The topic of cryptocurrencies and specifically about Bitcoin is quite known at present time in the world, although such subject reached its pinnacle respecting relevance and general fame and knowledge in 2017, when Bitcoin saw its price increased in more than 20.000 dollars per coin in December of that year, making the matter of cryptocurrency interesting for many people.
Now, such sudden interest of the people in general had to do also with other related topic with cryptocurrencies: mining. Since, digital currencies and the way they work allow to mine such monetary resources out of computing power for different functions, which are needed by Bitcoin coin and the other digital financial species to work under the chain of block or blockchain.
Let us talk about a little bit of the history of Bitcoin, how it works specifically and in general as base of the cryptocurrency ecosystem. Also, we are going to talk about mining in detail and how is it that computing power can deliver incomes and profitability in the form of digital coins.
Knowing more about Bitcoin coin
Specifically, Bitcoin is a P2P network and protocol in the technical sense of its definition and concept, if we consider such cryptocurrency as a base platform supporting other digital system payments.
Now, Bitcoin in practical words the count of measure and financial unit inside the P2P protocol and network, allowing the payment system to work as is intended to do. Like this, these Bitcoin units are possible to have a specific transferred value and function as a digital currency or electronic money.
In order to operate, Bitcoin is based and supported on a blockchain platform and technology, which at the same time acts as an open source, large, public, distributed and accounting book where operations are registered and encrypted, having a decentralized approach where banks, financial institutions, governments and other organizations do not have control or influence.
In terms of history, Bitcoin was created in 2009 and the responsible of the project calls himself as Satoshi Nakamoto, although no one knows is this is a person per se, an organization or a small group of people.
Bitcoin is considered the crypto ecosystem base with no doubt, due to the influence and it fame it has, as well as being the digital coin with the most market share in the world, by reaching almost 70 billion dollars at present time.
Bitcoin and cryptocurrency mining process
In 2017 the interest and general knowledge about cryptocurrencies around the world skyrocketed because of the high prices tokens were having. However, such interest was consequence of the mining and profitability possibilities this type of currencies have.
In definition, digital coins work through blockchain as registration system that need to be encrypted for safety and to allow the operations to be carried out in the blocks. For that, computing power is required and mining is how such power is obtained, providing reward in cryptocurrency to those who provide such resources, which means profitability.
Like this, powerful computers with advanced components like graphic cards and high end processors can mine cryptos, such as Monero, Litecoin, Dogecoin, Ripple and others, while Bitcoin is mined through specialized ASIC hardware.