Nakamoto introduced bitcoin in 2009, and it is the first digital currency that has no custodian authority. For example, you need to open an account in a bank to transfer your funds to another account, and here bank is the custodian of your money. So, you cannot own fiat currency and you have to rely on bank or financial institutions to make a transaction with your own money, and you need to pay an additional fee for your international transactions. Bitcoin has removed such barriers and now you can own your currency without relying on a custodian authority. You can read more here.
Bitcoin miners can mine such digital currencies just by making solutions for mathematical problems that are complex and hard. As stated above that bitcoin is free from any custodian authority and central control, anyone can mine these coins from their own place. But miners will get maximum ten minutes to validate a transaction with bitcoin and generate new coins in the market. There are many miners working on the same blockchain and they have to face a huge competition while they mine such coins. As fast as you solve such equations and validate a transaction, you will get a reward as miner.
Main role of a miner:
As a miner, you need to add a new block to the bitcoin blockchain to validate a transaction with this digital currency, and you need to solve some complex math equations for the same. Finding the correct answers to add a new block is not an easy task and you will get a reward if you solve such problems faster than others. Reward programs can be different and it can keep changing, and you will get a reward of 6.25 bitcoin after adding a new block to its blockchain.
So, if you want to earn bitcoin without investing your funds then bitcoin mining is the right way to earn such coins at free of cost. Apart from that, there are gamming platforms available where you can get rewards as bitcoin, and you do not need to go through this mining process. It is true that you do not need to invest your hard-earned funds in crypto if you know how to mine bitcoin, but you need to spend your valuable time for the same. Plus, you need to spend a huge amount to set-up the infrastructure for mining bitcoin and you have to pay a huge power consumption bill every month. If you do not want to go these complicated processes then you can simply visit Bitcoin Era and invest your surplus funds on Bitcoin. Always remember to start small with the trading and steadily increase the investment once you get a high return.
Rewards that you get as bitcoin miner:
You need to validate a transaction with bitcoin and add a new block to the bitcoin blockchain. As a reward you will get bitcoin. The rewards get slashed in half of four years. Now you can get 6.25 BTC after adding each block to the blockchain. How would you get this reward? Basically, users pay a certain fee for their transactions with bitcoin and miners will get this fee as reward. Currently, miners can get a small amount of bitcoin as reward, but it will be increased in future once there will be more transactions are made through bitcoin.
- As a miner, you need to use GPU or an ASIC. GPU stands for graphics processing unit and ASIC stands for application specific integrated circuit.
- You need to invest a huge amount every month as power consumption cost. Apart from that, you need to use some high-end software for bitcoin mining.
- There are some mining pools available where miners can join and they can work on the mining project together to earn a high return. You can join such mining pools as a miner.
You need to know about hashes before you start bitcoin mining because you need to use a hash as input to generate a new block and you will find the same output on every transaction when you use this hash. Sometimes, the output will change randomly and you need to match this output to validate a transaction.