Cryptocurrency mining

What does actually control our lives? What is discussed all over the world on the radio and TV? As far as you might have understood it is money. Both now and always people were only concerned about money and how to earn it. The money itself developed throughout the centuries acquiring new forms. A large number of currencies forced people to look for the single and multipurpose currency without obeying common laws like well-known currencies do. This need resulted in cryptocurrency creation opening new ways for its further development. Let’s find out what is cryptocurrency?

Cryptocurrency Mining: What is Cryptocurrency ?

Сryptocurrency is a new digital currency protected by special code without depending on inflation of the common currencies. It doesn’t exist in the real world, only in the digital space. For the first time, it appeared in an article on the Bitcoin, a new breakthrough in the world of currencies and ways of payment. Bitcoin was created by Satoshi Nakamoto. However, this is a fake name and still, nobody knows who is it and whether this is one person or a group of scientists. There were a couple of features that attract many investors. First of all, this currency provides anonymity for the user, it can’t be hacked or controlled by governmental organizations.

Besides Bitcoin, there are approximately thousand other cryptocurrencies. Capitalization of Bitcoin today reaches 42 billion dollars; it is 40% of the entire market let alone the numbers it reached last year. The propagation of Bitcoin can be explained due to the fact that this is the first currency of its kind. It caused the emergence of a huge number other currently existing cryptocurrencies. Bitcoin, as well as other cryptocurrencies, is based on the principle of decentralization. Due to this one, Bitcoin is out of rich of government and other institutions intended to control it.

All the cryptocurrencies are based on the blockchain technology; it is a chain of transaction blocks with all the information stored on a set of computers connected by the Internet. The history of transactions is open to all the participants and can’t be changed. However, they stay anonymous having equal rights. The blockchain is simply an account book with all the transaction recorded. The only way to update it is to conduct a transaction. In this case, any updates can be carried out only being approved by the majority of transaction participants. That’s why it is impossible to delete any transaction or modify the data. Therefore, operations on the block are featured by transparency, speed, and low cost.

What is cryptocurrency mining? Having approved certain transaction you are awarded by the participants of this one and by the cryptocurrency system. In order to earn money using cryptocurrency mining, you need a powerful equipment called ASIC. It is an installation uses multiple video cards to mine cryptocurrency. However, there is a little peculiarity featuring Bitcoin from other currencies. Unlike other currencies mined by means of video cards, Bitcoin uses special chips for mining.

Today, this is the most promising way to earn money by means of safety and profitability provided by cryptocurrency. Anybody can by his or her personal ASIC and start mining cryptocurrency sitting at home. However, as was already mentioned by the creators of cryptocurrency system, there will be a limited number of units and soon enough any transactions will be possible only among those who already have Bitcoins or other currencies excluding the possibility of mining.

About the author: Melisa Marzett is that author that have enough guts to dig a little deeper into this new tendency. This essay she dedicated to the cryptocurrency mining trying to explain it as simple as possible so you could understand the essentials of this process. Working as a freelance writer, she can easily bring some magic to your essay as well. Order your paper on www.royalediting.com

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