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January 11, 2022

What is Bitcoin mining?

What is Bitcoin Mining 

When you mine actual Gold you have to use very complicated and expensive tools and it becomes progressively harder to get more because you exhaust your source. Similar to Gold, Bitcoins also need to be mined, but with very high powered computers that are specialized in solving complicated math problems. 

Today, it takes about 86k kWh to produce one bitcoin which is roughly 8x the amount of energy a single family home in the US consumes per year and while these computers are fast, it takes one computer 3 years of calculation for one bitcoin.

That is why the space got very sophisticated with huge bitcoin farms where many computers work in parallel. Energy and hardware cost together result in about $20k per bitcoin - plus miners currently receive 6.25 bitcoins for every new bitcoin mined as a reward. 

That’s why at the current bitcoin value of $42k it is still a very profitable business.

And next time we learn what an Altcoin is.

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