of mining team composed of special sites, professional equipment, professionals, etc., and the working area where they are located, is usually called a “mine”.

Bitcoin mining farm, simply put, it is actually equivalent to a server room.


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